Why Is HR Software Useful?

Why is HR software useful? If you are a human resource manager or a small business owner for that matter, chances are you often don’t take that much joy from managing your processes. Maybe it’s time to rethink your view of the use of automation technology. Here’s a rundown of the benefits of HR software to business of any size:

  1. Identify talent needs and retain employees.
  2. Track employee productivity.
  3. Manage outsourced staff.
  4. Avoid compliance violations.
  5. Manage, even automate, payroll.
  6. Evaluate employee training and performance.
  7. Centralize employee records.

Why Is HR Software Useful?

Contrary to what many think, investing HR software reviews is not extravagance at the least. These tools can greatly benefit your organization. Imagine using a single solution to manage just about any HR process there is, wouldn’t that be great? Plus, it is pretty much a fact that HR software impact employee management.

HR solutions can help resolve a lot of problems associated with HR processes, including talent retention and recruitment, training and compliance, health and safety, employee disputes, payroll and employee discipline, to name a few. Why is HR software useful? This is the question that we will seek to answer in this article. HR-related problems that typically come with the HR management gig will be discussed, with solutions being offered by HR software outlined. Keep on reading to find out more.

In this age of high-technology, an application in one form another has probably been developed to handle any corporate task there is and HR management is no exception. But what is HR software? These breed of software sprouted from the early ERP systems that companies used, which were then designed to replace mainframes. However, it wasn’t until the year 1987 that a fully-functional HR tool was born. Today, these platforms continue to evolve, with vendors developing new and better HR software features. Truly, the benefits of HR software far outweigh the investments that they entail.

Why Is HR Software Useful?

Now let’s get down to the more serious stuff. So maybe you’d say why would I need an HR system? I’m perfectly happy with how I manage my people and their needs, besides I don’t have the money to invest in such a tool. Well maybe you have a point there but for all you know you may already need one and you just don’t know it yet. The following are problem scenarios that could only mean that an organization is already ripe for an HR solution:

1. Talent Retention

Problem: Although employee recruitment is a key HR process, the importance of talent retention cannot be undermined. This is evident in the fact that most HR activities are focused on employee retention. High attrition rates is never a good thing for any company. It could also mean employee discontent and may result in lost productivity and ultimately, lower bottom lines.

Solution: To retain employees, a business must balance remuneration, company culture and incentives. The only way to achieve this is to provide each staff member the right combination of these factors. HR software helps keep accurate records of these requirements, ensuring that employees are given what they are due.

2. Talent Recruitment

Problem: Searching for the right talent to fill in vacancies can be cumbersome at times but has to be fulfilled anyway. Finding the ideal candidate from a vast pool of talent can still prove to be difficult. This is further complicated by the need to record all applicant data for purposes of comparison and review.

Solution: HR software make it easy for users to store applications, resumes and candidate contact data. These information can be kept for months and even years or until such time when they can be of use. Electronic storage speeds up the recruitment process, resulting in cost savings while reducing the time needed to fill a vacancy.

HR software allows users to track applicants

3. Employee Productivity

Problem: Low employee productivity levels can negatively impact business performance. They are commonly the result of poor working habits or lack of corporate resources.

Solution: By conducting a Time and Motion (T&M) study, businesses can identify what employees do and how they do them. A T&M study can identify possible ways to gain efficiencies, thus, improving productivity. The result of a T&M study can then be stored and analyzed with the use of an integrated HR solution. These information can also be kept for use in future studies.

4. Outsourcing

Problem: Although outsourcing is a good way to reinforce your workforce, it is not without challenges. It is important that outsourcing meets company requirements and standards. You also need to determine if outsourced employees are qualified for the job at hand and know other relevant information. These could become relevant to the company in the future.

Solution: As with permanent employees, HR software has the ability to record the information of outsourced workers, consultants and contractors. Your system should also be able to accurately label temporary employees’ records for easy and quick retrieval.

5. Discrimination/Diversity

Problem: Diversity policy is required for businesses who work with public entities. However, such policies require that a company show proof of its commitment to the ideal. The same goes for policy on discrimination with organizations required to demonstrate what they are doing to pursue such goal.

Solution: To prevent complications arising from complying with these requirements, companies can use HR solutions to record demographic and diversity data from the moment an employee is hired. Equally important is the recording of incidents in the workplace that may have stemmed from discrimination. This can be used to impose disciplinary measures using company policy as basis.

HR tools can give you total visibility into all aspects of HR management

6. Employee Discipline

Problem: Discipline is considered a hot potato among corporate processes but these issues are commonly resolved by HR departments to the satisfaction of both employees and employers. However, the process takes up too much time and needs to be reinforced by a lot of evidence such as records, statements and other information.

Solution: Again keeping an accurate record reflecting disciplinary issues is important and what better way to accomplish this than using HR software. This allows HR departments to make sure that issues are properly addressed. Pertinent records may include follow-up activities, minutes of meetings and letters exchanged between employee, employer and trade union reps.

7. Payroll

Problem: As payroll is the function of both HR departments and accounting personnel, payroll errors associated with inaccurate employee payments are bound to arise. Lack of coordination between these departments can result in late payrolls and incorrect salaries being paid to staff.

Solution: Choosing a proper payroll platform that can be integrated with your existing HR system can help resolve payroll errors. Connecting HR and accounting departments using software can likewise help eliminate the hassles of manual payroll processing.

8. Training/Compliance

Problem: Improper training basically deprives an employee of the opportunity to develop and educate themselves. Apart from this, some corporate roles require training and certification, which need to be renewed after a certain period of time.

