This is the fourth article in the “Guide to HR Technology” series.  The goal of the series is to provide information on the state of HR software in 2021 and how it can positively impact your organization.  This article will provide examples of automation using HCM software. 

What Does Automation Mean for Human Resources?

When speaking of automation, it is easy to imagine its implementation in an automotive assembly line.   However, in the realm of human resources, its application is not as obvious. A good way to find opportunities for automation is to break down a complex task, such as onboarding a new employee. Let’s separate onboarding into individual steps, assuming we were not using HCM software:

  • Print or make copies of all required forms, which includes:
    • Personal Information form (Contact Information, Emergency Contacts, etc.)
    • I9
    • Federal W-4
    • State W-4
    • Employee Handbook
    • Employee Handbook Acknowledgment
    • Direct Deposit
    • Benefit Selection
    • 401k Enrollment
  • Contact the new employee and set an appointment for onboarding
    • Requires the presence of a member of the HR team
    • Restricted to weekdays and normal business hours (9am – 5pm)
  • During the onboarding appointment, the HR team member must:
    • Provide instructions and guidance on completing the onboarding paperwork
    • Review all complete forms for errors or missed information
  • After the onboarding appointment, the HR team member must:
    • File all paperwork and forms
    • Provide payroll information to Finance department
    • Provide benefits information to Insurance Broker or Carriers
    • Provide 401k information to 401k Provider

Now, let’s strike-out all administrative task that HCM software can handle:

  • Print or make copies of all required forms, which includes:
    • Personal Information form (Contact Information, Emergency Contacts, etc.)
    • I9
    • Federal W-4
    • State W-4
    • Employee Handbook
    • Employee Handbook Acknowledgment
    • Direct Deposit
    • Benefit Selection
    • 401k Enrollment
  • Contact the new employee and set an appointment for onboarding
    • Requires the presence of a member of the HR team
    • Restricted to weekdays and normal business hours (9am – 5pm)
  • During the onboarding appointment, the HR team member must:
    • Provide instructions and guidance on completing the onboarding paperwork
    • Review all complete forms for errors or missed information
  • After the onboarding appointment, the HR team member must:
    • File all paperwork and forms
    • Provide payroll information to Finance department
    • Provide benefits information to Insurance Broker or Carriers
    • Provide 401k information to 401k Provider

That’s everything!  Here’s how to make it happen:

  • All forms are created digitally in the HCM software and kept up to date by the HCM software provider
  • HCM software will send an email to the new employee when their account is created by a member of the HR team
    • The new employee can login at any time, even on weekends or holidays.
  • HCM will provide instructions and guidance to the employee
  • All rules and requirements for onboarding forms are programmed into the HCM and enforced by the software
  • Once the employee has completed the onboarding:
    • All forms are collected and attached to their employee profile in the HCM
    • Payroll information is immediately accessible to the Finance department
    • Benefits and 401K information is delivered via Electronic Data Interchange (EDI) feeds
      • These feeds connect the HCM to the Provider’s software, eliminating all manual entry or spreadsheet uploads

Automating new employee onboarding can save an HR team member 1-2 hours for every new hire.  If your organization hires 25 employees a year, you could save 50+ hours of your HR team’s time. 

More Automated Tasks

New employee onboarding is just one example of automation.  With the use of workflows in the HCM software, tasks like time off approvals and performance reviews can be automated.  Here’s an example of an automated time off request process:

  • An employee needs to take off the day after Christmas, so they create a time off request in the HCM software
  • The HCM sends an email to the employee’s manager, alerting them of a new time off request to approve
  • In the HCM, the manager can view information about the request prior to approving it.  Information like:
    • The number of hours in the employee’s bank to use for time off requests
    • Other approved time off requests for the employee
    • Other employees scheduled off that day
  • Once the request is approved, the HCM alerts the employee
  • The time is deducted from the employee’s bank and placed onto the employee’s time sheet
    • This ensures the employee is paid correctly and prevents the over-spending of time off hours

If your HR team needs help automating their HR tasks, let us know!  Click the “Schedule an Introduction Meeting” at the top of the page.