The human resources department is frequently one of the most overburdened and understaffed departments in a company. Every day, they must answer dozens of benefit-related questions, manage new hires, and coordinate paperwork—often with stacks of their own paperwork to sort through. HR automation can make management easier and more affordable.

1. Payroll

When you automate your payroll system, you process it electronically rather than manually. Payrolling by hand is much slower – often taking days rather than hours – and has a much higher chance of producing errors than an automated system would.

Payroll automation software, such as QuickBooks, PayChex, or ADP, is available to businesses of all sizes. The following are some of the advantages of automating your payroll processes:

• Accurate Calculations: Rather than entering taxes, deductions, over-time, commissions, and other discrepancies, automation will automatically calculate all unique points for you and identify the correct results.
• Payroll Records: The IRS mandates that employees’ tax records are held for a minimum of 4 years, and the US Department of Labour requires that payroll records be kept for at least 3 years. Having these recorded digitally versus in file folders in various locations saves a lot of time and headaches if there is an audit.
• Better Time Management: Reduce errors of manually recording hours worked or time-off requests, preventing over or underpaying your employees. This leads us into the next feature…

2. Time Management/Time Sheets

If you use a manual time tracker, your employees typically enter their hours after they have occurred. It’s usually at the end of the week, via a spreadsheet or penciling in numbers.

Unfortunately, not everyone’s memory is perfect, and this method of timekeeping carries a significantly higher risk of fudged numbers. Of course, it’s not usually meant maliciously; some people forget if something out of the ordinary happened that week, causing a change in their schedule. Accidents on the road, doctor’s appointments, and having to dash out the door to pick up a sick child are all prime examples. However, there is always that one employee who intentionally commits time fraud or has terrible handwriting, which can be a significant pain when it comes to payroll.

There are several options for digital time tracking, such as investing in a biometric time clock or having a requirement for employees to log onto a time tracking website for their time spent at work. The data would then be compiled together and ready for payroll. 

3. Onboarding and Recruitment

The HR department spends countless hours attempting to collect all of the data required for recruiting and onboarding new employees. Throughout this process, they must keep a large amount of paperwork, such as the new employee’s resume, job description, tax forms, and so on. Most of the time, these are all paper processes that are passed between different people as they work on different processes.

By reducing human error, preventing paperwork loss, and improving the visibility of the status of the hire between departments, automating your onboarding or recruitment (and even offboarding) can significantly improve the experience. Furthermore, integrating an AI application into the HR automation solution can make the recruiting and onboarding process much more interactive, with the HR chatbot guiding new employees on how to get started.

4. Records Management

Records management was alluded to above, but it really goes much deeper than IRS and USDOL guidelines. Automating your records management will not only reduce the burden of having to sift through years of paperwork to find a certain document and enable on-call access to any information that is needed. It helps promote better transparency, efficiency, and accountability. Another bonus? It saves a ton of file cabinet space. 

5. Tax Documents & Forms

When it comes to tax compliance, automation gives you the opportunity to scale up quickly. Automating your tax documentation and using a cloud-based service helps you verify that you’re charging the correct taxes for your operation, as well as using taxes. You will also have the benefit of up-to-date information on requirements and rates from across the globe.

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