compensation management

To Automate, Or Not To Automate, For Employee Rewards, That Is The Question.

Small businesses deep down know that their growth is dependent upon keeping their employees loyal and happy. And, the key to doing that is keeping employees engaged, making them feel good about their contributions, and planting the seed to inspire them to perform better in the future.

How do SMBs go about doing all that? While compensation revisions are one way to entice employees to stay longer, most employees need more incentive than a once-in-a-year pay hike to take the extra step in their productivity, which is where employee rewards and recognition programs play a substantial role.

Chances are you already have an impromptu employee rewards program in place. If your manager offers public accolades for each of your small wins, you’ll work even harder knowing that you’ll eventually get your moment in the sun. However, managers are human beings too, they couldn’t possibly keep track of every milestone an employee achieves. 

What happens if the managers fail to acknowledge the employee’s small win? Employees will lose the hope that their work will be recognized, this hopelessness will breed disengagement and eventually result in churn.

Now, imagine the benefits a small business can enjoy if they have a solid rewards and recognitions program that runs on its own like a well-oiled machine. A transparent, automated R&R process can eliminate any chance for bias, encouraging employees to do their best since their hard work will never go unrecognized. 

Before we go any further, let’s see the problems with an archaic rewards program, how a standardized employee recognition program can benefit an organization, and how can SMBs leverage HR process automation to implement their own rewards program to uplift employee spirit. 

Shortcomings of manual employee rewards program

In today’s culture of instant gratification, employees expect a quick turnaround and appreciation for their best work. So, the ability to notice, encourage, and reward outstanding employee performance is the heart of long-term employee retention and satisfaction.

It is a fact that 69% of employees would work harder if they felt their efforts were better appreciated in a timely way. Meanwhile, a recent Deloitte research shows that organizations with employee recognition programs have a 31% lower voluntary turnover.

There is no room for inefficiencies in employee recognition. All of your systems need to be integrated seamlessly to deliver a hassle-free experience. Thankfully, with the use of HR process automation, businesses can eliminate the time-consuming and error-prone manual processes while leveraging a large amount of employee performance data to deliver a personalized and interactive employee recognition experience. 

How automation streamlines an employee rewards program

HR process automation enables businesses of all sizes to deliver a highly personalized recognition process across the performance cycle affordably. If leveraged appropriately, R&R automation has been proven to increase satisfaction, happiness, and ultimately, profit margins. 

To execute a great rewards and recognition automation strategy, employees must understand what motivates their employees to give their best and how to go about enhancing that experience. Then, the HR team can split employees into little groups (based on department or skill set) and create flows and R&R campaigns for each employee group.

Listed below are three automation strategies and technologies for delivering an outstanding employee experience:

1. Email notifications

While timely notifications can be used at various points during the employee lifecycle, it is a specifically powerful tool to use after the milestone achievement in an employee rewards program. 

When managers receive automated emails about the achievements of their employees, it will help them inform, announce, and communicate the same with the entire team. With this information in place, managers can do an array of things from throwing a surprise party for the top performer to leaving a sticky note or message on their desk saying “well done”.

2. Intelligent chatbots

A cloud-based rewards and recognition platform can capture real-time feedback given by managers and peers and store them in a centralized location, speeding up the rewards cycle and improving employee convenience.

HR automation platforms that come with built-in chatbots will help free up human resource managers to tackle more complex rewards issues and develop meaningful employee relationships with immediate answers to commonly asked questions, integrating with other HR systems to provide an update about their progress, and  gather employee information to make performance recommendations through productivity hacks and performance tips. 

3. Meaningful insights

Inorder to understand employee expectations better, SMBs must rely on the historical data they have to continuously improve the employee experience and engagement. HR automation tools can help businesses to turn a ton of employee survey data into actionable insights. Armed with this information, both functional and HR managers can make informed decisions to improve employee experience across the hire-to-retire lifecycle. 

