Startup Software for HR Management

Getting a startup up and running is hard enough! Sometimes HR can fall by the wayside in the fray. Entrepreneurs busy with the “big picture” don’t have much time for the nitty-gritty. However, history shows that there are dire consequences for startups that don’t adopt structured HR systems early. Moreover, software for HR management early helps organizations to grow and scale in the right direction.

HR software facilitates faster communication and improved employee engagement. Remember that the HR department’s professionalism and competence will affect not only internal employee satisfaction but also your business’s reputation. This is no place to skimp on resources!

Here, we’ll explore what HR management software can do, why it’s important, and how you can find the best software for your business.

Startup Software for HR Management


What is Software for HR Management?

HR startup software is a digital solution for streamlining an organization’s daily human resources processes and tasks. More businesses than ever before are turning to software for HR management to automate processes, reduce the impact of human error, and improve cost-efficiency.

Why is HR Startup Software Important?

Vice found that there were major repercussions for women working at startups without structured HR programs. For example, after harassment lawsuits were filed against GitHub, they vowed to improve their HR department. In a similar instance, Uber failed to act on an employee’s complaints of harassment and sexist hiring practices. According to Recode, this problem stemmed from Uber CEO Travis Kalanick’s failure to invest in HR oversight such as managerial coaching or solving workplace problems. The company did not collect or distribute diversity data, which left its hiring practices out of date. Kalanick has since resigned (amongst other scandals), as Uber has tried to clean up its act, however, the startup is currently facing other serious HR problems.

The lesson is clear: Don’t leave HR management to happenstance; it may be time to invest in an HR startup software. It is easy to get swept up in the big ideas of a new business while leaving the day-to-day to “take care of itself.” This can lead to plenty of problems. Ultimately, it’s better to create structures early to address problems, help create workforce strategy, and drive change. Startup software gets your business on the right track from the get-go.

When Will Your Startup be Ready for Software for HR Management?

The truth is, it doesn’t matter if you have 5 or 500 employees. Your employees need structure and leadership and you deserve peace-of-mind.

Small businesses can’t afford to hire a full HR team to take care of HR problems. Software can keep track of people, data, and documents in the same way an HR department might, but at a fraction of the cost. Automation will save time, limit legal liability, and increase employee satisfaction.

Benefits of HR Software for Startups

Investing in HR Software for startups can make a big difference in your organization’s bottom line. Let’s explore the key ways your business stands to benefit.

  • Top-Notch Human Capital Management

Implementing a structured HR program early can save your startup a lot of grief down the line. One of the biggest perks of using HR software is that it systematizes HR practices and creates avenues for employees to find information, update data, and communicate with management. This transparency shows employees that they are respected, which in turn ups employee satisfaction and engagement.

  • Record Keeping

Everyone knows that startups don’t always keep the most regular hours. Who knows when duty will call, keeping employees in the office longer than expected? In order to stay compliant with laws regarding overtime and time-off, startups need to be extra careful to track hours, payment, and absences. HR software will not only provide peace-of-mind for employers and employers who want to check in on data about attendance, productivity, and compensation. It will also help keep businesses free from legal problems.

  • HR Analytics

Your startup is always growing and evolving. With HR data on every facet of your workforce, you can make sure things are moving in the right direction. Startup HR Software allows you to take advantage of all the data your business produces every day and use this information to make informed decisions about the future.

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Key Features of Startup HR Software

Startup HR software will save your business time and money by automating daily tasks relating to human capital management. Here are just a few of the ways software for HR management will optimize your business practices.

  • Streamlined Hiring and Onboarding

Startups need access to top talent. HR software provides recruitment support with an Applicant Tracking System (ATS) which follows candidates as they become new hires. Next, streamlined onboarding helps employees get up to speed quickly with automatic workflows, digital signatures, and online forms.

  • Time off and Absence Management

Before digitalizing their HR practices, startup Crisalix tracked employee vacations with a spreadsheet shared among workers. This system did not adequately meet the needs of either management or employees. Vacation software helped them to track the holidays that employees had available and offered visibility into who was in- or out-of-office.

  • Performance Management

Software for HR management helps organizations to keep track by using performance management tools such as forms for self-reports and managerial feedback. No more annual reviews! Instead, employees will be able to receive feedback year-round.

  • Organizational Chart

According to Alicia Sapena, director of HR at startup Voicemod, the organizational chart has been a key part of her business’s adjustment to the COVID-19 pandemic. By providing at-a-glance insight into the structure of the business which helped them to streamline accordingly.

  • Data Analytics

Using HR software can give startups data on their workforce, helping to identify potential problems before they happen. Thus, organizations can run custom reports to make sure that their hires are diverse, that employees are quickly compensated for expenses, and receive top training.

How to Find the Best Software for HR Management for Startups

There is a lot of software out there! Here are three things to look out for in order to find the best system for your organization.

  • Scalability

Your startup is going to grow! And ideally, it will grow like crazy. There’s no point in investing in HR software that your business will quickly outgrow. The right software for HR management will grow seamlessly alongside your organization, allowing you to access more capabilities or add new employees without interruption. In short: look for plans that allow you to pay for what you need and upgrade as needed.

  • Self-Service Features

You need software that will be totally integrated into your employees’ experience of the workplace. Find HR software with an employee portal so that employees can manage their data, documents, and requests all in one place. Even better, make sure the software has its own mobile app (preferably with a beautiful and intuitive interface) so that managers and employees alike can access data on the go.

  • All-in-One Digitalization

Software for HR management is supposed to make your life easier. So, what’s the use of having different software programs for each of HR’s functions? Find software that will take care of everything from recruitment to expense management to time-off requests in the same place! Digitalize important records, receipts, and contracts and find them all in one place. You’ll thank yourself later for implementing this organizational system early.

Exciting Startup Software Companies

Factorial is a startup too! That’s why we understand the difficulties of managing a growing team. With Factorial’s Startup Program, businesses that have started in the last five years can get 90% of their Factorial HR subscription (plus 50% off their second year, and 25% off their third)! Factorial is one software for HR management that support your business as it grows.

Kick start your HR with Factorial – 14 days free!

Written by: Valerie Slaughter

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