Home > Business > Three Top Reasons to use an HR Software if you are running an SME

Three Top Reasons to use an HR Software if you are running an SME

387 Views
Payroll software

Every business across the globe has evolved over the decades with the advent of the technological revolutions and the entire functioning of the company in terms of all the processes of each profile. This is a reality that automation has influenced the job profiles extensively, but the HR department has remained untouched by these technological advancements. This has led to the age-old methods being in use despite the counter-productive results they create for the businesses. A lot of redundant and futile processes are putting toil on the organizational infrastructure. The solution to these problematic approaches is in the implementation of an HR Software. The HR Software solutions have a considerable multitude of modules to look after all aspects of human resources handling with complete integration. A centralized system with complementary sub-systems shall make workforce management a simple and relatively effortless process. The principal beneficiaries of such a systematic approach shall be the SMEs as they have to look after a significant workforce and their transitional phase pressurizes the organizational infrastructure, including the human resources to a large extent. This article shall display the top three reasons to use HR Software in the SME sector.

Simplified Payroll, Statutory Compliance

When it comes to payroll processing, this is the area with maximum struggles for the SMEs. The HR Software introduces complete automation in the form of the Payroll Processing module. All the tasks, such as acquiring the attendance data, generating other pay components, and their respective calculations are done by the computerized system. The pay policy for the employees is defined by the system administrator, and the software shall interpret as per the settings made. The leave policy applicable to the staff is also independently run by the system. The resultant salary processing has no scope of an error on account of negligence or bias, which makes remuneration fair and transparent. But the significant benefit for the employer lies in the management of the statutory compliance. The system generates compliance filings as per the legalities involved and the contractual obligations with the employee. The accuracy and reliability in handling compliance documentation is an excellent advantage for aspiring businesses.  

Reduction in administrative formalities, paperless transactions, and data storage

As the automation is involved, the administrative formalities are also reduced to the minimum possible level. All the official correspondences between the employees and the employer are made through the Employee Self Service Portal. This includes the submission and approval of the leave requests, attendance regularization, daily reporting, distribution of the payslips, which is a great relief for the HR departments. The transactions are made with the complete digitalization of the transactions. The significance of digital transactions is the rapid processing of all the tasks and record keeping. The employers can maintain a record of all the transactions by storing them for the future use of the company. Thus, all the aspects of documentation are enhanced while reducing the time and efforts consumed in the process.

Attendance Management, Performance Management, and Self-Onboarding 

The use of biometric machines for marking the employee presence eliminates the need for physical registers which are prone to the malpractices. The HR also need not manually sort and compile data in the Spreadsheets as calculations are done automatically. Another advantage is Performance Management System, which measures the employee performance and analyses the data to provide useful insights to the management on increasing productivity. The appraisals and promotions are also made more systematic with the use of comprehensive data present at the time of decision making. Self-Onboarding can reduce the friction in inducing a new employee to a great extent. The new joiner shall be provided with the credentials to the system where they shall view the company literature, fill forms, and submit the mandatory proofs as required by the company. This is an excellent step because the current workforce generation is more educated than the previous ones.

The fundamental reason behind automation being a powerful tool in human resource management is the fact that most of the processes don’t require empathy but rely purely on the documentation and measurement of events. Subsequently, the cloud based payroll software software solutions will revolutionize the functioning not only of the HR departments but of the whole organization at large.

TAGS ,
shylee Shy Lee is an Associate Digital Marketing Manager at factoHR , a India based hr and payroll software solution providers. A creative marketing strategist with over 8 years of experience developing digital marketing strategies and guiding business development
Business Module Hub