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7 Ways HR Management Software Can Benefit Small Business Owners

7 Ways HR Management Software Can Benefit Small Business Owners

With more and more business administration tasks transitioning to online functionality, it’s no surprise that HR management has made the leap, too.

Just hearing the words “online functionality,” however, makes many small business owners cringe. Common concerns are it’s too complicated, their business is too small or, simply, there are more important things to do. These are understandable worries, but here are the realities: online HR software is easy to implement, businesses of all sizes use it, and it increases efficiency, so you have more time to focus on the big picture.

Online HR Software Creates Value

Many small business owners don’t believe they need staff to manage human resources. Contrary to this belief, someone has to be managing employee files, time-off requests, disciplinary issues and employee performance reviews — all of which are HR responsibilities. When your business is small, that person is often you.

Instead of manually managing HR by yourself — or outsourcing it as your business grows — consider transferring HR functions to an online management platform. Here are five benefits that will have immediate, and positive, impacts on your business:

Better Organization

Possibly the greatest benefit of online HR software is that all information is at your fingertips. Gone are the days of scribbled notes stuffed in personnel files or recreating histories of time-off requests. With online HR software, once information is entered, it stays there and doesn’t get lost in filing cabinets. Even better, an online HR resource means all information is entered consistently based on pre-determined fields. The more you use it, the easier it gets, and the easier it is to locate what you need, when you need it.

Enhanced Decision-Making

Speaking of ease, when you have quick access to information, you can identify patterns in areas like time-off requests or scheduling conflicts because all the data is stored in one location. This removes the need to track down employees or managers to ask who is available when everything you need already exists in the system.

Error Reduction

This is a no-brainer, and for a few good reasons. If you’re currently using a paper system, there’s a chance that notes will get lost or requests will unintentionally be ignored. These mistakes can result in you giving away free vacation time or missing opportunities to document critical disciplinary actions. Mistakes decline when information is centrally located, and with online HR software you’re guided through fields that encourage you to record information the moment you have it.

Risk Mitigation

The minute you transfer HR processes from paper to online management, you reduce the risk of loss and exposure. Files aren’t left on desks for wandering eyes, nor are they susceptible to loss due to fire, water damage, or employees taking information that belongs to the company. Online HR software dramatically reduces the chances of private information falling into the wrong hands or getting lost. There are even online HR apps that help you manage labor law requirements to ensure your business is compliant with federal, state, and local regulations.

Increased Productivity

Many systems allow you to provide employees with restricted access to add or amend personal information, as well as request time off or manage shift changes with other employees. Efficiencies are gained throughout your company as you improve scheduling, time clock management, onboarding, and management with an online HR system. You will notice the positive impact on your bottom line.

Only Pay for What You Need

You might have heard that HR software is comprehensive, cumbersome, and extremely expensive. Some are, but not all — especially ones designed specifically for small businesses. For small businesses, some software developers have unbundled the highly sophisticated software model, so you can purchase the specific resources you need, like recordkeeping, time clock management, or attendance calendars.

The best way to see the value of HR software is to give it a test drive. The Employee Records Smart App is a great entry point, too, and for few good reasons.

For starters, it’s free. It’s also extremely easy to navigate because of its intuitive user interface, logical data fields, and the potential for employees to have data entry capabilities to ensure accurate records. The Employee Records app also integrates seamless with other Smart App HR software so you can utilize the right resources as your business grows.


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by Jaime Lizotte // About Jaime Lizotte, HR & Tax Compliance Solutions Manager Jaime joined the product development team at HRdirect in 2007. Since then, she has managed and developed numerous HR solutions, from training tools and safety products to HR and tax reporting software. Before joining HRdirect, Jaime was a practicing HR Manager at a small marketing firm. Her hands-on experience as an HR practitioner gives her unique insight into the day-to-day challenges of small business employers as she develops next-generation products to make employee management easier.

Opinions expressed by contributors are their own.