Human resources (HR) software helps small businesses by supporting and automating employee processing. The software includes a set of applications that streamline every aspect of employee management including recruitment, onboarding, attendance tracking, payroll administration, legal compliance, and more.
HR software offers many benefits for HR leaders and employees by improving efficiency and helping leaders better understand the workforce. Companies that use HR software report a better ability to manage productivity, improve morale, and make better decisions regarding employees.
What is HR Software?
HR software provides tools to organize your company’s workforce. It has many functions throughout the employee lifecycle from recruiting to maintaining employee files. The software integrates payroll features to accurately compensate your employees while facilitating your ability to track employee performance and development.
HR leaders can use the software to streamline data collection and storage to comply with health, safety, labor, and data privacy laws. Managers can help employees progress in their jobs, maintain schedules, and track any workplace issues. Finance teams will be able to keep track of payroll and benefit expenditures, access tax compliance information, and use analysis to project future costs.
HR software includes many features to help your small business, but the features may vary based on your specific package. Most providers offer the following tools:
- Recruitment and Onboarding Tools – Job posting and syndication, background check integration, new-hire packets, employee profiles, training tracking, and more.
- Payroll Applications – Ability to calculate paychecks, pay via direct deposit, online paystubs, calculate and withhold taxes, 1099 and W-2 preparation and delivery, and more.
- Time and Attendance Tools – Employee time tracking, mobile apps for remote workers, shift scheduling, shift swapping, absence management, and more.
- Benefits Administration – Administer medical, dental, and vision insurance; retirement accounts; HSA and FSA; workers’ compensation; and other coverages.
- Performance Management Tools – Goal setting and monitoring tools, performance evaluations, learning management systems for training, and more.
- Legal Compliance – Custom workflows and automation features maintain audit-ready records to comply with labor and employment laws.
The Benefits of HR Software for Small Businesses
The value of HR software lies in the administrative tools that optimize data collection and enable employees to engage more efficiently with their work.
Here are some of the many benefits HR software can bring to your small business:
- Improved Employee Experience
HR software improves the employee experience by using apps to connect peers and offer recognition, measuring morale with pulse surveys, and using talent management tools to boost employee retention.
- Increased Productivity
HR software automates information gathering, allowing HR staff to dedicate more time to value-added projects rather than monotonous tasks.
- Reduced Errors
Manual data entry allows for human error when calculating payroll. Automating payroll saves time wasted while fixing errors and prevents errors in tax withholding and IRS penalties.
- Lowered Costs
Besides reducing wasted time and increasing productivity, HR software lowers costs in several areas. For example, by tracking data regarding benefits, companies can negotiate to receive better rates with carriers and access discounts not previously available.
- Better Security & Compliance
HR staff is generally responsible for maintaining compliance with federal and state regulations. This includes a complex and ever-changing list of rules, from cybersecurity to labor laws. HR software helps monitor compliance needs and keep everything up to date. Software processes also protect private data from unauthorized access and data breaches.
How to Find the Right HR Software with Record Nations
Finding the right HR software for your business can be daunting. Record Nations can help you find a system that matches your needs. Whether you need to adopt analytics, simplify compliance reporting, or boost employee engagement; we have options for you. Call us at (866) 385-3706 or fill out the form to connect with our experts today.
