Manual administration involves working with excel spreadsheets and hard copy based systems which is an extremely challenging and cumbersome process resulting in difficulties for HR professionals.
The most common negative impact of this physical administration is the amount of effort and time taken by the people in completing these tasks.
This results in missed opportunities, higher costs, and prevents the entire team from working on something more valuable and productive.
There is a list of unseen costs related to labor-intensive HR administration that are causing a heap of problems and sucking up resources that an organization is unable to realize.
Let’s take a look on the disadvantages of manual HR administration:
a) Productivity Issues
With a difficult and slow process, employees at an organization tend to spend more time than actually needed in order to carry out the tasks. Some easy HR related tasks, such as organizing training programs, requesting for a leave or time-off, and more can take a lot of time when they are done manually.
This will cause a direct impact on your productivity and employees will spend most of their valuable time on doing work which is far less useful and profitable than those tasks which they are paid for.
b) Affecting the Quality of Work
In an expanding organization, when an HR department uses manual system it is likely that they suffer more with growing staff members and maintaining employee records. Ineffective manual processes and high HR department turnover can leave a very bad impression for your organization and HR talent.
Spending too much time on administrative work disinterests employees and as a result can leave a costly impact on your entire team. Some members even call it quits and you have to start again with the recruitment process.
And losing an employee means that other existing workers should work harder by increasing their workload for covering the gaps.
c) Fraudulent Activities
Immoral employees also cost you more through fraudulent activities and manual HR processes unintentionally make it easier for frauds to be carried out. For instance, a manger is paying salary to fifty people, but in reality, there are forty-eight employees existing on the payroll. This can be a result of improper staff management and tracking.
d) Errors in Payroll
Organizations still relying on HR to manually enter employee data to payroll can lead to some serious mistakes. Many organizations are maintaining tons of paperwork with the manual payroll system which causes a higher risk of human error.
The Bottom Line
Despite being an outdated process and having several drawbacks, manual HR processes are still very much in practice at many business organizations.
Juggling paper forms, struggling with excel sheets and endless hardcopy files to look for important documents is getting obsolete in today’s digital technology driven market.
New HR software can automate and simplify the whole process and save you a lot of your valuable time and money, enabling you to work on more productive office tasks.