Automation in HR processes – Low Hanging Fruits


 Image Credit: Human Resources Online

Setting the Context

We have already seen Hyper Automation (combination of RPA and AI) usage having found acceptance across various processes in industry verticals like Banking & Financial Services, Healthcare and Aged Care, Manufacturing, etc.

Similarly, there is a tremendous potential for Hyper Automation adoption in a common horizontal process that cuts across all industry verticals – the ubiquitous Human Resources (HR) function.

The core value proposition of hyper automation is automating manual business processes and bringing in intelligence - thereby driving productivity, efficiency, experience, accuracy, scale economics and cost optimisation benefits, amongst others.

A AIIM study taken in 2016 had found the following interesting data points about manual (paper-usage) in the Hire-to-Retire process of HR functions cutting across industry verticals.

Paper Usage (Manual) % in Hire-to-Retire (H2R) Processes

•        Recruiting and selection = 35%

•        Employee onboarding = 48%

•        Employee file management = 53%

•        Policies and procedures administration = 32%

•        Employee separation = 48%

Typical HR process use cases for RPA & AI

•        Candidate Shortlisting - Resume Screening vis-à-vis Job Description

•        Candidate Background Checks - Academic Qualifications, Employment History, Behaviour Reference, Criminal History (if any)

•        Employee Onboarding - Offer Letter Administration, New Hire Setup, Onboarding (Induction & Training)

•        Employee Management - Policies & Procedures Administration, Time & Attendance, Payroll Management, Travel & Expense Management

•        Employee Separation - Exit Management

•        Company Processes – Survey Administration & Analysis, Company Reviews, Facility Admission/Access Card Process, etc.

Benefits of Automation in the H2R processes

•        Increasing process turnaround time and optimizing costs

•        Allowing HR employees to focus on strategic tasks

•        Increasing consistency and eliminating errors

•        Ensuring compliance and reducing liability risk

•        Enhancing customer satisfaction (employees as internal customers for HR function)

 

In conclusion

Most Automation adoption/action/interest is being seen in process areas like Claims Processing, KYC, Customer On-Boarding, Invoice Intelligence, etc. However, there is indeed a strong case for looking at automation possibilities in the HR processes. These are typically under the radar and seen as “internal” processes. But at the same time, they have the potential to be “low risk” and “easy wins” for starting the automation journey and showcasing “proof points”!

Disclaimer: This article is based on my personal opinion.

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