It may seem obvious that a tech company should use technology to manage important human resources processes. However, too many of these companies are still stuck in the past even as they design the future. HR managers are stuck toggling through endless excel spreadsheets or shuffling mountains of paperwork when they could be taking advantage of software for HRM (human resource management). The good news is that there’s still time to catch up.
In this post, we’ll discuss how and why businesses are using HR software to optimize employee experience. We’ll show you features to look out for and discuss how you can choose the best HR software for 2020.
- Why Do Tech Companies Need Software for HRM?
- What is HRM Software?
- What Capabilities are Important?
- Factors to Consider in HRM Software
- What is the Best Software for You?
According to analyst Josh Bersin, HR software is “white hot today.” Why? Because businesses are recognizing the importance of the employee experience. That’s why they are “pouring money into tools to better recruit, develop, empower, and support their people.” This is where software for HRM comes into play.
There is a strong business case for investing in employee engagement. Diane Gherson, the chief human resources of IBM, told HBR that employee engagement accounts for two-thirds of client experience scores. And good client experience translates directly into increased sales.
That’s why businesses prioritizing employee engagement with a “well-being strategy.” What’s the most important factor when it comes to determining employee well-being? The HR department! Software that helps to streamline, automate, and optimize your organization’s HR processes can make a big difference for employee satisfaction.
Software for HRM takes care of the many important but often tedious HR processes. Good software will integrate onboarding, workforce management, time scheduling, expense management, payroll, and more.
HR software goes by many acronyms, for example, HRIS (Human Resource Information System), HCM (Human Capital Management), and HRMS (Human Resource Management System). While there may be subtle differences between the three, they all refer to the system a business uses to manage employees and improve well-being.
These cloud software systems store important documents and data in one central location. Small businesses use these systems to find new talent, manage performance, and improve retention, and now tech companies are eager to get in on the action.
What are the key features to look out for in software for HRM? Harvard Business Review has tracked a shift away from antiquated “top-down” planning models toward more “agile HR.” Tech companies want to remain nimble, able to pivot quickly. HRM Software for small businesses should facilitate more intuitive workflow, team-based decisions, and regular communication.
All-in-one HR management software centralizes all of your business’s HR processes in one software. No more switching between open windows and browsers! Tech companies ready to make the shift to HR software are looking out for the following capabilities:
Recruiting & Onboarding
Businesses can efficiently source new talent with an applicant tracking system that manages candidates throughout the hiring process. Customized workflows also create a “self-service” employee onboarding experience in which employees can manage their own documents and training.
Time Tracking & Vacation Management
Time and attendance software help employers track hours worked, as well as PTO accrual and overtime. Employees can request time off directly through the platform and managers accept the request on their own time. That means no more messy back-and-forth emails or confusion.
Many businesses no longer rely on one annual performance review. Instead, they take a more hands-on approach to performance, offering regular feedback and communication. Performance management systems make it easy for employees to self-review and managers to offer feedback.
Do away with payroll anxieties and boost employee morale with payroll summaries. This tool automates supplemental pay, medical leave, and contract updates. Employees will receive the correct paycheck on time, every time.
Data & Analysis
One key feature of HRM software is that it gives managers the ability to run custom HR reports on everything from hours worked, to performance, to time off. This provides insight that allows businesses to make more strategic decisions. Businesses that don’t use software simply aren’t taking advantage of all the information data provides.
Learning & Development
With customizable workflows and a centralized document manager, software makes it easy to access training materials. Employees will appreciate the opportunities for career development.
Software for HRM streamlines important processes, reduces opportunities for errors, and reduces paperwork. We call that a win-win-win.
An ADP study showed that 70% of small businesses treat HR tasks as a side job handled by an owner. These processes can consume 25-25% of a small business owner’s time, taking away from the time the owner can spend, well, running the businesses. Choosing HRM software for small businesses that adapt to your needs is crucial.
With software for HRM, small businesses can save time and money by automating the little stuff so that management can pay attention to the big stuff. But how to choose the best HRM software for small businesses? When making the best HR software comparison, small businesses should pay attention to the following features:
It’s 2020! Desktop solutions just aren’t cutting it. You need to be able to access and manage your HR data from home, from a café, from anywhere. Invest in software that stores data in the cloud. That way, you can check in with any device at any time.
Employees have a lot of questions, but HR managers don’t always have a lot of time to give answers. The software should allow your employees to review their calendar, payroll, and time-off information on their own. An employee portal where employees can make time-off requests, manage their data, and answer their own question is key.
Your company is on the up and up. You need a platform that can grow with your company, offering services to support a larger workforce and employee development. The best HRM software for small businesses will support your growing business.
HR deals with a lot of sensitive information. It’s important that your HRM software takes security seriously. Look for software that offers a security firewall, data encryption, and vulnerability diagnostics.
So, why are tech companies finally switching to HRIS software? Because they know an all-in-one software will boost efficiency and productivity, and make a difference to their bottom line. Maybe they thought that they could get away with excel spreadsheets for a while. But as a business grows, it becomes clear that doing everything by hand just isn’t sustainable.
Tech companies need an HR software that is as hardworking and cutting edge as they are. But they aren’t the only ones! Small businesses need software that will give them time to focus on building up their business. Software for HRM is one of the best investments a business can make in its own future.
Written by Valerie Slaughter