Why HR Software is So Important for Small Businesses

It’s no secret that small businesses are on the rise. Many entrepreneurs are striking out on their own with the “next big thing” – and many, through hard work, raw talent and some elbow grease, are succeeding in a big way. However, in order to be the Jobs or the Branson of the future, you’ll need to make managing your workforce part of your other small business commitments – which means making it as manageable as possible. That’s where HR software comes in – here are some reasons why HR software is so important for the budding entrepreneur.

HR software

It gets rid of unnecessary paperwork

There was once a time when all work was done by pens and paper. Form-filling was an arduous task and said forms often required duplicates. Changing and amending forms and employee details was often a long-winded task. HR software can get rid of the need for huge amounts of paperwork.

Can you afford a HR department?

HR departments can cost and bring negligible returns to those who run small businesses. The right software can help you keep employment decisions in your own hands without the need to rely upon a vast array of expensive workers to do most of the work for you. Most small businesses typically employ less than fifty people. This is still a lot of data, but HR software can help manage the data very effectively for such small numbers of employees.

HR Software = Analytics

Data, data, data. Yes, in case you haven’t realised, it’s all about data nowadays. Much like analytics programmes, HR software can help provide information regarding key performance indicators (KPIs). Like with most businesses, the numbers are all-important, and getting reliable information concerning staff turnover, absence analysis, productivity rates and many other metrics is now far easier. This can ultimately help you keep your payroll balanced, and provide core data for clients and shareholders.

Recruiting is made that bit easier

Developing and implementing recruitment campaigns can be prohibitively expensive. HR software can simplify pre-employment checks, allow applicants to apply online and reduce the incidence of duplicate data. What’s more, job adverts can be reproduced on many websites at far lower cost than using traditional media methods using HR software.

Greater employee freedom

Timesheets can easily be sent in by employees themselves without the need for HR to retrieve the data. Managing projects has also become easier, as employees can input the hours they’ve spent on a particular project. Sick days can also be self-certified, allowing departments to monitor an individual’s absences. Payslips can also be produced online.

All-in-all, this not only means less paperwork and 24/7 information retrieval, but also gives employees greater control over their own workload. A manager can see how a particular worker prioritises and manages their workload, and consequently see what makes that individual “tick”.

Integrating systems

Just because you have a new piece of payroll software, it doesn’t mean you have to change your current HR systems. HR software can easily be integrated to mesh with an existing system, or indeed work as a standalone system if configured properly.

It can provide a workflow “map”

Moving to an online HR solution has the advantage of capturing data effectively and efficiently. You can see who is doing what and when, and manage and appraise workloads accordingly. Work processes become apparent and easier to identify, and any problems can be spotted a lot earlier than by traditional systems. Such a “map” can also improve communication throughout an entire organisation.

Dipak Hemraj

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