6 Ways Automation Technology is Transforming Small Business HR

As automation technology continues to evolve, its use cases in the field of Human Resources are constantly growing. With the potential to bring unprecedented efficiency to HR processes, we’re set to see the incorporation of automation innovations into many small businesses in the years ahead. 

These technological innovations will be capable of either fully or partially automating high-volume, routine tasks and processes within HR. With the emergence of artificial intelligence set to bring new advancements in cloud-based automation, factors like performance management, employee onboarding, and skills assessment can all become more accurate and efficient. 

With this in mind, let’s take a deeper look at six ways automation technology is set to transform HR for small businesses: 

Embracing Applicant Tracking Systems (ATS)

Applicant tracking systems (ATS) help HR professionals obtain a holistic view of the entire recruitment process for their business, from an initial job posting all the way through to offer management. 

These tracking systems work by streamlining the application process and organizing and compiling candidate data for ease of reference. 

This form of automation works for small businesses because it saves countless hours of manually sifting through applications and tracking the progress of individual candidates in a series of manual challenges that could be especially prone to human error. 

ATS software can also help to break down departmental silos between hiring managers and recruiters, paving the way for a more transparent hiring process. 

Optimized Skills Assessment

According to a recent survey of 1,031 US corporate professionals, 70% of business leaders believe that there’s a skills gap within their organization. Automation technology can help optimize the assessment of employee capabilities and reskill efforts. 

The technology helps HR staff to actively audit existing skills within businesses through the distribution of employee surveys and database management. It’s also possible to identify crossover skills that can be nurtured through specific learning and development programs. 

With the help of artificial intelligence, HR teams can more accurately pinpoint existing skills among a small business workforce, helping to avoid unnecessary hires while nurturing a company’s existing talent pool. 

Holistic Performance Management

Performance management is especially important when running a small business on a tight budget. Decision-makers must be confident that all staff are as efficient as possible to help facilitate growth. 

The necessity of 360-degree feedback is essential for managers when it comes to annual reviews, but also for gaining a holistic view of employee performance. This is where automated Performance Management Systems (PMS) can help to create a feedback loop in monitoring efficiency throughout the organization. 

Automation technology can also help small businesses establish employment milestones to foster a stronger work ethic and ensure that high-performing employees are recognized for their efforts. 

Self-Service Employee Portals

Self-service employee portals to help staff manage their benefits, holidays, and other aspects of their job can be automated to provide greater transparency throughout a small business. 

These self-service portals can be fully autonomously managed and accessible through payroll software like Papaya Global, which can help to equip employees with benefits visibility in real-time. This can be a particular asset for small businesses in helping HR staff to focus their efforts on other more complex processes. 

Interview Efficiency

Arranging and assessing candidate interviews is an HR process that’s riddled with inefficiencies. Manual phone calls and emails between candidates can be time-consuming, and lengthy back-and-forths with scheduling can run the risk of strong candidates finding work elsewhere in the meantime. 

Automation software can help mitigate this danger by streamlining the interview scheduling process and allowing candidates to choose interview slots based on both their availability and the work schedules of the hiring team. 

These tools can automatically send calendar invites and reminders to all parties. It’s even possible for automation technology to conduct virtual interviews, which can be an asset in taking the time to consider a wider pool of candidates. 

Compliance Monitoring

Compliance is another essential consideration for HR professionals, and the risks posed by non-compliance in terms of costly fines and a loss of consumer confidence can endanger the future of small businesses. This makes the incorporation of technology to continually monitor for compliance risks especially important. 

With the help of automation technology, human resources teams can work with more consistency and accuracy in managing compliance efforts. Through automated systems, users can monitor for regulatory updates and ensure that policies remain compliant throughout. 

The technology can also automatically inform employees and decrease the risk of non-compliance on an ongoing basis, helping to protect businesses against legal pitfalls and reputational damage. 

The Necessity of Automation

Sage data claims that just 44% of human resources leaders are using automation today, despite most leaders acknowledging its importance in delivering positive change for companies. 

With this in mind, small businesses can gain an advantage over competitors in leveraging automation technology to streamline HR processes. This will not only help to save time and protect against human error but will also pave the way for a sustainable future built on intelligent talent acquisition and performance management.