Who Needs HR Software and When?
Most business owners at some point realize that their company won’t thrive and operate smoothly without proper and reliable HR software. Still, they may be unsure at what stage of the business development HR software becomes indispensable. Besides, investing in new software may turn out to be a burden for a business, if not aligned wisely with the company’s current needs and financial capabilities.
In contrast, implementing HR tools too late can also lead to unpleasant consequences, such as missed opportunities and ending up a loser among your competitors.
So let’s see which HR tools will indeed be useful at different levels of your company’s lifecycle and help your business grow. Below are some tips on how to identify the right tool for your current business needs.
For startups
Personnel Tracking
While your company is growing, keeping track of all employees’ information is crucial. Spreadsheets might be acceptable if you have less than 10 staff members. Nevertheless, even with that number, manual filling out is burdensome, ineffective and insecure.
That’s why personnel tracking as a part of an HR software solution is essential. With this tool, you can easily obtain the information you need and upload necessary documents, such as CVs, certificates, etc. More importantly, the software will keep all the information in a secure database. Therefore, personnel tracking is highly recommended, even if you’re just starting out.
Time-off Management
Have you defined the rules for your employees in terms of sick leaves, vacation plans or leaves without pay? Whether you responded positively or not, these rules have to be embedded in your HR solution software.
For example, Brainy HR provides a wide range of settings for time-off policies. You can set up a certain number of hours for an employee from any office or department, while employees can observe their vacation plans and absent days. This information helps calculate wages more accurately and faster as well.
It’s better to start using time-off management tools as early as possible, so you or your HR manager won’t track attendance, vacation and medical leaves manually.
For medium-sized businesses
Performance Management
Measuring the performance of your employees is hardly achievable without proper software. Brainy HR allows setting individual goals, collecting feedback from employees and the department’s manager. You can also measure KPIs and estimate workers’ personal values in comparison with the company’s ones. Tracking performance will not only improve productivity and strengthen motivation but also boost your profit in the long run.
Most companies prefer using performance reviews during growing stages with 500+ employees. However, if you feel that it’s time to stimulate workers and estimate their performance, there’s no wrong time for doing that. Just don’t forget to assess if the investment is relevant for now.
In need of optimization
On/offboarding
New hires and fired workers leave behind some routine work to be done. Onboarding tools help newbies sooner dive into the job, avoiding manual paperwork. For instance, you can easily assign tasks regarding employment to certain staff members, so they can define a workspace, grant access to the system and so on. The same applies when termination of employment happens.
The more employees you hire, the higher the labor turnover rate is. That’s why, if the hiring/firing routine is not optimized in your current HR manual or digital system, try HR software solutions when you have more than 500 employees.
Compensation and reward management
To pay the right amount for every employee, you need to be aware of multiple variables. For instance, years of experience, the quality of performance, KPIs, wages for positions in the local market. Additionally, you have to consider the company’s revenue, salary range and so on. Compensation management software will easily take into consideration all the variables and determine the appropriate rate.
The software can also be perfectly aligned with tools for rewarding the best workers. If the desired performance is achieved or the necessary amount of work is done, the system suggests bonus payouts. It’s up to you whether payouts are additional days off, higher salaries, online courses or something else.
As you may guess, these tools are nice to have, but are not necessary. However, compensation transparency was always a hard issue, so by having this kind of software you provide your company with a protected reputation.
Bottom line
Now you’re aware of the opportunities for improved HR operations at your level. The next step is to determine goals you want to achieve with HR software. Thus, you’ll easily choose the right one. Good luck!
