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Sep 10, 2024 | 5 Minute Read

Boosting Efficiency In HR: How Automation Reduces Administrative Burdens

Table of Contents

In the early 20th century, Elton Mayo's human relations theory revolutionised the workplace by highlighting a fundamental truth: employees' productivity soars when they feel valued and noticed. Mayo's research underscored the importance of personal attention and meaningful interactions in boosting employee morale and performance. 

Fast-forward to today, and the essence of his findings still holds. However, many HR departments are bogged down by administrative tasks, leaving little time for the personal touch that Mayo championed.

According to the Society for Human Resource Management (SHRM), over 70% of HR professionals are overwhelmed by routine administrative duties, diverting their focus from strategic initiatives that engage and motivate employees. This administrative overload hampers productivity and diminishes HR's potential to transform organizations.

The solution lies in Intelligent Automation. Organizations can free up valuable time by automating repetitive HR processes, allowing HR professionals to focus on what truly matters—fostering an engaged and motivated workforce, just as Mayo envisioned.

The Problem With HR Administration Today

Administrative Overload

HR professionals often find themselves drowning in paperwork and repetitive tasks. Imagine an HR manager who starts each day by manually processing dozens of payroll entries, updating employee records, and handling countless benefits administration requests. This routine can consume up to 60% of their workday, leaving little time for more strategic activities.

An HR manager from a mid-sized tech firm said, "By the time I've finished with the routine tasks, there's hardly any time left to focus on employee development or strategic planning." This workload limits the potential impact HR can have on organisational growth and contributes to burnout and job dissatisfaction.

Data Synchronisation Issues

Keeping HR data accurate and up-to-date across multiple platforms is a significant challenge in today's fast-paced business environment. Without automation, HR departments often rely on manual data entry to update various systems, which is time-consuming and error-prone.

For instance, one HR director shared how their team struggled with maintaining consistent employee information across payroll, attendance, and performance management systems. "We had instances where an employee's promotion was recorded in one system but not updated in another, leading to confusion and frustration," they noted.

According to Ernst & Young, 55% of HR leaders identify outdated or inconsistent data as a primary obstacle, which can lead to misaligned strategies and poor decision-making. Automation provides a solution by ensuring real-time data synchronization, reducing the risk of errors, and improving overall operational efficiency.

Scaling Operations

As companies grow, the volume of HR transactions multiplies, increasing the risk of errors and compliance issues. Manual handling of these growing tasks often results in oversight.

The struggle is to keep up with varying labor laws across different states. It is a nightmare trying to manually track and apply the correct regulations for each employee. There is a constant risk of non-compliance.

Automating these processes not only helps in handling large volumes efficiently but also ensures that compliance is maintained consistently across all operations.

Case Study: How Axelerant Transformed HR Efficiency With Automation

Overview

We were a mid-sized company grappling with escalating administrative costs and inefficiencies in our HR processes. 

Recognising the urgent need for change, we automated essential HR functions. This strategic move was driven by the desire to empower HR professionals. Let’s see how.

The Challenge

The core issue was the excessive manual handling of HR tasks. HR teams spent countless hours on data entry, document processing, and compliance checks—tasks that, while necessary, offered little value in terms of strategic HR goals.

Moreover, Axelerant’s HR data was scattered across multiple platforms, requiring manual updates. This lack of integration led to data synchronisation issues.

Axelerant’s leadership recognized that these issues would only escalate without a substantial shift in HR management, potentially jeopardizing the company’s growth trajectory.

The Solution

Axelerant’s solution was to implement HR automation.

The first step involved automating routine tasks like payroll processing, attendance tracking, and benefits administration. These systems were designed to integrate seamlessly with existing platforms, ensuring real-time data updates across all systems.

The HR team could quickly identify top talent without needing laborious manual review by integrating AI-driven tools for resume scanning and candidate screening.

The onboarding process was streamlined through automated workflows, ensuring that new hires received all necessary information and completed documentation promptly.

Another improvement was in data management. Automated synchronisation between different HR platforms eliminated discrepancies.

