Benefits of Technology in Human Resource Management

Nov 11, 2021 9:00:00 AM / by HR Tech

The number of companies integrating technology into HR operations continues to increase, and a recent study showed that the HR tech industry market value will surpass $10 billion by 2022. Despite that, many businesses hesitate to invest in new HR technologies, perceiving the software as too expensive or they simply don’t understand the value the software provides.

Modern technology automates daily human resource management operations and frees up time for HR professionals to focus on the more creative aspects of their jobs. HR systems help reduce administrative time, broaden headhunting options, assist with onboarding, speed up information dissemination among team members, improve security and simplify payroll processing, among other things.


Technology is now necessary for an efficient and effective human resources department. In this article we’ll explore some of the benefits that HR technology provides.

• Reduce Administrative Burden
• Headhunting / Recruitment
• Employee Onboarding
• Employer/Employee Communication
• Improve Corporate Security
• Payroll Processing

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Using Technology to Reduce Administrative Burden

When employees become eligible for benefits or they need to make a change, employee self-service (ESS) tools help expedite the process and reduce the administrative burden otherwise put upon HR professionals. Employees can enter their information, review plans, enroll and make updates on their own without an HR representative having to be involved.

An example is when an employee needs access to a pay stub from six weeks ago. An ESS allows the employee to login and immediately print out the needed form without someone in HR taking the time out of their day to get the document and send it to the employee.

Another example is when an employee has a child or experiences another life-changing event. They could easily update their information via the ESS and even be prompted with an automated message from the ESS reminding them that they may need to update their benefits selections as well. All this without the direct assistance of someone in human resources.

Using HR Technology to Hire Employees

Technology is changing how companies hire, making the process more efficient and effective. Often, many companies take months to find the perfect candidate. In addition to being more time-consuming, the search for talent becomes more costly too.

Why? Costs increase due to overspending throughout the process and/or by settling for a candidate who is not as qualified. Not to mention that when the hiring process is long for applicants, they may lose interest and choose to pursue other opportunities or question the organization’s ability to make important decisions.

Fortunately, technology offers solutions to cut down on hiring time by significantly reducing the length of the recruiting process from weeks or even months all the way down to days and hours. In fact, 94% of recruiters and hiring professionals say that using a recruitment software has positively impacted their hiring process.

In an article we wrote earlier this year, we went more in-depth and cited specific examples on how technology is used in the recruitment process.

Using Technology to Onboard New Employees

Onboarding platforms manage the entire onboarding process and make all the documents, forms, guides and even training easily accessible online to all employees — more important now than ever with the increase of remote and hybrid workplaces.

The software helps eliminate the back-and-forth communication between the new hire and HR that is otherwise necessary to get all the new hire “paperwork” completed. Plus, the software keeps track of progress which is difficult to do otherwise. Beyond the administrative benefits, this onboarding technology helps you provide each of your new hires with a uniform experience while freeing up HR’s time to focus on other ways to enhance the new hire experience.

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Using Technology for Better Communication at Work

Despite technological advances employees still spend much of their time reading emails and going through cluttered inboxes. Email is still an essential tool of communication in business, but recent innovations have opened up a world of opportunities for companies to communicate that go beyond the conventional.

A study conducted by McKinsey & Company found that more than 60% of an employee's time is spent on reading and answering emails, searching and gathering information, and communicating and collaborating internally. Only 39% of an employee's time was used on role-specific tasks. Having a strong internal communication system that easily helps employees find what they are looking for and where they are looking for it, helps increase productivity. Using a project management software to track work being done lets everyone know what’s going on in the organization without having to send dozens of emails to see where everyone is at.

Employees also benefit from internal communication systems via Human Resources. A poll conducted by Gallup showed that only 13% of employees strongly agree that leadership of their organization communicates effectively with the rest of the organization. Having a central location for all things HR, that is easily accessible, helps employees feel more connected and engaged within the company.

This central hub should include all of the information relating to employees — their employment history, contract details, salary, diversity information, personal information, documents, company assets, performance records, absence history, policies, standard templates, procedures, forms etc. This platform should benefit every employee and be easily available for employees to access everything in one location. This means that when an employee doesn’t know or has forgotten an important company policy or procedure, the information they need is readily available without needing to email someone in HR and waiting to hear back.

Improving Company Security Through Technology

Many of us have worked remotely in the past year. We spoke about how technology helped companies get through COVID in a previous blog. Since then, the office environment continues to change, and using only one device to work from is changing too. Using a desktop workstation, a laptop and a cell phone is now commonplace. Having technology that communicates with each other, seamlessly and effortlessly, is becoming more important, but so are the dangers that come along with it.

Modern technology can protect employers from cyber threats, such as data leaks, and can help employees who forget their passwords. Employers should invest in IT development to keep up with emerging technologies that are used by hackers or at least train employees about new security risks so they know what to do if a breach occurs.

How Technology Helps in Payroll Processing

With payroll software, the process of paying salaried, hourly and contingent employees can be automated. This saves time by cutting down on human error in calculations like figuring out how many hours an employee has worked during their pay period.

With a click of the mouse, payroll software automates all necessary requirements for running accurate and timely paychecks. It automatically calculates employees' hours worked per paycheck based on predetermined rates. With salaried employees specifically in mind, these programs can track their time-based eligibility for bonuses or raises without any manual calculations.

But, these software solutions go deeper than just paying employees. Finding out a company's turnover rate, how much overtime was worked in a given time frame, a full salary analysis by department and more can be done by simply running a report. The communication between the HR and finance departments can easily be bridged with a software that allows multiple users to interact with the data and pull reports as needed.

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Topics: Technology Benefits, Onboarding, Communication, Security

HR Tech

Written by HR Tech

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