What is workflow automation? Benefits, examples, and tools

Workflow automation is an alternative to manual processes, which often involve numerous repetitive tasks and are prone to errors. This article will cover everything you need to know about it, including a definition, how and why it works, examples, and how to choose the best automation software for your business.

What is workflow automation?

Workflow automation is the use of software to move work through a defined sequence of steps (like approvals, notifications, and data transfers) without someone manually pushing it along at each stage. A trigger starts the process, and it runs on its own until it's done.

It’s different from basic task automation, which is essentially a one-click shortcut. Workflow automation handles multi-step processes that involve multiple people, systems, or decisions. This could be routing a contract through legal, then finance, and then getting a signature. The trigger is always an event, like a form being submitted, a document getting signed, or a deadline being hit. 

How workflow automation works

Every automated workflow has three parts: 

1. A trigger – or something that starts the process

2. A set of actions – what happens next

3. Conditions – the if/then logic that routes the work differently based on the situation 

Common triggers include a form being submitted, a document being signed, a deadline passing, or a record changing status in the CRM. Actions could be sending an email or Slack notification, updating a CRM field, assigning a task, generating a new document, or requesting an approval.

None of this requires custom code, as it’s more like setting rules than writing software.

Here’s an example of how it would work: A contract gets signed, the CRM updates automatically, customer success gets notified, and an onboarding document goes out. All of this happens without anyone having to manually do anything, since the process follows conditional logic based on specific triggers and rules set ahead of time. 

Types of workflow automation

Workflows tend to fall into the following categories:

• Approval workflows route a document or request through a defined set of reviewers before it's finalized. This is common in contracts, purchase orders, and HR policies.

• Notification and alert workflows trigger a message automatically when a status changes, so no one has to manually chase signatures or follow-ups.

• Document generation workflows auto-create a document when a CRM deal reaches a certain stage, or when a customer fills out a form. PandaDoc excels in this type of workflow on top of general document management.

• Data extraction and routing workflows use AI to read a document and route it or populate fields based on what it finds. This is where intelligent document processing and AI data extraction come in.

If you’re dealing with approvals specifically, our guide to multi-step approval workflows walks you through exactly how to set one up. 

Workflow automation examples by department

Let’s take a closer look at how an automated workflow would look across different departments, including the problem that needs solving, the trigger, the automated next steps, and the outcome. 

Sales workflow automation

The problem: Sales reps spend a lot of time manually building proposals, chasing signatures, and updating the CRM after every deal.

Trigger: A deal reaches the "Proposal" stage in the CRM.

Automated steps: A proposal is created from a pre-built template, pre-filled with CRM data, and gets sent to the prospect. Once it’s signed, the CRM updates to “Closed Won,” the customer success team is notified, and an onboarding document goes out. 

Outcome: You’ll have one connected flow from proposal to signature, with no manual steps in between. 

Read our guides on how you can automate document generation from your CRM or set up closed-won notifications. 

HR workflow automation

Problem: In a manual process, new hire paperwork gets sent by hand, collected over email, and tracked in a spreadsheet.

Trigger: An offer letter is signed.

Automated steps: An onboarding packet with tax forms, policies, and NDAs is generated and sent automatically. The employee completes it with an e-signature, the documents get stored, HR is notified, and an IT provisioning ticket is created. 

Outcome: The result is an entire onboarding document flow that runs without HR manually sending a single file.

Legal and finance workflow automation

Problem: Without an automated approval process, contracts will sit in inboxes waiting for approvals that could happen in parallel.

Trigger: A contract draft is uploaded or created.

Automated steps: The multi-step approval workflow will route the contract to legal, then finance, then leadership. This happens in sequence, or in parallel where that’s allowed. Comments and redlines stay in one place. Final approval triggers an e-signature request, and the signed version will get stored and logged automatically. 

Outcome: This automated workflow results in faster contract turnaround, with no version control chaos. Additionally, deploying an AI assistant in your workflow can help you review contracts even faster, speeding up the entire legal review step.

What is an example of a document workflow?

A document workflow is a defined sequence that moves a document through creation, approval, signature, and storage automatically without manual email handoffs. For example, a closed CRM deal could trigger a sales contract to be created. It’s then routed to legal for review, sent out for e-signature, and is automatically filed once signed.

Document workflows are one of the most common applications of workflow automation for SMB teams. Contracts, proposals, NDAs, and onboarding agreements all follow repeatable steps that are easily handled by automation and don’t need a person to manually move them along. 

See our guide for a full breakdown of how document workflow automation works, including before/after examples for contracts, proposals, and HR documents: What is document workflow automation?

If you’re ready to take the next step, read how to automate document generation from your CRM. 

Benefits of workflow automation

There are plenty of reasons why you should consider implementing workflow automation. Here are the top benefits:

• Fewer errors. Manual handoffs introduce mistakes, whereas automated steps follow the same rules every time.

• Faster cycle times. Approvals and signatures happen in hours instead of days. This is something you can measure in contract turnaround, proposal-to-close time, and onboarding completion.

• Full visibility. Every step gets logged with automation, including who approved what, when, and what changed. That gives ops teams an audit trail and managers real-time status without having to chase anyone down.

• Scalability. A workflow that works fine for a five-person team might break down at fifty. An automated workflow can scale without you having to add headcount just to coordinate it.

• AI acceleration. Intelligent document processing means automation doesn't just route documents. It actually reads them, pulls out data, and makes routing decisions based on the content.

How to choose workflow automation software

When you’re deciding which tool to commit to, ask these questions first:

• What type of workflows do you need to automate? Are they document-centric, or broader business processes?

• Does it integrate with the tools you already use, like your CRM, e-signature, storage, or Slack? Or does it require building everything from scratch? 

• Is the setup self-serve, or do you need a developer? For most SMBs, a no-code option is valuable.

• Does it include native e-signature and document generation, or are those separate tools you'll need to connect yourself?

• Can you see where the bottlenecks are in your reporting, or are you flying blind?

PandaDoc combines document generation, e-signature, approval workflows, and AI-powered document processing in one platform. Start a free trial.

Getting started with workflow automation in PandaDoc

Start with the one workflow that’s causing the most manual work for you right now. For a lot of SMB sales teams, that’s proposal creation and signature chasing.

Luckily, PandaDoc’s approval and automation features require no developer setup. You can build a workflow directly from the automation settings panel. Connect it to your CRM, like HubSpot or Salesforce, to make the document generation step automatic as soon as a deal hits the right stage. 

Then, you can use PandaDoc’s AI Assistant to help you draft and review documents within the workflow, cutting down the manual review step. 

See workflow automation in action. Try PandaDoc free or request a demo today.