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4 Ways Automation of HR Process Benefits Small Businesses

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4 Ways Automation of HR Process Benefits Small Businesses

Small businesses are hard pressed when it comes to time and money. When you’re dealing with fewer resources, you simply have to learn to make the most of what you got and to optimise your operations. In order to do this, automation of HR process can provide a huge leverage.

HR has to deal with a lot of administrative tasks. This can range from dealing with employee applications to creating holiday schedules. Anything from the hiring to payroll involves multiple administrative tasks that often centre around documentation. Anyone who’s ever dealt with paperwork knows that this is time-consuming – time a small business HR department doesn’t often have.

The traditional HR process’ model shows that almost 60% of the HR department’s time is spent on administrative tasks. This leaves little room for policy, planning and business partnering. However, these three tasks are often the most important in terms of productivity and profit. Simply by cutting the amount of time spent on administration, a small business can put more focus on business partnering and policy and planning. Eventually, this will drive up the efficiency and profits.

The good news is that the solution to changing the HR processes around isn’t difficult. It can all happen with the help of automation. The adaption of HR software for small business that boosts automation can cut down time spent on administrative tasks.

What does automation mean?

What does this automation mean then? HR automation is essentially the reduction of workload by utilising available, and often scarce, resources better. When you automate a task, you take away the need to micromanage it. In terms of administrative tasks, you do not have to manage each step of the process, as most of it will happen automatically after initial launch.

The use of automation in administrative HR tasks can take place in many ways. It could manifest in payroll management with a system that automatically calculated salaries and creates invoices without the need to manually adding hours to a system. It could also be a system of ATS (Applicant Tracking System) that selects and approaches the right candidates to interview for a position. The uses are endless and a number of HR software for small business options are already out there.

How can it help small business

To understand the benefits the automation of HR processes can bring to a small business, you must consider the four ways automation changes these processes.

By reducing repetition and duplication

A well-integrated HR software for small business can take data from multiple sources and then compiles those together. Automation creates a single source of information, allowing different software solutions to draw in information and ensuring the data is always updated and correct. This reduces duplication and repetition – time will be saved in terms of having to manage data.

By streamlining HR documentation

Administrative jobs are essential for business success but they can easily create a burdensome system within HR. The large amounts of data that even small businesses must possess can be problematic. By automating the documentation, the HR department will be able to streamline these processes. You can’t lose data files and the security of your data remains intact because it is centralised and automated.

By creating a more interested HR workplace

HR professionals don’t study years to become good at entering information into a spreadsheet. Automation takes away a majority of the mundane tasks and allows the HR personnel to unleash their expertise. Instead of wasting time sending invoice information, your HR personnel can actually spend time managing the employees and ensuring they develop and grow as a productive member of the team.

By improving your employee management

In general, because automation frees time it will also ensure your HR staff is more efficient in managing employees. HR process automation creates a system where every member of your team is appropriately managed and their needs are met. Things like holiday pay, health insurance, onboarding and sick leaves are dealt with appropriate software instantaneously.

Another important factor of this is not just efficiency and accuracy but also the improved communication. Most automated HR software for small business creates platforms of two-way communication. Not only is the HR staff able to access the information but so is the employee. This creates more transparency that can make management easier. Employee satisfaction goes up, increasing retention rates and reducing the need for costly hiring.

Automation of HR process is about saving time and money

In short, automation has a huge impact on small businesses. By automating the mundane tasks and HR processes, you will be able to cut down costs and save money. Your HR operations become more effective, easing the burden on your HR staff but also improving relationships within your small business. Adopting the right HR software for small business and implementing automation can help your small business succeed in the competitive world.

August 16, 2018 at 03:18PM

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