An Actionable Guide to HR Workflow Automation

Extracting employee insights from documents with AI

Human resources (HR) professionals spend approximately 73% of their time on monotonous tasks, meaning that businesses face severe issues such as:

  • Reduced focus on strategic initiatives: HR professionals have less time to spend on more demanding tasks like talent management, succession planning, and organizational development, all of which are key to long-term organizational growth.
  • Lower employee satisfaction: Being preoccupied with administrative tasks means HR professionals won’t have enough time to address employee concerns and foster a positive workplace culture.
  • Inefficiency and errors: Manually handling administrative tasks is prone to human error. Payroll or employee data management mistakes can result in dire consequences, like legal issues and employee dissatisfaction.

One solution is to use HR workflow automation, which improves organizational efficiency and allows HR professionals to focus on more important tasks. 

What is HR Workflow Automation?

Workflow automation represents the shift from manual handling of employee-related processes to a more systematic approach.

It involves using AI technology to automate time-consuming and repetitive tasks, consequently reducing human error and increasing efficiency. By leveraging software systems and applications, HR departments can systematically manage workflows that ensure tasks are completed accurately and on time.

Examples of HR Workflow Automation

One example of an automated HR workflow is the onboarding process for new employees. Traditionally, this might involve numerous forms, manual data entry, and a lengthy back-and-forth between departments. With automation, new hires can complete forms online that are integrated directly into the company's HR system. 

This speeds up the process by ensuring data consistency and compliance with regulatory standards. Automated onboarding also includes scheduling training sessions, assigning mentors, and providing access to necessary tools without human intervention.

HR Workflow Automation Example: Employee Insights

Extracting skill level and cost per hire from employee application with AI


HR departments can significantly advance how they manage and utilize data, allowing them to gain valuable insights into employees. This includes

  • Employee skill level: Automated workflows can automatically track and update employee skills. It can also help identify skill gaps, allowing for targeted training programs and better workforce planning.
  • Cost per hire: Hiring expenses like recruitment agency fees and employee referral bonuses can be tracked efficiently. HR departments gain insights into the most cost-effective recruitment channels and strategies.
  • Performance grade analysis: Automation allows for standardizing organizational performance metrics, ensuring that employees are evaluated fairly. 

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Benefits of HR Workflow Automation

Manual HR processes are time-consuming and prone to errors, whereas HR workflow automation frees up time by accurately completing tasks.

Manual HR Processes
Inefficient employee data management, as employee data is scattered and difficult to track.
Time-consuming recruitment process
Inconsistent performance management
Manual payroll processing
Ineffective leave and attendance tracking
HR Workflow Automation
Employee data management is more organized and easier to track
Recruitment processes can be automated, so HR professionals can focus on more demanding tasks.
Fair and timely evaluations can be provided to employees, resulting in a motivating work environment.
HR professionals can save time and reduce the risk of payroll errors.
Employee attendance and leave balances can be tracked automatically with high accuracy.

In essence, automating HR workflows significantly improves productivity and employee satisfaction. 

1: Improved Employee Data Management

Automated HR workflows provide a centralized database for employee information, making it easier to update, track, and retrieve data as needed. This reduces the likelihood of data discrepancies and ensures the HR team has access to the latest information. 

Centralized data management supports the HR team's ability to:

  • Perform analytics
  • Forecast staffing needs
  • Make evidence-based decisions that align with organizational goals

2: Efficient Recruitment Process

Manual recruitment processes often lead to HR staff painstakingly reviewing every application by hand, missing out on top talent due to the sheer volume of applications.

On the other hand, automated recruitment processes can widen the talent pool by efficiently managing large volumes of applications and ensuring a diverse range of candidates are considered. Therefore, the chances of finding the most qualified candidates are increased.

Automation tools can also handle job postings, applicant tracking, and the initial screening of candidates. This allows HR professionals to focus on more strategic tasks, such as interviewing top candidates and making informed decisions in the hiring process.

3: Consistent Performance Management

Performance appraisals can be standardized across the organization with automated reminders and tracking. This ensures fair and timely evaluations, contributing to a transparent and motivating work environment.

Automation also allows for the collection of more comprehensive feedback from various stakeholders, leading to a holistic view of an employee's performance.

4: Automated Payroll Processing

By automating payroll, enterprises can ensure accurate salary calculations, tax withholdings, and benefit deductions. This reduces the risk of payroll errors that can lead to employee dissatisfaction and legal issues.

In addition, automated payroll systems often provide employees with self-service portals to view their paystubs, tax forms, and benefits information, thereby enhancing transparency and engagement. With automated payroll processing increasing by approximately 3700% from 2022 to 2023, businesses can ensure high employee satisfaction.

5: Effective Leave and Attendance Tracking

Automated systems can accurately track employee attendance, leave balances, and accruals, providing real-time visibility into workforce availability and helping to manage staffing needs proactively. 

This also simplifies the process for employees to request time off and for managers to approve it, all while maintaining accurate records for compliance purposes. 

Moreover, real-time visibility into the workforce allows managers to make informed decisions about staffing. They can identify patterns like frequent absences or understaffing on certain days, which helps maintain optimal productivity.

Steps for Successful HR Workflow Automation

There are three key steps for integrating a successful HR workflow automation process into your business, which include creating a plan and finding the right HR automation tool for your enterprise.

