Running a small business is a tough challenge. Luckily, the world is full of technologies that can make it easier and more straightforward. But is HR software and technology really necessary? Can it make managing the company more of a success?
The short answer to this question is a resounding ‘yes’. However, you should always have enough proof to back up your claims and so here are the five reasons HR management software can make running your business more successful.
1. Easier Recruitment Process
HR software makes the recruitment process easier and this is crucial for small business success. It’s not just about finding the right candidate but also ensuring time is not wasted on the training and supervision of those candidates. Overall, with the right software, companies can cut costs and save time.
HR software can be used to create an application process, pre-screen the applications to find the right candidate, help with the interview process and then advice during the onboarding process. This creates efficiency to the system and makes it easier to manage the different elements of employee management.
2. An Efficient way to keep track of talent
You can also utilise HR management software for tracking talent. This is crucial because you want to ensure employees are in positions that are the right fit and, more importantly, they are performing in those positions.
HR tools can improve communication, monitor key performance indicators (KPIs), and create transparent relationships. The software can make the conversation much easier and help solve common problems related to resources and time management.
Stringent legislative compliance
For a small business, keeping up with legal requirements is essential. You have to follow the rules and HR legislation can often be the toughest to keep up with. It can also be rather costly in case of breaching the law.
The good news is that HR software can make it easier to understand the legislation and to follow it. The good software solutions are always data compliant and they can point out inconsistencies or problems within employee contracts, for example. This can make it much easier to keep track with the legal stuff.
Reduction in redundant tasks
A lot of the tasks in HR are time-consuming and unimportant in the sense that you are spending a lot of time on something small and minor, such as entering employee details. Scheduling and approving vacation requests, for instance, are not the top priority for a small business in terms of growth. However, if they aren’t done properly, big problems can occur.
The best way to reduce this administrative burden is to opt for HR management software that automates the processes. These tools can enter data on their own, as well as budget and plan according to your business needs. Not to mention how HR software has introduced self-service tools employees that can be used to reduce the burden on the employer’s side.
A cheaper solution to solving problems
Interestingly, the use of these HR solutions can often be more cost-effective than having a full-time HR department. HR software used to be rather expensive and clunky, but the rate of innovation has also brought down the cost. Cloud-technology in particular means that the same solutions big firms use, can also help the small businesses.
HR tools can be bought based on company needs and size, ensuring that you don’t have to pay the full price for lighter use of the software. You will also be able to opt for different payment models, ensuring you are able to scale your usage if needed. Because many of these products can be tested prior to full purchase or commitment, there is no burden of commitment. In fact, a small business can save a lot of money by being able to shop around and finding the right product.
Focus on solving HR problems will boost business growth
The truth is that only 30% of small businesses handle HR tasks as the main job. For 70%, these tasks are a side issue. However, solving HR problems can take up to 35% of business owners’ time. For a side issue this is quite a bit of time – according to some studies it means 4 billion hours of wasted time on administration annually.
The good news is that HR doesn’t have to take a lot of time. With the help of HR software, many tasks and processes can be automated. This automation results in the HR department focusing on issues that require a human focus, without it compromising the overall effectiveness.
The market is full of great HR management software from payroll software to benefit and recruitment solutions. Because of the above benefits, it’s vital for small businesses to identify these software solutions and to make the most of them. This will result in a more successful business management and improved growth.