Solution: Even as employees are also responsible for registering their own professions, businesses can benefit from tracking employee data. And HR software can do this for them. These tools likewise notify employees who are absent during certification exams. Workforce skills and regulatory compliance can be measured as HR systems allow for such assessment.

9. Health and Safety Information

Problems: All businesses are bound by law to record health and safety information to ensure a safe working environment. Failure to do so would likely result in legal problems which include fines.

Solution: HR departments are usually the ones responsible for showing proof of compliance with health records regulations. Again using an HR platform can help address this need as it is capable of keeping records of documents, courses attended and anything else that is relevant to health and safety rules. These information are kept together with employee information, making them readily accessible for immediate analysis.

Employee benefits management is one of the many features of HR software

10. Staff Inquiries

Problem: Resolving staff disputes, issues and queries that are relevant to their jobs is the responsibility of HR departments. Handling these may come as a routine for some but they take up so much time, especially when needed information is out of arm’s reach.

Solution: HR platforms are capable of storing employee information centrally, making them easily accessible. This results in the speedy resolution of queries. In some cases, systems even allow staff to self-serve, enabling them to resolve queries by themselves.

Examples of HR Software

Here are a few of the top solutions in the market today to give you a picture of the current HR software landscape. These platforms are proven flexible and scale to business of any size, so they adapt to your current needs. You can also check our top 20 HR software rankings for more options and detailed comparisons once you’re ready to shop around.

1. BambooHR

BambooHR is an online HR solution that is targeted at small to medium-size companies. It is capable of helping organizations manage employee information and is highly-recommended for those with 50 to 500 employees. The system has a number of very useful features that include employee recruitment, applicant and time off tracking, employee administration and payroll and leave management. Aside from these, BambooHR also has the ability to come up with categorized reports and customized workflows. The system supports eSignature together with third party app integration.

BambooHR does not publicly disclose its pricing information. You can contact the company and ask for a quote. The good news is the vendor offers a great free trial plan for those who’d like to try out the key features of the product first. You can easily sign up for BambooHR free trial here.

2. Zoho People

A popular HR management software that caters to small and medium-size organizations, Zoho People has a wide array of features such as leave, time and workforce management, all of which can be accessed from a single dashboard. Using the system results in time and cost savings for HR departments and gives staff the opportunity to work in a collaborative environment. 

Zoho People can be purchased in different pricing plans.

  • The tool’s Essential HR plan comes at $1/employee plus tax or $0.83/month plus tax (annual billing).
  • The Professional package is priced at $3/employee plus tax or $2.5/employee per month plus tax (annual billing).
  • A Premium plan comes at $3/employee plus tax or $2.5/employee per month (annual billing).
  • The Enterprise package is being sold for $5/employee plus tax or $4.16/employee per month plus tax (annual billing).

If you want to try the features at no cost you can easily do so when you sign up for a Zoho People free trial here.

3. Gusto

Gusto is a payroll solution, which comes with functionalities such as HR management and benefits administration. It is designed to cater to small businesses, giving them powerful payroll management capabilities, a very intuitive interface and automation. Other prominent features such as payroll tax computation and payment, compensation insurance and 401(k) also come with the tool.

Gusto can be purchased in a single pricing plan, starting at $39 plus $6/person. Add-ons such has HR tools, health insurance and other benefits are likewise available.

The vendor offers an attractive free trial plan.  You can easily sign up for Gusto free trial here.

4. Trakstar

Trakstar is a cloud-deployed staff evaluation platform designed for local government units. It is capable of employee performance tracking, goal management and provision of feedback and reviews. Performance reviews, succession planning and goal management are used in appraising employee performance. Other notable features include management tools that can fit any business type and size. Employee evaluations are also made available to company staff.

Trakstar is being sold based on the number of employees. The vendor has a price calculator on its website that can provide prospects with annual subscription pricing information. 

5. Freshteam

Freshteam is an employee productivity suite from software developer Freshworks. This feature-rich solution is capable of handling a variety of processes such as applicant tracking, CRM and employee recruitment. With the software, users are able to keep absolute control over the recruitment process while focusing on candidate quality. The app also functions as a totally secure and searchable database, ensuring that all information are safely stored. It is highly-recommended for teams who require both recruitment management and tracking capabilities in a single system.

Freshteam comes in three pricing plans. A free version, a Blossom plan, which is sold for $50/month. A Garden package which comes for $100/month and an Estate plan, priced at $200/month. 

6. TalentNinja

Talent Ninja is a candidate sourcing platform that allows you to effortlessly attain maximum reach and exposure with your job posts. In a single button click, you can list your job posts in over 300 online boards, thus allowing you to attract and hire talented individuals. It supports integrations with popular social media channels, providing you the capability to spread awareness on social media and provide an avenue for job seekers to directly engage with you online. Talent Ninja features robust recruiting analytics that provides you with stats on your recruitment efficiency as well as detailed insights on the factors that attracted traffic to your job posts.

Talent Ninja has three main packages, with each varying solely on the number of job postings per month. It starts from $50 per month for the basic plan and $400 per month for the premium plan.

There you go, the answers to our question–Why is HR software useful? We hope this guide has helped you appreciate the importance of HR software to your business. Do share with us in the comments below if you have had an experience, both good and bad, with this software.

Emily Watson

By Emily Watson

Emily Watson is a human resource management expert specializing in workforce planning and HR development. Throughout her years in the industry, she has also dabbled in career path development, employee training, and workforce management. In her four years as a contributor for FinancesOnline, she has reviewed over a thousand HR tools ranging from recruitment platforms to unified human capital management suites. She has also created in-depth analyses of emerging HR technologies and trends to provide companies worldwide with the data they need to keep up with industry shifts.

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