If you've ever wondered why your HR administrator always looks a little harried (or like she might need another cup of coffee) consider all she has to keep track of: payroll, vacation, benefits, sick leave, hiring, firing, performance reviews and more for each of the employees in your business.
But you can save her from the tedious world of data entry and filing cabinets with three magic words: Human Resources Software.
With Human Resources Software, your HR department can be outfitted with a customizable system that helps streamline HR processes, administration and communication on everything from recruiting to leave tracking to termination processing. It also allows them to generate meaningful data to help with workforce-related decisions and efficiently generate reports required by government.
We recently caught up with Loy Oppus, one of the co-founders of Auxillium West, a software company founded in 1996 by a group of HR professionals with more than 50 years of HR management and HR Systems experience.
She answered the following questions about how HR software can help benefit your small business:
What are some common HR complaints or concerns that HR software helps address?
- Tracking HR data manually is time-consuming, inefficient, and prone to errors.
- Without an HR system, it takes a long time to generate reports (that are required by government) and reports that could help management with workforce-related decisions.
- Tracking HR data in multiple Excel spreadsheets usually means duplicate data entry and doesn't give management (or the employee) a "full picture" of employee pay/benefits.
What types of businesses would benefit from having HR software?
All types of businesses can benefit from automated and efficient employee data tracking, reporting, and analysis. Smaller organizations might be fine with using Excel spreadsheets, but data management problems start to emerge as the number of employees grows, and compliance with Labor Laws and Employment Laws becomes more of a concern.
Do you have any tips for choosing the right kind of software for your business?
Not all HR software fits all businesses. Some HR software is designed (and priced) for global organizations with thousands of employees. We focus on small and mid-size organizations (ones with less than 1,500 employees). HR has broad responsibilities -- recruiting, hiring, new hire orientation, training and development, performance management, and employee recordkeeping to fulfill legal requirements -- to name a few. Understanding the organization's pains and needs can greatly help define which HR system will be a good fit for the business.
What are the benefits of using HR software?
With HR software, employee recordkeeping can be streamlined. Reports can be generated quickly to ensure government compliance. Management can have data to make decisions about how much to pay employees, what benefits to grant employees, etc.
How can it improve a business?
Talent management is key to the business. This includes hiring the best people, providing excellent training and retention programs, and conducting an effective performance review process. On the cost side, having reports that highlight problem areas (e.g. paying too much on benefits, losing employees due to inadequate compensation, etc.) can give management the information it needs to make needed changes to improve the business.
How do employees benefit from this software?
When employees trust that the company compensates its employees fairly, and has their well-being in mind, the result is positive employee morale and resulting productivity gains. From an administrative standpoint, having an HR system with self-service capability enables employees to quickly process HR-related transactions, such as requests for leave, and attending training classes, for example.
What can be some of the drawbacks?
A drawback might be if the system is too complicated and the staff has not "bought into" using it. Then the company has just wasted resources investing in an HR tool that no one understands or likes.
Has HR software grown in popularity?
Yes, HRnetSource has grown in popularity as technology use has become more widespread. The productivity gains are easily felt, and HR staff are able to spend more time in strategic initiatives like employee relations (instead of pushing paper and spending time manually tracking employee data.).
How has HR management changed in the past 10 years? What do you think is the future for how companies manage HR?
Over the years, HR has been striving to play a more strategic role in management. By relegating routine recordkeeping and administration to the software, the HR staff can spend more time with the bottom line analysis, giving management advice and helping businesses achieve their goals.
Learn more about human resources software on Business.com.