Should Your HR Department Be Worried (About Automation)?


Most companies have some sort of human resources department. Some are bigger than others. Some are more effective than others. Typically, the HR department deals with a lot of the stuff that no one else likes to. Today, software is being created using artificial intelligence that will be able to complete many of these tasks. Let’s take a look at how automation is affecting the modern human resources department. 

Automation Isn’t the First Threat

Human resources cover a lot of ground in any business. In fact, many smaller businesses extend the human resources role past the seven core functions of HR. These are:

  1. Recruitment
  2. Payroll Administration
  3. Benefits Administration
  4. Training and Professional Development
  5. Performance Reviews
  6. Labor Relations
  7. Managing Compliance

Over the past several years, the company human resources department, especially at small and medium-sized businesses, has been encroached upon by outsourcing. Like many other outsourced platforms Human-Resources-as-a-Service (HRaaS) services use technology to fill in the gaps left by not having dedicated HR professionals on staff. For the business, it reduces the cost, while fulfilling virtually the same roles through remote help desk and software. 

The Relationship Between Automation and HR

Technology changes things. Does it make it better? That’s a matter of opinion, but for the business owner, not having the human resources department means that they are on the hook to complete the tasks that the human resources department undertakes; and, there is a mountain of it.

That is, unless they can automate them.

The benefits of automation are the same no matter where it is put to use. It opens the way for staff to focus on being more productive, by leaving behind a lot of menial (yet time-consuming) tasks. Aside from enhancing efficiency and productivity, there are many key benefits to automating HR. They include:

  • Reduced employee turnover through improved employee engagement
  • Reduced storage and printing costs
  • Improved risk management and properly managed compliance
  • Improved document management
  • Enhanced business decision making with comprehensive reports
  • Optimized business growth through efficient onboarding

Today, there are plenty of software-based solutions that can keep any business running effectively, but when you get a look at them, these solutions aren’t really human resources platforms, they are human capital managers. 

What is Human Capital Management?

Human capital management is a platform that encourages businesses to treat their workforce as they would any other asset. Its goal is to get the human resources of the business to work as effectively and efficiently as possible. While human resources do more to deal with the individual needs and motivations of workers, human capital management seeks to look for metrics that can be quantifiable and strategically improved upon. It basically aims to change an organization’s view of their workforce from a commodity to an investment. 

What Strategy Is Best for Your Business?

There are multiple ways that automation can be implemented in the HR/HCM process, but depending on what strategy is used, you could be setting your company up for problems from your actual human resources. Most workers don’t like being treated like numbers on a spreadsheet after all. On the other hand, divorcing business decision-making away from typical workforce considerations that aim to sap overall productivity will benefit your organization’s bottom line. 

HR is always a balancing act. 

If you would like to know how automation could help you keep your organization balanced and productive, reach out to the IT professionals at NuTech Services today at 810.230.9455.