Why HR Automation is important for SMBs and startups?

July 09, 2022

Process automation involves the redesign of manual processes through the use of technology. Today, in the era of digitalization, artificial intelligence technologies and robotics are in high demand by companies worldwide. There is no longer an interest in performing repetitive tasks, nor in processing large volumes of information.

The challenge is to reorient efforts to add value, create new ways of doing things, innovate in products and services, offer higher quality to customers, enhance talent, increase productivity and generate higher profits. The continuous advance of technology stimulates the leaders of the different areas of the business world to think about automating the processes under their responsibility.

HR Management in companies has not been left out of this trend, and that is why they turn to software vendors requesting solutions that allow HR teams to add value, for better decision-making in favour of business objectives.

What is HR Automation?

The priority of Human Resource Management is to achieve the employee training, development and growth to achieve their engagement with the fulfilment of the company's objectives. Delegating repetitive tasks to HR automation software is to streamline the work of HR professionals and optimize their potential.

Why startups need some HR functions?

Startups are companies that have recently entered the market, usually in the ICT (information and telecommunications technology) field, and are growing at an accelerated pace. They do not require large investments and use a business model that can scale incrementally. Their operating costs are low and they are almost always 100% digital. The Startups work with innovation, they are created to offer a product or service with a view to customer satisfaction in a specific market segment, seeking to generate a global impact. 

The knowledge of the employees is the added value of the startup, they can execute one or several roles, and they are the backbone of the company and the source of its revenues. In this type of company, employees perform more than one function, so they must be trained in several disciplines. Given their rapid growth, employees must be committed to working in high-pressure, collaborative environments. For this reason, employee turnover is common, as employees reject pressure and are not engaged enough not to leave for another company.

The usual way to retain talent is to emphasize compensation and talent attraction. Experience, technical skills, innovation and creativity are essential to fill jobs.

Some automated HR processes services for startups are:

  • Employee Onboarding

New hires must be provided with all the information they need to successfully integrate into the company. It is necessary to specify the tasks inherent to their role, provide them with knowledge and training in various fields so that they can work in a highly interdependent and collaborative environment.

  • Encourage teamwork

It is necessary to encourage teamwork, since due to the pressure to produce results, they may neglect cooperation and the rescue of the knowledge that the company has on previous experiences. 

  • Developing engagement 

The company must be committed to providing a balance between the employee's personal and work life. In addition, it must ensure that it measures employee performance and satisfaction and take corrective action in favour of productivity and goal achievement.

Human Resources for startups should consider the development of policies for:

  • Communication
  • Performance evaluation 
  • Absence management
  • Vacation management
  • Compensation
  • Employee benefits (insurance, flextime, telecommuting)
  • Creation and tracking of key indicators to align performance with business objectives.

What processes should startups and SMBs automate?

Performing time-consuming, prone to human error, low-value repetitive and laborious tasks is no longer advisable for providing HR services for SMBs and Startups, in general for any company. Automating manual HR processes encourages employees to do value-added work for the company, which generates satisfaction and enthusiasm. The HR team need to be freed from performing tedious tasks that involve manually uploading or processing information. Startups, due to their high level of digitalization, dynamism and need to attract quality talent, should consider automating their HR process as a fundamental element to ensure business success.

The following are some of the HR processes that can be automated with HR software for startups or with HR software for SMBs, as appropriate. 

  • Personnel Selection

Focusing on talent selection is the primary goal of this process without having to search through hundreds of paper or computer folders. HR automation allows you to post and edit vacancies, add applicants and communicate with candidates on job boards directly. It makes it easy for you to select new hires with the right profile and inform them about the outcome of their participation. Resumes, contacts, dossiers, reviews and candidate ratings would be immediately available.

Automate the recruitment process

  • Employee Onboarding

This is the initial employee experience. It comprises routine processes and procedures that can be automated: building and system access permissions, equipment handovers, sending credentials, setting learning tasks, adding deadlines, inserting links, videos and tutorials for worker alignment with the company culture.