5 ways HR software can benefit small businesses

online hr software

There comes a time when all small businesses outgrow Excel, but what can HR software really do for your company? Besides taking care of all of your HR needs, human resources software has other benefits, too, like employee motivation, staff development and increased productivity. To help you decide whether HR software might be good for your small business, here are five of its major benefits.

1. Efficient on-boarding

A warm welcome and the feeling that you were expected goes a long way to getting employees off to a flying start. Using human resources software ensures that your employee is not only expected, but is ready to start and become productive straight away.  HR software will process everything for you, and ensure that the recruitment process is as streamlined and effective as possible.  Providing advance notification for managers, access to vital documents for the employee as well as a well defined and managed probation process are all powerful ways to say ‘welcome on board’.

2. Employee motivation

Motivated employees are a key factor in the success of any small business, and implementing HR software is a great way to ensure that your employees remain committed and dedicated to their work. Installing or upgrading HR software will demonstrate to your staff that you care about their health and wellbeing at work, and that you are doing everything you can to ensure their working day runs smoothly. This can have significant long term effects, such as reduced absence rates, increased performance, and happier staff.

3. Employee development

Leading on the from previous point, HR software systems also streamline and improve the process of developing your employees. Small businesses work best with cultivated teams: instead of buying in top talent, it pays for a small business to develop in house and promote to managerial positions from within. Human resources software can help you plot the career development of your staff members by collating data regarding experience, productivity, regular appraisal feedback , training courses, and so on. As a manager, you and your human resources department can then use this information to chart the development of your staff, and plan for their future.

4. Document management

HR software systems also provide document management solutions. Not only does this offer full accountability by denoting who reads what when, it also increases productivity by reducing paperwork and improving communication, and functions as an archive to store old documents, policies and training manuals, all of which can be accessed easily. In addition, it also makes staff handbooks and training manuals readily available to all staff, and reduces printing costs.

5. Annual leave management

Proper annual leave management is a necessity when running a small business. Small teams require careful holiday planning; you can’t have too many staff members in one department on leave simultaneously. HR software can track all of this for you. Not only will it chart booked annual leave, it will also calculate pro-rata entitlements, remaining leave and take care of all holiday requests right through to confirmation.