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Human Resources Automation:
Benefits, Challenges, and Solutions

HR Automation

What Is Human Resources Automation?

Human resources (HR) automation uses software to streamline manual HR tasks, reducing the need for human intervention. It lets HR departments replace paper and legacy systems with a single automated solution for recruitment, onboarding, payroll, and performance management. The result is increased efficiency and accuracy. HR professionals can free themselves from grunt work and focus on more strategic tasks.

HR Automation

Which HR Processes Can You Automate?

  • Recruitment and onboarding
  • Time and attendance management
  • Performance management
  • Learning and development
  • Succession planning
  • Compensation
  • Employee benefits

Kickstart HR Automation

 

Ready to start automation but not sure where to begin? A good first step is to identify tasks that align with the following criteria:

  • Are repetitive and time-consuming for your team, such as attendance tracking or processing leave requests.
  • Follow a clear set of rules and logic, such as archiving or destroying documents based on predetermined retention periods.
  • Have consistent and structured data inputs, such as collecting onboarding documents and reference checks.
HR Automation

The Solution for Automating Your HR Department

If highly skilled HR professionals in your organization are burdened with outdated paper-bound workflows and systems, you have a massive opportunity to boost efficiency with document management software.

A solution like DocStar lets you consolidate all your paper, printing, faxing, and filing into an automated single source of truth. HR professionals can prioritize attracting and nurturing your organization’s human resources over endless administration.

“…56 percent of typical “hire-to-retire” tasks could be automated with current technologies and limited process changes.”

—McKinsey & Company

ap automation

How HR Automation Software Works

A robust HR automation solution like DocStar lets your HR team capture, store, and manage documents from anywhere–on any device. Whether scanning paper documents or uploading electronic files, the intelligent data capture feature transforms them into editable, shareable, and searchable formats. You can capture whole documents or extract specific fields and information.

Within the system, you can manipulate, analyze, and retrieve documents with just a few clicks. DocStar oversees content throughout the entire employee lifecycle, from recruitment to retirement, ensuring compliance with industry regulations at every step.

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HR Automation

 

Critical Elements of Your HR Automation Software

Document Creation & Storage

Creating electronic documents from any source and storing them securely in a centralized repository.

Metadata & Retrieval

Attaching metadata for categorization and enabling search to quickly locate documents later.

Version Control & Collaboration

Storing multiple versions to maintain integrity and allowing users to collaborate on the “same” documents simultaneously.

Access Control & Security

Setting user permissions and implementing robust protocols, backups, and encryption to keep documents safe.

Routing & Archiving

Automating workflows between systems and users and retaining documents in line with policy before safe deletion.

Audit Trails

Recording document actions like create, access, edit, and delete to make audits less stressful and time-consuming.

“Organizations in which HR facilitates a positive employee experience are 1.3 times more likely to report organizational outperformance, McKinsey research has shown..”

—McKinsey & Company

AP automation

What Are the Benefits of HR Automation?

 

HR automation is revolutionizing how organizations manage their workforce. By automating repetitive and time-consuming tasks like recruitment, onboarding, payroll, and performance reviews, HR teams can work more strategically. This leads to greater efficiency, fewer errors, and a more cohesive work environment.

Operational Efficiency

Increased Efficiency

By simplifying repetitive and laborious tasks, HR professionals can focus on strategic initiatives like employee retention. This redirection of attention allows for a deeper understanding of employee needs, fostering a more supportive and productive work environment.

Error Prevention

Automated workflows guarantee accurate HR processes, eliminating the most common causes of human error. Increased accuracy streamlines operations and instills confidence in employees about the reliability of the HR team.

Compliance Risk

Legal Protection

Automation allows quick and precise responses to Labor Department requests. You can instantly retrieve and email documents, including full employee files, even during calls. Never lose any document, even irregular-sized ones like doctor’s notes.

Regulatory Compliance

HR automation tools actively monitor and adapt to regulatory changes, helping you stay compliant. Built-in security features maintain employee privacy in line with federal laws like HIPAA. Because documents are stored electronically, they’re safe from loss or damage.

Employee Experience & Engagement

Improved Engagement

HR process automation streamlines employee onboarding, enhances communication, and strengthens employee engagement. Eliminating tedious tasks boosts morale and improves retention rates.

Employee Empowerment

Self-service features in HR tools empower employees to manage personal data, leave requests, benefits, and more. They cater to the growing expectations for personalized HR services, enhancing job satisfaction.

Business Growth & Flexibility

Scalability

Automated HR processes adapt and scale as your business evolves and expands–without a corresponding increase in cost or headcount.

Increased Agility

HR automation empowers organizations to rapidly adapt and implement new processes in response to evolving market dynamics and employee needs. It enables proactive, forward-thinking teams by removing manual bottlenecks and optimizing operations at speed.

Data Management

Actionable Insights

Digitizing HR processes makes previously inaccessible data readily available. This data can inform decisions, revealing trends, bottlenecks, and areas ripe for organizational improvement.

Fairness & Consistency

Automated HR ensures uniform processes, from recruitment to employee performance tracking and evaluations. Consistency promotes a fair, bias-free environment, building trust within the organization.

