3 Reasons to Automate Your Human Resources Department
In 1893, an economist by the name of John R. Commons was the first to use the term “human resource.” He scribed the term into a book titled “The Distribution of Wealth.” Over a century later, it has become clear that this was a fitting name for the first text to mention humans as a resource because the Human Resources department in every business has become a crucial component in maintaining wealth.
That said, it’s really not until the 1960s when the idea of Human Resources became interminably intertwined with the individuals who are responsible for managing employee-related resources. The Human Resources department oversees everything dealing with the management of human capital within a company. They are tasked with managing all of the information regarding every employee within an organization. It’s a heavy lift, one made even more burdensome by a systemic reliance on outdated, paper-based processes.
When John R. Commons first penned the term “human resource,” it’s hard to imagine that he could fathom how big his concept would grow. Today, successful companies don’t just staff the most hard-working HR professionals, they equip them with Human Resources document management automation to ensure that every employee is accounted for and managed with the utmost efficiency. An inefficient HR department can not only create friction within your company but also affect your bottom line as your most important assets are mismanaged and unable to maintain peak productivity.
Why Human Resources Document Management Automation?
Being the hub of an organization’s resources, people, and the jobs they’re performing, the information contained within HR-HCM files functionally keeps companies afloat. Unfortunately, larger companies that have become overly reliant on paper find themselves entrenched by processes that become highly specialized (and less efficient) over time as impractical processes are utilized to “patch” shortcomings in an existing HR system. Plus, HR processes vast quantities of information, and whenever you have large amounts of information, you simply can’t afford to be running through reams of paper, too.
Before a company can take advantage of the benefits of Human Resources document management automation, they must first have a digital repository for all of their data to be stored. Ideally, using an enterprise content management (ECM) solution that permits workflow automation. From this centralized repository, all HR-related information can be accessed by users with the proper permissions. Such a system empowers businesses to take advantage of electronic employee file management, secure storage, remote access, robust file search capabilities, and more. Your employees will never need to dig through a file cabinet again. Plus, ECM solutions like IntelliChief automatically assist with compliance by creating a virtual document timeline from onboarding through its lifecycle.
Why Businesses Automate Human Resources
Some companies automate their HR department after they have already successfully automated another department, such as Accounts Payable or Accounts Receivable. Others wish to free their workers from repetitive, manual tasks that take up time but yield very little value. While every business automates for their own reasons, the most commonly cited reasons include:
1. To Get Faster
Document management is a time-intensive process when handled manually. Accessing information from a physical file is a time-consuming hassle that is vulnerable to mishaps during both storage and retrieval. One misfiled document can cost your company over $100 in wages. This figure doubles when a new document must be produced to replace the original. None of these slowdowns occur within an ECM system, and with automation, only documents that fail to meet your tolerances are forwarded to a user for manual intervention. When implemented properly, you can eliminate almost all of your false exceptions and facilitate a working environment where 100 percent of an employee’s attention can be given to the task at hand, all but eliminating mistakes from your HR document management process.
2. To Avoid Business Interruptions
It’s never been more apparent than in 2020 that American businesses are not equipped with the tools to stay productive when significant business interruptions strike on the local, national, or global level. Avoiding business interruptions doesn’t mean dispatching your team to work from home when something prevents you from going into the office, it means sustaining productivity and profitability in the face of a crisis. This can only be accomplished when your team is equipped with the tools to access and interact with documents around the clock. Of course, automation allows your business to continue working after hours, but what about those documents that do require human intervention? Can your team access them when working from home? If one user is unavailable, can another user with similar permissions access the document to complete the task for them? With ECM and automation, your business is always prepared for the unexpected, allowing you to work through business interruptions when your competitors are sidelined.
3. To Save Money
“A dollar saved is a dollar earned,” and when it comes to HR document management automation, the cost savings can be game-changing for your business. Here’s where you can expect to save:
- Reduced paper, labor, and storage costs
- Fewer errors
- Faster processing and onboarding
- Less turnover
- Automatic audit compliance
- Hire accurately
Businesses save money because they always have complete visibility over the status and contents of all HR files, including:
- ADA medical records
- Background checks
- Drug tests
- Equal Employment Opportunity (EEO) data
- Expense reports
- FMLA medical records
- 1-9 forms
- Insurance enrollment forms
- OSHA records
- Payroll records
- PTO requests
- Resumes and employment applications
- Reviews and disciplinary records
- Timesheets
- Training manuals and onboarding itineraries
- Tuition reimbursements
Best of all, a scalable solution like IntelliChief can be applied to multiple departments, allowing you to eliminate inefficiency and financial pitfalls across your entire enterprise. Cost savings in one department serve as a model for potential savings in other departments, and scaling is easy because working with a single vendor who supports robust software integrations ensures that there are no compatibility issues with other applications.
Are You Ready to Automate HR Document Management?
As an employer, your employees are your most valuable asset. They provide the creative spark to help you solve complex problems, the persistence to ensure that your business is always running, and the resilience to help you overcome challenges. To manage them effectively, you need to support your HR department and give them the tools to capably handle all of your most important HR files. As your business grows, so will the amount of pressure placed on your HR department. HR document management automation can give them the relief they need to manage their time and output and ensure years of dedicated service.
