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The Benefits of Automation in HR

Human Resource professionals typically wear many hats within an organization. HR is responsible for recruiting, onboarding, scheduling, time and attendance, payroll, benefits, etc. Not to mention the responsibilities that have been thrown HR’s way regarding COVID-19 policies and procedures. To say that HR has more than enough on their plates is an understatement.

Plenty of companies still use manual processes for time, attendance, and payroll. Many employers believe that paper time cards and manual spreadsheets are easier for their employees. While it may be what your workforce is used to, manually processing data takes vital time away from other important facets of HR. Here are five benefits of incorporating automation into your HR processes.

Minimize human error

No matter the level of experience, people make mistakes. Employees may not record their time correctly. Payroll could enter an incorrect number here and there. These mistakes happen. But the more they happen, the more money your company is spending to correct them.

The American Payroll Association conducted a study that shows an error rate of 1-8% in companies that use traditional timecards. This study also found that roughly 40% of small businesses average $845 in IRS penalties per year.

HR technology can automate employee attendance for more accurate data. Automation eliminates the need to manually enter employee data into several different locations. Instead, data can be exported directly to a payroll solution or as a CSV file.

Go paperless

For small businesses, payroll typically means hours upon hours of tedious work. When manually processing payroll, the mountain of paperwork can become overwhelming. Not only is a mountain of paperwork unsightly, but it also creates plenty of unnecessary waste.

Instead, HR technology has crucial attendance and payroll information available within a click. With time and attendance software, employees do not have to keep up with a time card. Instead, they can use a computer, time clock, or mobile phone to easily clock in/out. By going paperless with your time and attendance, you can focus your time on more complex HR processes.  

Improve employee experience

Many different factors go into an employee’s experience in the workplace. The most important of these factors is paying your employees on time. Ultimately, employees work to live, so messing up a paycheck is a big issue. When you automate your time and attendance process, you are able to keep a closer eye on employee data. This ensures that employees’ paychecks will be accurate and on time.

People around the world are using technology for almost everything they do. Whether it be shopping for new clothes, looking for entertainment, or simply researching something new, people use technology to make their lives easier. Implementing HR technology is no different. With time and attendance software, employees are able to view their PTO balances and can request time off from anywhere at any time of the day.

Eliminate buddy punching

Just as it sounds, buddy punching happens when an employee punches in their coworker. This typically occurs when an employee is running late. Buddy punching is considered time theft and should be taken seriously.

HR technology can help eliminate buddy punching. Geofencing technology allows employers to set boundaries to specify where employees are able to punch in/out from. Geofencing technology can also include auto-punching, which automatically clocks employees in when they arrive on-site, without them having to lift a finger. This provides a real-time capture of employee attendance to ensure the most accurate data possible.

Achieve compliance

Time and attendance software cannot guarantee that your company stays compliant with employment laws. However, the data that is collected by time and attendance software can help make sure that your company complies with labor regulations. Employee time records are easily accessible to ensure that your employees are getting paid for every minute that they work.

When your processes are not compliant with employment laws, it will cost your company time and money. In fact, a study from the Wage and Hour Division found that back wages totaled more than $230 million in 2021. By automating your time and attendance process, your company can avoid errors that lead to paying back wages.