In the 21st century, companies must fight to stay competitive. Yet, too many companies are overlooking the most effective way to do so — automation. Many of HR’s most important processes are time consuming, paper-based, inefficient, and costly.
In fact, According to an IDC survey, The Document Disconnect, over 80 percent of business leaders surveyed agreed that problems “arise because they have different internal systems/applications that don’t ‘talk’ to each other.” Clearly, this is an issue that needs to be solved fast.
Modernizing these HR functions will give your company a huge advantage. Since automation software is becoming necessary and more common, here are some important statistics to keep in mind as you make the switch.
The Rise of HR Automation Today
1. According to Personnel Today, 38% of enterprises are already using AI in their workplace with 62% expecting to start using it as early as this year.
2. According to Bersin by Deloitte, 33% of employees expect that their jobs will become augmented by AI in the near future.
3. Nearly 40% of companies are using some form of AI in HR alone.
4. Employers predict 17% of work will be automated by 2020 (Willis Towers Watson)
5. 45% of companies are still in the early stages of basic automation (via Software Suggest)
6. But, 47% of companies have HR software that is over seven years old. (Bersin by Deloitte)
Clearly, we now know that automation technology is a great way to increase company efficiency. Some argue that employees will suffer as their jobs are replaced by automation, but that’s not the case. A Deloitte study of automation in the U.K. found that 800,000 low-skilled jobs were eliminated as the result of AI and other automation technologies — but 3.5 million new jobs were created. AI enhances the working experience, makes it easy on employees and allows them to focus their time on clients and important business rather than paperwork. Check out this article below to find HR processes that are great candidates for automation technology.
Attracting Talent & Employee Satisfaction
7. 83% of employers believe attracting and retaining talent is a growing hiring challenge.
8. 66% of millennials expect to leave their organization by 2020. (Glassdoor)
Learn how to prevent this by reading below on attracting and retaining millennial employees:
9. The biggest benefits of AI for hiring and recruiting are as follows:
- Saving time (67%)
- The removal of human bias (43%)
- The ability to deliver the best candidate match (31%)
- Saving money (30%)
10. 80% of surveyed HR employees found that using HR technologies improved employee attitude toward the company. (G2)
11. 80% of job seekers say they would be discouraged from considering other relevant job openings at a company that failed to notify them of their application status. Yet they would be 3.5 times more likely to re-apply to a company if they were notified. (G2)
12. 59% of job seekers used social media to research a company’s culture before applying. (Jobvite)
Talent is the #1 determinant of success in the 21st century. Job seekers are attracted to modern companies with simple, automated processes who have a strong online presence. In fact, SurveyMonkey partnered with Microsoft and reported that 93% of the 1000+ millennial workers surveyed say that a business having up-to-date technology is an important factor when choosing a workplace. It’s important that your company prioritizes automation, as it attracts the best talent.
13. 76% of HR leaders say employee onboarding practices are underutilized at their organization.
14. 36% of HR professionals blame insufficient technology for their inability to automate and better organize onboarding programs, further inhibiting their ability to train managers in proper onboarding techniques. (businesswire)
15. 36% of HR professionals said that the inability to automate and organize the onboarding process negatively impacts their training process. (businesswire)
16. 30% say they intend to increase their onboarding budget for 2018 and focus on new software.
Organizations with a standardized onboarding process experience 62% greater new hire productivity, along with 50% greater new hire retention. So clearly, employee onboarding is an important process in every company. It’s the first time new employees interact with coworkers, bosses, and higher-ups. Onboarding should be viewed as an ongoing process that lasts months. This ensures that new employees feel adjusted and welcome, and have a support system behind them. This does mean that the onboarding process can become tedious, but automation software can help! Employees can complete onboarding checklists on their own time without having to coordinate multiple schedules.
Saving Time on Administrative Tasks
17. 40% of 300+ surveyed companies have their core HR applications in the cloud (cFirst)
18. According to a CareerBuilder survey, HR managers lose an average of 14 hours a week manually completing tasks that could be automated. More than a quarter waste 20 hours or more.
19. Tedious administrative tasks take up a large part of HR’s time (about 73.2%).
20. The McKinsey Global Institute estimates that 56 percent of all tasks human resources departments perform can be automated with existing technologies.
21. The McKinsey Global Institute also shared that a fast-growing tech company reduced time spent drafting and checking accuracy in offer letters by 66% using bots.
Yes, automation saves companies lots of time and money. But automation also makes it easier for employees to prioritize their customers by minimizing the amount of manual work they have to do. Instead of wasting time filling out forms, tracking down the right people, and waiting for approval, they are able to parallel process. It’s much easier to make progress on other tasks when you don’t have to leave your desk every time you need or have new information.
The Cost of Paper and Human Error
22. The average organization spends $20 per paper to file it, $120 searching for each lost document, and $220 in the recreation of the document. (via eFileCabinet)
23. Paper based HR Processes (What is the paper usage in the following processes?)
- Employee file management – 53%
- Employee onboarding – 48%
- Policies and procedures administration – 32%
- Employee separation – 48%
24. In one case study for Gravity Flow, one medical company generated $4,000 in cost savings each month by replacing paper processes with an automated workflow.
25. G2 predicts that companies will increase their use of technology to remove unconscious bias from the hiring process by 30% through 2019.
26. The Ponemon Institute reported that nearly 70 percent of compromised records last year was the result of human error in 2017
27. One single Excel error cost JP Morgan billions of dollars in 2013
Paper is costly, inefficient, and bad for the environment. Human error only makes it worse — papers can be lost/misfiled, illegible, or somehow unusable, which means they are replaced by…more paper. Why waste money and resources to stick with out-of-date processes? Automation technology is a great investment that will make employees’ lives easier and improve customer engagement. Digital software also catches mistakes before you submit your form or document, which prevents inbox flooding and employees don’t need to track down their manager to fix simple errors.
If you’d like more data and information about automation, click below.
These statistics will guide you in the right direction to optimize your company for the 21st century. Automation is here to stay and there’s no better time to modernize than right now. Digitizing various HR processes gives your employees a better work experience and, therefore, allows them to engage more with their customers.