4 Reasons Why Leading Businesses Use Automated HR Systems

According to McKinsey, 56 percent of hire-to-retire tasks are automation-ready. In an exclusive conversation with Baker Tilly’s Wade Huseth, who has been using the ADP HR tech suite, we discussed the benefits of automating HR for Baker Tilly and how other organizations can benefit from it as well. Read on to find out:

• Four signs that indicate it is time to automate HR
• How Baker Tilly benefited from HR automation
• Five strategic areas where efforts can be redirected as a result of automation

Among the key tenets of digital transformation, automation has completely changed how we work. It has reduced manual labor in iterative tasks and opened up new ways to generate value by integrating disparate processes.

The HR function is marked by iterative, process-based workflows in areas such as onboarding, payroll, and benefits administration – all ready to be automated. For instance, McKinsey found that 56 percent of “hire-to-retire” tasks could be automatedOpens a new window in HR.

To understand how automated HR plays out in the real world and the approach taken by leading organizations towards this trend, we spoke to Wade Huseth, Partner at Baker TillyOpens a new window . The company was recently named one of the best accounting firms to work for in North America and worked with HR solutions company ADPOpens a new window to transform their workplace.

Why Is Automated HR so Important?

HR has recently been under immense pressure to do more with less. The hiring marketplace has never been so competitive, and employers must look hard to find the best talent. To add to that, the younger workforce has no apprehensions about changing jobs. For instance, millennials are 15 percent more open to changing jobsOpens a new window – implying frequent (and costly) hiring, onboarding, development, engagement, and offboarding activities.

By automating most of this hire-to-retire cycle, HR could save a significant amount of time, effort, and investment.

Here are four signs that suggest it is time to automate HR:

1. HR budgets/staffing cannot keep up with recruitment volumes.
2. Poor visibility and extended timelines are taking away from HR efficiency.
3. The management of time sheets, attendance, and leave approvals is error prone.
4.  Performance appraisal is inflexible and out of sync with real-time employee achievements.

An automated HR systemOpens a new window links the different touch points on the hire-to-retire cycle, collecting data from applicant tracking systems (ATS), feeding into the recruitment and onboarding module, storing employee data on one platform, and aligning day-to-day tasks to this “single-source-of-truth,” minimizing inefficiency.

Learn more: Identifying Opportunities to Automate RecruitmentOpens a new window

How an Automated HR System Adds Genuine Value

With a singular platform for every HR requirement, the time and effort needed for day-to-day tasks are dramatically reduced. It is also possible to glean useful insights from the data stored in automated HR systems, enabling better decision-making.

Baker Tilly was able to unlock several benefits from ADP’s automated HR solution. These include:

1. Reducing Fragmentation Arising from Point Solutions

Often, despite digitizing HR tasks, organizations hold on to multiple point solutions for different requirements – an ATS for hiring, a time and attendance (T&A) tool, a performance appraisal platform, a solution for compensation management, and so on. The biggest benefit of automated HR is that all of these processes can be brought under a single, comprehensive umbrella for end-to-end visibility.

“Being able to house everything from work history, compensation history, professional licensing and credentials, and performance management information, all within one system provides Baker Tilly with an opportunity to create a one-stop shop for data analysis,” Wade said.

2. Optimizing Talent Management for Business Success

With all this valuable information stored in one location, HR can apply analytics to inform decision-making. Past successes (and failures) will indicate which candidates are the right fit, how achievements should be recognized, the skills that need special attention from L&D, and other strategic action areas.

As Wade explained, “The ability to evaluate the current workforce, as well as measuring this workforce against our internal needs when recruiting new and managing existing talent is essential in determining the traits that will make our employees successful.”

Learn more: 4 Ways Workplace Automation Can Help HR Teams Get Work Done RightOpens a new window

3. Applying Organization-specific Data to Automate HR:

Automated HR systems bring a high degree of configurability without demanding technical expertise. Working closely with HR technology vendors, organizations can make sure that the HR automation solution is perfectly suited to meet their needs.

“Everything from custom employee handbooks, custom security for practitioners, custom benefits packages and PTO policies, etc. required data to help build a platform that is fluid and dynamic,” Wade recalls. Additionally, new data inflows are continuously supplied to the platform, making it agile and future-proof. Wade says, “Data is helping this system continually expand and evolve.”

4. Cutting Down the Learning Curve for Technology Adoption

Like any digital transformation process, getting used to automated HR systems needs dedicated time and attention. This was also true for Baker Tilly: “As with any software, there is always a learning curve and adoption can sometimes be a struggle,” said Wade.

The HR technology vendor should be able to provide comprehensive and continual support in this area – with regular software updates as well as organizational changes, as HR technology practices will never be static. The automated HR provider brings years of experience and expertise, making it easier for HR practitioners to maximize these systems.

Learn more: Should Benefits Enrollment be Automated?Opens a new window

Key Takeaways to Help Prepare for Automated HR

Automated HR will not wholly replace human work – in fact, it’s the opposite. With automation taking care of mundane jobs as well as offering valuable insights, HR is better placed to become strategic engineers of the organization’s future than ever before. We predict that HR’s focus on the five following areas will increase after introducing automation:

1. Aligning HR strategies to business outcomes
2. Building a high-performance work environment
3. Outlining change management procedures
4. Measuring and checking for organizational effectiveness
5. Maintaining employee relations

Learn more: The Future of Work: Automation Sparks CreativityOpens a new window

Technology vendors such as ADP are making HR automation more accessible, reducing adoption timelines, and making it easier than ever before to gain from the latest digital innovations. All you need is to do your research, zero in on the right solution, and closely collaborate to build a future-ready HR function.

Are you looking to automate HR at your organization? Share your insights with us on FacebookOpens a new window , LinkedInOpens a new window , or TwitterOpens a new window . We are always listening!