Contents Library

Human Resources Contents Library

Search topics

How can HRIS help small businesses?


Great HR Software can have a significant positive influence on a small business when you as an owner are investing so much of yourself to expand it into a medium-sized enterprise. As it provides you to keep up with the geometrically rising time, thought, and effort required to address employees' HR needs.

When handled well, HR produces a wide range of long-term advantages, such as employee engagement, and effective recruiting of new employees to fill new positions as your company grows and develops a reputation for professionalism and expertise.

Each small business reaches a point in its development where it is time to quit bootstrapping and invest in a ladder. An appropriate HR software may give you the quick lift you need to start shining in the industry that represents your business.

Why is HRIS important for small businesses?

As a small business owner, if you want to grow your business, you need great HR, and great HR only occurs when HR professionals have the time and resources to truly impact the lives of the employees in your company. Without the help of HR Software, the HR team may be distracted by data management, compliance issues, resumes of candidates, tax calculations, and mounds of paperwork.

The goal of HR software is ultimately to free up HR managers' and HR professionals' time by automating regular human resource operations, but it also allows the HR department to spread those advantages to the rest of the company so that employees may focus on innovation rather than administrative work.

Analyze your present and future demands before diving headfirst into the search for HR software. You will be able to choose the best system for your needs rather than merely the finest system a salesperson can convince you to buy if you understand how HR features relate to important aspects of your organization, not the least of which is your budget.

How does HRIS help small businesses?

While a small firm is typically more concerned with generating quick returns on investment, investing in the correct Human Resource Software lays the groundwork for managing their labor pool and recruiting process with an eye toward long-term success.

Businesses of all sizes recognize the need to optimize their hiring procedures and personnel management in light of the new trends that are developing in the sector. Human resources (HR) software applications, often known as HRMS (Human Resources Management Systems) or HRIS (Human Resources Information Systems), are made to automate, streamline, and improve your  HR procedures with a centralized database.

7 ways HR Software can help a small business

  1. The hiring procedure is quite important
  2. Managing a talented workforce
  3. Laws must still be followed by small businesses
  4. Profitability and effectiveness both increase with technology
  5. Starting with a blank slate allows you to build a great basis
  6. HR Software can come into your budget
  7. Judgment is enhanced by information from HR solutions

The hiring procedure is quite important

It takes less time to train and supervise employees when the correct applicants are hired who are qualified for the position. For a firm, especially a small one, these duties are costly in terms of both money and time. Naturally, it follows that improving the talents of your team is crucial. However, your organization will spend significant upfront costs when training new employees in the fundamentals of their position.

To select eligible individuals, HR software may thoroughly sort and go through applications. In addition, it makes advantage of social media networking, manages and tracks candidates, and contacts numerous job boards. You can attract the right person for the right opportunity at the right time with effective recruiting and applicant monitoring.

Managing a talented workforce

Given the size of your team, you want to make sure that each person is qualified for and competent in their position. Employees who are prepared for their position and have the necessary experience and knowledge can handle the duties and obstacles that are placed in front of them. This results in a more effective team with members who bring the finest practices to their respective positions. Additionally, maintaining a high level of service is essential for gaining the confidence and loyalty of your clients.

An HR application can assist by improving team members' ability to communicate with one another. Additionally, it enables you to keep track of performance evaluations and reviews so that you may include your staff, foster connections with them, and express clearly what is expected of both parties. After all, maintaining a positive corporate culture is essential for achieving your objectives, luring and keeping talent, and strengthening your brand identification.

Laws must still be followed by small businesses

Government-imposed HR regulations differ from one nation to the next. Small enterprises are typically excluded from several legal restrictions. Nevertheless, regardless of whether you have one employee or 1,000, you must abide by employment laws.

Documents are required for labor laws, taxes, healthcare, and insurance, to name just a few. Additionally, the cost of compliance can increase by up to 60% for businesses with fewer than 20 employees.

