Leveraging Integration for Successful HR Automation: A Guide for HR Leaders

The HR landscape has undergone significant changes in recent years, with HR departments looking for ways to streamline processes, reduce manual errors and provide a better level of service. Real-time decisions to accelerate efforts in how HR tech evolves automation of common processes is advancing at a breakneck speed. The time has come to overhaul many antiquated ways of working, but it has to be both strategic and pragmatic.

HR Automation is a Key Trend

A study by McKinsey & Company found that automation has the potential to reduce operational costs by roughly 30-40%, while also improving employee experience and productivity. Companies are looking for efficiency of scale across the organization, and especially in HR which is traditionally one of the more costly areas of overhead. The HR technology roadmap, however, is often either under-financed, misunderstood, or lacks the proper knowledge and skillset in the team to achieve the right plan and outcomes. How HR achieves more automation requires an equal focus of energy and resources in the same way as any other department looking to leverage advances in technology.

The Need for HR Automation

HR departments are increasingly investing in automation to improve HR processes and achieve cost savings. A report by PwC found that HR Leaders are looking to drive adoption of HR tech initiatives including more AI and automation technology over the next several years. Automation can help HR departments reduce manual errors, save time, and improve employee experience. And let’s be honest, there is really no choice anymore. Remote work, varied work schedules, labor scarcity, and global considerations are by themselves forcing functions to increasing the mindset of 'automate everything.'

Current Trends in HR Automation

The current trends in HR automation are centered around the use of AI, machine learning, and analytics. These technologies can be used to automate recruitment processes, improve candidate selection, and analyze workforce data to predict potential risks and opportunities. For example, AI-powered chatbots can be used to screen job applicants, schedule interviews, and answer candidate questions. Additionally, machine learning algorithms can analyze workforce data to identify trends, such as turnover or productivity, and help HR departments make data-driven decisions. The menu is vast, but getting these technologies to work together properly is key and that’s why integration matters.

The Role of Integration in HR Automation

Integration involves connecting various HR software systems, such as payroll, time and attendance, performance management, rewards, and benefits administration, to create a unified and streamlined HR ecosystem. It also goes across the lines of business with apps focused on financial reporting and data visualization. This integration can be achieved through various methods, such as using middleware, APIs, or integration platforms like Celigo.

The role of integration in HR automation is crucial as it allows HR departments to achieve a more comprehensive and efficient HR ecosystem. Integration enables HR departments to have a single source of truth for employee data, reduces manual errors, and eliminates the need for duplicate data entry. Integration also facilitates the flow of information across different HR systems, enabling HR departments to make more informed decisions.

Steps to Achieve Successful HR Automation

To achieve HR automation, here are a few tips to help HR teams be successful:

Step 1: Identify Key HR Processes to Automate

Begin by identifying the HR processes that are the most time-consuming, error-prone, and repetitive. These are the processes that can benefit the most from automation. For example:

• Onboarding: Automate the onboarding process by using digital signatures, automated workflows, and pre-populated forms to reduce the time and effort required to onboard new employees. Trained AI bots can also provide company information and other mechanisms to get new hires to productivity faster and feel more integrated with the culture. The goal is to build an end-to-end employee experience that starts strong and evolves with the employee’s tenure.
• Benefits Administration: Automate benefits administration by using an HR system that integrates with a benefits administration platform. This integration enables employees to enroll in benefits and update their personal information seamlessly. Using AI, things like alerts, notifications, and adapting to an employee’s changing life events, can further leverage the benefits being offered.
• Performance Management: Automate performance management by using an HR system that integrates with a performance management platform. This integration enables managers to access employee performance data and provide feedback. The information can be used to automate succession planning and expand the broader company-wide talent strategy.

Step 2: Evaluate Existing HR Systems

Start with what you have. This isn’t always obvious, but automation begins with considering what’s already available, what’s working, and what enhancements looks like. Evaluate existing HR systems and identify any gaps in functionality or integration capabilities.

For example, HR departments can evaluate their existing HR systems by:

• Identifying data sources: Identify the HR systems that hold critical employee data, such as payroll, benefits, and performance management. Often this is a complex series of spreadsheets, documents and software. Understand what sources of truth make up the information that will be passed between systems to achieve the desired outcomes.
• Assessing integration capabilities: Assess the integration capabilities of the existing HR systems and identify any limitations or gaps. This will often lead to blank stares in HR but it’s important to understand this aspect of technology better. Some systems like an HRIS connection to payroll is common, but beyond that integration to other systems like a recruiting app (e.g. Greenhouse), IT (e.g. Zendesk), etc are missing.
• Identifying data redundancies: Identify any instances of data redundancies, where the same data is entered into multiple systems. This can be in spreadsheets too – a spreadsheet for one thing or another can be a trap versus forcing a system to do the work it’s supposed to. Besides data integrity and efficacy issues, it’s likely stopping HROps from moving forward (because they are too busy doing double entry in multiple systems) in how to think about where and how to automate.

Step 3: Develop a Technology Roadmap

Develop a technology roadmap that outlines the automation initiatives and integration strategies needed to achieve HR automation goals. The roadmap should include the following:

• Automation goals: Outline the automation goals, such as reducing manual errors, streamlining processes, and improving efficiency. The pain points are a good starting place. Resist the urge to blue ocean every potential aspect of automation. Start with the essential operations improvement areas, then grow from there.
• Prioritize integration: Define the integration approach, such as using middleware, APIs, or an integration platform like Celigo. A quick plug for Celigo, which is app agnostic and has workflows to get data where it needs to go, is far more cost effective than custom APIs or other 'hooks' that need to be constantly revised as your app landscape and business needs change.
• Project timelines: Develop project timelines that outline the expected completion dates for each automation initiative and integration strategy. Without a detailed project plan and program management that is mutli-phase and potentially multi-year, you will stop before you get started. Again, this might seem obvious, but often HR tech changes or purchases look at solving an immediate need and don’t plan for, or consider, business changes or future functionality requirements.

Step 4: Monitor and Measure Results

Regularly monitor and measure the results of automation and integration initiatives to ensure that they are meeting the desired objectives. This should be part of the project plan – did we deliver the impact we intended? Ways HR departments can monitor and measure results:

• Establish key performance indicators (KPIs): Define KPIs that align with the automation and integration goals. For example, reducing manual errors by a certain percentage or improving process efficiency by a certain amount. This can also be hours saved which ultimately leads to money saved.
• Monitor KPIs: Monitor the KPIs to ensure that the automation and integration initiatives are meeting the desired objectives. This can align with company goals around automation and savings as well which furthers HR's role in aligning with the business on scale.
• Make adjustments: Make adjustments to the automation and integration initiatives if they are not meeting the desired objectives. Be ready to adapt, throw certain approaches out, and adjust as the project unfolds. Some ideas fail in the field, and that’s ok, as long as you have a fast way to recover and re-orient the focus.

The bottom line is that HR automation is a critical aspect of modern HR practices. By connecting various HR systems, HR departments can create a cohesive and efficient HR ecosystem that streamlines processes, reduces manual errors, improve efficiency. These changes also give HR’s brand a boost by improving the employee experience, productivity, and the overall success of the organization.