RPA in human resources: 10 use cases, examples & best tools

RPA in human resources: 10 use cases, examples & best tools

March 22, 2023

Kate Aleksandrovich

by Kate Aleksandrovich,

Head of RPA Center of Excellence

HR departments play a vital role in every business, taking care of each phase of an employee's life cycle, from headhunting to exit management. But what if we could delegate standardized, repetitive HR tasks to machines and let humans focus on decision-making, interpersonal relations, and employee well-being? Fortunatly, RPA service providers can help companies solve these problems by adopting intelligent bots.

RPA in human resources involves the deployment of software robots that perform monotonous and high-volume candidate sorting, hiring, and employment data management faster and more accurately than human workers, reducing labor costs and increasing HR efficiency.

Table of contents

RPA in human resources: market statistics

Scheme title: Potential for automation in HR. Proportion of tasks within the sub-function
Data source: mckinsey.com — How bots, algorithms, and AI are reshaping the future of corporate support functions

78%

of companies hope to automate their onboarding process

Kofax

65%

of companies have implemented RPA for HR

The Hackett Group

10 RPA use cases in human resources

HR departments can leverage robotic process automation to streamline various business processes in their daily workflow. Here is an overview of the most prominent RPA use cases in HR.

Recruiting and hiring

Multiple recruitment and hiring tasks can be automated with RPA. For example, once candidate selection criteria are defined, a bot quickly scans hundreds of resumes for the most suitable candidates, filtering out potentially interesting profiles.

RPA can be integrated with applicant tracking systems (ATS) to follow rejected candidates who can prove more suitable for future job positions. Bots can also work in synergy with OCR tools to verify digital copies of documents attached to the application letters. Moreover, a more advanced integration with predictive analytics for human resources management can also come in handy since such software will automatically browse the internet for candidates that suit your organization.

Finally, RPA software can assist in scheduling job interviews and drafting custom messages for applicants using pre-written forms.

Onboarding and training

Many rule-based onboarding processes can be automated with RPA bots, including equipment allocation and assignment, corporate credentials generation, and provision of access rights for business applications. To set this up, HR specialists need to determine parameters for bots to follow, such as the name, job position, and hierarchical status. Another candidate for RPA is training session planning. Bots can independently provide new employees with the most suitable training materials based on their role or match their work schedule with those of human trainers and set up a training timetable.

Employee data management

Generally, HR teams handle diverse forms of employee data scattered across different corporate systems. The RPA technology automates data extraction and management and frees HR specialists’ time for high-value tasks. Moreover, bots make fewer mistakes when handling data, minimizing the time and effort spent on correcting errors.

Payroll management

RPA can streamline tedious and error-prone payroll management and prove especially useful for large companies with thousands of employees. Payroll involves high-volume and regular data entry work and consideration of various factors, like working hours and potentially variable tax regulations. RPA bots streamline these tasks by extracting and aggregating information from sources like accounting reports and time-tracking applications. They can also calculate gross and net salaries and trigger payments.

Attendance and absence management

Logging attendance or recording absences can be challenging for employees, especially if this requires the completion of several forms. RPA solves this issue by comparing absence reports and the time slots employees have logged into the corporate system, notifying them if the information does not match, and reminding them to fill out necessary forms. Additionally, RPA tools can be combined with image recognition and machine learning-based biometric analysis tools to determine and log clock-in and clock-out times automatically.

Expense management

To track travel and business expenses and receive reimbursements from the company, employees typically need to submit payment receipts to the accounting department. RPA bots, combined with optical recognition tools, can substitute for HR managers and automatically extract details from vouchers and tickets and put data into expense management systems. Following a rule-based approach, bots can distinguish between valid expenses and those that do not meet the established requirements. For example, a bot can be configured to accept a business lunch receipt but not a Netflix subscription.

Compliance and reporting

Report generation is strictly required by labor law and must be carried out with particular caution, especially when HR managers need to comply with complex and ever-changing regulations.  RPA software minimizes the error rate and speeds up the collection of employee benefits, expenses and performance data from various business sources. RPA bots can then feed the data into standard templates and turn it into custom reports.

Performance management

To create an employee performance review, HR managers have to aggregate valuable data from different surveys and KPIs and compile it into reports, providing a holistic view of an employee’s progress. By streamlining data capture and report generation, RPA makes performance management more efficient and helps HR specialists highlight areas for an employee’s professional growth. In the end, a well-configured RPA bot can become a reliable aid to support organizational productivity.

Shift allowance calculation

Using RPA, organizations can facilitate allowance provision for their employees who work different shifts. Bots can calculate the shift allowance by accessing and validating employee work data from multiple HR systems, enabling on-time and accurate allowance payment.

Employee exit management

RPA technology can streamline the offboarding process by speeding up the collection of dismissal documents, triggering termination of benefits, and initiating the final settlement. Bots can also gather data from an employee’s exit report, update the information in the finance application, revoke corporate system access, notify departments involved, and start final payment processing.

