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Writer's pictureLiz Cullis

Why a HR System is a ‘game-changer’ for small businesses

It’s an investment that will transform the way your organisation manages its people, making it easier for management to access employee data, processes and workflows. As your business grows (and your team with it), the adoption of HR software – or, more formally, a Human Resource Management System – is a ‘game changer’ for any business looking to stay on top of its people function at the touch of a button.


 

So what does a HR system do and why do you need one? Put simply, HR software automates processes that might previously have been done manually, such as using spreadsheets to track annual leave. It helps you access and evaluate your employee data at the click of a mouse, making managing your teams much quicker and easier and giving you instant access to critical business intelligence.

 

Here are seven key benefits of adopting a HR system in your business:

 

1.     It saves time and makes you more efficient  

As we alluded to above, the most immediate benefit you’ll see from using a HR system is that it’ll save you time and make traditional HR tasks, such as payroll processing, attendance tracking, and HR administration, far less time-consuming than managing them manually. By automating these routine tasks, the system allows HR professionals to redirect their time and energy towards more strategic initiatives.


2.     It helps ensure compliance and data accuracy

An automated system reduces the risk of error that manual data entry can be prone to. By centralising information and reducing the need for manual data input, an HR system can ensure data accuracy, helping you to avoid compliance issues and potential legal and financial penalties. Programming your system enables you to keep track of legal and regulatory requirements, for example setting alerts and reminders for compliance deadlines, helps you stay one step ahead of your compliance obligations and identify potential issues early.


3.     It keeps your data secure

When dealing with people’s sensitive personal information on a daily basis, data security is paramount. Manual processes leave HR departments at a high risk of unintentional data breaches, whereas HR systems provide robust security measures including encryption and access controls/permissions. Ensuring that only authorised personnel have access to sensitive data, a HR system reduces the risk of data breaches and helps to ensure compliance with data protection regulations such as GDPR.


4.     It gives you better insights into management information

As your business continues to grow, staying on top of workforce trends and metrics becomes increasingly important – and increasingly difficult using manual processes. An HR system provides you with access to data and reports, this information can then be used for strategic decision-making and workforce planning based on clear evidence and data.


 5.     It improves your employee experience

Allowing your team access to a self-service portal can improve the employee experience for HR professionals, managers and their teams. Direct access to a system where employees can access and update their information, view payslips, request leave, and access personal and company documents reduces the dependency on managers and HR for routine enquiries and gives people more control over their personal information.


6.     It helps you focus on the ‘big stuff’

By reducing the administrative burden on managers and HR departments, an HR system allows you to focus on business growth and people strategy by providing tools for recruitment, performance appraisals, and training programs. Enabling a more strategic focus enhances the overall effectiveness of the HR department, supporting HR initiatives that are aligned with broader business objectives and help to drive growth.


7.     It grows with you

As your business grows, so your HR system is scalable, adapting to handle an increasing number of employees as well as more complex processes without overwhelming the HR function with administrative burden at times of faster growth. Many HR systems allow you to select and pay for only the functionalities you need, meaning that you can add new functions as your business grows.


If you’d like any advice on introducing a HR system to your business, Ambition HR is here to help. As your strategic HR partner, we work with you to align both business and HR objectives, developing bespoke people plans and helping you put these plans into action. If you feel like you’d benefit from an informal chat about your business needs and how a new HR system might benefit you, you can schedule a call online today.

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