What is HR process optimisation

HR process optimisation involves looking at ways to improve the efficiency of your HR operations. This can be achieved through a range of options including:

• Automating repetitive tasks;
• Digitalisation of tools used;
• Using key performance indicators and metrics associated with HR;
• Training staff in new, more effective approaches to HR management and strategy.

Next, we’ll look at the case for HR process optimisation, as well as a few suggestions for how to do so.

Why use HR process optimisation

According to our Hiring Lab guide to the UK’s hiring landscape trends, there is currently lower demand for new candidates. While this eases pressure on recruitment, retention may now be a primary concern for HR teams, with 89% of HR professionals reporting that retaining their talent is more complex than ever. Creating a culture where employees are happy and engaged and want to stay in their job is becoming the new challenge. 

Addressing employee retention challenges and finding new ways to keep up employee engagement requires HR teams to invest time they often don’t have. Repetitive administrative HR tasks take up time better spent on devising new strategies for retention, career progression and personalised staff training approaches.

Employer branding has often been considered the domain of talent acquisition. But as we found, HR teams are also responsible for employer branding, and typically tasked with strengthening the employee value proposition, delivering internal communications strategies, supporting wellbeing programmes and gathering insights.

Without an optimised process, some HR teams may struggle to strengthen employer branding. 

Ideas for HR process optimisation in the workplace

The next section explores a few key strategies to help HR teams address these concerns and other issues unique to their business. 

Implementing AI in HR

In our guide to AI in HR, we explored how automating repetitive administrative tasks can help free up valuable time for HR teams. An Indeed Survey of Talent Acquisition leaders revealed that on average, 14 hours per person a week are spent on manual tasks and processes. 

Allocating these tasks to generative AI would give HR approximately 35% more time to spend on pressing tasks to keep their companies competitive, such as developing employee wellbeing programmes and enhancing strategies for employee retention.

Our research indicates that 81% of global HR leaders have explored or implemented AI in their processes. However, only 36% of UK employers had invested in AI-enabled technologies over the past five years, suggesting significant potential for growth in this area. Embracing generative AI doesn’t mean removing the human element from HR. On the contrary, it frees up more time for tasks that necessitate human skills like empathy, active listening and conflict resolution.

Indeed’s Head of AI, Trey Causey, emphasises this, explaining: ‘AI is not replacing the work you’re doing or the ideas you’re having. It’s like you’re getting another set of eyes on it, like sending it to a colleague’.

Here are some practical applications of AI in HR that can help streamline operations:

• AI-driven chatbots are increasingly being used to handle basic, frequently asked questions from employees. This helps reduce the number of support tickets that HR teams have to deal with directly. For more complex issues, a member of the HR team can step in and take over.
• Collecting and organising unstructured data, such as candidate interviews, emails, identification documentation, employee feedback documentation and PDFs.
• Skills intelligence AI tools can analyse employee data to identify skills and capabilities, suggesting paths for career progression and other career growth opportunities. These tools can also help develop strategies to achieve career milestones, aligning employee growth with organisational needs.
• Workforce intelligence AI tools can provide personalised compensation plans based on employee data, potentially boosting employee motivation and retention.

Upgrading your project management tools

Switching to cloud-based project management tools offers several key advantages for HR teams, notably saving time and resources by eliminating the need for frequent in-house technological upgrades. HR teams can benefit from features that include:

• Workflow automation tools
• Invoicing tools
• Managing spreadsheets
• Collaborative tools such as whiteboards
• Apps that centralise the tools that HR need into one designated hub
• The ability to identify bottlenecks and best allocation of resources
• Flexibility and adaptation to different levels of complexity

Going Agile

Agile methodology, traditionally associated with software development, can be effectively adapted to HR to enhance responsiveness and streamline processes. Here are some practical examples of how Agile can be used in HR:

1. Recruitment cycles: Agile can speed up recruitment processes by implementing sprints for different recruitment stages. This approach allows HR teams to adapt quickly to the changing market conditions and candidate feedback.
2. Performance management: Instead of annual reviews, Agile promotes more frequent and iterative performance assessments. This can lead to continuous improvement and more timely feedback for employees, fostering a more dynamic development environment.
3. Policy development: Agile can be used to develop and update HR policies in a more collaborative way. This involves gathering feedback from employees across all levels, testing new policies in pilot programmes and refining them before implementation.
4. Learning and development: Agile can transform the learning and development area by allowing teams to rapidly design and implement training programmes.
5. Employee onboarding: Agile methodologies can streamline the onboarding process and continuously improve it based on feedback from new hires, leading to a more effective and engaging onboarding experience.

Agile teams in HR are typically cross-functional and focus on outcomes achieved through collaborative efforts rather than individual contributions. This often involves a horizontal management approach ordistributed leadership, where all team members share responsibility for generating ideas and negotiating strategies.

HR teams can effectively implement Agile principles to enhance their operations by:

• Providing regular, immediate feedback to employees on their performance. This process should also include ‘upward’ feedback from employees to supervisors and managers.
• Agile project sprints to tackle projects in short bursts, or ‘sprints,’ which focus on essential components for rapid decision-making. It is particularly effective for time-sensitive tasks such as developing internal communication strategies or executing recruitment drives.
• Using video meetings to resolve issues as they arise during projects. These real-time discussions are invaluable for adapting strategies quickly and identifying areas for improvement, ensuring the project stays on track and meets its objectives.
• Inclusive communication strategies involving the entire HR team in formulating internal communications. This inclusive approach ensures diverse perspectives are considered.
• Transparent project management tools to offer clear visibility into task progress and team capacity. These tools help HR teams efficiently assign responsibilities, monitor potential bottlenecks and manage overall workload, to optimise team productivity.

Use metrics to boost the employer brand

Determining the right metrics can help HR optimise their strategy effectively. A strong employer brand is vital for attracting and retaining employees. Here are some key HR metrics for employer branding:

• Employee Net Promoter Score (eNPS): measures whether an employee would recommend working for their employer.
• Internal communications metrics: tracks how frequently employees open and engage with internal communications, helping HR teams gauge the effectiveness of connecting employees with the company brand.
• Employee engagement: assesses how connected employees feel to the company brand, often through surveys that explore elements such as alignment with the brand ethos and enthusiasm for products or services.
• Workforce demographics: analyses company data to evaluate diversity and inclusion efforts as a facet of employer branding, ensuring representation across different communities.
• Employer brand awareness: determines the recognition of the company brand on social media and within the broader hiring landscape.
• Employer brand perception: assesses public perception of the company brand through social media interactions and brand perception surveys.

By using metrics such as these, HR teams can refine internal communication strategies and manage the employer brand more effectively. They can tailor their approach based on survey feedback, which indicates diverse opinions and perspectives. For example, if employee engagement with internal communications is low, HR can use this feedback to identify the issues and develop effective solutions.

Whether your HR team is focusing more on attraction or retention, these four ideas for HR process optimisation may help to streamline your operations. With HR responsible for employer branding and interviewing new candidates, automating certain repetitive tasks can help them to focus more on those that require more ‘human’ skills.