5 Reasons to Start Using HR Automation Tools [With List of 5 Best Tools]

5 Benefits of HR Automation Tools You’ll Start Drooling Over 

Shivasankari Bhuvaneswaran

December 10th, 2018 HR Process  

The HR landscape is experiencing unprecedented changes due to technological evolution. Whether it is meeting the expectations of tech-savvy millennials or satisfying regulatory norms, HR technology has never been so vibrant due to HR automation tools. However, like changing business dynamics, HR tech comprises its own set of opportunities and threats.

One area where technology in the form of hr automation tools is causing an instant impact is with HR automation. HR has been one huge manual machine for decades, but new technology means less papers, less forms, less files, and less people needed to do everything. 

hr automation tools

HR leaders today understand how effectively technology can enable their business. They seek contemporary, agile, and fast-paced HR management software to keep up with their evolving business needs. However, not all the solutions available in the market can offer the edge their organizations need.

Paperwork bundles were replaced by legacy HR systems. The static paper trails left behind by legacy systems were taken over by cloud-based HR automation tools. Cloud HR took a significant leap, and landed at HR Automation. Through HR automation tools, organizations can create, streamline, connect, and deploy necessary services rapidly at a considerably lower cost.

How to know that it’s time for HR automation tools

Here some clear signs that show you’re fighting a losing battle and it’s time to automate your HR processes using HR automation tools.

1. Reduced HR budgets or HR staffing

SMBs always run on a cash crunch and they can’t afford major tech purchases. Most teams are advised to make do with whatever little is left. So, they try to rein in their spending at every avenue, which messes up their priority list. But, budget cuts and staffing shortages often lead to more problems. 

Is your management asking you to do more with less? The obvious solution is asking for HR automation tools to help you do exactly that. HR technology is not as expensive as it used to be. And the right HR automation tool can automate manual tasks, simplify documentation, ensure compliance, and relieve the burden of your HR staff time giving them time to focus on high impact activities.

2. Subpar recruitment and onboarding process

Recruitment and employee onboarding are two of the most important HR processes. However, most SMBs neglect them. Your HR leaders spend a huge amount of time to search, identify, interview, shortlist, select, and hire a candidate. But signing an offer letter isn’t the finish line. The onboarding process demands the same amount of energy from your HR staff. 

Automating recruitment and onboarding processes using an HR automation tool will streamline them, shorten the onboarding period, inject more transparency, reduce manual errors, and improve overall efficiency.

3. Timesheet management has become a nightmare

Traditional paper-based timesheets cause too much trouble and chaos in the payroll process. Even digital forms are not completely reliable. Despite the monetary aspects attached to them, everyone (Employees, HR, Payroll team) finds the process to be a nightmare. 

If your HR leaders still deal with the mundane tasks like chasing, collecting, verifying, and updating timesheet information manually, it is time to consider an automated timesheet management application.

4. Outdated performance appraisal process

The traditional performance appraisal process is neither motivating nor productive. Rather than considering it as a tool for improvement, employees (Supervisor, Employees, HR staff) tend to treat it as a painful errand.

Traditional performance management is not only cumbersome but also inflexible and non-responsive to the need of the current workforce. So, it is time to adopt a dynamic automation tool that tracks, measures, monitors, and improves your employees’ performance through a series of ongoing check-ins.

5. A long leave approval process that takes weeks

Outdated leave management tools like paper forms, emails, and excel sheets make leave management a long and complex process. These archaic tools require manual reconciliation which drags down the efficiency and productivity of HR staff with errors and inaccuracies. 

Errors in your leave management process can result in payroll issues, administrative problems and even legal/financial implications. To solve the pain-points involved in leave management, it is vital to move on from spreadsheets and paperwork and find a technological tool that will declutter the mess.

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Benefits of using HR automation tools

With the right HR automation tool, automation can be relatively easy and reap indispensable benefits. A better understanding of these benefits will help organizations realize that hr automation is no longer an advantage but a necessity. Here are five game-changing HR automation benefits.

1. Accuracy

“HR automation offers more data points with higher accuracy to make better hiring decisions”

Rajeev Menon, Advisory Board Member, Snehadhara Foundation

No matter how well managed an organization is, without proper technology, it will face one major headache: human error. Mistakes are impossible to anticipate or eliminate. They trigger a huge amount of rework, consuming a lot of time and money to set it right. Rework affects employee morale and efficiency.

