How good of an investment is HR technology really? Can it genuinely improve a company’s bottom line?
While HR professionals understand the necessity of modern HR technology, those outside the field might see it as a pricey optional extra rather than a must-have investment. But according to CRS Technologies GM Ian McAlister, organisations that strategically invest in the right HR tech can reap significant financial and operational benefits, positioning themselves for long-term success.
Here’s how.
Save time
HR technology saves valuable time by automating repetitive and time-consuming tasks, McAlister explains.
Traditional HR functions such as recruitment and onboarding, benefits administration and employee record management can be resource-intensive when handled manually. Modern HR technology automates these processes, making sure everything is accurate and efficient. This reduces the workload on HR personnel, freeing them to focus on more strategic activities such as employee development and engagement programmes.
HR technology also enhances productivity by streamlining communication and collaboration between teams. For example, employee self-service portals enable staff to access important information like pay slips, leave balances and tax documentation, without having to contact the HR department. This saves time for both employees and HR, while empowering everyone to manage their own HR-related tasks – it’s a win-win.
Improve engagement
HR technology plays a pivotal role in boosting employee engagement. Performance management systems that track goals and facilitate regular feedback between managers and employees help employees stay aligned with organisational objectives and perform at their best.
Employees who receive regular feedback are more likely to feel valued and understood, leading to higher levels of motivation and job satisfaction,” McAlister points out. Additionally, features for peer recognition and rewards allow employees to acknowledge one other’s achievements. This creates a positive work environment and strengthens team morale, further enhancing engagement.
HR technology also makes it easier to learn and grow on the job, which is crucial for maintaining a skilled and productive workforce. Continuous learning not only enhances employee capabilities but also drives innovation and efficiency. When companies invest in their people in this way, they ensure that their workforce remains agile and capable of meeting evolving business demands.
Reduce turnover
Employees who have the tools they need to grow and succeed are more likely to stay with the company, McAlister continues. This means less staff turnover, reduced recruitment and training costs, as well as the retention of institutional knowledge and expertise.
Plus, HR tech helps with work-life balance – like flexible working schedules and remote work options – which improves employee well-being and leads to higher job satisfaction.
Lower costs
Automating HR processes minimises the risk of errors and compliance issues, which can result in costly fines and legal disputes. The damage done to a company’s reputation through non-compliance can be severe and long-lasting, leading to loss of customer trust, diminished brand value, and potential revenue decline.
Furthermore, HR tech comes with analytics and reporting tools that provide insights into employee performance, attendance and productivity. Analysing this data enables managers to make smart, data-driven decisions on staffing and scheduling. Using resources effectively enhances efficiency and reduces expenses.
There’s no denying that, if implemented correctly, HR technology can significantly enhance organisational efficiency, reduce costs and improve employee satisfaction and retention, McAlister concludes.
But to really make it work, it’s critical to invest in a solution that is tailored to the organisation’s specific business needs. That way, you’re not just ensuring the business runs smoothly – you’re setting it up for sustained growth and maximising the return on your investment.