There are many multiple kinds of HR Software to pick from. Major categories, bundles, and solutions against best-of-breed platforms. To learn more about the different kinds, features, and benefits of Human Resource software, you can read our in-depth guide here.

Profitability and effectiveness both increase with technology

Tasks like inputting and transferring employees' information on worksheets, balancing employee payroll, dealing with tax, remittances, ROEs, and manual T4s, as well as scheduling and approving employee time-off requests are all automated by HR tools.

Additionally, automation takes the place of the erroneous practice of doing administrative operations manually using spreadsheets, files, and folders. Employees can, for instance, schedule their shifts and update the access rights on their employee records on their own with the help of self-service tools.

Starting with a blank slate allows you to build a great basis

As experts frequently say, prevention is preferable to treatment. When your team is made up of just four employees, managing absences and leaves might not be a problem. If you have the mentality of "this is just how we do things here," you might even believe that creating policies is not yet necessary. However, when your team expands, these little issues may start to appear.

To avoid future issues, having HR software for small businesses from the start will help you develop and express your policies and practices.

HR Software can come into your budget

Back in the day, the only HR software available was the shockingly pricey HRIS (Human Resource Information System). Systems today don't cost an arm and a leg, especially with cloud technology. Vendors of human resources services provide small businesses with packages with subscription-based pricing that is paid on a monthly or annual basis.

This implies that you don't need to invest millions of dollars upfront to set up the system or engage additional experts to investigate, put it into practice, and prepare for the implementation of the product.

Judgment is enhanced by information from HR solutions

While using worksheets, you must physically extract and evaluate the data. By using this approach, potential factors may be overlooked. With HR software, data is generated and patterns and trends are found. Using reporting tools and dashboards, finding important material and data is quick.

Which functionalities of HR software would you require for your small business?

Given that the topic "Does a small firm need HR software?" has been addressed, we can start thinking about the HR functionality you truly require. Small businesses don't require all of the features that HR systems have to offer. In other words, they prioritize the necessities over the nice-to-haves.

To identify the problems that your company faces and the characteristics that can be used to solve them, a thorough business review is essential. The characteristics you require include, but are not limited to.

  • Self-service gives employees the option to log in and carry out tasks like updating information and asking for time off.
  • Applicant Tracking System handles the hiring process and maintains a list of potential candidates.
  • Performance Module to evaluate the employees' performance and establish goals and targets.
  • Reporting creates unique reports on performance review, turnover, and attendance, among other topics, and does data analysis.
  • Benefits Administration System assists employees with benefits enrollment.
  • Keeping records of employees keep vital employee records safe.
  • Mobile Application for employees to log in remotely using their smartphones.

Ways small businesses might profit from HR software

Small firms can cut expenses by increasing the effectiveness of their HR procedures at a time when time is equivalent to money. The financial performance of an SME can directly benefit from tools that accelerate these procedures while also eliminating errors.

The time when HR was only a paper-based activity is long gone. The act of filling out forms required many copies, often even triple copies, so even the smallest change in detail became an almost military maneuver. The automation of human resource operations for small enterprises has raised the bar for administration in SMEs, with considerable advantages for both employers and employees.

Streamline and quicken hiring processes

Staff can devote more time to issues that demand personal involvement by automating routine human resources operations with an integrated solution. Without automated HR software, planning and monitoring a recruitment process can be difficult for small organizations. However, with the right software in place, recruiting can be simpler to plan and carry out.

SMEs may save time, money, and resources by having the ability to establish openings, and job posting on social media with integration, track and monitor applications, manage the hiring process, and transfer new hires directly to the payroll.

Think about career progression

The appraisal of personnel is a crucial component of business growth for any small or medium-sized organization. SMEs should be able to monitor productivity and the areas of staff development that may be pursued through a training program or internal coaching to improve their workforce.

The ability to address staff development and performance management concerns simultaneously utilizing HR software enables small organizations to maximize their understanding of their employees' requirements and talents.