Small businesses often find it difficult to efficiently manage their HR processes, whether it’s processing payroll in time or retaining top-performing employees in the company. This mostly happens due to limited resources or an unnecessary burden on the HR department and employees. Therefore, investing in a quality HRMS software is a must.
Small businesses usually avoid investing in HR tools; some believe it is too complex for their level; others simply think they’re saving overall cost by limiting the tools required in the office. But this can also be the reason most of these businesses fail to achieve their goals.
An HRMS software not only helps streamline the business processes, but it also reduces the overall costs for the business. But this does not mean you should invest in any HR software you can find and expect it to work wonders for your business. Here are six must-have HR software components that small businesses need.
Application Tracking System
The biggest challenge small businesses face is recruiting top talent for their business. Most of the time, these top talents are long gone from the market by the time small businesses come across such applications.
An applicant tracking system allows businesses to post jobs on the right platforms, shortlist ideal candidates, arrange interviews, and recruit the best candidate for a position. Since employees are the heart of an organization, it is crucial to recruit the best ones.
Self-Service Portal
Having a self-service portal is a must since it allows employees to handle their personal and professional information on a single platform on their own. Employees won’t need to visit HR repeatedly for minor enquiries. They can also request for any changes right from the portal, instead of waiting for back to back emails with the HR.
Employee Rewards and Recognition
One of the top reasons small businesses have to deal with attrition is unsatisfied employees. Your employees are working hard every day for the success of the company. It would be counter-productive to avoid appreciating the efforts your employees are putting in.
Employee rewards and recognition programs allows businesses to recognize employee efforts and rewards them for their hard work. When employees feel their hard work is recognized, they are motivated and engaged. An engaged workforce leads to a successful business.
Payroll Management
Processing accurate payroll of each employee in time is essential. Constant delays will not only upset and demotivate your employees, but it also depicts the inability of the business to handle such issues.
Invest in an HR tool with Payroll management capabilities that can automate the whole process to pay your employees the right amount at the right time.
Performance Management
Since it is crucial to recruit the best employees in your business, it is equally important to maintain the quality of performance as well. There are always new things being introduced in the industries, hence making sure your employees’ skills are up to date with the market, you will require a performance management tool.
Further, it can also help you evaluate their performance on a regular basis, which gives you the ability to handle issues that lead to a decline in employee performance. When you know the exact cause of the change in performance, you will have better chances of coming up with the right strategies to overcome these challenges.
Attendance Management
Employee attendance management allows HR to track and capture the total number of working hours of each employee. The top benefit of having this tool is being able to automate the attendance recording process.
Since these tools are built with precision in mind, automation allows a reduction in errors and captures accurate information. Further, this can be integrated with payroll management to automatically process the right amount of pay, based on the number of hours each employee has worked. Employees can also apply for leaves and time-offs without requesting the same from HR repeatedly via emails.
HR managers can also determine if an employee is taking too many leaves and time offs with an HR analytics tool, which can help them build strategies to improve employee absenteeism. This is almost impossible to determine with traditional methods, hence the reason most businesses have to deal with time theft challenges.
