Did you know Human Resources (HR) automation can help your company succeed in many ways?
HR is an important part of the company. They manage the company’s most important assets: people. You may have great products but you can’t succeed without a skilled workforce. It is HR’s job to hire the right people and keep them motivated.
In the past, HR’s tasks were limited to recruitment and payroll. Today, HR’s role goes far beyond. The department now plays a critical part in achieving the company’s goals.
Most would consider this a heavy workload for a small department. Small to medium scale companies rarely have more than 5 people in the department.
On top of that, HR’s budget is often limited because they do not earn revenue. As a result, many HR departments do not have automated processes.
Let’s take an HR automation software as an example. The software reduces the time spent on standard HR tasks such as generating payroll. In fact, a study on Researchgate.net showed that HR automation can reduce time spent on repetitive work by as much as 80%.
The same study also proves that HR automation reduces administrative work by 50% and operational costs by as much as 60%.
Unfortunately, the cost of HR automation can be a hurdle.
A Tale Of Two Companies
To take the situation into perspective, let’s discuss the tale of two companies.
Both companies are small to medium enterprises (SMEs) and are very promising. Let’s name them Company A and Company B. Both companies are service providers so the core of their business is their people.
For their business to grow, Company A and B require a big quantity of people. The problem is, they are both limited to the amount of people they can manage.
Adding more workers would mean increasing the size of their respective HR departments. This would mean additional overhead costs.
An alternative solution would be to automate HR processes. However, HR automation software usually doesn’t come affordable and it would also need more equipment.
Company A decides not to add more people to the department and not to buy HR automation software for the time being since the company believes that they will not be able to afford the cost.
Company B knows that they need to automate as many of their processes as possible. As such, they tried searching for cheaper alternatives.
The good news is, there are quite a lot of affordable HR automation software which companies who are working on a tight budget can take advantage of.
Cloud computing and Software as a Service (SaaS) are now popular technologies. The technology has enabled many HR departments to automate many of their processes on a dime.
Company B signs up for a cloud-based HR automation system. As a result, the company manages to take the upper hand by being able to recruit more workers than Company A.
HR Automation On A Budget
Anybody that has ever worked in HR knows that many of the processes are repetitive and time consuming.
Processes such as payroll, leave requests, and benefit requests all have set procedures. But they do take quite some time to complete.
HR automation reduces the time it takes to complete the work. In fact, HR would only need to monitor the actions being processed by the system on their behalf.
For example, if someone needed information on a leave balance, all he or she would have to do is to log into the automation software, key in the details. and obtain the results. They would no longer need to take a trip to HR to ask someone to look up the information.
This type of automation service has been around for quite some time but require a huge cost to the department. Not only would they need to buy the software license, they would also need more computers, servers, and IT specialists.
Cloud computing technology can address this concern with its budget-friendly costs. The company just have to sign up for the service and the software is readily available to every employee. The company does not need to buy the software, computers, or servers. The HR automation provider handles the rest.
But, these companies do charge a modest fee for their onboarding services. This is because they need to provide the hardware and software. They also manage the account of their customers.
What Are The Cost Implications?
Cloud based HR automation services are always the cheapest option. However, their rates increase depending on the number of people in the company. For example, a company with more than 100 workers would need to pay more than a company with fewer employees. The increase in rates is because their system needs to handle more data.
A simple Google search for HR automation services will produce quite a number of providers. A very good example is Salarium. They have an entire suite of payroll automation which includes time keeping, payroll, and salary disbursement.
The company offers affordable pricing plans. Even HR departments with a small budget can afford such costs. On top of that, companies can test their product for free for a limited time.
What Is The Best HR Automation Software?
The best HR automation software is one that will simplify your processes and save you a lot of time while at it. HR automation can be complex with a bunch of services, but this would also mean higher rates. It could also mean that you might not even need many of the services software provides.
The best way to decide which software is best for your company is to start small. You’ll first need to figure out what processes need automation then find a provider that offers those automation services.
Finally, try out the service to see how it can benefit your company. A lot lot of them offer free demonstrations. You can automate more processes in the future. For the time being, you’ll need to be comfortable with how the software works.
How to Automate HR Within Your Budget
The first step in automating your HR department is to figure out how much funds you can dedicate to the project. To do this, you’ll need to have some ideas on the costs of the HR automation software.
- Get quotations. There are plenty of web-based HR automation providers. It shouldn’t be difficult to get several quotations. You should try to get at least three quotations to compare to, and help you decide which has the most reasonable offer.
- Try before your buy. Once you have a list of prices you’ll be able to decide which company offers the best rate. But before you roll-out the software to the rest of the company, make sure to try it first. Most providers offer a free demonstration and a trial run free of charge. so at this point you won’t be spending any money.
- Test several providers. Don’t hesitate to try more than one service. Keep in mind that you’ll need to find a service that fits your budget and will work well for your company.
- Make a manual. The final step is to create step-by-step procedures on how to use the software. It’s important that everybody in the company understands the process.
Automating HR processes while on a budget is possible.
HR automation will play a big role in your company’s success. A limited budget shouldn’t prevent you from automating your HR department. Take the time to search for HR automation services on the web. You will find the best software that fits your budget.