What is HR Automation? Key Benefits, Process and Tools

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Paras Kela

Senior Writer:

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green tickPublished : October 25, 2022

HR automation software is one of the most notable innovations in recent years and has significantly transformed how human resource activities are carried out today. It has facilitated data-driven decision-making, increased transparency, reduced employee turnover, sped up processes, and reduced costs.

This blog will cover all of the major topics related to human resources automation, such as the advantages of HR automation, how to automate HR processes, and the best HR automation software to invest in.

Let’s start with the fundamentals– what is HR automation?

What is Human Resources Automation?

HR process automation

HR automation refers to a process of automating, streamlining, and accelerating repetitive and laborious HR activities with the help of technology such as HR software

As you know, human resource activities are quite often laborious, monotonous, and time-consuming. Spending too much time on these recurring tasks will not only reduce the HR team’s productivity but also prevent them from focusing on more important responsibilities.

For these reasons, you require HR automation software. This tool not only automates HR tasks and HR workflows, but also improves data accuracy and allows you to make data-driven, informed decisions.

Why is HR Automation Important?

As previously stated, human resources automation is crucial for a number of reasons. For example, HR automation software automates repetitive and laborious tasks, allowing HR teams to focus on critical HR processes. 

Also, it streamlines the entire HR process from employee onboarding to offboarding, empowers HR departments to establish a solid communication bridge with employees and candidates, as well as provides valuable insights.

 Importance of HR automation

Further to that, the employee performance management system empowers managers and organizations to track employee performance in real-time. If a manager notices that an employee has been performing poorly for several months, they can also prepare a training program using the same system.

HR automation software, like the human resources management team, benefits employees. For example, it enables them to communicate their concerns and suggestions to management better, collaborate with other teams, resolve problems quickly, better monitor their performance and OKRs, and so on.

To sum up, the following are some of the major reasons to buy HR automation software:

  1. To improve HR operations, such as onboarding and performance management.
  2. To monitor employee productivity and organize training programs to boost it.
  3. To minimize data entry errors and application processing time.
  4. To ensure effective resource allocation and resource utilization.
  5. To reduce reliance on human capital.
  6. To obtain valuable insights and analytics into HR operations.
  7. To comply with labor laws, industry regulations, and federal laws.
  8. To capture employee attendance and perform salary operations.

For all of these reasons, organizations will require HR automation software.

7 Key Benefits of HR Automation

From bringing down operational costs to boosting employee productivity, HR automation benefits both the organization and the employees in multiple ways. Some of the key HR automation benefits are listed below.

1. Simplified Employee Onboarding Process

HR automation benefits

A positive onboarding experience is critical for reducing employee turnover and increasing talent retention. This means that the onboarding experience for each new employee should be as pleasant as possible. 

The human resources automation software will assist you in accomplishing this by improving various employee onboarding tasks, such as managing onboarding checklists, assigning onboarding buddies, collecting e-signature on paperwork, and so on.

2. Improved Employee Engagement

Effective collaboration between teams and individuals is also critical for any organization. You can accomplish this with the help of HR automation software. The tool will allow teams to easily communicate with one another as well as with other teams or even the higher authority.

In addition, the software will also allow you to share files and documents instantly. All these elements will certainly improve employee engagement.

3. Real-time Employee Performance Evaluation

Another remarkable advantage of investing in HR automation software is real-time performance assessment. The tool’s BI dashboard will provide you with comprehensive information about employee performance.

Based on these findings, you can take appropriate actions, such as revising the strategy or planning an employee training program for underperforming employees.

4. Better Regulatory Compliance

Regulatory compliance through HR software

Regulatory compliance is a critical aspect of business that cannot be underestimated. Companies must follow state, federal, and international laws or regulations relevant to their business to avoid getting into legal trouble.

HR automation software enables HR teams to quickly access the data they require in order to comply with regulations, as well as track and monitor real time data within the organization.

5. Lower Employee Turnover

Companies all over the world are experiencing ‘The Great Resignation.’ In such a turbulent time, it is critical for the organization to improve employee retention while decreasing the attrition rate. 

One way to achieve this goal to a large extent is by leveraging HR automation tools. This software assists the company to address employee issues better, improve employees’ workplace experiences, and ultimately boost employee retention.

