7 Ways Small Businesses Can Boost Profits With HR Software

If small businesses want to remain on the front foot whilst they grow, developing systems to manage and streamline workflow makes good business sense. And that includes HR (Human Resources). The biggest problem for start-ups and small businesses is cost. Lean times when setting out often means deferring strategies with costs involved, despite the long term benefits and efficiency savings.

HR software

Another problem with HR development in small businesses is the lack of any designated HR staff. It’s easy for business owners to see HR software as unnecessary when they are managing perfectly adequately overseeing just 2 or 3 staff. But, it’s easy to lose sight of the day-to-day processes as the business starts to take off and more staff come on board.

So what does HR software promise?

Companies like Factorial offer HR software solutions that cover a wide variety of HR processes, including maintaining an employee database, archiving personnel records, and producing directories and organizational charts. It’s a system recording all things people-related and many HR software packages allow you to add on extra features as you grow. HR software may not be a priority for small businesses, but there are several compelling reasons why they may want to reconsider.

Here are 7 ways HR software can help to benefit the bottom line.

1. Identify training needs with performance management

When you are caught up with the important job of growing the business, it’s easy to let performance management fall by the wayside. The fact is, ignore the importance of performance management and it could end up costing your business more than you think. HR software keeps all of that on track for you, with reminders when appraisals are due and all the information you need on hand in one easy-to-access place.

Performance management and appraisal systems work on two levels. Firstly, you get to monitor staff performance and quickly step in when things aren’t going well, and secondly staff get an opportunity to feedback concerns and feel they are valued. It enables you to offer training where necessary to improve performance, and work with employees to build a positive relationship. Employee success is central to your business.

2. Time efficient centralised record keeping

Centralised record keeping is a time efficiency saving at the very least. Time spent collating data from several sources is a waste of valuable business time. HR software keeps everything neatly in one place. With a computerised HR system, paperwork is considerably reduced, so there’ll be no searching filing cabinets for missing documents. You’ll have a greener office footprint too. Focusing on your company goals, instead of your admin will definitely benefit your bottom line.

3. Planning for team absences: sickness and holiday management

Holiday planning is crucial for small businesses, especially for those with seasonal workflow. Keeping all bases covered during a growth phase is one of the obstacles all start-ups and small businesses have to overcome.

A staff holiday planner is one of the great features of HR software. With self-service holiday requests, an easy approval system, and a central calendar for you to easily see who is supposed to be in, making sure your business runs at an efficient operating capacity during the staff holiday season couldn’t be easier. You’ll be able to track and plan team absences and make sure your business stays one step ahead of the workload. Missing a crucial client deadline because of staff shortages will ultimately damage your business.

4. Improved communication makes good business sense

A HR system that is utilised by all employees greatly improves communication channels within your business. You’ll be able to use your HR system for company announcements, so employees won’t have to miss important information because a message wasn’t passed on, or they were away on holiday.

Improved communication benefits your business because it directly affects workflow. The delegation of duties and reporting is also made much easier with HR software solutions. Departments can communicate with each other easier and there’s a higher level of transparency.

There’s also less chance of miscommunication with read-and-accept options for important company documents.

HR software

5. Empowering staff to make your business the best it can be

Self-serve HR systems foster a sense of involvement and are remarkably good at creating a strategic framework for employee empowerment. When employees are in charge of their own time management, have a system for staff appraisals, and experience better and easier communication, they have a feeling of more control over their work-life and routine.

Access to information makes employees feel more autonomous. Knowing about up-coming projects and training opportunities also enables staff to plan their workload more effectively. Most HR software incorporates employee recognition as part of the performance management component. Simply communicating ‘good job’ can help employees feel more valued.

6. Easy access to core business data

With the greater analytical capabilities offered by HR software, you’ll have easy access to core business data without relying on all-seeing, all-knowing managers to keep their fingers on the pulse. It makes it much easier for you as a business owner to formulate strategies for growing your business.

7. Simplify recruitment to get the best staff when you need them

With easier access to core data, you’ll be able to better plan recruitment drives. HR software enables businesses to simplify the recruitment process with an applicant tracking system. Applicants are able to complete an application form and upload CVs and supporting documentation with ease. It makes communication with applicants easier and seamless, which not only saves time, it makes you stand out as a company.

You will also be building a talent pool. If you have several suitable applicants for one job offer, your HR system has everything stored for easy communication with shelved candidates when another opportunity arises. And new recruits can be added to your HR database at the click of a button.


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