Why Is HR The Last To Get New Technology When Labor Is The Largest Expense?

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Liz Strikwerda

Content strategist and corporate blogger (2000+ posts). Her work has been featured on G2's Learning Hub, Human Resources Today, Better Buys and over 500 business websites. She plays bluegrass mandolin and enjoys sailing her catamaran and hiking in the red rock wilderness of southern Utah. Connect with me on LinkedIn

Many businesses neglect HR technology in their quest for improved efficiency. They have automated solutions for accounting, merchant transactions, CRM, manufacturing, online marketing, tech support, and inventory management.

Yet Human Resources trudges along with clipboards and stacks of forms. They wrestle unwieldy spreadsheets. They reenter data because systems can’t talk to each other.

Sound familiar?

Why do businesses ignore the logical place to extract ROI?

Let’s discuss five reasons HR should have technology on par with everyone else.

1. HR Technology Lowers Labor Costs

Labor expenses are not something you can completely eliminate. But every business can find ways to reduce them. Because a variety of factors influence them. A reduction in labor costs provides an immediate revenue boost.

Employee timekeeping integrated with payroll lowers labor costs.

  • Reduce overstaffing
  • Stop paying employees for time not worked
  • Eliminate time theft by buddy punching/time card padding
  • Decrease unnecessary overtime with improved scheduling and alerts
  • Reduce expensive payroll errors

Labor eats the largest chunk of operating expenses. While HR doesn’t generate revenue directly, it can do it indirectly by decreasing labor expenses. Thus, HR is as important as sales, marketing, or widget production.

2. HR Technology Optimizes Recruiting

Recruiting is another expensive necessity. It could be considered a part of labor expenses, but I believe it merits its own section.

You can’t compete without advanced recruiting technology. Applicant tracking systems (ATS) work like CRM for job applicants. They create a database of resumes and applications. A Human Resources Information System (HRIS) is not complete without applicant tracking tools.

What does an ATS do? In short, it streamlines and automates the entire recruiting process.

You create and manage job postings, questionnaires, and structured interviews. It posts to multiple job boards. ATS’ automate applicant communication.

With ATS, you can track and filter hundreds of applicants. In less time than processing dozens of applicants manually.

To find out exactly how much you can save with an ATS, use our ApplicantStack Cost-Per-Hire Calculator.

If you are researching HRIS or Human Resources Management Systems (HRMS), look for recruiting tools.

3. Technology Makes Your HR Team More Effective

Competent HR professionals keep your business operating. They are worth every penny you pay them. Why don’t you reduce the tedious paperwork? It will free up their time for high-impact programs. And you won’t have to expand your HR team anytime soon.

4. HR Technology Improves The Employee Experience

Smartly-designed Human Resources portals transform the employee experience. From the applicant journey through onboarding. Continuing with timekeeping and payroll.

Employees access all functions from their smartphone. They can apply, onboard, check their schedule, review time cards, and monitor accruals. Instead of waiting for their managers to circulate shift-change requests on their behalf, they swap shifts on an online trade board. Ditto for PTO requests and changes to their health benefits.

A positive employee experience pays off. It improves internal recruiting and customer service. Engaged team members are dedicated to your company’s success.

5. HR Technology Simplifies Labor Law Compliance

Businesses of all sizes are fined for Fair Labor Standards Act (FLSA) and state violations. There are strict rules for everything from hire to retire. Interview questions, background checks, minimum wage, overtime, predictive scheduling, and employee classification require automated HR systems.

Create compliant structured interviewing questions. Document and train recruiters on legal hiring practices. Track hours worked, PTO, overtime, and breaks. This ensures compliant payroll processes. Avoid fines, store records for verification, and reduce your risk of a violation.

SwipeClock ApplicantStack

SwipeClock ApplicantStack provides affordable, easy-to-use Human Resources technology. We help you reduce costs, work efficiently, and support your employees.

Simplify HR management today.

Simplify HR management today.

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