The Results

Stats on HR efficiency boost

Beyond these quantifiable metrics, the automation initiative had a significant qualitative impact. HR professionals could shift their focus to more strategic initiatives that directly contribute to the company’s growth and employee satisfaction.

This included improving employee engagement, developing leadership programs, and enhancing overall workplace culture.

"Automation has allowed our HR team to focus more on what truly matters—our people. The efficiency gains have been remarkable, and we’re now in a position to contribute more strategically to the company’s growth. It’s not just about cutting costs; it’s about empowering our team to do their best work and make a real impact."

Key Takeaways

Improved HR Effiency

Benefits Of HR Automation: From Recruitment To Employee Engagement

Automation In Recruitment And Talent Acquisition

Automation transforms recruitment using AI-driven tools for tasks like resume scanning, initial screenings, and candidate recommendations.

A prime example is Unilever’s AI-driven recruitment tool, introduced in 2021. This tool assessed candidates through online games and predictive algorithms. The impact was significant: a 75% reduction in CV sorting time and a 15% increase in women shortlisted for positions.

This case illustrates how automation builds efficiency and helps increase workplace inclusivity.

Streamlined Employee Onboarding

Automated onboarding processes streamline documentation, verification, and communication, creating a smoother, more efficient experience for new hires.

This enhances employee satisfaction and, at the same time, accelerates their integration into the company culture.

Read more about our Virtual Automated recruitment system, right from sourcing to offer. 

Employee Self-Service Empowerment

Self-service portals let employees/candidates manage their personal information and requests independently, significantly reducing the administrative burden on HR teams.

Data-Driven Decision-Making

Automation allows HR teams to analyse vast amounts of data, leading to more informed decisions. These data-driven insights improve hiring decisions, optimise workforce allocation, and enhance employee retention strategies.

Enhancing Employee Engagement

AI-driven chatbots and automated systems gather employee feedback, provide training recommendations, and assist with various HR-related queries.

For instance, IBM’s use of AI chatbots for HR-related responses led to a 30% increase in employee satisfaction rates.

Automated Performance Management

Automation simplifies performance tracking and goal-setting. By automating performance management, HR ensures continuous improvement and alignment with organisational objectives.

Compliance And Adherence To Regulations

Automated systems update policies, track working hours, and maintain accurate records, reducing the risk of non-compliance and associated penalties.

The Power Of Synergy

Like the human body, a business thrives on the seamless interaction of its components. Every department and workgroup must harmonize to ensure the larger system functions optimally.

At Axelerant, we see automation as the lifeblood that keeps our business's “body” operating at its peak. By automating repetitive tasks, synchronizing data in real-time, and empowering employees to focus on strategic goals, our organisation achieves a synergy that enhances efficiency and growth.

Contact us today to discover how Axelerant can help you align your HR processes with your business goals, ensuring healthier and more successful operations.

Want to know more about Intelligent Automation? Leave your comments below, and we will get back to you!

FAQ'S

How AI help HR in decision-making?

AI streamlines HR decision-making by analyzing vast amounts of data quickly and accurately, identifying patterns and trends that might be missed manually. It helps HR teams make more informed decisions on talent acquisition, performance management, and employee engagement by providing data-driven insights. For example, AI can predict the likelihood of employee turnover, recommend tailored development plans, or highlight the best candidates for open positions based on skill matches and past performance.

How can HR improve efficiency?
HR can improve efficiency by automating repetitive tasks like payroll processing, employee onboarding, and leave management. Automation tools handle time-consuming processes, freeing HR professionals to focus on strategic activities like talent development and employee engagement. Implementing cloud-based HR systems also improves collaboration, allowing real-time data access and streamlined workflows.
About the Author
Michael Cannon, Director of Intelligent Automation
About the Author

Michael Cannon, Director of Intelligent Automation

Living remotely in Taiwan with 4 incredible sons, 3 playful cats, and one fiery partner. As Director of Intelligent Automation @Axelerant, they are dedicated to building trust in Axelerant as your go-to agency partner through their journey in #Automation, #Empowerment, and #Productivity.


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