Businesses find a way to automate mundane, time-consuming processes. This approach has also found its way to the HR department. In the following sections, we explain what it is, how it works, its features, benefits, use cases, and types. We also share tips for choosing the right type.

What is HR Automation?

HR automation is a method of utilizing software and algorithms to automate repetitive, time-consuming HR tasks. It minimizes the need for manual work and human input. This approach proves useful for day-to-day administration, paperwork, payroll, benefits management, recruitment, onboarding, offboarding, timekeeping, and compliance training.

How Does HR Automation Work?

First, you set up workflows that follow specific rules. For example, when someone gets hired, the system automatically sends them welcome emails, creates their employee file, orders their laptop, and schedules their first week. It's like a chain reaction where one action triggers the next.

AI helps with smart tasks like reading resumes and ranking candidates. Instead of a person reading 200 applications, the AI can quickly identify the most qualified ones.

Employees get self-service portals where they can check pay stubs, request time off or update their address without engaging HR.

The software also tracks everything and gives you reports showing patterns, like which departments have high turnover or which benefits employees use most.

Key Features

The most common HR automation capabilities include employee onboarding and offboarding, payroll processing, benefits administration, time and attendance tracking, recruitment and ATS, performance management, and compliance monitoring.

Benefits

HR teams spend less time on paperwork and data entry, which frees them up for strategic work like culture building and employee development. The data helps identify trends and inform decisions. Better processes improve employee experience and satisfaction. Automated data entry reduces errors and compliance risks.

Use Cases

The system posts jobs across multiple boards, screens applications, and schedules interviews. New hires get automated welcome emails and account credentials before day one. Payroll pulls time data, calculates wages, and processes payments. Time-off requests go through approval workflows automatically. Performance reviews stay on schedule. When employees leave, the system manages equipment collection, access removal, and final paychecks. Self-service portals handle routine updates. Compliance tracking monitors required training and flags regulatory changes.

Types of HR Automation

Four types are widely used and proven:

HRIS

Human Resources Information Systems manage employee records, payroll, and benefits. Many include learning management and onboarding.

HRMS

Human Resource Management Systems add workflow automation and tools for payroll, recruiting, performance management, and succession planning.

HCM

Human Capital Management, or HCM, is the largest umbrella category that combines HRIS, HRMS, and extra functionalities and features for employee engagement, learning management, business intelligence, and advanced data analysis.

Specialized Tools

Standalone tools target specific needs: recruiting platforms, applicant tracking systems, onboarding software, and learning management systems.

How to Choose the Right One

Identify your specific problems and set clear goals. Look beyond replicating current processes, consider what's newly possible. Prioritize integration with existing systems, ease of use, customization options, analytics capabilities, and scalability. Verify that security, privacy, and compliance are properly addressed.