11 Reasons Why Your Business Needs HR Software

11 Reasons Why Your Business Needs HR Software

By Admin 4 min read

Does your small business need HR software? If you’re not sure what the answer is, we can tell you that it’s a resounding “yes”. While it may come with a small cost, HR software can save you time and money in the long run. Let’s look at some reasons why your business might need to invest in a Human Resources Information System (HRIS) like Pypa HR sooner rather than later: 

You’re Still Record Keeping by Hand

This is the 21st century, so if you still have physical HR files, then you might have a problem. Physical records can be easily destroyed or lost (and not easily backed up). Relying on spreadsheets is little better, because there is still a great deal of room for human error. Moreover, both of these methods make it time-consuming to produce HR reports, which means you’re not getting the full picture about how your business is faring. HR Management Software, on the other hand, has none of these problems, meaning you’re getting the modern solution to HR record-keeping.  

You’ve Made Costly Mistakes

Because of your HR record keeping or methods, you’ve overpaid an employee, or worse, you’ve been fined for non-compliance over payroll issues, leave, or tax. Compliance fines tend to be very steep, which can be disastrous for small businesses. However, even mistakes that don’t result in a fine can be expensive in terms of the time they take to fix. 

You Have Security Issues

Security is very important in HR because some of your records will contain confidential information like medical details. If you’re worried about the security of paper records or spreadsheets or, worse, have had incidents with employees seeing records that they shouldn’t have, it might be time to upgrade to an HRIS. An HRIS like Pypa HR will have multiple levels of security to make sure all your information is safe (and you don’t lose it). A cloud-based solution is even better.

You Only Have Time for Basic HR Tasks

If administrative tasks like recording leave or payroll are taking up all of your HR department’s time, you may have no time left for higher level HR duties like training or taking care of employee wellbeing. This is especially sad because these are exactly the tasks that can be done easily and automatically by an HRIS, freeing your HR department for more meaningful tasks which need a human touch (like taking care of employee engagement and wellbeing), which will help your company by increasing retention and employee engagement. With HR software, your HR department can do so much more. 

You Don’t Provide Any Training or Career Development

The big consequence of your HR department spending all of its time on minor tasks is a lack of training and career development, which can even cause employees to leave. Investing in an HRIS will not only free up time for your HR department to focus on training and development, but many HRIS allow you to create, track, and schedule training modules. This can be especially useful for sensitivity training and other more “sensitive” types of training because it allows a degree of anonymity. Employees can also complete training in their own time.  

Your Performance Reviews Aren’t Happening

Another important task that may have been forgotten by an overburdened HR department is the performance review. Performance reviews can be tiresome to organise manually, so if your HR’s too busy, they may be forgotten. However, an HRIS can automatically schedule your performance reviews, as well as recording performance reviews and automating related forms. 

HR software can even help you create goals relating to your performance reviews, increasing the relevance of reviewing employees in the first place. Remember that regular performance reviews can increase employee satisfaction, so this is definitely something worth investing in.  

Your HR’s Wasting Money

Manually administered HR consumes a great amount of manpower, which can lead to the HR department all but hemorrhaging money (a disaster for a small business). You are wasting not just time but money if your HR employees are spending most of their time on administrative tasks that could be done by an HRIS. Yes, HRIS costs money, but not as much as doing these tasks manually.

You Have Employees at Multiple Locations

If you are running a business with more than one location, you might find managing HR for all of them even more of a headache than you would otherwise. Juggling paper records and non-cloud-based software across locations makes effective HR almost impossible, creating a situation where you really need an HRIS. Cloud-based HR software makes it easy to keep track of employees and employee records in different locations and means that moving employees from one location to another is simple and straightforward. 

You’re Finding It Hard to Plan for the Future

If you’re finding it difficult to plan for your business’ future or make HR decisions, like whether to hire, fire, or promote, then it’s time to buy an HRIS. HR software makes the HR reporting that you need to make difficult HR decisions easy because an HRIS can do HR reporting automatically. With the right data from your HRIS, you can make informed decisions about the future of your business and make hiring and firing decisions with accountability (and without human bias). In sum, HRIS is the ultimate future-proofing software. 

Micromanagement Is an Issue

Do your employees feel like they have enough independence in the workplace? Do you feel like you could get more done if you could split your employees into teams? If the answer to these questions is yes, an HRIS can help you. A complete HR software solution will allow you to set up teams with goals that need minimal supervision from managers, allowing management to get on with more important tasks and giving employees more freedom (as well as a better environment to create). 

Your Employees Can’t Communicate (With You or Each Other)

Communication issues within your organization can be a big problem that affects employee satisfaction and even (like lack of career development) leads to resignations, but, again, one that an HRIS can solve. HRIS often has a built in platform for employees to communicate, as well as streamlining complaints and requests for you to review (in a way that’s likely to minimise conflict). 

HR software will make your small business run more effectively and prevent you from falling into any compliance, security or organisational pitfalls. Good HR software for small business no longer costs an arm and a leg: you can get a decent system like Pypa HR for a small monthly subscription (or, if your business really is small, for free). 

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By Admin 4 min read

Originally written 30 Nov, 2021 . Updated on 30 Nov, 2021

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