The role of human resources in organisations continues to rapidly evolve, with HR teams adopting more varied roles and responsibilities. Where once it was largely administrative, HR now plays a strategic role in recruiting, developing and retaining talent. In many cases, it has a heavy influence in the strategic direction of businesses looking to scale and grow.

HR Functions Must Not Be Hindered

HR functions all play a pivotal role in the current and future direction of companies regardless of industry and size. HR is, in many cases, the department that bridges gaps between multiple internal and external parties within a firm, providing an impartial and considered voice of reason in dialogue concerning anything from disputes and complaints to compliance breaches.

However, while HR may have evolved exponentially over the years, many day-to-day HR tasks are still repetitive, manual, arduous and time-consuming. HR teams and decision-makers are empowered to exercise their creativity and agility in multiple areas and focus on high-value work, but there are several necessary jobs that teams would happily delegate and free themselves of. 

Luckily, new technologies like artificial intelligence (AI) and automation present opportunities to delegate some of this transactional work. AI-powered software and automation tools exist in plentiful supply which, if integrated correctly and methodically, can free up HR staff from mundane tasks. 

Benefits of AI and Automation for HR Teams

Successful adoption of this technology will allow them to focus on more value-added activities that add greater value to the business in terms of its strategy and direction while ensuring that the vital functions are still completed accurately and in a timely fashion. In many ways, automated HR functions can also reduce costs and significantly improve efficiency, both of which are benefits that no company wants to miss out on. 

Let’s take a look at six key HR functions that can directly benefit from automation and AI integration

6 HR Processes to Automate 

1. Payroll Processing

Payroll is one of the most resource-intensive HR tasks. Calculating pay, taxes and deductions for each employee for each pay period involves significant manual work. Or at least it did, up until now. 

Automating payroll with software streamlines the entire process and eliminates any risks. It’s also widely believed that it can save you money if adopted correctly. While most firms will have already established payroll processing with minimal human input, some scaling startups (often those that use multiple contractors and suppliers) may need some help in those initial integration steps.

AI-enabled payroll software can:

• Integrate with time tracking tools to bring in hours worked.
• Calculate pay and deductions automatically based on pay rates and benefits data.
• Enable self-service for employees to view pay info and make changes.
• Generate all payroll filings and payments automatically.

This automation eliminates payroll errors and frees up HR staff to focus on more strategic talent initiatives. Organisations can also reduce payroll processing costs through outsourced payroll and accounting services.

2. Benefits Administration

Managing employee benefits like health insurance, retirement plans and time off is another time sink for HR teams. Benefits administration software centralises all benefits data and automates enrolment, changes and terminations, meaning that HR managers and executives are only required to get involved when it’s necessary.

Key features include:

• Online self-service for open enrollment and benefits selections.
• Automatic calculation of deductions and payments to providers.
• Alerts for renewal dates, document expirations, and eligibility changes.
• Reporting on benefits spend, participation, and other metrics.

Benefits software improves accuracy, drives engagement through self-service, and reduces the workload for HR staff.

3. Compliance Management

HR teams spend significant time ensuring compliance with relevant employment laws and regulations, as well as those relating to specific industries. In highly regulated sectors like finance, education and healthcare, compliance management is crucial and HR teams must therefore stay on top of regulatory changes, document policies, track required training and manage leave simultaneously.

HR compliance software helps automate:

• Documenting policies and employment contracts.
• Scheduling and tracking compliance training.
• Managing employee leave and accommodations.
• Monitoring upcoming regulation changes.

Centralising compliance activities reduces risks and keeps the company protected. It also minimises the time HR teams spend on manual management and involvement, allowing them to focus on strategic tasks.

4. Recruiting Administration

Recruiting top talent is a priority but overseeing the hiring process can burden HR teams, particularly if organisations have multiple vacancies to fill. Ambitious FinTech firms often experience periods of rapid recruitment and expansion, which means HR teams have to dedicate many valuable hours to applications, interviews, and contracts. 

Automation makes tasks like scheduling interviews, emailing candidates and collecting applications more efficient. According to Ideal, companies using AI-powered recruiting software have seen their staff turnover decrease by 35%.

AI takes it a step further by:

• Screening applicants faster with automated resume reviews.
• Answering common candidate questions with chatbots.
• Scheduling interviews based on candidate and hiring manager availability.
• Sending personalised communications to candidates.

This automation provides a better candidate experience and enables recruiters to focus on more strategic hiring initiatives.

5. Performance Management

Performance management includes goal setting, check-ins, reviews, feedback and development planning for employees. Manual processes make it difficult to track progress and provide consistent experiences, with some progress reviews prone to human error and oversight.

Automation can:

• Notify managers of upcoming reviews and deadlines.
• Collect peer feedback securely and automatically.
• Generate performance insights through analytics.
• Create development plans tailored to employee needs.

Technology not only reduces administrative work for HR but also provides transparency around performance and growth opportunities for employees.

6. Learning Management

Employee learning and development are vital for organisational success. But managing training programmes, classes and content manually requires extensive effort and again, can often take a backseat during busy periods for organisations. As of 2023, there are over 1,000 Learning Management System (LMS) solutions available for organisations worldwide.

It is crucial that this function be given ample time and focus to prevent employees yearning for progression opportunities from becoming disenfranchised and unmotivated.

An LMS allows you to:

• Create and deliver training content easily.
• Automate enrolment and administration of classes.
• Track employee progress and completion.
• Report on participation rates and training programme ROI.

This saves HR time managing training logistics and gives employees autonomy over their own development. Successfully rolling out this technology will mean that employees can engage in relevant, helpful L&D programmes that aid their roles without impacting productivity, and instil more satisfaction.

Embracing Automation and AI in HR

Automating transactional and repetitive HR tasks is critical for enabling a more strategic HR function. It’s clear that AI and software can optimise key areas of businesses that still need to function correctly, but now HR teams can have more control over how many skilled team members they need to dedicate to specific time-intensive tasks.

The Need for Supervision and Strategy 

It’s evident that widespread AI and automation need supervision for optimal success. HR leaders shouldn’t just instinctively let software handle all the important elements listed above without careful consideration for its accuracy and validity. 

However, businesses can definitely see improved success and reduced administrative burdens for their HR teams while ensuring vital tasks get completed promptly. It’s just a case of ensuring that all software and tools are managed and adjusted to ensure that the business sees a direct benefit from their integration.

Looking Ahead: The Future of HR Technology 

As technology capabilities continue to improve, more opportunities will arise to leverage automation in HR. This will elevate the function to focus less on administration, and more on talent strategy together with organisational excellence.