6. Informative Reports for Sound Decisions

HR software analytics is critical because it helps to study patterns, understand trends, and improve decision-making quality. It provides actionable insights that you can use to plan your next moves. 

For example, if a pattern or data indicates that most employees who have resigned in the last three months are from the content team, you can quickly conclude that something is wrong with the leadership that needs to be addressed.

7. Cost Savings

Cost savings

The seventh major advantage of human resources automation is cost savings. The tool assists you in tracking accurate PTO (paid time off) besides ensuring proper payroll. Moreover, the right HR automation software lets you automate all components related to wages and benefits, as well as direct deposits and tax codes. 

Besides, you can also keep a close eye on employee performance. All of these factors will eventually reduce costs and increase ROI.

11 HR Tasks That Can Be Automated

Human resource management encompasses a wide range of tasks or activities such as recruitment, onboarding, performance evaluation, training and development, salary operations, surveys, team building events, workforce management, and more. Understandably, the software cannot automate all of these HR activities.

HR processes that can be automated

For example, team-building events cannot be automated because there is no uniform pattern. Meaning, HR professionals must take a unique approach to each event. On the other hand, there are several HR operations that follow a definite trend and can thus be automated.

You can either use dedicated software to automate specific tasks, such as payroll management or a learning management system, or you can use a comprehensive HR software solution, such as HRMS (Human Resource Management System), to automate all of these tasks at once. 

Above all, make sure you visit the best software review websites like SoftwareSuggest to thoroughly analyze the product before making the final call.

How To Automate HR Processes: Step-by-Step Guide

The steps to automate HR activities are outlined below. Let’s take a quick look at each of them.

Step 1: Make a list of all the HR activities you conduct

The first step in the HR automation process is to make a list of all the HR and related activities that you or HR professionals perform in the organization. It’s possible that you’ve outsourced some of them, such as recruitment. This rundown will assist you in determining whether or not you require HR automation.

Step 2: Note down all the time-consuming and repetitive tasks

The next step is to make a list of all the HR operations that you find time-consuming and laborious. For example, document verification, payroll processing, and attendance management are three of the most common HR processes that are monotonous and time-consuming. Make a list of all such activities.

Step 3: Select the best HR software solution

HR software dashboard

The next step to automate the HR process is to find a suitable HR automation tool for the HR operations that you find time-consuming or need to be automated. You can either buy a dedicated application for each activity, such as payroll management software for salary and benefits management, or you can buy an all-in-one solution for all the activities.

Step 4: Perform a pilot test

The fourth step in HR process automation is to conduct a pilot test. Do not shift your entire HR operation to these tools without first testing them. Instead, start small by checking the software’s compatibility with your processes and other applications.

Also, rather than purchasing a paid version of any HR software, try it out first. Only purchase the paid version if the software is compatible with your technical infrastructure and beneficial to your organization.

Step 5: Integrate your data and applications with the HR software

The next step to automate the HR process is to integrate all of your data and applications with the HR automation software. Configure the software according to your requirements. If necessary, seek assistance from the technical support team.

Most importantly, ensure that the software is properly configured because, this time, you are going full-fledged with the software, and it is no longer a pilot test.

Step 6: Get your employees on board

Employee training program

The sixth step in HR process automation is to get your employees on board. To ensure employees can easily get along with the HR automation software, the HR team should organize a training program. Educate employees about the software, its benefits, how to use it, and so on. Remember that you can reap the most benefits from HR tools only when your employees are well-versed in them.

Step 7: Monitor outputs, collect feedback and optimize

The final step to automate the HR process is to track the results, solicit employee feedback, and optimize the process. For example, if you discover that employees are having difficulty with the software’s ‘Finance’ module, arrange a specific training session for that module or request the provider to customize that module as per your unique requirements.

By following these 7 steps of the HR automation process, you can achieve your automation goals and reap the maximum benefits.

5 Best HR Automation Software or Tools to Make your Work Easy

The following are the top 5 HR automation software options to consider when buying one. Let’s look at their features, pricing, and other elements.

1. Keka

Keka HR payroll software

Keka is deemed as one of the best human resource management platforms for automating repetitive HR and payroll tasks. The software’s innovative features allow you to spend minimal time on routine tasks and more time on critical business activities and strategies. 

