4 Ways Using Tech in HR Can Help Reduce Your Costs
The first thought that comes to my mind when I think about including tech in HR is how much it will cost. It is obvious that tech in HR is a huge investment but how much are you willing to spend to cut your costs?
The HR department was once viewed as a very costly aspect of the business but over time, it has slowly evolved into one of the most active departments in any company. One of the greatest lessons I’ve learned in my years of practice is that the employees are the backbone of a company. Your business will flourish depending on who you hire or retain.
Investing in your HR department plays a big role in achieving the business goals. HR related technologies might be costly, but their benefits are worth the splurge. An open secret every organization must know – using the right tech in HR positively impacts your employee recruitment, retention, and performance management processes, as well as improves your company systems by boosting operational efficiency and decision-making.
If you are looking to save money, here are 4 areas of a business that I think are in dire need of tech in HR:
Tech in HR helps with self-service and automation. You can complete the small tasks at the click of a button and it doesn’t stop there. Your employees can log in to the software and complete tasks for themselves. In addition to this, you will not have to hire a large HR Staff and this will significantly help you save some money.
The recruitment process is a time-consuming process for recruiters. However, leveraging tools such as Fuzu that help you save on time by allowing you to upload your job in minutes, shares it directly with the top 5000 relevant candidate profiles and analyzes applications ranking them from the best to the least fit. Automation is one of the emerging trends in 2022 that’s re-shaping the HR function.
Hiring and talent management
Hiring the wrong person happens more often than HRs are willing to admit. Recruitment is tedious and time-consuming. It is very difficult to function when you are experiencing burnout; and this is why most recruiters don’t have enough time to weigh their options.
Sadly, some job applicants are good on paper and not as good in practice. So, how can this problem be resolved? By including tech in HR, of course! Here is where the Applicant Tracking System (ATS) comes in. Companies are automating the recruitment system by using this software to pick out the most suitable candidate with the click of a button.
The beauty of this automated recruitment system lies in its features, which include:
- The system helps you reach out to more job applicants for each job opening that you post.
- You can create customized assessment tests for job applicants that highlights their best talents, skills, and personality to know if they are fit for the job.
- Its benchmarking features helps you compare the skills and characteristics of job applicants with those of the top performing employees in the company. This comparison will make you find the best candidate for the job.
Management of employee payroll
When I think about the management process of a payroll system, I think about how I can make it cost-efficient and less time-consuming. Before the advancement of technology, businesses used to handle payroll manually, in-house, or outsource a third-party company, accountant, or bookkeeper. All these are good options, but are they cost effective?
Manually keeping payroll records is time consuming. To be honest, it is mental torture. When I analyzed this option, I realized that my team will have to input the data and ensure it’s accurate. Time that could have been spent propelling the business closer to its goals, is spent typing out on spreadsheets.
Equally, outsourcing a third-party is so expensive in comparison to applying tech in HR. The beauty of using payroll management software is that it does everything for you in-house, which makes it the efficient and cost-effective option.
These types of software handle everything ranging from:
- Sending salaries to the bank accounts of the employees
- Creating reports
- Managing health benefits of the employees
- Managing retirement savings plans
- Computing, filing and paying taxes
- Payment of incentives and bonuses
- Recording data.
If you think about it, it’s quite interesting how much growth and change, businesses experience. I have had my fair share of adapting and it has taught me to always prepare for anything, especially when planning for my workforce. Tech in HR that has analytics capabilities has helped me to gauge, predict, and prepare for any foreseeable changes both internally and externally. It has come in handy in the following areas:
- Organizational structure
- Shortage of skills in the workplace
- Motivating the workforce during a crisis
- Evolution of tech
- Economic climate
Furthermore, tech in HR helped me discover that I need to re-skill my employees in preparation for the future competition and economic climate.
Tech in HR, helped me identify the skills that my workforce lacked and train them on how they can learn these skills faster. Through the software prediction, I guided and encouraged my team to sign up for skill development courses on Fuzu, which has really benefited them.
When designing an effective hiring system, most businesses fail to consider their employee retention system. As I said before, the employees are the backbone of the company. If your backbone is weak, you will not be able to move towards your goals. So, as much as you want to hire the best employees, you should consider how you are going to retain the other employees for a longer period.
The good news is that tech in HR can still help you with this. Software with analytics capabilities will help you to gauge, predict and prepare for employees who seem to be a “flight-risk”. The tech analyzes factors like the compensation of the employee, time since previous promotion, and tenure. Once you have singled out the employees who are likely to resign, you will have time to create a retention system.
Apart from this, automation can help you look into task allocation in the workplace. This will help you single out the overworked employees and help prevent burnout.
Tech in HR will help you cut costs. Firstly, recruiting software will help you pick out the best employees for the business. Secondly, payroll and other management tools will automate the small time-consuming tasks in the business. Thus, giving your HR team more time to handle the bigger tasks. Lastly, analytics tech in HR will help you make better decisions that make your business succeed in the future.
Written by Patricia Duru, the country director of Fuzu Nigeria