7 Great Benefits of Investing In HR Software

the best hr software of 2018 qhsb - 7 Great Benefits of Investing In HR Software

In the past, when HR departments and personnel wanted digitised records of employees, the only option open to them was an on-site HR system that only a few people, HR admin staff members, had access to. Today though, things are lot easier and there are HR software for small businesses that exist in the cloud and that can be easily accessed by employees through their internet connection. This has considerably reduced the the obstructions in the way of adoption.

Interestingly, there are still a lot of businesses that manage their employees using a rudimental and fairly disorganised array of post-notes, documents and spreadsheets. With all of the above in mind then, given that you have two options open to you – go alone and do it the old fashioned way or invest in one of the modern cloud-based platforms. Why should you go with the latter though? We discuss 7 of the major benefits of using HR software below.

Administration Efficiency

If your workforce consists of more than a dozen or so people, it can be something of a nightmare trying to keep track of the most basic information about employees – specifically if you are relying on a paper-based, offline system. Very uncomplicated questions like ‘Can you give me a copy of the last three payslips I’ve received?’ and ‘How many of my allowed holidays have I actually taken so far?’ transform into issues that take up a lot of your time and effort. This is why many companies opt for HR software that lays all this information out in easy to use modules and areas.

Lowers Costs

Along with the not so tangible costs of productivity or efficiency, a good quality HR software platform will help lower your day to day expenditure. On average, there usually is at least one professional HR staff member to every 100 employees. When you implement some of the HR software solutions available at the moment, the ratio is increased to 1 professional HR individual for every 140 employees. This means that if your business employed 280 members of staff, you would need one less professional HR individual to manage the company’s employee data, meaning that you can reduce your outgoings by tens of thousands every year.

Information Access

Silos of information is what you essentially create when you rely too heavily on just documents and spreadsheets for keeping track of information about your employees. Although you have to pay close attention to the security and sensitivity of the data about your employees that you hold, when you make it accessible to specific people using a high quality, well-designed HR software platform, you give people the chance to make better use of the data held about your employees.

Informed Decisions and Data Analysis

When you start collecting data, it can help you to make better, more informed decisions as it opens up opportunities for analysis. Say for instance, you discover a department in your company has a much higher turnover rate of employees than other departments, you will obviously be intrigued as to why that was happening. Were all the leavers working at the same time under the same supervisor or line manager? Who was the individual in question? Could they benefit from a training session or two? Who are the top salespeople for your company and what are the characteristics that contribute to their success? Did they all start working for you at the same time and did they come from the same recruitment agency? Did they all work under the same supervisor or boss? Have they all went to the same training course?

When you collect data, the information can be used to help you make better decisions.

Communication Improvements

Directories of employees, often past and present, are included in the majority of HR software platforms. Although most employees work in the same teams with the same people and form close ties to them and are privy their contact details, there will be times when they need the guidance and advice from employees in other departments. If the information about contact details is only stored in an off-line filing cabinet which can  sow down your work quite a lot.

Mitigating Risk

When any kind of legal dispute is issued, how are you going to prove that a particular employee had the relevant training for using a specific piece of equipment or fully aware of the new policies? While many will use email, and this is a perfectly acceptable form of communication, for this kind of matter, an employee could easily just say they didn’t see the email.Interestingly, most modern HR platforms feature a facility for reading and accepting messages that can provide proof that not only was a specific employee sent a message, but that they also had read and therefore, accepted the the terms and contents of the message.

Disaster Recovery and Security

How secure is the personal data about your employees that you keep on record if it is held in a filing cabinet with a simple lock? Although the lock might show evidence of tampering if it was broken, what if someone had access to a key and gained unauthorised access to the information – how would you know?

Security is just one side of things though, because what if there was an accident like flooding or a fire and you are not able to get into the office for some time? Are your staff still going to receive their pay even if all the information pertaining to payroll is stored in a filing cabinet in the office? Most modern HR software solutions feature some kind of disaster recovery element and capabilities. This could be in the form of the HR platform being hosted by mirrored servers and keeping the backups of the database in different, secure locations so that the whole system can be put back in place in virtually no time at all, regardless of how bad the disaster is or was.


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