Besides that, this HR automation software is suitable for a wide range of industries, including technology, pharmaceuticals, finance, retail, and others.

Keka Features:

  • Applicant tracking
  • Attendance management
  • Performance management
  • Payroll management
  • Statutory compliance

Keka Pricing: Keka’s professional service automation product is available in three different pricing plans:

  • PSA Basic: INR 60/month/user
  • PSA Advance: INR 120/month/user
  • PSA Scale: INR 180/month/user

2. WalletHR

WalletHR HCM software

WalletHR is a unified, user-friendly product that assists businesses of all sizes in automating everyday HR processes such as recruitment, payroll, attendance, and exit management. This human resources automation software is simple to set up and operate, requiring little technical knowledge.

This particular aspect is favorable to organizations with a non-technical workforce. The product has also received many honors from the top software review website SoftwareSuggest.

WalletHR Features:

  • Recruitment management
  • Attendance & leave management
  • Ticketing management
  • Training, learning, and development management
  • Grievance management

WalletHR Pricing: The company only provides custom pricing plans based on your unique requirements.

3. greytHR

greytHR HR automation software)

greytHR is yet another top HR automation software that automates most common HR tasks and HR workflows, allowing you to focus on more critical HR operations. The software provides management with comprehensive real-time visibility into employee performance.

Besides, greytHR encompasses a range of functions, such as the Employee Lifecycle Management module that allows the HR team to manage employee records as well as track the assets assigned to that employee.

greytHR Features:

  • Attendance management
  • Payroll management
  • Asset management
  • Leave management
  • Statutory compliance

greytHR Pricing: GreytHR HR automation software comes in four different variants:

  • Starter: INR 0/month (Limited users)
  • Welter: INR 25/month/user
  • Super:  INR 40/month/user
  • Cruiser: INR100/month/user

4. Qandle


Qandle is an intelligent HR software that assists HR executives and senior executives in organizing their workflow automation, tracking performance in real-time, and increasing organizational efficiency. The software is completely customizable, allowing you to tailor its functions to your specific requirements. On top of that, Qandle can be integrated with various popular tools and applications, making the transition seamless.

Qandle Features:

  • Employee lifecycle management
  • Payroll management
  • Attendance & leave management
  • Asset management
  • Analytics & reporting
  • Claim & compensation management

Qandle Pricing: Qandle HR automation software offers four different pricing plans, as are listed below. The number of features increases as you upgrade your plan.

  • Foundation Plan: INR 2891/month (For 50 Users)
  • Regular Plan: INR 4661/month (For 50 Users)
  • Plus Plan: INR 5841/month (For 50 Users)
  • Premium Plan: INR 7611/month (For 50 Users)

5. HRMantra


HRMantra is a 360-degree HRIS software that entirely automates most of your HR processes, allowing you to work more quickly and efficiently. HRMantra, built with the most advanced technology stack and supported by AI (Artificial Intelligence), can even manage complex HR activities such as payroll management, statutory compliance, recruitment management, and more. All of these features work together to improve overall workplace efficiency and ROI.

HRMantra Features:

  • AI chatbot
  • Recruitment management
  • Onboarding & off-boarding management
  • Employee performance management
  • Learning & development management

HRMantra Pricing: The company only provides custom pricing plans based on your unique requirements.

That is all about human resource automation. In this blog, we learned about HR automation definition, HR automation benefits, steps to automate HR processes, top HR automation software, and the importance of HR automation. Let’s wrap up this blog with some human resources automation FAQs.

Frequently Asked Questions

With the best HR automation software, you can automate all common HR activities such as candidate screening, employee onboarding and offboarding, attendance and leave management, performance assessment, salary and benefits management, training and development, and so on.

Yes, with the help of human resource management automation software, the HR role can be automated to a great extent.

HR activity automation improves the efficiency of HR functions by allowing HR employees to spend less time on routine tasks and more time on critical business activities and strategies. It also simplifies and accelerates HR operations while ensuring data accuracy.

Automation has a positive impact on human resource management. The best use of HR automation software will enable the HR team to manage HR operations as effectively as possible. It also reduces costs and improves overall organizational efficiency.

Some of the best HR software options are:

  1. Keka
  2. greytHR
  3. WalletHR
  4. Qandle
  5. Freshteam
  6. HRMantra

Updated : February 2, 2024

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