HR Automation Systems – Pros, Cons And Opportunities

Personnel are both the enterprise’s value and its manager’s headache. Labor codes require certain behavior toward employees and compliance with financial and labor relations. This includes the correct registration of hiring and firing, vacations and working time accounting, and the formation of current documentation. HR accounting programs help optimize the work of HR officers and accountants. Specialists from AI chatbot development services discuss their pros, cons, and opportunities.

Why Do You Need HR Accounting Programs?

If an enterprise employs up to 10 people, then one employee (usually an accountant or one of the managers) handles HR accounting. However, a separate department accounts for human resources, whether it is a plant, supermarket, or retail chain.

Pros of HR accounting programs:

1. The accounting processes for working hours, vacations, and sick leaves are simplified.
2. Quick formation of internal and external reporting.
3. Reduction in the number of errors since the human factor is minimized.
4. Saving time for HR officers to perform mandatory and necessary routines. It allows you to perform the work of searching and selecting personnel more efficiently.
5. Interaction with accounting systems. The accountant can immediately process paper documents and receive the necessary information about the employee in real-time.

Using such programs allows you to keep personnel records remotely. All processes are completely transparent, and the data cannot be interpreted in two ways.

After automating the personnel accounting system, the enterprise only receives profit. At a minimum, you can minimize the number of employees in the HR department, reducing the total payroll and its taxes.

The software’s disadvantages include its high cost and the cost of training personnel. In addition, it is impossible to completely eliminate the human factor, and the data must be verified. But ultimately, the savings in payroll and taxes offset these shortcomings.

Capabilities Of Personnel Accounting Programs

The capabilities of automatic personnel accounting systems depend on the functionality required by the enterprise.

Function	Brief comments
Maintaining the personal files of employees	general information; data on the efficiency of work at the enterprise; movement within the enterprise – transfers to a new position, dismissal, hiring.
Management of labor relations	Formation of labor contracts and agreements; Creation of orders for dismissal, vacation, hiring, beginning and end of the probationary period.
Management of work schedules	Maintaining a timesheet; Accounting for vacations, sick leaves, business trips; Building work schedules for employees in different areas.
Report generation and planning	Availability of employees; Amount of time worked, completed piecework orders, volume of overtime; Need for employees with a specific qualification.

The software may have accounting units: calculation of wages, generation of reports on the payroll, taxes on it, and movement of employees.

The developer company services the software. Clients receive reliable information about changes in legislative norms related to personnel records.

Conclusions

Each manager decides for himself whether to install software to maintain personnel records. Nobody has canceled the paper version (personal files, orders), and the enterprise must maintain and store it. However, the software allows for the minimization of the number of personnel officers, an increase in their work efficiency, and, ultimately, a profit.