Switching to an Automated HR System? Here’s How to Prepare

What is an automated HR system? 

An automated HR system is a digital platform that can automate repetitive human resources functions like recruitment, onboarding, timekeeping, benefits administration, payroll, performance management and HR reporting. Most automated HR systems are cloud-based platforms available via monthly subscriptions.

“Automated HR systems leverage software to automate and streamline repetitive and laborious HR tasks across the employee life cycle, from recruiting and onboarding to talent and performance management to benefits administration to offboarding,” Rebecca Wettemann, CEO and principal of industry analyst firm Valoir, told us.

Automated HR systems rival nonautomated systems by allowing you to streamline your HR processes without having to perform manual data entry. It can save time and resources, and it reduces the potential for human error.

How to prepare to switch to an automated HR system

Whether you’re setting up your first automated HR system or switching up your system, there are a few simple ways to ease the transition.

1. Identify what HR functions to automate.

The first step in preparing to switch to an automated HR system is to identify which main functions you want to automate now and in the future. It can be helpful to put these features in order of most to least beneficial so you know where to start. 

Wettemann told business.com that HR automation works best when organizations focus on the areas with the biggest impact. The more people and workflows a task involves, the more value automation can bring. “That’s where leaders should focus their training and adoption efforts,” said Wettemann.

Assessing your HR processes holistically can also help you identify which of your current processes can be improved, whether that includes automation or not.

“Take advantage of automation opportunities to rethink HR processes, not just move manual processes to the same automated ones,” said Wettemann. “Digitalizing processes can be a great opportunity to make changes in processes that may be outdated or inefficient.”

2. Check out review sites.

Once you’ve identified the best HR features to automate for your business, look for an HR provider. There are several great HR systems on the market, but the level of automation they provide varies. As such, you must look for systems matching your specific needs in terms of functionality and automation. 

When researching and comparing top vendors, online reviews, such as those on business.com, are excellent places to start. What better way to determine whether the system’s capabilities will fit your needs than reading well-researched reviews?

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3. Work with your provider to set and accomplish your goals.

Make sure the provider you’ve chosen has goals that align with your own. The whole point of switching to an automated system is to make your HR and payroll processes easier; don’t compromise quality service for sleek-looking software. Be thorough and clear about what you expect from the system now and in the future. 

“Leaders should be looking for automation capabilities that enable them to rapidly get to value today [and] have the flexibility that enables them to make changes over time as needed …” said Wettemann. Low- or no-code tools and interfaces that don’t require developer or HRIS specialist knowledge to adapt are ideal for most business owners according to Wettemann. 

Set up a product demo if possible, and talk to your provider to understand how its solution will meet your needs. Work together to create a plan and actionable steps to achieve the goals you’ve set. Once expectations are set by both parties, implementing and converting data into the new system should be a much easier process.

4. Ensure proper data conversions.

You’ve selected a new system and set goals for how you want the solution to work for you; now it’s time to transfer employee data and records. This might seem like a daunting responsibility, but there are a few ways to make sure everything is moved over accurately.

When your provider starts migrating your data, its implementation team should convert year-to-date history into the new solution. Next, the team should run a compliance assessment to reconcile data history. Finally, before running your first live payroll, the team should conduct a parallel payroll test to confirm your system settings match your provider’s settings. By taking these necessary steps, your provider can ensure all data is correct and legally compliant.

5. Make sure everyone who uses the platform receives training. 

The secret to successfully adopting any new technology is usability; human capital management systems are no exception. It’s crucial that everyone is appropriately trained and has a clear understanding of how to operate the new platform. If your managers and employees don’t use it, the system is useless, no matter how much it promises.

Although organizational changes are sometimes necessary, they can also cause stress and frustration. By providing comprehensive training for your team, you can ensure everyone will be confident utilizing the system to its full extent. Plus, automating workflows will help relieve some daily stressors and busywork. All system users will be free to focus on more important tasks at hand, making your company more productive overall. Openly communicating these benefits to your employees from the start can increase buy-in and usage. 

“To deliver value, any technology needs to be effectively adopted and used by end users, but change can be hard,” said Wettemann. “Communicating the reason for changes and what’s in it for the end user should be part of an overall technology strategy, not an afterthought.”

