It makes sense to integrate digital technologies into your human resource department as your company expands so that it can work more successfully and, at the same time, manage costs more effectively. The goal of HR digital transformation is to use these technologies to enhance how we work, collaborate, communicate, and manage information across departments, not to replace current structures and equipment.
The market for solutions for digital transformation grew at a CAGR of more than 40% between 2013 and 2017, according to Gartner Inc. According to Gartner, by the year 2020, digital transformation will be the main force behind change for multinational corporations.
Implementing digital transformation in HR significantly saves different types of recurring costs in an organization by:
Reducing Margins of Errors
Many organizations incur high costs due to human errors. The use of digital tools and software systems reduces the chance for human errors, helping ensure consistency and adherence to processes.
Automating repetitive tasks saves the HR team a lot of time and energy, thereby allowing them to focus on more critical tasks. Most IT leaders believe that automation technology can save departments between 10 and 50 percent on costs.
Saving Material Costs
Digitizing administrative tasks eliminates paperwork and stationery, reducing operational and storage costs. For example, storing information on a cloud-based system allows an organization to significantly reduce costs compared to traditional physical infrastructure management.
Here are three ways HR digital transformation can help reduce business costs.
1. Payroll Management
It’s possible that your HR team is devoting a significant amount of time to handling all payroll-related tasks and maintaining data accuracy. Payroll management software completes all responsibilities for your HR team in the shortest amount of time while keeping a high degree of accuracy, saving you time, expenses, and effort.
Good-quality payroll management software can help your business save money. However, you will require a trustworthy solution to ensure payroll processing is effective the more employees you have. Payroll processing is done manually by some small organizations, which store payment notes in a spreadsheet or other particular document. Others decide to contract with a bookkeeper, accountant, or independent business to do this task. This technology manages all aspects of your payroll processing internally, including data collection, computation, filing, tax payment, report generation, and payment of salary to employees’ bank accounts.
2. Applicant Tracking System
It’s not always simple to bring the greatest employees into your organization. It takes a lot of effort and resources to recruit new employees. The finest prospects in today’s job market are attracted to, identified, and hired by many firms using applicant tracking systems (ATS).
There are plenty of reasons why the use of ATS can help HR teams reduce their costs:
- You may expedite the hiring process and free up time for more crucial activities by using ATS software.
- Automating administrative activities will also provide recruiters with more time to interact with candidates during the hiring process.
- It allows for quicker and better CV screening.
ATS automates the initial screening by employing algorithms to compare applicants to job specifications, assisting recruiters in choosing the top prospects for each open position.
3. Time and Attendance Management
Similar to payroll management, managing employee attendance and leave procedures often requires at least one full-time person, especially if you have employees in various regions or time zones. The more complicated employee time and attendance monitoring is, the more difficult it is to manage a remote or hybrid workforce. Fortunately, advanced time management techniques may streamline all complicated activities, lowering costs and mistakes.
With time and attendance software, your business can:
- Save hours with administrative tasks and minimize the risk of human errors
- Monitor employees’ attendance
- Reduce the cost of absenteeism
- Prevent time fraud or payroll abuse
- Create work schedules more effectively
With an automated time and attendance tracking solution, organizations can increase efficiency, saving money in the long run.