Technological advancements are affecting every aspect of the business world, and HR is not immune.

One such advancement is automation, and businesses that embrace it experience higher productivity, increased performance, and reduced operations cost. Given the litany of benefits that come from automation, it may surprise you to know the HR landscape has been slow to take notice.

Yet, if anyone should be paying attention it’s those working in HR. Consider this—according to a study conducted by G&A Partners, HR professionals spend more than 73% of their time working on mundane administrative tasks. Whether it is sifting through resumes in search of the right candidate, managing employee benefits, or tracking time and attendance, HR automation frees employees from time-consuming manual tasks and allows them to focus on more complex tasks like problem-solving and strategising.

But many small business owners are hesitant to invest in HR automation, so today we’ll look at 7 reasons why so many businesses are embracing HR automation and the benefits of making the change.


7 reasons businesses are adopting HR Automation:


1 – Streamlines the Recruiting Process

When HR automation software is used, the recruiting process becomes infinitely easier. Employees are no longer bogged down with paperwork as many of the more tedious tasks like posting job ads, tracking responses, conducting pre-employee assessments, and prioritising candidates are completed via the software.

This leaves HR staff free to check in with candidates and nurture relationships, creating a positive hiring experience.

2 – Improves Employee Onboarding

Once you’ve made the job offer and the candidate has accepted the position, there is a veritable mountain of paperwork and forms that must be completed. With onboarding software in place, new hires can begin the process as soon as their contract is signed.

Pertinent information is sent to new employees automatically, e-signed documents can be returned to the system and automatically uploaded, and the risk of lost or misfiled documents is virtually eliminated.

3 – Reduces Expense Report Related Costs

According to a recent study, it takes the average employee 20 minutes to complete one expense report, and that report costs the business approximately $77 to process.

HR automation can change the way expense reports are submitted. Employees can photograph and upload images of receipts, and HR automation software will extract all relevant data. Managers are then notified and can choose to approve or reject the submission.

4 – Makes the Payroll Process Pleasant

This is an area in which automation truly shines. Payroll is a hotspot for employee errors due to the high number of manual calculations that take place. Determining hours worked, sick leave used, and/or overtime accrued leaves plenty of opportunity for mistakes.

Automation software solves this problem by completing all calculations automatically and in a fraction of the time it would take an employee to do the job.

5 – Improves Time Management

Dealing with hard copy timesheets is wildly inefficient and manually entering data can lead to costly mistakes.

Many automated software programs allow employees to download an app and use it to clock in and out or go on breaks. Businesses that use such software often report a reduction in administrative overhead.

6 – Tracks Employee Performance

When employee performance records are automated, managers and directors have instant access to the documents critical to making decisions regarding raises, disciplinary action, or termination.

Automated software saves the company money by reducing the amount of time needed for employee evaluations and improving the overall efficiency of the evaluation process.

7 – Helps with Employee Benefit Compliance

Although outsourcing is available, many business owners opt to manage at least some employee benefits administration in-house, often using manual methods to do so.

When entered by hand, benefits data must be entered separately into multiple systems—benefits, HR, and payroll—eating up a tremendous amount of time and effort. Automated software allows employees to enter benefit data once and upload it to other departments automatically.


HR automated software ensures the company is developing and maintaining standardised policies and procedures for each benefit in accordance with the law and can automatically calculate benefit deductions and withhold them from employees’ pay if necessary.

Though it makes some business owners uncomfortable, the consensus is clear—automation is the way of the future…and it’s just good business. Using HR automation software reduces the need for HR teams to waste time and money completing tedious tasks and improves the efficiency and profitability of your business.