Do you remember the days when HR relied on very large filing cabinets, memos and plenty of post-it notes? Pretty much every HR department has (thankfully) moved on from there but having said that, in some instances, maybe not as much as you’d expect. It’s still not unusual to find HR departments of relatively large organisations continuing to rely on spreadsheets and emails as the main tools for managing their HR processes. And that’s a real shame because they are missing out on the many benefits HR software offers.
1. HR software will save you time
Running HR by using non-automated tools is a really time-consuming way to do business. Introduce HR software and you’ll see processing times speed up, smoother and speedier communication and information-sharing between departments, and data entry that doesn’t need to be duplicated several times over.
2. HR software reduces the number of errors made
Closely connected to the point above is the fact that HR software helps reduce the number of human errors that could otherwise be made. Lengthy manual data gathering inevitably leads to mistakes creeping in. And that then leads to backtracking, working out which data is incorrect, making amendments to errors once they’ve been identified…all of which wastes time and money.
Automating the information with HR software significantly reduces the opportunities for mistakes – which means far less time wasted and more time available to get on with activities that contribute positively to your business.
3. HR software enables faster, more accurate reporting and analytics
Corporate HR professionals need accurate records to provide the basis for making strategic longer term decisions and for identifying any shorter term issues that may need addressing. So it’s vital that the right tools are in place to quickly and accurately pull together the information needed. For some companies and organisations, that still means gathering up information from multiple sources, then collating it all. HR software provides robust data that can be relied on to a far greater extent than that spreadsheet which was based on 10 spreadsheets sent in by departments. Which were all pulled together using information from numerous team spreadsheets…you get the idea.
4. HR software enhances data security
How secure are your current HR record arrangements? With legislation like GDPR, there’s increasing reinforcement of the need to ensure all data is handled securely. Spreadsheet-based systems run the risk of allowing information to be highly fragmented and nowhere near as tightly managed as it should be. HR software provides a centralised location for personal data, where it can be encrypted and permission levels set so it cannot be viewed by people without the necessary authorisation.
5. HR software enables employees to access their own data
Some HR software offers a self-service option, empowering employees to be in charge of updates to their own personal information and giving visibility into data held about them. Cloud based HR software gives mobile accessibility too, enabling people to make changes or check information at any time to suit themselves.
6. HR software supports the organisation as it scales up
If your business has plans to grow, you need HR processes that will grow with it and this is very hard to achieve with spreadsheets and paper systems. It’s challenging keeping on top of such unwieldy systems as they expand and it’s likely errors would occur. HR software is highly flexible and adaptable and it doesn’t only make life easier if you’re increasing employee numbers; the addition of new software modules means you can grow and customise it over the years to provide specific support and information as your business priorities shift.
7. HR software supports compliance requirements
Compliance with legislation, and preparing for audits, can feel stressful to HR professionals given the volume of data they work with. But HR software is set up to ensure compliance, hence making it a lot more manageable. If there were any issues, the HR software will hold a full history of changes and the users involved in those changes. That makes it considerably simpler to identify and quickly address any problems.
8. HR software helps your internal and external employee value proposition
You want to attract and retain top talent but what would prospective employees make of a company that runs its HR processes on spreadsheets and paper forms? Even if you do manage to recruit them, they may be rather underwhelmed to then discover quite how slow processes are, as they find themselves being expected to fill in duplicate information or complete endless paper forms. (It’s not so great for the environment either.)
9. HR software can be set up to integrate with payroll
HR and payroll data have a significant overlap so it makes sense to use HR software to feed into payroll and vice versa. It can offer single data input, saving time, greatly reducing the chances of errors and eliminating unnecessary paperwork.
10. HR software is cost effective
Yes, there is an initial financial outlay. And yes, it takes time to install and train people in its use. But look beyond that point. Once it’s up and running, and delivering all the benefits we’ve mentioned above (plus a few more!), we’re confident you’ll agree it doesn’t take long to see an excellent return on the investment.