Every time your business grows by another employee, your Human Resource needs also increase. While small businesses can’t often afford to hire a whole HR department to look after those growing needs, it’s a good idea to use technology. SMBs can benefit from HR software – saving money and improving employee management at the same time.
Using HR software is not just a smart decision for small businesses. It can be the difference between keeping your business alive and losing it to the competition. According to research, HR software can have the potential to save up to a month worth of administrative HR tasks every single year. It has also been shown to boost productivity and that’s why implementing the right HR software strategies is so crucial.
Let’s examine the five key benefits SMBs enjoy when using HR software:
Increasing the amount of money you save while saving time
The most important resource businesses have is time and the scarcest resource is often money. SMBs don’t have the same resources to play with as big corporations so they have to make sure they use time and money wisely. With HR technology, it is possible to save both time and money.
According to a study by The Hacket Group, digitalization of HR can reduce the business costs by up to 21%. This is down to software being able to multitask a number of tasks and to perform tasks without errors. For example, can manage all the payroll information at one, counting things like worked hours, overtime and available annual leave. Having staff perform this manually would take a lot of hours and there would always be a risk of human errors. With HR software, you can scrap a lot of administrative tasks of the staff’s list and make sure they focus on things that cannot be automated.
Indeed, you are able to save a lot of actual time by using the right software. This is not just down to the program automating and performing certain tasks. It is also possible because of the wider access that software gives. The best HR software for small business is on the cloud which means that it can be accessed from wherever and whenever. This means that employees themselves are able to look at the information they need. That saves time because it means that HR personnel isn’t running after the relevant information or handing it down to employees when they need it – everyone can view the required information as needed.
Improving communication between different parts of the business
As already mentioned, HR software can boost things like access to data. The enhanced access is also going to improve overall communication within your small business. Data becomes more accessible and this results in wider knowledge and understanding. People are not left in the dark regarding HR decisions and discussing the different changes or the implementation of rules, for example, becomes much easier. Everyone will know what is happening, why it is happening and how it is happening.
Boosting employee retention by keeping employees happier
For SMBs, it’s crucial to make sure that you control employee retention. This is because the cost of having to hire new personnel is always high and small businesses don’t often have the luxury to keep looking for new employees and training them for the role. When you find a talented employee, you want to make sure you keep them.
HR software plays a key role in retention. For example, onboarding processes can help SMBs but creating the right process can take a lot of time. Luckily, modern HR software for small business can help automate and organise this process and make it a lot more personalized for each new employee.
Furthermore, HR software can help improve employee satisfaction in other ways. For example, it can help improve the flow of information, provide employees with more power to be part of the decision making, reduce errors that could lead to incorrect payments or benefits and so on. When you have happier employees, you won’t have to worry about them leaving for another job.
Ensuring proper compliance by making it easy to follow the rules
Small businesses have to deal with a lot of legal stuff and staying on top of compliance can be a costly effort. When it comes to rules and regulation, the HR sector is among the busiest. What’s more, there are almost a constant stream of new regulations in the field and staying on top of them can be hard. Failure to follow the rules can cost a lot of money and small businesses can’t risk it. that’s why HR software is so crucial. Good software will automatically update to fit the local rules and regulations and make it easier to ensure you’re not breaking them at any point.
If you want to make sure your small business is doing well, you should invest in the right HR software. The benefits can result in a lot of positive factors, from saving money to keeping your employees happier!