HR Automation: What Will the Future Look Like?

The pandemic accelerated the hybrid work model for global companies and gave a new dimension to HR process automation. A 2022 research by Gartner shows that 74% of HR leaders believe their organizations are undergoing a broader transformation to become more agile. This includes the adoption of AI tools, the use of Robotic Process Automation, and the creation of virtual strategies for better talent retention.

Organizations are embracing the shift to HR automation as means of improving globalization within their workforce. By doing away with bureaucracy and adopting more connected, diverse practices, companies have found success in eliminating geographic and cultural boundaries.

In this article, we dive deeper into how HR automation is driving change and what the future looks like. 

But First, What is HR Automation?

HR automation involves using technologies to eliminate repetitive tasks and improve HR processes, including tasks related to recruitment, onboarding, performance management, payroll and benefits administration, and employee engagement.

How HR Automation Can Benefit Your Company?

• Enhanced efficiency: HR automation streamlines complex processes and helps leaders focus on more strategic initiatives like boosting employee engagement, addressing concerns, and talent recruitment. 
• Improved compliance: By automating compliance-related tasks, companies can reduce the risk of fines, penalties, and legal issues.
• Better data insights: HR automation can provide companies with valuable data insights that can be used to improve decision-making and drive business results. For example, analytics software can be used to track employee performance, identify areas for improvement, and make data-driven decisions.

How Are Companies Using HR Automation to Become More Agile?

In today’s fast-paced business environment, companies are adopting HR automation technologies for increased cost savings, productivity, and overall competitiveness. Using these technologies helps companies automate mundane and repetitive tasks to create a work environment that is flexible and responsive. 

Let’s explore a few use cases of companies that have increased productivity using HR automation. 

• Deloitte Streamlining Key Management Reports Through RPA

A recent IBM case study stated an interesting example of how HR automation helped Deloitte transpire change in the most simple yet impactful way. For years, preparing and streamlining key management reports took a lot of time for Deloitte’s employees. They had to manually input data into multiple systems and prepare Excel spreadsheets under rigorous deadlines. And to ensure that there are no errors, senior management had to spend hours reviewing them. 

Execs shared that it took them 5 to 8 days of steady work to gather information, prepare the budget, and report the updates. It also took their time away from other value-addition activities.

Through the use of RPA bots, the company was able to reduce the preparation time for management reports from 5 days to 1 hour. After using RPA bots to streamline management reports, the company has set up additional bots dedicated to the monthly management report, accounts receivable, travel expenses, and currency exchange rate monitoring.

• AI-Powered Tools Help Coco-Cola Boost Productivity By 30%

Gulf Coco-Cola wanted to optimize its HR processes, including the ticket management system, IT workflows, and other finance-related services for keeping up with evolving employee needs. To do this, they launched Leena AI’s conversational platform, AskArwa, to streamline and automate employee queries across multiple channels. The solution helped eliminate internal inefficiencies and enabled HR leaders to make informed decisions. 

Now, HR professionals have a single all-in-one dashboard that lets them keep track of employee queries and address them effectively. With AI-powered tools, the company was able to reduce the resolution time from weeks to days.  

• The Patriots Designing Digital Recruitment Strategies For Long-Term Success

Incorporated in 2019, The Patriots is a mid-sized investment holding and digital publishing company. Earlier, they relied on Excel sheets and faced multiple challenges, including time-consuming attendance systems, unsystematic data management, and inefficient manual recruitment process. 

To solve these issues, they partnered with GrooveHR systems and adopted a system that allowed them to organize data seamlessly, send automated follow-ups to potential candidates, and track the recruitment process of each candidate. The system also helped them to solve their attendance and payroll issues, making things easier to process and meet growing business needs.

What Does the Future of HR Automation Look Like?

Adopting HR automation technologies is no walk in the park. That’s because the type of technology HR leaders decides to implement will determine their capability to recruit and manage talent in the future. Innovations such as AI, RPA, and virtual assistants have paved the way for companies to create a more connected workforce. Let’s discover how these technologies will shape the future of work in 2023 and beyond. 

• Combining AI And People Analytics 

People analytics means following a data-driven approach to manage people at work and improve critical business outcomes. By automating the data collection process and using AI tools to analyze massive datasets, managers can improve the HR pipeline, including recruitment, compensation, training, and evaluation. Here’s how AI and people analytics can change the HR processes for the better: 

• Act on data-backed insights: HR leaders can harness the power of AI and People Analytics data to gain valuable insights that support unbiased decision-making and effective responses to workplace issues. This helps create a collaborative environment where employees feel engaged and heard.
• Provide better learning and development programs: Using performance indicators, leaders can create personalized learning programs for employees to accelerate their professional growth. 

• Using Automation to Better Manage Remote Working 

Remote working will persist and require management to create flexible work policies and adopt innovative digital tools to empower employees to work from anywhere. Here’s how automation will help employees manage remote working in the future: 

• Better virtual collaboration: Research shows that RPA bots, video conferencing tools, employee self-service portals, and instant messaging apps have helped remote employees feel connected. 
• Moving towards self-directed teams: Automation tools are helping remote teams to manage mundane tasks like document storage, publishing, and sharing faster and more efficiently, making teams more productive and self-sufficient. 
• Better onboarding experience: A survey has found that a positive onboarding experience can improve employee retention by almost 82 percent. With automation tools, HR leaders can design interactive onboarding employee experiences with round-the-clock support to help them focus on strategic work and eliminate inefficiencies. 

• Rise of Automated Wellness Programs

Recent reports show that employee wellness is expected to be a top priority for HR leaders in 2023. This is because depression and anxiety rates have increased by 25%. It is a major wake-up call for employers to shift their priorities to people and create personalized mental health wellness programs.

In the future, businesses will focus more on holistic wellness programs that can help employees to manage their mental and physical health. There will be comprehensive schemes that involve initiatives like gym memberships, spaces for meditation, and round-the-clock support. The rise of automated mental health programs fueled by AI and RPA technologies will also help employees detect high anxiety or depression levels and help alleviate them. 

How to Prepare For What’s Next?

Using HR automation strategically can unlock massive value. But incorporating it requires time, effort, and money. And not every tool is going to help you. To ensure that you make the right investment decisions, here are some of the best industry practices you need to consider: 

• Find the purpose: Start assessing your existing HR processes and identifying areas where automation can make an impact. This could include recruitment, onboarding, performance management, training, payroll, and data administration.
• Think deeply about people: Most businesses research automation tools that align with their business needs. But it goes deeper than that. Analyze the options with the mindset of how the tools can help your employees deliver better value. It is vital to analyze other implementation concerns, such as data security, ease of use, and accessibility.  
• Create the best employee experience: Develop a detailed roadmap that outlines the steps required to implement the technology and how you can personalize the employee journey at each touchpoint.
• Start by pilot testing: Pilot test tools in a small group before implementing them company-wide. This will help you identify potential issues and make adjustments before scaling up.
• Implement change management practices: Change management is the foundation of how you will scale your automation efforts. So spend significant time training employees, clearly communicating your expectations, conducting open discussions, and continuously evaluating to ensure a smooth transition.

While technology has accelerated things, we can still see many shakedowns. From geopolitical conflicts to inflation to industry-wide layoffs, the scope of work will continue to be complex for even the most accomplished HR leaders. However, with proper training, adaptability, and automation technologies, companies and workers can overcome multiple challenges.