Automating HR Step-by-Step
As companies grow, so does the work in HR. Introducing automation can reduce headaches and help you save money at the same time.Implementing HR technology is one of the easiest ways for you to show HR value to management by reducing HR costs while simultaneously improving performance.
It’s important to look at HR technology as an investment that will continue to yield returns for years to come. Many companies focus on “cheap” and forget that the more you automate, the more you save.
But each company has to start somewhere, right? This HR article will provide a step-by-step guide for introducing automation as your company grows.
Step 1: Small Business HR Automation
At this level, you’re probably wearing two hats – HR and finance. You probably use QuickBooks and just need a simple solution for tracking labor that will integrate with QuickBooks.You may be using paper time cards to track employee labor now. Let’s highlight some of the reasons paper time cards actually cost you more money than automating this process:
• Automation reduces payroll review time by 62% because you only need to review exceptions (like late punches).
• Replacing manual processes saves 20% in labor across the board.
• Electronic systems protect you from litigation thanks to security and access to information.
• Electronic systems provide analytics and give you insight into your employees’ labor to address problems and optimize performance.
• Paper timecards get lost, can be hard to read, and cause errors (miscalculation, etc.).
The basic automated systems will pretty much only provide insight into actual time people worked. They track In, Out, and Breaks. They won’t give you benefits tracking or anything advanced, but they are where most small companies will start in their efforts to automate HR.
I recommend looking at JediBox Time's TE101 series time and attendance systems at this level as they offer a great range of features and are very reasonably priced. Their offerings range from standard pin based clocks up to the latest in biometrics. I’m in the industry, and that’s what I would buy at this level.
Step 2: SMB HR Automation
SMBs are typically looking to go beyond these basic systems because they want to track benefits, integrate scheduling, or perhaps offer an employee portal for HR purposes.At this level, I typically stress consolidating services. Try to get as many of your requirements from one vendor as possible. Most vendors offer discounts the more you buy – just like anything – so it’s almost always a good idea to look for HR shared services.
Start by making a list of your manual processes and headaches. Feel free to pipe dream and use Google to see if somebody offers your dream system.
The SMB typically is ready to address some of what HR expert David Ulrich has defined as HR’s overarching mission:
• Aligning HR & Business Strategy
• Rethinking Organization Processes
• Managing Employees / Employee Champion
• Managing Business Transformation & Change
Part of that includes making HR more than HR. Consider general business expenses and your unique business strategy and incorporate elements into your HR system. Go outside the box and look for things like inventory management if you require it.
SMB Automation Considerations
• Employee Time & Attendance
• Benefit Tracking
• Job Tracking by Labor Type
• Advanced Pay Rule Management (Unions?)
• Employee HR Portal
• Advanced Payroll / System Integration
• Applicant Tracking
• Onboarding & Training
• Reviews & Performance
• HR Templates & Resources
• Facility Access Control
• Inventory Management
• Hardware, Time Clocks, Access Control Systems
Many systems can be customized or tweaked slightly to support unique needs. This is an advantage that can’t be found at the sub-$1000 level. Getting a system that is tailored to your business will ultimately provide the best return on investment.
Here, I’m happy to plug my company and say that Acumen Data Systems is the ideal solution for businesses looking to automate HR and business functions at this level.
Step 3: Enterprise HR Automation
With clients like Pitney Bowes, State Farm Insurance, and Liberty Tax, Acumen Data Systems is also ideal at the enterprise level.Enterprise-level organizations are typically looking for the full menu plus advanced integration and system synchronization that goes beyond the capabilities of most systems.
Acumen’s HR systems and timekeeping software scales to support any sized company. Available in both licensed and SaaS models, Acumen’s HR software can be integrated with nearly any ‘open system’ time clock, any payroll system, any ERP system, and many other databases and business systems.
HR automation at the enterprise level is many times focused on process flow improvement and achieving a balance of management notification of system exceptions. That means that the HR manager sets up alerts when, for example, John Doe arrives late three times in one month. At the enterprise level, the HR manager may be getting inundated with alerts and needs to optimize workforce visibility vs. alert management.
Bottom-Line on Automating HR Systems
No matter where your company’s at, you will save by introducing automation to your HR processes. And the more you automate, the more you save.We recommend starting by looking at your potential return on investment and then drawing-up a budget that equates to a year of savings. Contact vendors and see how many items from your wish-list you can satisfy with your budget.
About Acumen Data Systems
Acumen Data Systems is a leading provider of employee time and attendance systems and software, as well as other workforce management and business automation software.Acumen's ViewSUITE is a cost effective, robust set of workforce management applications for businesses, including systems and software for employee time and attendance, labor management, HR management, employee scheduling, facility door access control, job tracking, job costing, and shop floor data collection.
Learn more about Acumen: 888-816-0933 – www.acumendatasystems.com