The major reason behind inaccuracies in HR processes is manual intervention and the complex nature of workflows. HR automation streamlines the entire workflow by breaking down its complexity. It eliminates manual dependency, and reduces manual errors.

2. Time-savings

The major benefit offered by hr automation tools is its time-saving capability. HR process automation completes repetitive manual tasks with unmatched accuracy and time. This directly saves the valuable time employees devote to pushing papers and performing menial tasks. HR staff and other employees can now be more productive and devote that time to high-impact tasks.

HR automation saves labor hours by:

  • Automating repetitive tasks
  • Eliminating manual intervention
  • Bridging process gaps

3. Cost-effective

Eliminating human errors and automating menial tasks reduces the huge cost factor associated with HR software. Unlike an off-the-shelf HRMS, HR automation enables organizations to selectively automate the processes they need to–organizations won’t have to invest huge sums to acquire software that includes a whole slew of unnecessary features.

“Organizations save 10-20 percent in overall benefits and HR delivery costs with HR process automation” – Hewitt Associates

Unlike stand-alone HR systems, automation doesn’t require huge upfront investment and hefty maintenance fees. Most HR automation tools in the market offer a pay-as-you-use model, making it an ideal choice for SMBs who need to ramp up their HR processes within a stipulated budget.

4. Efficiency

With fewer errors and more productivity, employees can focus more on value-added activities. As the pre-defined approval hierarchy and audit trail display real-time status of all tasks, it reduces finger-pointing, and encourages employees to be more productive. Also, enhanced collaboration allows employees to work together to alleviate burgeoning workloads.

A recent version of the IJMIE journal noted that automating HR processes significantly improved the efficiency of your HR staff. HR automation removes process bottlenecks and makes the entire process transparent. The simplified interface makes organization-wide collaboration an easy task. Automation unlocks actionable insights and helps organizations make better-informed decisions.

5. Consistency

Increased complexity in the HR landscape calls for consistency. But manual HR workflows are rarely consistent. Every employee in your organization does things differently. When a process is set up by a specific person from scratch, it will be unique depending on the person who set it up.

Although checklists and post-its help you remain consistent, the manual intervention and isolated HR management tools end up causing variations. A study from EY found that HR automation maintains consistency by identifying and excluding identical processes and variable outputs.

HR automation ensures that all tasks are carried out in a uniform way, irrespective of complexities. By sticking to the predefined workflow, you can prevent process irregularities and output variations.

Top 5 HR automation tools

With the benefits in mind, here are some of the popular HR tools available in the market that you can evaluate for your business.

  1. BambooHR

BambooHR is a HRMS software that has all the features you would look for in a  full-blown HRMS software including HRIS, HCM and ATS systems.

  1. Kissflow HR Cloud

Kissflow HR Cloud is a complete HR suite that is capable of automating every aspect of HR like recruitment, employee onboarding, performance appraisals, leave requests, timesheet approvals, performance appraisals, exit interviews, and offboarding. It comes with an array of cutting-edge functionalities like dynamic workflows, rule-based processes, online forms, interactive reports, and a self-service portal. 

  1. Zoho People

Zoho people has a number of tools on the platform, letting you track leaves, manage timesheets, create custom forms, manage performance appraisals, and more.

  1. iCIMS Talent Acquisition

iCIMS Talent Acquisition is more than a talent acquisition software. Its is a powerful SaaS tool with a lot of hr modules like talent acquisition, applicant tracking, onboarding, and management solutions.

  1. ADP

ADP is an all-in-one solution that unites HR, payroll, talent, time, and tax and benefits administration.

HR automation made easy using Kissflow HR Cloud

Cost-reduction, time-efficiency, accuracy, consistency, and efficiency are the commonly cited benefits of HR automation. The list goes on–improved productivity, scalability, accessibility, agility, security, and so on. However, all these benefits ultimately lead to ‘improved business efficiency and profitability’.

Although HR automation tools offer unimaginable benefits, selecting the right tool is the key.  Rather than choosing a tool where processes need to be created from scratch, businesses can reduce the time-to-market by opting for a ready-to-use solution like Kissflow HR Cloud. 

With Kissflow HR Cloud, businesses can streamline processes, improve their overall efficiency, and enhance their organization’s profitability at a minimal cost. Organizations can align workforce performance with the overall business vision and goals. Leverage the power of automation to expand rapidly while keeping down the cost and risk.

Sign up for the free trial to see how Kissflow can alleviate the pain points in HR processes.

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