Types of HR tasks that can be automated

Numerous HR tasks can be automated, and the bigger your business gets, the more necessary automation becomes. Here are a few of the most commonly automated HR tasks.

• Talent acquisition: Finding and recruiting top talent can be difficult to do manually, especially if you want to expand your search to a global candidate pool. With HR software, you can streamline the talent acquisition process with detailed job postings, automatic candidate screening and accurate applicant tracking. Automating these processes helps to ensure your favorite candidates don’t slip through the cracks.
• Onboarding and off-boarding: Once you’ve recruited and vetted your applicants, you can automatically funnel them through an interactive onboarding process. This way they receive and sign necessary documents, connect with the right team members, and undergo the correct training. If an employee is ready to leave the company, you can automate similar functions so they are offboarded properly. Automating these tasks can improve efficiency and reduce human error.
• Time and attendance: One of the most significant functions you can automate is tracking employee time and attendance. Managing employee time sheets can be a mundane and time-consuming task, and automating it can free up your HR staff. Overtime, time-off and leave requests for employees can also be handled by the best time and attendance systems. Automating time and attendance is a great way to pay employees properly for the hours they work. 

• Payroll: Manually tallying payroll is a thing of the past. Most HR software either has a built-in payroll option or can integrate with a third-party payroll service. With this, you can automatically calculate and process payroll, file payroll taxes, report new hires, pay employees accordingly, and more. Automated HR systems help a company stay in compliance and confirm consistency.
• Employee performance: Performance management can be challenging to do manually. Many automated HR systems can track your employees’ performance with features like automated performance reviews and feedback. You can also establish employee goals and use skills mapping and career pathing.
• Legal compliance: Managing employee data, appropriate payroll wages and tax and garnishment deductions aren’t simple tasks. Handling these to-dos while remaining compliant is a different beast entirely. By updating your HR and payroll systems to an automated platform, you can give managers, employees and yourself peace of mind in knowing your processes will be compliant. Once everything is said and done, you may wonder why you didn’t take the plunge sooner.

Benefits of using an automated HR system

There are many reasons why a company might choose to automate its HR functions. Here are some of the biggest benefits:

• Saves time: Payroll and other HR-related functions are some of any business’s most tedious and time-consuming tasks. This is especially true if they are completed manually. Automated HR systems perform these functions for you, eliminating the need to spend time on them.
• Increases HR accuracy: As much as we hate to admit it, humans are prone to error. Manually entering and transferring HR data can lead to errors, affecting important things like employee pay, workforce data trends and company records. Automating HR functions reduces the potential for human error and increases accuracy.
• Maintains legal compliance: Keeping up with complex HR regulations can be challenging. One misstep can land you in hot water legally. An automated HR platform gives you access to automated workflows and compliance reminders to ensure you stay compliant.
• Improves employee productivity and satisfaction: Automated HR systems increase overall employee satisfaction. They often include employee self-service tools, allowing staff members to take control of their HR needs. This level of autonomy is vital for many workers. It also automates things like onboarding and payroll, which are crucial to workers and can increase overall productivity and satisfaction.
• Enhances decision-making: These systems can record employee data and workforce trends, providing real-time data and analytics on key HR metrics. This data helps you make informed HR decisions.

Best providers for HR automation

The best automated HR system for your business will depend on several factors, including your budget, number of employees and required features. It is vital that you do your own due diligence to determine which is best for you. To get you started, here are a few top HR software options you may want to consider.

• GoCo: This cloud-based software can take care of several HR functions, and users can customize it by adding on custom workflows. These workflows help automate HR tasks like hiring, onboarding, approvals and employee termination. You can also turn any document into a form with a built-in e-signature tool. Read our review of GoCo to learn more.
• Gusto: This software is ideal for businesses that need a comprehensive payroll solution. It can handle all of your payroll processing and payroll tax filing responsibilities for you. It also handles other essential HR tasks, such as time and attendance, employee benefits administration, hiring and onboarding, and talent management. Read our Gusto review to learn more.
• Rippling: This intuitive software is easy to implement and offers several ways to automate your HR processes. For example, you can automate onboarding to get new hires into the system in just minutes. You can use it to track applicants, create custom hiring workflows, process payroll, administer benefits and access compliance training. Read our Rippling review to learn more.