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4 real-life examples of RPA in human resources

Candidate management

Itransition

We developed an RPA bot to automate the addition of new candidates to our HRM system, which accelerated candidate processing four times and significantly improved our HR department’s efficiency.

less human interaction

Video title: RPA for talent acquisition: automated CV processing

Onboarding

First Bank

First Bank equipped their onboarding workflow with a software robot that performs manual HR tasks, such as posting job ads and creating candidate lists, saving the recruiter's time for more valuable work.

hours saved monthly

Video title: UiPath software robot example in HR department for First Bank

Attendance management

Convestro

Convestro adopted an AI-enhanced RPA solution by UiPath for processing 500 sick leave certificates weekly, with 50% of documents going for straight-through processing with 95% accuracy.

reduction in time

Convestro

Image title: Sick leave certificated processed by RPA
Data source: uipath.com — Covestro Leverages AI & RPA to Streamline Repetitive HR Processes

Reporting

Coca-Cola

BluePrism deployed RPA software in over 50 processes across Coca-Cola’s SAP-based systems, significantly automating data processing and reporting, with a manual review of exceptions.

faster data processing

Blue Prism’s Digital Workers provide the added capacity to get us from an 8-hour day to a 24-hour day – while improving accuracy, because we no longer just take a sample of the HR audit data. We can see every transaction that’s happening and provide 100 percent coverage on that.

Karla Younger

Coca-Cola’s Vice President of HR Services

Leading RPA platforms for human resources

According to the Gartner Magic Quadrant for RPA 2022, four leading RPA platforms could be suitable for HR departments.


Chart title: Gartner Magic Quadrant for Robotic Process Automation 2022
Data source: gartner.com – Gartner Magic Quadrant for Robotic Process Automation

Completeness of visionAbility to executeChallengersWorkFusionNiche playersSamsung SDSNintexCyclone RoboticsLaiyeIBMLeadersUiPathAutomation AnywhereSS&C BluePrismNICEMicrosoftVisionariesSAPAppianSalesforce (MuleSoft)Pegasystems

UiPath is a scalable RPA platform that can be integrated equally well with the existing infrastructures of SMBs and large international enterprises. The platform’s key feature is the drag-and-drop interface, allowing users to easily create and set up their automated processes.

Video title: Demos. RPA for Human Resources: skills extraction for faster job matching

Key features
  • Flexible deployment as cloud-native SaaS or a self-hosted solution
  • Process mining, test automation, cloud delivery, and API integration
  • Macro recorder, drag-and-drop interface, and pre-built templates
  • Built-in AI technologies (OCR, NLP, ML)
  • Suitable for a broad range of users across the process automation lifecycle
  • A powerful community with multiple training and networking options
  • 60-day free trial
Limitations
  • Customer service’s slow response times

Blue Prism's RPA solutions offer dedicated features to enhance employee experience, increase operational efficiencies, and boost productivity. The platform also enables centrally managed automation for highly regulated sectors, such as HR.

Video title: Transform Your Business with SS&C Blue Prism RPA

Key features
  • Built-in AI technologies (OCR, NLP)
  • Ready-to-use solutions
  • Third-party system integration through multiple connectors
  • Digital automation expert support
Limitations
  • No free trial
  • Issues related to the vendor’s recent merger and acquisition

Automation Anywhere’s RPA platform, Automation 360, allows end-to-end automation of HR processes and features RPA as a service with AI/ML capabilities and process discovery, analytics and marketplace integration tools.

Video title: RPA for HR: Automate Manual HR Processes

Key features
  • Macro recorder that builds task logic without sequential actions programming 
  • Task scheduler and single-click web data extraction
  • 45-days free trial
Limitations
  • No embedded process discovery 
  • License issues in certain regions

Microsoft’s Power Automate is a cloud-first RPA platform that provides API integration and orchestration, IDP, task mining, OCR, AI and other integrated features.

Scheme title: The SOCRT architecture using Microsoft Power Automate and Office 365
Data source: microsoft.com — Transforming payroll processes with Microsoft Power Automate

Integration, communication, and workflowReportingData storageData inputPayroll groupProcess ownerDelivery managerRequestor
Key features
  • Closeness to other components in the Power Platform and Microsoft 365 ecosystem
  • A limited free version of built-in Power Automate for Desktop for Windows 11 users
Limitations
  • Issues with navigation between interfaces
  • The need for configuration and integration to achieve complete automation life cycle management

Best practices for implementing RPA in human resources

Companies can increase the capacity and productivity of their HR teams from the get-go if they roll out RPA solutions correctly. We enumerate the best implementation strategies to maximize the effectiveness of RPA bots for HR.

Start small

Companies should start their HR RPA program by deploying one or two bots for the most optimal low-complexity and low-risk processes. The initial low-scale automation will help measure the success of the RPA application and lay the foundation for more complex RPA solutions down the line.

Types of HR processes best suited for RPARepetitiveError-proneRule-basedRelying on digital dataTime-sensitive and seasonal

Optimize existing processes

Consider RPA adoption as an opportunity to revise your current workflows. Instead of building bots right away on top of convoluted processes, first, implement changes to make inefficient workflows logical and rule-based. Then, ensure that each HR team member is well acquainted with the new procedures before proceeding to automation.