Automation is the future of employee rewards

Making employee happiness and satisfaction a priority is critical to make your business flourish. Placing your employees ahead by automating your employee rewards program with other critical HR functions will help businesses facilitate a far-reaching transformation without leaving a negative impact on employee-employer relationships. 

The day you lose sight of the fact that your employees are the heart of your operation, will be the day when your business starts to tumble down the hill of efficient operations. So, what are you waiting for, add an employee rewards program to your HR automation project and see for yourself how it can deliver an unforgettable employee experience that improves retention while reducing costs.

compensation management HRMS Solution

4 Ways HR Automation Can Add Value to Your Small Business

HR managers in a small business battle against feral processes everyday. While they know that wearing multiple hats and keeping a close eye on everything is how they keep their organization in the black, there is only 24 hours in a day. Managing fragmented records, overflowing inboxes, and irate employees with manual HR processes is a recipe for disaster (and sleepless nights).

As they become engrossed in all these heavy-lifting, they tend to miss out on the latest developments in the HR tech arena, that can save a penny or two and slash down a couple of hours. What’s more, HR is a domain that is ripe for automation and by eliminating redundant tasks and repetitive processes can make the life of a HR manager easy.

It doesn’t matter what industry vertical your organization belongs to or what kind of products or services it offers, placing your employees and HR processes can take your ROI up a notch. By automating their HR processes, businesses can save valuable employee time, reduce manual errors, identify process bottlenecks, and gain valuable insights. 

While HR automation will require some substantial upfront investment to set up the technology and standardized HR processes, small businesses can enjoy several benefits by embracing automation. HR automation can help small businesses:

1. Reduce Operational Costs

Typically, small businesses tend to follow this formula that hiring more people to manage labor-intensive and time-consuming tasks can solve their problems. In reality, it just makes the problem worse. 

Similar to the old saying, “too many cooks spoil the broth”, adding employees will only make them spend a lot of money and yet doesn’t add much value to the business. HR automation, on the other hand, can lower administrative overhead, cut down process time, streamline processes, and increase your profitability. 

2. Bridge Process Gaps

As small businesses start to grow, their processes become mature and there comes the need to document and enforce them properly. However, when you try and enforce HR policies using an outdated HR system, there are an array of challenges from approvals getting lost in the email to accountability being tossed out of the window. 

As a result, HR managers are forced to create and manage more spreadsheets to keep their HR processes up and running all the time. However, after investing so much time and effort, all it takes is one manual error to bring all their hard work crashing down. 

In this scenario, HR automation will not only eliminate the need for constant manual interference but also standardize all HR processes fso that it delivers a consistent experience for all stakeholders meeting their demands, keeping them informed, and ultimately, securing employee trust. 

3. Ensure Policy Compliance

When there is a ton of confidential employee information involved, having proper security measures in place and adhering to government and industry regulations is pivotal. Outdated HR tools pave the way for data manipulation and non compliance issues that can result in hardcore penalties like prison time, hefty fines, and more.

By automating their HR processes, businesses of all sizes can ensure and enforce policy compliance across their company. Automation can turn an arduous compensation management process into a breeze by incorporating rules into process flows and automating checklists to ensure that the necessary criteria is met before the approval is signed off. 

4. Provide Actionable Data

When information is scattered across an array of spreadsheets and email threads it is impossible to attain a clear view of it. What’s more, this lack of transparency hinders the data visualization and insight extraction process pushing HR managers to rely on their gut feel to decide on a course of action.

With an automated system in place, HR managers will not only have a bird’s eye view of all pertinent information but they can also create visual-rich reports on an array of HR metrics in the touch of a button. Such features like graphical data and visualization aspects empower HR staff to take prompt action and prevent process disasters before they occur. 


These four unbeatable values of HR automation will eventually help small businesses improve their overall operational efficiency. While automation itself is a tried-and-tested course of action that will save SMBs a ton of time and money, the HR domain is ripe for it. 

The key to extracting maximum value out of an HR automation project is simply identifying the right platform that can offer all the benefits you need without drilling a sizable hole in your bank account.