Step 1: Create a Plan

Identify the processes that require automation, the goals to be achieved, and the metrics for measuring success. A detailed plan should outline the scope of automation, the resources needed, and the timeline for implementation. It should also consider any potential challenges and strategies for overcoming them.

This plan serves multiple purposes:

  • Risk mitigation: It can help you mitigate risks like data privacy concerns and user adoption challenges. It also ensures the automation aligns with your goals, such as improving employee experience and enhancing recruitment efficiency. 
  • Goal alignment: By having a well-thought-out plan, you can set clear and measurable goals. This includes enhancing recruitment efficiency or improving employee experience.
  • Cost-benefit analysis: Including a thorough cost-benefit analysis aids in making informed decisions about optimal resource allocation. This includes assessing financial implications, initial investment, and expected return on investment (ROI).
  • Scalability and flexibility: The plan addresses long-term scalability and flexibility, ensuring the solution can adapt to business growth, changes in workforce size, and evolving HR policies.

Step 2: Determine What HR Tasks You Need to Automate

Evaluate your current HR processes to identify the most suitable tasks for automation. These may include time-off requests, expense claims, performance reviews, or any other processes that are repetitive and rule-based.

Look for tasks that consume significant time or are prone to errors. Additionally, consider the impact of automation on the employee experience and how it can contribute to a more engaging workplace, resulting in improved employee satisfaction.

Some HR tasks that you may want to automate include:

  • Benefits administration: Automating benefits administration simplifies employee benefits like health insurance, retirement plans, and leave plans. For example, an automated system can allow employees to enroll or change their benefits options online. 
  • Employee record management: This involves digitizing and centralizing all employee records, including personal information, performance reviews, and training records. An example is when an employee receives a promotion, their new job title and salary are reflected in their payroll and benefits automatically.
  • Training and development: Managing online training programs, tracking employee progress, and evaluating the effectiveness of training initiatives. If an employee is interested in learning new software, they can enroll in a relevant online course where their progress is tracked.
  • Employee feedback and surveys: Using digital tools to analyze employee feedback and generate actionable insights. This could be done through an annual employee satisfaction survey that can be distributed through an automated system.

Step 3: Find the Right HR Automation Solution

HR document automation is an example of custom HR workflow automation software that can be trained on an enterprise's specific documents, enhancing the efficiency and effectiveness of HR document management. It’s a custom AI agent that extracts relevant information and processes various HR documents.

HR managers lose 14 hours a week on tasks that can be automated by HR workflow software like HR document automation. It can extract and organize data from various document types, such as resumes, application forms, and tax documents. This reduces the need for manual data entry and accelerates decision-making processes. 

Implementing HR Workflow Automation

Using HR document processing, businesses can free up valuable HR resources to focus on more impactful areas such as talent development, employee engagement, and strategic planning. As a result, this drives business success and fosters a culture of continuous improvement.

Training the model on your organization’s documents will tailor HR document processing to your specific HR needs and use cases. Contact us to find out how we can implement it for your business.

John Doe
Pay Stub
Salary
Total Pay
Net Pay
Federal Taxes
FICA - SS
FICA - Medicare
Medical Record
Patient: 77248
Patient Demographic
Billing Cadence
Current Progress
Current Patient Response
Extract patient names, medical conditions, lab results, and any other data that speeds up administration, patient care, and your other processes.
Employment Contract
From our CEO
James W.
Samantha T.
Extract data like legal citations, contract dates, and specific clauses, and streamline your research, document drafting, and other legal tasks.

Extract Data

Extract data from documents in exactly the fields you need with zero human intervention.
John Doe
Pay Stub
Salary
Total Pay
Net Pay
Federal Taxes
FICA - SS
FICA - Medicare
Sarah Moore
Pay Stub
Salary
Total Pay (USD)
Net Pay (USD)
Federal Taxes
FICA - SS
FICA - Medicare
Convert diverse currency values into one consistent format, standardize date formats, and scale numerical values for faster financial analysis.
Medical Record
Patient: 77248
Patient Demographic
Billing Cadence
Current Progress (Months)
Current Patient Response (SO2)
Medical Record
Patient: 77198
Patient Demographic
Billing Cadence
Current Progress (Months)
Current Patient Response (SO2)
Convert diverse date formats into a unified structure, standardize units of measurement, and normalize any other data you need to maintain consistent records.
Employment Contract
Format: PDF
James W.
Samantha T.
Employment Contract
Format: PDF
Alex S..
Morgan W.
Standardize various contract clause formats, date representations, and other data you need for efficient legal research, drafting, and analysis.

Normalize all your Data

Normalize all your data with just one click, so you can compare it at a glance, make informed decisions faster, and integrate it into your databases and other tools more easily than ever.

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FAQs

What HR Processes Can Be Automated?

Various time-consuming tasks can be automated via HR document automation, such as:

Recruitment and onboarding: Resumes, application forms, and new hire paperwork can all be processed automatically. This includes extracting relevant information from resumes, auto-filling forms, and managing onboarding documents.

Payroll processing: Timesheets, paystubs, and tax forms can be handled. Automation also assists with extracting data from these documents for accurate payroll calculations.

Exit management: Managing documents related to employee offboarding, such as exit interviews and termination paperwork. Automation ensures that the offboarding process is carried out smoothly and effectively.

Will AI replace HR?

AI solutions support HR processes rather than eliminate them completely. This is evident from a study that found 800,000 jobs were replaced by automation, but 3.5 million jobs were added. In addition, AI can benefit HR decision-making and provide personalized employee experiences.