Cloud HR Management Software – Why a Small Scale Business Needs To Know About It!

As your business grows, HR becomes more of a priority. Whether you’re hiring your first employee or expanding your headcount quickly, it’s extremely important you have the right HR processes in place. One of the ways to do that is by having the best HR software for your small business. HR software (sometimes called HRM software) can help you manage and automate many of the processes involved in hiring and retaining employees – and make sure you’re getting the best from them.

It pays to get your HR processes in good shape at the earliest possible opportunity. To help you do that, think carefully about what you need from your HR software. Some ‘core’ requirements that you’re likely to need to include:

  • Record-keeping, some of which is a legal requirement
  • Administering benefits
  • Attendance tracking and arranging leave
  • Hiring and onboarding processes
  • Training delivery
  • Employee self-service, allowing staff to manage aspects of the process themselves such as benefits choices or personal detail updates
  • Rich reports, for example, showing attendance patterns or employee churn rates

Does a small business need HR software? Yes, as it handles one of your company’s most important resources—your people—regardless of its size. Many small business owners think it’s unnecessary to have an HR tool because they’re “too small” or only have a few employees. However, this impacts their workflow and even growth. Here’s why your small business needs an HR software:

The recruitment process is crucial

Hiring the right candidates who are qualified for their jobs means less time spent on training and supervision. These tasks are expensive for a company, especially a small business, in two aspects: financial and time. Of course, it goes to say that developing your team’s skills is essential. However, training an employee about the basics of their role incurs high initial costs for your business. An HR software can carefully sift through and sort applications and resumes to pick qualified candidates.

An HR system helps you oversee your talent pool.

Since your team is small, you want to ensure each member is right for and skilled at their job. Employees who are equipped with the experience and expertise in their role can handle the responsibilities and challenges that come their way. That translates to a more efficient team with members that contribute the best practices to their role. Furthermore, consistently providing a high quality of service is crucial for earning your customer’s trust and loyalty.

A small business still needs to comply with legislation

HR regulatory requirements set by the government vary from one country to another. In most cases, small businesses are exempt from certain legal requirements. However, there are still employment legislation you must comply with regardless if you have one or 1,000 staff members. Labor laws, taxation, healthcare, and insurance are only some of the documents you needed in place. Companies with 20 employees and less also have up to 60% higher compliance costs.


Automation improves productivity and efficiency

An HR tool automates tasks that are otherwise time-consuming and redundant, such as entering and copying data on spreadsheets, reconciling employee’s payroll, handling tax, remittances, ROEs, and manual T4s, and scheduling and approving employee time-off requests. Automation also replaces the error-prone method of manually accomplishing admin tasks through spreadsheets, files, and folders.