30 HR Automation Statistics To Know in 2024

In a world where talented employees collaborate across continents, technology is more critical than ever before. When it comes to HR specifically, implementing software in a way that is actually helpful can be a steeper challenge, considering the distinctly person-to-person nature of the field.

A powerful, integrated HR automation software takes on tasks that humans shouldn’t have to do. When an HR team spends hours on busy work instead of on projects that people do best, something has to change.

These 30 HR automation statistics reveal the interest, use, and best practices of automating HR tasks.

⚙️ HR automation basics

HR automation is the use of software to automate repetitive, tedious tasks so that employees can focus their energy on more important, human-centered processes.

• 50% of work can be automated in today’s age. (McKinsey)
• Only 37% of HR job functions are commonly automated. (Forbes) 
• 47% of businesses will use some sort of AI in their HR processes by 2022. (Gartner)
• Of these companies already using HR automation tech, 57% do so with the aim of improving their employees’ experiences. (Gartner)
• 56% of companies using AI for HR are trying to automate repetitive tasks. (Gartner)
• 51% of these companies are using automation in the hopes of saving money. (Gartner)

❓Why is HR automation important?

HR automation matters because it saves time, money, and human capital. Many companies that do not already use technology in their HR processes plan to do so for greater efficiency. 

HR automation can bridge the gap between the goals of HR leadership and implementation of better recruitment, onboarding, and training programs.  

• 97% of employers plan to expand their use of recruiting technology. (Paycor)
• 57% of companies surveyed by IQ PARTNERS plan to accelerate the recruitment process. 
• There can be steep costs to foregoing automation. A medical company saved $4,000 per month by using HR automation in a case study by Gravity Flow.
• 54% of HR professionals do not see automation as a threat to their job, but instead as a means to focus their valuable time on better tasks. (Northeastern University)

⚡  Does automation help HR, or is it more of a threat?

Automation can be perceived as a challenge specifically for HR due to the “dynamic nature of requests HR receives.” (McKinsey)

However, many companies acknowledge that automation would save HR highly valuable time and effort. The key is to automate the right tasks, with the right software. 

Human-facing, human-centered processes that people should complete instead of HR automation software can then be the focus of employees’ time. 

• A U.K. study found that 800,000 jobs were replaced by automation, but 3.5 million jobs were added. (Deloitte)
• HR managers lose 14 hours per week on tasks that could be automated. (CareerBuilder)
• About 73% of HR’s time is taken up by monotonous administrative tasks. (Frevvo)
• An estimated 56% of tasks performed by HR can be automated without drastic changes to processes. (McKinsey)
• When using automation to screen offer letters for accuracy, a fast-growing tech company cut processing time by 66% and four employees spent their time on more valuable work. (McKinsey)
• Companies that made the switch to an HR automation system reported 90% time savings on administrative tasks. (Nucleus Research)

🏢 HR automation for recruitment

How HR automation helps companies attract top talent

Attracting top talent is as important as it is difficult. Many HR teams co-create job listings with department stakeholders, monitor applications, vet applicants, and eventually send offers. With as many moving pieces as these, systems that are not connected, efficient, and user-friendly don’t get the job done. 

Listings stay up long after applications are no longer read. Candidates are left in the cold, with no update on their application status. Tasks that are meant to be done fall through the cracks, due to time constraints and inefficient tech. Situations like these are common, and are easily fixable with HR automation. 

On another note, many workers know what it’s like to complete tasks with inefficient tech. The frustrations of trying to do their former job well carry into their new job search. It’s more important now than ever before for companies to have streamlined systems and technologies that connect to one another. 

Stay ahead of the fold with automation that not only makes the application process smoother, but attracts talent in the first place.

• 80% of job seekers said they would be dissuaded from considering other job openings at a company that did not give them any status on their application. However, they would be 3.5 times more likely to re-apply if they were given status updates in previous application cycles. (G2)
• In a survey of over 1,000 millennials, 93% said that a company having up-to-date technology is an important aspect when deciding to accept or reject a job offer. (Frevvo)
• 45% of HR professionals believe automation will make their job better in the future specifically for recruitment. (Jobvite) 

The ethics of HR automation when hiring

One of the most common uses of HR automation is to screen candidates before passing them through to the next step in the application process. This saves HR teams hours of time, but has its own complications. 

An unfortunate reality of recruitment is the possibility of unconscious bias seeping into the hiring process. HR automation can be a solution to this by eliminating some human error. However, automated systems of any kind can present their own biases. 

Just as with any other area of life and work, there are ethical considerations of HR automation.

• 25% of companies report using HR automation, mainly for recruitment and hiring.
• 69% of HR professionals that do use automation in hiring reported that it significantly decreased the time spent on this process.
• However, only 40% of companies that use HR automation for hiring stated that their software provider was transparent about how they combat bias in their technology.
• 54% of companies using HR automation for hiring have faced challenges with using the tools, including the algorithms mistakenly excluding qualified candidates. 
• 30% of survey respondents agreed that HR automation does help them reduce any potential bias from their hiring process, but 46% want resources to identify and correct for any bias when using the tools.
  

Source: SHRM

🚀 HR automation for onboarding

The onboarding process is absolutely crucial to the retention of employees for the long-term. From the moment a new hire accepts their offer, the impression a company makes on them could still cause a new employee to walk away.

HR teams that work smarter either already automate or are considering automation to make onboarding better for everyone.

• 58% of companies have to focus on paperwork and processes for onboarding instead of offering a human-centered experience for new hires. (Quixey)
• 36% of HR professionals stated that a lack of onboarding automation has hindered their onboarding processes. (G2) 
• Companies that do use HR automation said their onboarding process was 67% faster. (Nucleus Research) 
• Using HR automation for onboarding resulted in an 18% improvement in performance. (UserGuiding)
• Automating onboarding also resulted in a 16% increase in new hire retention. (UserGuiding)

📈 The takeaway: How to leverage HR automation for your team

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Sources:

• TechTarget | HR Automation
• McKinsey | Jobs lost, jobs gained: What the future of work will mean for jobs, skills, and wages
• Forbes | Five Tips For Introducing Intelligent Automation To HR
• Gartner | AI Shows Value and Gains Traction in HR
• Deloitte | From Brawn to Brains: The Impact of Technology Jobs in the U.K.
• G2 | 35+ Impressive HR Statistics You Need to Know in 2019
• Paycor | HR Statistics You Need to Know for 2022
• Frevvo | 25+ HR Automation Stats You Should Know
• CareerBuilder | More Than Half of HR Managers Say Artificial Intelligence Will Become a Regular Part of HR in Next 5 Years
• McKinsey | Human Resources in the Age of Automation
• Gravity Flow | Cost savings of over $4k/month [Case Study]
• Nucleus Research | Guidebook Zenefits
• SHRM | SHRM Research: AI Use on the Rise, Ethics Questions Remain
• Quixey | 8 Key Statistics for Understanding the Benefits of Effective HR Automation
• UserGuiding | 30 Employee Onboarding Statistics and Trends to Track in 2022