Is Automation and HR Tech Replacing HR?

With the technology market rapidly growing, we expect HR processes to be redefined in the next few years. This will have an undeniable impact on the HR function – but it’s not all bad news. In a detailed discussion with Paul Pellman, CEO of employee experience provider, Kazoo, we look at: 

• The benefits of automation in HR
• Four changes HR tech can enable in HR processes
• Why people management is the next logical step for HR professionals 

Automation is now a rapidly growing segment, and expectedly, professionals are apprehensive about its impact on job roles. Revenues from robotic process automation (RPA) increased by 63.1% in 2018, making it the “fastest-growing segment of the global enterprise software market,” says GartnerOpens a new window . So, what is the impact of automation in HR? How should modern HR practitioners realign skillsets and attitudes to succeed in the era of automation? We spoke to Paul Pellman, CEO of employee experience provider KazooOpens a new window to explore this further. 

Learn more: How Automation and Artificial Intelligence will Transform HR ProcessesOpens a new window

What are the Benefits of Automation in HR?

The HR function has long been tasked with routine jobs such as documents management, time & attendance records, payroll, and the like. These repetitive activities comprise a significant portion of day-to-day responsibilities, redirecting focus from more strategic projects. With the introduction of automation in HROpens a new window , it is possible to achieve the following benefits: 

• Streamlining of tasks, improving throughput/productivity 
• Easy access to data/information, speeding up query resolution 
• Automation in learning to help HR upskill for new roles 
• Smarter decision-making, equipped with the right data at the right time 
• Constant monitoring, alerting HR to important issues as well as possible problem areas 

However, this does not imply a reduction in responsibility for HR. Instead, their efforts will be channeled towards strategic areas such as engaging with employees, spearheading change management as new digital systems are introduced, and finding the brightest talent to help organizations win in the digital economy. 

Learn more: 4 Reasons Why Leading Businesses Use Automated HR SystemsOpens a new window

Four Effects of Automation and HR Tech for HR 

Interestingly, technology will add more jobs across industries than it eliminates. For example, AI is predicted to be a job motivator, creating 2.3 million new roles while eliminating only 1.8 millionOpens a new window . Trends like this should alleviate concerns for HR. Outside of jobs realignment, key impacts of introducing automation will include: 

1. A focus on relationship-building

With employee engagement as the focus of modern organizations, HR needs to concentrate on employee relationships, especially when it comes to top-tier talent. Pellman suggests that automation in HR will free up time and mental bandwidth required for relationship-building through daily standups, mentorships, succession planning, employee advocacy, and the like.

He says, “By working alongside the changes that the automation of hiring, training, and admin tasks present, HR teams can spend more time focusing on other areas that aren’t as easily solved with technology, like checking on an employee who seems uncharacteristically disengaged or coaching managers on building great relationships with their people.”

2. Data-driven human action

HR automation is built on the integration of disparate systems. This integration will enable a “single source of truth” that accurately portrays employee performance, grievances, potential, and exceptional achievements in real time. Led by this data, HR can institute dynamic recognition systems that help reinforce existing capabilities.

“Organizations can also use HR tech to collect and analyze data to better manage employee performance and reward them when they’re doing a great job all while building a purpose-driven and engaged company culture,” says Pellman. “While the overall employee experience can be enhanced with technology, at the end of the day, it needs to be implemented and perfected by the human touch that HR teams provide.”

3. From human resources to people management

Paradoxically, automation will only strengthen the focus on individual and personal skills/effort. As a result, the HR function will redefine itself as people managers. “Historically, HR played the role of policing employees – not a super fun thing to be tasked with,” Pellman notes.

He continues, “But today, HR’s focus has shifted towards better managing employees as people and ensuring their experience within the company is positive, enjoyable, and rewarding. As the practice and purpose of HR evolve, so does its title – which is where the idea of ‘people management’ comes into play.” 

4. Increasing significance for the C-Suite

In the last few years, we have seen more and more HR functions gaining a seat at the table with the C-Suite. Organizations are now employing Chief Talent Officers, Chief Learning OfficersOpens a new window , Chief People Officers, and even Chief Employee Experience Officers. As people become the core asset for organizations, this trend will only gain momentum.

The data gathered from HR tech and automation platforms will empower these C-Level HR leaders to guide organizations to greater heights.

“With tons of data now at their fingertips, people management professionals are also in charge of adding context to these numbers to solve company problems, ranging from workforce planning and turnover to recruiting and how people feel about their managers and company culture,” agrees Pellman.

Learn more: Skills of the Future: 10 Skills You’ll Need to Thrive in 2020Opens a new window

HR Tech is Fundamentally Changing – Not Replacing – HR 

The notion that automation in HR will replace human practitioners is unfounded. Despite automation in admin roles, administrative jobs are still central to operational performance. Even with software testing automation, developers are the pillars of any technology product company.

Similarly, HR automation will increase the demand for specific qualities that cannot be replicated by machines – according to GartnerOpens a new window , even intelligent systems powered by AIOpens a new window are incapable of strategy, empathy, creativity, and on-spot improvising, which are all essential traits for any HR practitioner. 

“While the people management title may be new, the role will continue to evolve and will help professionals in the industry move past policing towards a more impactful and dynamic role within their organizations,” Pellman concludes. 

People management is only the next logical step for HR, accelerated by the use of automation. Going forward, organizations will view HR as crucial business partners on their growth path, mediated by C-Suite representatives. Finally, employee-employer relationships will strengthen, led by this highly proficient and “intrinsically humane” generation of HR practitioners. 

Do you believe that automation in HR will bring about a fundamental shift in the HR function? Tell us on FacebookOpens a new window , LinkedInOpens a new window , or TwitterOpens a new window . We would love to know what you think!