Collaborate with HR managers and stakeholders

Companies should secure HR leaders' and stakeholders' buy-in for an optimal RPA implementation outcome. Before designing an RPA solution, companies should also gather feedback from employees directly affected by the automation in their day-to-day work to identify possible issues and adjust their RPA strategy accordingly.

Introduce RPA capabilities to HR staff

To guarantee your HR managers and employees get the most out of RPA, you should teach them how to properly use the technology. All stakeholders should have a clear vision of RPA capabilities and limitations and understand their own involvement in the RPA-powered processes. Proper training and availability of self-service tools can also help HR professionals adapt quicker and work better.

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RPA in human resources: implementation costs

The cost of RPA solutions depends on multiple parameters and can vary greatly depending on the level and complexity of automation and the solution vendor’s pricing. Generally, a single bot costs from $5,000 to $15,000+, and the automation of several processes can be valued at up to $300,000.

Key benefits of RPA in human resources

Cost-effectiveness

RPA automates key labor-intensive processes, streamlining HR operations and reducing costs.

Accuracy

Bots never get tired, which eliminates the risk of human error and ensures high data accuracy.

Faster HR operations

Using bots, HR departments can significantly accelerate their key operations with up to 85% faster processing, according to UiPath.

High scalability

RPA solutions are easy to scale, so HR departments can increase the bots’ operational capacity in line with their needs.

Increased productivity

RPA can take on tedious administrative tasks, allowing HR staff to focus on employee engagement.

Improved job satisfaction

By freeing up HR managers from repetitive tasks, RPA helps increase their job satisfaction and reduce staff turnover.

Improved compliance

With consistent and accurate data handling, RPA software can help highly regulated HR departments comply with regulations.

Better talent

RPA solutions facilitate the search and acquisition of best-fitting talent and make hiring more effective.

Challenges of RPA in human resources

Challenge

Solution

Resistance to change

Despite the benefits of RPA for HR staff, it’s not uncommon for employees to oppose its implementation, with the most common concerns on their part being job displacement or salary cuts.

Despite the benefits of RPA for HR staff, it’s not uncommon for employees to oppose its implementation, with the most common concerns on their part being job displacement or salary cuts.

The success of an RPA initiative largely depends on the human factor. Therefore, C-suite executives should use a human-centric change management approach that takes into account employee emotions and fears. Companies should prepare strategies for managing employee resistance to RPA at the project’s planning stage and communicate the details of the upcoming RPA-related changes to the HR team.

Limited capabilities of RPA

Companies can confuse RPA with artificial intelligence or machine learning and expect RPA software to perform actions they are not designed for. As a result, it can come as a surprise that bots cannot make predictions or decisions.

Companies can confuse RPA with artificial intelligence or machine learning and expect RPA software to perform actions they are not designed for. As a result, it can come as a surprise that bots cannot make predictions or decisions.

The best strategy for implementing any innovation, including RPA, is to learn as much as possible about it before the rollout. Even without the intelligent component, RPA can automate many manual processes, standardize common tasks, and streamline day-to-day operations in the HR department. Also, the technology’s capabilities can be expanded due to simple integration with computer vision, artificial intelligence, and machine learning.

Hard-to-automate HR processes

Many HR tasks typically require human intervention, such as strategy creation, planning, and employee relations. Unfortunately, these types of workflows can be convoluted or outdated and, therefore, hard to automate with RPA.

Many HR tasks typically require human intervention, such as strategy creation, planning, and employee relations. Unfortunately, these types of workflows can be convoluted or outdated and, therefore, hard to automate with RPA.

Instead of trying to automate every possible HR task, companies should identify the processes whose automation will result in significant efficiency improvement. The human element remains fundamental in HR operations and cannot be replaced by RPA software. However, by taking on menial processes, RPA can give HR professionals more time for human interactions and help improve employee engagement. Additionally, RPA adopters can enable process orchestration, coordinating tasks between bots and human workforce within one process and enabling a seamless collaboration of technology and HR managers.

Make HR more human-centric with RPA

Make HR more human-centric with RPA

The ability to handle repetitive, high-volume tasks with low exception rates has made RPA an ideal tool for human resources management, which traditionally handles huge amounts of paperwork. However, RPA cannot replicate human actions when strategic or analytical thinking is required or delicate matters are handled. Therefore, the goal of RPA implementation in HR is to help managers better take care of interpersonal relationships and employee well-being while delegating tedious tasks to the machines. If you are planning to afford your HR department more time to take care of your employees, contact Itransition’s experts to help you with your project.
Make HR more human-centric with RPA

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FAQs about RPA in human resources

Can bots work 24/7/365?

Yes. Bots are software programs, so they can perform digital tasks around the clock if not interrupted.

Is employee data secure when handled by RPA bots?

In RPA solutions, the risk of accidental data exposure or loss is minimized because of the limited human access to sensitive employee data and multi-layered authorization and encryption applied in many bots for better security and privacy.

Should organizations replace their legacy HR software to implement RPA?

RPA is considered a non-invasive technology and doesn’t require the replacement of existing HR systems, instead it is integrated with them to streamline processes.

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