Human resources in the age of automation
The core of HR 3.0 –
McKinsey’s vision for the future of employee-related activities – focuses
singularly on driving value from talent. But let’s be candid: HR will not have
the bandwidth, resources or credibility to achieve this goal unless it delivers
smooth and continuous customer service.
To provide such stellar
service, HR must employ technologies that are changing how consistent process
execution and excellent customer care are delivered.
The biggest workplace
disruptor is next-generation automation technologies. The McKinsey Global
Institute estimates that nearly half of all work could be automated with
current technologies.
For HR, intelligent
process automation, which includes artificial intelligence and related new
technology advances, can help deliver consistent people processes – something
that has eluded many HR operations teams given the dynamic nature of the
requests they receive.
Cost savings also
materialize through deploying such technologies as robotic process automation,
machine learning and cognitive agents. Our analysis suggests that 56 percent of
typical “hire-to-retire” tasks could be automated with current technologies and
limited process changes.
Robotic process
automation is the most mature technology. Its use of software with AI and
machine learning capabilities to handle repeatable tasks that humans have
traditionally performed is already changing the delivery of HR services. For
example, a leading consumer packaged-goods manufacturer deploys bots in its
hiring process, starting with onboarding new employees (by, for example,
porting application tracking system data over to the HR information system).
With time,
opportunities will abound to automate more elements of the hiring process. For
example, a bot can draft offer letters, write job descriptions or set up
payroll and benefits data. And beyond robotic process automation, cognitive
agents can potentially transform the interaction between HR and employees.
Always-on chat agents can answer questions instantaneously and be available on
employee phones – a better service experience than calling an HR hotline.
Consider the experience
of a fast-growing tech company hiring employees rapidly and generating numerous
offer letters. Those letters were drafted manually and required many quality
checks to ensure compliance and accuracy. The company deployed a bot to
automate the entire process, generating an offer letter that pulled information
from several systems. Compliance and accuracy checks built into the programmed
workflow limited human involvement to the occasional exception and quality
control.
The result: Processing
time fell 66 percent, compliance improved and four full-time employees moved to
more value-added work. Given the generally low cost of bots, the business case
for automation is clear – and the service impact is equally apparent. Beyond
the measurable impact, faster turnaround time is likely to improve job offer
acceptance rates. That would dwarf automation’s potential productivity value.
Still, some important
caveats exist. HR has fewer opportunities to carry out more mature automation
technologies, such as robotic process automation, than some other support
functions, particularly finance.
On their own, only the
largest HR organizations would likely possess the transactional base to justify
the robotic process automation learning curve. What’s more, many automation
technologies require a portion of people’s time, so capturing the opportunity
requires real transformation of process and organization.
However, as part of a
broader enterprise strategy, HR can and should be a significant deployment
opportunity for automation technologies. For example, HR should be part of the
charge to automate customer service, particularly at larger organizations with
sizable HR call centers.
As technology continues
to transform the world, HR clearly must be part of that change, embracing
robotic automation and other technologies that promise greater efficiency,
superb customer service and significant cost savings.
by Mili
Bustamante and Neel Gandhi
https://www.mckinsey.com/business-functions/organization/our-insights/the-organization-blog/human-resources-in-the-age-of-automation?cid=other-eml-alt-mip-mck-oth-1804&hlkid=4b4f16f9a01b4d6f9303bda0288507a9&hctky=1627601&hdpid=38769ec6-3e9a-48e0-ae08-e1f18e7e2ede
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