The Top Benefits of Using HR Software
Every business relies on proper resource management in order to succeed and generate a profit. Human capital is the most valuable resource a business possesses and unsurprisingly requires a significant amount of management.
Regardless of company size or industry type, every organization has human capital, also known as employees. From onboarding to exiting, employees necessitate both workforce management and performance management processes throughout their tenure at your company.
Whereas previously the human resource department was concerned primarily with administrative tasks and day-to-day business operations, strategic human resource management is now becoming more relevant.
Strategic human resource management is defined as the connection between a business's human resources and its objectives, goals, and strategies.
Business intelligence advancements have afforded amazing technological developments for strategic human resource management ranging from talent management to performance management processes.
Human resources software, also commonly referred to as a human resource management system, streamlines and simplifies core HR tasks.
There are many benefits to utilizing HR software for your business, including-
1. Time and Labor Cost Savings
Studies estimate that up to 40% of HR personnel time was used on benefits administration at larger companies. As core HR tasks are automated, employees are provided with more time to work on innovative and collaborative business solutions that require human intelligence.
Employers also save significantly on unnecessary labor costs that would otherwise be wasted on performing menial, easily automated, tasks. Instead of employees spending hours on unnecessary benefits administration they can focus on more crucial duties.
When staff members are scheduled with consideration of their unique abilities and skillsets, employee engagement rates are improved. Higher levels of employee engagement correlate with heightened productivity which even further optimizes the quantity and quality of employee output.
2. Easy Use and Accessibility
Human resources software allows employees to perform tasks seamlessly with user friendly self service capabilities. Cloud based software can be accessed by employees who are not currently onsite which is particularly beneficial for remote employees or businesses with multiple locations.
Instead of wasting resources sorting through vast amounts of paperwork manually, HR management software uses business intelligence to sort through data almost instantly. Due to its incredible data management capabilities, HR management software is especially useful for larger company size data transactions.
Beyond data compilation, HR software identifies trends that are influencing your business operations. For example, the software may indicate a low employee engagement rate is due to insufficient talent management and allow managers to take corrective action. Business professionals can use these analytics to better formulate business strategies.
Employees and managers can make more informed decisions with the readily accessible data that HR software presents. Real time updates eliminate the risk of mistakenly utilizing older, outdated data for decision making.
3. Security and Compliance
There are specific laws in the United States regarding how long employee data must be held securely by employers. Previously, sensitive employee data was stored in filing cabinets either onsite or at an offsite location. Not only do filing cabinets require massive amounts of space, but the security of these documents was largely insufficient.
The United States has strict compliance laws in place concerning employee data protection and security. HR software is cloud based and therefore affords security benefits that office filing cabinets cannot, including protection from theft or natural disaster.
In order to ensure you are using the most secure platform available, HR management software programs should always be vigorously vetted for their security features. Features including a timestamped log identifying which employees accessed which documents are invaluable for preventing security breaches.
4. Employee Development
When proper performance management and talent management techniques are used, employee engagement rates are positively impacted. Human resource management software contains useful tools such as built-in periodic reminders of one on one meetings that allocate time to employee career development.
Employee development increases your human capital talent pool, attracting other top talent employees to your company. Employee retention rates are also positively affected by higher employee engagement levels.
Instead of spending massive amounts of money and time on replacing disengaged employees, HR management software enables you to invest those resources in further developing your existing employees.
Time and Attendance Management
For a smaller company size an unexpected influx of employee time-off requests can leave a business woefully understaffed. Even for larger corporations, the holiday season could pose a problem for employee staffing and scheduling.
HR software benefits administration processes by creating a centralized calendar and communications platform to discuss employee scheduling. Real time updates decrease scheduling mistakes and miscommunications between staff members.