We have always spoken about HR automation and HR software because they are of paramount importance in the field of HR. Today, let us take a look at how HR software can help in cost reduction and how HR software leads to a transformation of the workplace.
What is the first image that comes to your head when you think about HR software? When an organization grows to a certain number of employees, it makes sense to use an HR software platform to automate HR functions. In this blog, we will focus on answering one question, how do human resource management platforms help in cost-reduction?
Here’s how – HR is an integral part of any business. Many would even argue it is at the core of every business. In other words, HR is an important function to ensure the smooth functioning of an organization and to help the business to grow.
HR functions have become complex and repetitive over time. We are now in the digital age and HR tech has found a foothold in the digital frontier. As a result, many software companies are developing HR software platforms to help better manage the people and their aligned business goals.
HR software platforms
When we look at HR software platforms, you can either build one from scratch or pay to use the ones that are already available in the market. The HCM(Human Capital Management) software market, comprising all key functions of HR, is growing steadily at 10% annually says a Gartner forecast.
This software boom has put small and mid-sized businesses in a position to make the most of HR software. Now that HR software vendors are switching to a cloud-based subscription model, there is a fierce competition providing more options at lower prices. In other words, it is the best time to start using an HR platform. But, there are so many options out there, how do you know which are the best ones? Or even if any of them will suit your particular needs.
So, in this blog, we will be outlining why using an HR platform will benefit your organization and also how HR platforms help in cost-reduction.
Why should you use HR software?
The simple answer is, to boost productivity. Many routine tasks can be automated with innovation in technology. Eliminating the need for human intervention will free up the employees to engage in more critical tasks increasing their productivity.
Handling repetitive tasks can disrupt the productivity of employees. The average employee is interrupted every 10.5 minutes and it takes them around 23 minutes to completely re-engage in their tasks. The interruption time in completing mundane and repetitive tasks is reduced when you choose to take the automation way.
How do HR platforms help in cost reduction?
Human resource development can benefit from good workforce planning. Many HR software come with predictive analytics that can be a great help in workforce planning. HR platforms also inform other important HR functions. Some of the things an HR platform can help with are:
- Provide insights to managers about employees that might be at the risk of leaving. This will help in cost reduction associated with turnover.
- Streamline the recruitment process, reducing the cost and time per hire.
- Pre-screening candidates for open jobs improve the hiring funnel by ensuring no time is wasted in sorting through a lot of profiles.
- Help with promotion planning for productive employees and defining training parameters for underperforming employees.
- Provide an open channel for company-wide communication and enable collaboration and thereby, innovation.
- Automating leave portal to help easy and quick scheduling and approval of leaves, work-from-home and more.
What is HR automation?
Millennials are becoming a large part of today’s workforce. They have grown up with technology and prefer to engage with employers using technology at their workplace. Enabling this will increase employee engagement and ensure improved retention rates and provide yet another cost reduction avenue.
HR automation is the gate to HR transformation using artificial intelligence and machine learning tools. HR automation in organizations is complemented by the rise of big data and social connectivity. With concepts like video resumes, digital resumes, learnability driving HR transformation, traditional HR practices have taken a back seat.
So, why should you hop on board with HR Automation?
To begin with, HR automation is a source of competitive edge, say 3 out of 5 HR professionals. The early adopters, worldwide organizations and bigger organizations, have successfully increased their efficiency by leveraging the power of HR Automation. On the other hand, many HR functions are still done manually by the majority of small and medium organizations.
If you want to increase your employee engagement and productivity, clear plans need to be laid out for the same. This is possible only when HR professionals are free from performing repetitive and mundane tasks. HR automation frees up time for planning high-value activities, creating talent experiences and building talent strategies. Since we have spiked your interest in employee engagement, you would want to read more about it. Learn all about employee engagement and employee experience through our previous blogs
"To win in the marketplace, you must first win in the workplace"
It is crucial to earn the trust and interest of your employees to win in the workplace. Employee appreciation, recognition, company culture, and likewise will add to your victory in the workplace. A brilliantly curated HR software, or rather a people management platform will boost your chances of winning in the workplace and thus, in the marketplace.
Productivity decreases costs, this is often an overlooked fact. HR has evolved from being a cost center to being a strategic business partner to businesses, helping them grow towards their goals. 32% of business are planning to start using HR software by the end this year, while more than 26% have already started using automation HR.
In other words, HR technology is an investment, not just an expense. It helps better human resource planning to allow us to do more with less. When it comes to HR technology, world-class organizations, the early adopters of HR tech spend 37% less than typical companies while employing 31% lesser employees. They use HR software to achieve more productivity and hence reap more profits.
The HR functions of the future are going to be much more complex than what we have seen before. HR automation is the gate to HR transformation. There are many smart platforms out there in the market which will fit your business like it has been tailor-made for you. With so many new platforms coming out recently, it gets hard to choose. peopleHum is one such AI integrated, people platform that allows your business to get ready for the future of work.