Inflation in the US is at a record high increasing by 8.4%—and the rising prices that accompany it are creating serious issues for many employers. To counteract consumer price increases that are taking from workers’ paychecks, some companies are forsaking annual pay rises and, instead, reviewing workers’ pay rates more frequently as they compete for talent, The Wall Street Journal reported in February. As wage pressures, caused by inflation, are very likely to continue, this means higher demand for skilled labor and likely, further increases in wages to meet labor demands. ‘Many firms reported significant turnover as workers left for higher wages and more flexible job schedules,’ the Fed reported recently, noting strong wage growth as “footloose” workers willing to change jobs drove up pay.
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Bottom Line: Inflation Impacts Human Resources
Companies have started re-thinking HR practices adjusting budget and spending decisions, including changing recruiting practices, more frequent pay raises, adjusting compensation planning, and improving productivity to attract and retain talent.
One solution to fight the effects of inflation is Intelligent Automation (IA) solutions for HR and Payroll divisions.
Giving repetitive, manual HR tasks to a robot allows the HR function to focus on more strategic work, employee experience, and valuable interaction between employees.
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HR teams in large organizations are aware of how much administrative work is involved in hiring and talent acquisition, tracking employees’ time in spreadsheets and payroll. Fluent and flawless payroll with the help of a software robot increases accuracy, timeliness, and compliance.
The use of software robotics is becoming more common in simplifying tasks that require a lot of control and a systematic review of large amounts of data.
Intelligent Automation can utilize the daily processes required to manage the entire system and with systemic change when large amounts of data are transferred from an older system to an updated or newer version.
The technologies, on many levels, can replace traditional integration functions enabling flexible, rapid, and cost-effective implementation for businesses.