Organizations of all kinds are looking for ways to cut expenses without compromising competitiveness or the customer experience.
One of the best-kept secrets in business: Integrating technology into the HR department to optimize core processes is one of the most efficient ways an organization can save money, making it an excellent starting point.
Just think, the cost of hiring a new worker can skyrocket as high as $5k or more if you’re looking for a highly specialized candidate. It’s to any organization’s benefit to find ways to make this process more efficient and work to retain staff as much as possible – all of which are things technology can absolutely accomplish.
The savings potential rises further when you consider the outcomes you can enjoy when you streamline other time-consuming HR processes, like payroll, benefits, performance management, and more. Not to mention the cost savings that come with avoiding liability and ensuring high accuracy rates across processes.
I completely understand that the prospects of applying technology to your HR processes can be daunting from a cost perspective. But with all these gains on the table, it’s truly an investment that pays off.
Let’s dive into the specifics and explore the top six examples of how different HR technologies can save you money.
HR Technology Savings: 6 Ways HR Technology Saves You Money
1. Time and Attendance Management
Time and attendance management can be extremely time-consuming when performed manually. And if you have employees spread across multiple time zones and remote workers, it’s even more of a lift! You probably rely on at least one HR staff member to devote most of their time to this task alone.
The good news is HR technology can let that employee use their time more efficiently.
HR technology can make your life far easier by allowing you to automate tasks like collecting, creating, and managing schedules, compliance reports, and PTO requests. This way, you can enjoy benefits like:
- Save time by spending less of it tending to administrative activities
- Reduce your risk of payroll fraud or time theft
- Eliminate human error
And of course, it brings some hefty HR technology savings – all the benefits above contribute to cost reductions and free up the time of your employee who was once devoted to time and attendance.
2. Performance Management
Performance management can become a highly complex and involved process, especially as your company grows. Fortunately, performance management tools can ease the process, offering an easier, faster, and less costly way to measure and track employee performance. This technology has many uses, including:
- Helping managers write job expectations
- Monitoring skillsets among current and incoming staff, which inform employee training needs
- Uplifting employee morale
- Outlining career paths
- Manage promotions and job changes
Organizations that have implemented this technology have saved money not only due to time saved in general but also via reduced recruitment costs and better retention.
3. Applicant Tracking and Employee Onboarding
The journey from finding your ideal candidate to onboarding them is long and, when performed manually, expensive. That’s why it’s becoming more and more popular among HR departments to add technology to various areas of these processes.
Applicant Tracking
First, applicant tracking systems organize your recruitment process by automating most of the tasks involved. They can be used to:
- Create talent pools and store information about candidates who may qualify for future job openings
- Filter out unqualified candidates so you no longer must sift through hundreds or thousands of resumes
- Send automatic emails
- Schedule interviews
With these tasks off your HR team’s plates, they can be productive elsewhere, saving you time and as a result, money.
Employee Onboarding
If your new employees need to fill out paper-based forms as part of onboarding, it can mean a less enjoyable first day for new hires and a whole lot of time-consuming administrative work for HR staff. With digital onboarding, you can go paperless, eliminating this burden. Again, with less administrative work taking up their time, your employees can create value elsewhere, which ultimately saves money.
5. Benefits Administration
HR technology can also accelerate the process of benefit management. Benefits administration software makes it easier to manage eligibility, enrollment, and benefits regulations. You can even offer staff self-service capabilities so they can find answers to their benefits-related questions. This way, your staff isn’t flooded with nearly as many requests and questions as they may currently be. Instead, they can spend their time on other valuable work that benefits the bottom line.
6. Employee Engagement
Engaged employees are often the most satisfied in their roles, able to perform at their best, and easiest to retain – and that’s a win for everyone. It’s especially a high consideration for the HR department, knowing how expensive it can be to recruit and train a new employee after one leaves the company. So it’s a worthwhile pursuit to make your employee engagement initiatives the best they can be. Employee engagement software is a type of HR technology that enables you to collect and apply data to improve your overall employee experience. Surveys are an excellent, anonymous opportunity for employees to leave their feedback, positive or negative, which is invaluable to the HR department to ensure employees are happy and engaged within their roles.
Invest in Your Organization and its People Now
Embracing HR technology doesn’t just let you achieve modernization. It’s a strategic move that directly translates to substantial cost savings, largely through your team being able to make the most of their time. Instead of performing time-consuming, dull manual tasks, they can create value elsewhere, which ultimately improves your bottom line and makes their work lives a whole lot more enjoyable in the process.
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