What are the top benefits of HR software? HR software can help your HR department achieve its goals and objectives through streamlining administrative processes and leveraging their tasks such as the recruitment, training, and maintenance of your workforce. Generally, the solution helps improve HR productivity and efficiency.
In this article, you’ll have a clear picture of the benefits of HR software in your company. You’ll also go through the fundamentals of this software category. Here’s the breakdown of what you’ll get:
Do you find it hard to look and identify the right candidates to hire? Don’t worry, you’re not alone. In fact, worrying about this aspect is not misplaced as so much money is at stake in having new hires.
Hiring a new employee is not cheap. In a press release by ULTATEL’s CEO Amr Ibrahim, it’s revealed that SMBs can spend up to $7,645 in the hiring process for a new employee from recruitment, screening, and training. With that, it’s crucial to ensure each new hire is worth it. But the challenges faced by HR teams don’t stop there, though.
According to a survey via Robert Half, 36% of HR managers reveal identifying and hiring the right candidate tops the most difficult part of their work. The next aspect, voted with 26%, is terminating employees. Finally, handling benefits and perks programs and guaranteeing equity on internal and external compensation comes next with 23% and 14%, respectively.
With today’s technological advancements, there are tools available to help streamline and solve these challenges in your HR’s workflows. Built specifically for HR teams, an HR software assists managing your workforce with an array of benefits.
Before delving into the benefits of HR software platforms, let’s have HR software explained first. Also often referred to as Human Resources Information Systems (HRIS) and Human Resources Management Systems (HRMS), it’s a software built for streamlining and automating your Human Capital Management (HCM) processes in one database.
The HR technology landscape is crowded with various solutions due to the continually changing functions of HR departments. Despite this, many of these systems don’t face direct competition as they tightly target a broad range of niches. For a start, HR software systems come in both integrated suites and best-of-breed platforms.
The purpose of HR software solutions come in various specialties (for instance, administration, benefits, employee management, learning management, performance management, recruiting, talent management, training, and workforce management). You may read this article on what is HR management software for an in-depth discussion of its definition, features, and benefits, among others.
Meanwhile, here’s an overview of some of an HR software’s main categories:
No two HR software system is alike. Each product offers their own features and capabilities. However, there are key features you have to look at, such as:
HR managers face numerous responsibilities and tasks in their daily workflows. Twenty-one percent of an HR manager’s time is spent on meetings with business partners and senior staff according to Total Jobs. Other tasks that consume their time include employee relations and engagement with 15.3% and meeting with employees with 13.6%.
Those three tasks require ten times more of an HR manager’s time compared to low-priority tasks such as employee engagement (2.6%), redundancy management (1.5%) and onboarding and instructions (1.1%). In order to free up their time to focus on their high-priority tasks, an HR software helps in various HR-related processes.
After having HR software explained, let’s proceed with the HR software benefits:
Maintaining and keeping your staff is crucial. While recruiting is necessary to grow your talent pool, growing and developing your current staff is more cost-effective, especially since they’re already familiar with your company’s policies and workflows.
An HR software allows you to keep track of every aspect that’s required to plot your employee’s career development plan. This includes gathering information about their performance on training courses, keeping a record of each employee’s points for development, and conducting appraisals regularly.
You can also assure that the data from appraisals are stored properly including details on the topics you’ve covered, the goals you set, and the feedback received. This improves your employee’s morale by giving them objectives to aim for and making them feel engaged with your company.
At times when your employees suddenly have to request leaves for holidays or sickness absences, you wouldn’t want to be caught off-guard and entangled with messy, time-consuming email trails. This can significantly disrupt your workflows and productivity.
As one of the most time-consuming aspects for HR managers, a good HR solution can help you efficiently manage absences and leaves. It simplifies and automates the way you plan for the holidays, keep track of each employee’s remaining leaves, calculate pro-rate entitlement, and handle holiday requests.
Out-of-date and inadequate information makes decision-making difficult. For instance, a position with high turnover needs you to oversee the amount of training the employee gets and their performance. Getting in touch with their line managers is also vital.
An HR system collects data and lets you access it anytime and anywhere you need it. The data is available at a glance and you can view and retrieve them with only a few clicks. This enables you to deeply drill into the analytics of the data which are relevant in identifying trends and spotting problems. It’s a feasible solution that relieves you from the mess of having a paper-based system with file cabinets and information that’s difficult to reiterate and extract from memory.
In a typical setup, your sensitive employee data are stored in your office’s filing cabinets. But is it really safe? There is little to no assurance that everyone who can access these files is authorized. But by storing these vital data in the cloud through your HR system, you can prevent unauthorized people from getting their hands (and eyes) on information they’re not allowed to see.
It also gives you full visibility on who viewed what information and when. Since it’s saved on your computer or mobile device, you won’t risk your files from physical catastrophes such as fire or flood. Additionally, it enables you to have a paper-free office as you no longer have to print documents, policies, handbooks, and training manuals.
Admin tasks are some of the most time-consuming tasks an HR manager does. Some of these include holiday booking and approval, holiday allowance calculation, sickness recording and monitoring, employee data updating, objective logging, training monitoring, and expense logging and approval, among others.
Automation through HR systems reduces the time and effort it takes to complete each task. When you receive a holiday request from an employee, you no longer have to go through spreadsheets to look for the complete information on the employee’s request status. It helps you be more efficient and productive with your work management regardless of the number of employees you handle.
The purpose of HR software greatly varies due to the variety of workflows of HR departments from one company to the next. Based on overall functionality, we listed the leading and most popular examples of HR software solutions we recommend you to check out. For more options, you may also read this top 20 HR software solutions.
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