How Much Can You Save with Human Resource Management Software in the Startup

Human Resource Management Software hr-contribution, human-resources

A common misconception with using a human resource management software for small businesses and startups is that it is a luxury. However, startups using an HR software would agree that it is more of a necessity. A human resource software serves as an automation platform for manual tasks that take up a lot of the HR department’s time. While most large sized companies and MNCs have a comprehensive HR solution in place, startups refrain from exploring the same as they believe an HR solution will cost them more money and time in implementation than their current processes.

HR automation is not a new concept but with the advent of technology and more and more companies building systems for small businesses, we are finally at a stage where there are affordable HR solutions available that are also feasible for small businesses to utilize. Below we have discussed a few points about how human resource management software can help you save time, money and effort in your startup processes

  • Employee Turnover: Most companies struggle with maintaining a low employee retention rate. Employee turnover can be quite expensive for companies, especially startups. There are a lot of resources invested into the recruitment processes and retaining your best employees is essential in the early stages of any company. An HR solution contributes towards keeping the employee turnover low as it ensures that the employees’ needs are taken care of. A good HR platform also makes the recruitment process easier and smoother.
  • Better Time Management: It is no secret that automation helps save time. Tasks that usually require hours of manual work to be completed, can be done within seconds using the right automation tools. If your HR team spends more time manually reconciling leave balances of employees and spending time inputting employee data into company profiles, it is high time you implement an HR solution that will take care of these tasks. Once automated, your HR team can focus on tasks that truly need their attention, like legal issues, company policies and employee wellbeing.
  • Company Data: The average HR team today has access to a gold mine of data about the company. This data can be used to improve the processes of the company drastically. HR solutions are a great tool to have access to such data in an organized manner. Based on the usage and details in the software, the data is analyzed in a powerful way that enables you to make strategic decision based on accurate insights.
  • Putting the onus on your employees: Quite a few HR solutions let your HR team delegate tasks to the employees themselves. You don’t require an HR personnel manually updating and keeping track of each employee’s details. You can easily send an email invite asking the teams to register and update their necessary information. Not only does this eliminate the burden of the time-consuming data entry, it also reinforces a sense of ownership and responsibility within the organization.
  • Integration of benefits: One of the most commonly asked questions by employees to the HR team is related to their benefits. When it comes to health insurance benefits, a human resource management software enables the employees to browse their network and have access to necessary policy details through the platform. This practice enables the HR team focus on other tasks as employees have necessary information accessible anytime and anywhere. Additionally, employees stay in network for medical treatment which enables you to save money on insurance renewal.

HR solutions are the way forward. It is now possible through cloud based human resource management software to cut down on redundant tasks drastically by automating them. You are also putting more control into the hands of your employees which is a great way to empower them and boost morale. As a rule of thumb, HR must be focused on improving employee satisfaction and overall productivity and the easiest way to get there is to eliminate the tasks that can be done by automation. To sum it up, an HR solution can help you save beyond just time and money, and help you improve your company’s overall processes.