Environmental & Social Responsibility

Eco-Friendly

Switching to digital processes dramatically lowers your company’s paper usage and minimizes waste. Reduced consumption signals your commitment to sustainability and keeps you ahead of shifting environmental standards.

Cost Savings

Going paperless reduces the need for physical storage, shipping, and supplies expenses. Automation also reduces manual work, saving labor costs and avoiding expensive mistakes.

HR Automation

HR Automation Challenges

 

Some HR tasks are harder to automate. For example, change management, conflict resolution, business strategy, and training and development require high emotional intelligence and refined soft skills.

Manual, document-heavy processes, on the other hand, are easy to automate. So long as you have the right software. But as with any digital transformation, you’ll encounter challenges–ones that the right vendor will help you overcome.

Resistance to change

Employees in the HR department may be wary of automation changes, fearing job loss or new technology. Listen to their concerns, set clear timelines, and provide ample employee training. This fosters understanding and support for the transition.

Loss of the human touch

When implemented poorly, automation reduces face-to-face interactions, losing the personal touch essential in HR processes. When implemented effectively, organizations can free up time for people-oriented tasks, making employees feel more appreciated.

Security and privacy 

HR software collects a vast amount of both structured and unstructured data–security must be a top priority. With advanced encryption and strict access controls, HR automation solutions provide a more secure alternative to traditional paper document storage.

Integration Issues

Most businesses rely on multiple software solutions to manage different HR functions. Integrating these diverse systems can often be complex. Modern HR automation software integrates seamlessly, breaking down silos and facilitating cross-functional workflows.

HR Automation

Essential Features of Your HR Automation Tool

Intelligent Data Capture

Intelligent data capture (IDC) extracts and organizes information from scanned documents, forms, emails, and PDFs. It uses advanced techniques such as Optical Character Recognition (OCR), machine learning, and pattern recognition to transform unstructured data into a structured format optimized for electronic processing and analysis.

Advanced Analytics

Advanced analytics employs sophisticated methods to extract valuable insights from data. It can predict outcomes, offer actionable recommendations, and present intuitive data visualizations to guide HR decisions. By analyzing patterns, sentiments, and trends, HR can proactively address issues, enhance employee experience, and streamline operations.

Customizable Workflows

Customizable workflows allow HR teams to tailor automation to their unique processes and needs. This flexibility enables efficient routing of tasks, approvals, and notifications while reducing manual work. The result is automation that fits seamlessly into existing systems and procedures rather than forcing rigid changes. 

Cloud Deployment 

Cloud deployment offers unparalleled accessibility, scalability, and security. It enables real-time data access from anywhere, reducing infrastructure costs and maintenance burdens. Automatic updates ensure up-to-date features, while robust security protocols protect sensitive HR data.

Over 2,000 organizations across North America rely on

DocStar’s innovative HR automation solutions.

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HR Automation

FAQ

What is HR automation?
HR automation uses software to streamline manual HR tasks like recruitment, onboarding, payroll, and performance management. This increases efficiency, accuracy, and allows HR to focus on more strategic roles.

What are the benefits of HR automation?
Benefits of HR automation include increased efficiency, reduced errors, cost savings, better employee experience, improved data analytics, increased agility and scalability, legal protection, and enhanced compliance.

Will automation replace HR?
No, automation will not fully replace HR, but rather enhance HR professionals’ ability to focus on strategic initiatives like employee retention rather than repetitive administrative tasks.

What are the disadvantages of HR automation?
Potential disadvantages of HR automation include resistance to change, loss of human touch, security/privacy risks, integration issues with existing systems, and the need for employee training.

 

What are some HR automation best practices?
HR automation best practices include:

  • Identifying Repetitive Tasks: Start by identifying tasks that are repetitive and time-consuming. These tasks are prime candidates for automation.
  • Employee Training: Ensure your team is trained to use the new automated systems. This will help in a smooth transition and accelerate adoption.
  • Integration: Integrate HR systems to boost efficiency and enable automation.
  • Measure Success: If you can’t measure it, you can’t manage it. Determine key metrics to measure the success of your automation efforts and strive for continuous improvement.

Leaders at more than 2,000 organizations trust DocStar
to deliver smart enterprise content management solutions

  • “DocStar ECM has been a game changer for our Human Resources Department—I couldn’t dream of going back to piles of paper. I highly recommend the solution to HR departments both large and small!”

    —Kristin Young, Human Resources Manager, Lee-Smith, Inc.

    Read the Story

  • “With DocStar ECM, I can pull up anything the employee needs—say insurance or tax information and email it to them directly. This really helps me protect employee confidentiality and get them the information they need quickly. We also have situations where a previous employee needs information from their file. I can pull that up too, without the expense and liability of requesting a document offsite.”

    —Cindy Upshaw, Human Resources Manager, Nazdar

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  • “We have very strict security restrictions. We tie security—who is able to see what in DocStar ECM—to an individual. So HR information, for instance, is only viewable by people who are authorized to see it. Our CRM knows the security class and protects documents from unauthorized viewing.”

    —Stephen Giangiordano, Supervisor of Accounting Service, Mohawk Fine Papers, Inc.

    Read the Story

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