Tuesday, 17 November 2015

HR Software - How to Improve Efficiency in Your Human Resources Department

Although human resources departments are vital to the successful running of any company, the complexity of HR management is responsible for the fact that the whole process is a very labour intensive and expensive one. It takes a lot of employees and employee hours to run and maintain an efficient employee management system. There is the management of absences and holidays, rewards and benefits, expenses and of course the exceptionally complex and time consuming payroll management to name just a few of the processes that need to be handled by the HR office. It is an unfortunate fact that when dealing with complex processes like these, mistakes are almost inevitable and can also be expensive and even more time consuming to locate and remedy, usually any errors that creep in do affect a member of staff adversely so the whole human resource processes are often seen as a burden. There is a corporate saying that goes something like, there are no problems, only opportunities, and human resources is not exempt to this point of view.

Most businesses start their journey with HR and payroll being done manually, either by the business owner or someone with an administrative function within the company which is not ideal or the best use of peoples time and skills. As the organisation grows then often someone is employed to manage the HR functions and payroll management until the company gets to the position outlined earlier where the whole process becomes over expensive and inefficient. This is when they start to look for opportunities to improve things and usually they see HR software as the way to move forward. Human resources software comes in all shapes and sizes with small single function applications suitable for all but the smallest business up to and including full Enterprise Resource Planning (ERP) tools designed for enterprise level businesses with possibly thousands of employees.

Human resources management systems aimed at the small business only is usually locally installed on computers within the company and typically manage only a few employees and will likely only cover a few functions like payroll and expenses with the additional processes still being handled manually. While this kind of setup will work for small businesses it still presents a problem to them that it is not really a scalable solution that can grow with the company, in fact most of the workload actually still exists and the reporting tools in such applications are minimal at best. What medium sized companies really need is the capability of a full ERP software solution without the expense of such an application, or perhaps a solution that is suitable for them now but that can grow as the company grows. These applications do exist and with the growth of software as a service (SaaS) and cloud computing they are available to all sizes of organisations, now smaller business can have access to the exact tools the big players are using and literally pay only for what they use.

This arrangement can bring huge benefits to an organisation, the management reporting tools alone can provide clear indications to companies on how to plan for future success, however immediate benefits are seen initially by HR staff who now find themselves able to actively participate in planning and providing an efficient and accurate service to employees and management alike. Never again are workers overlooked for positions because their training has been incorrectly recorded allowing the company to make the best possible use of the staff resources it has and to plan for future recruitment. All the information being available from one application means that all cross referencing is done automatically and nothing gets missed, saving the company cold hard cash which can make the difference between success and failure in these uncertain economic times.

Employee performance and monitoring also means that should a particular post show as being inefficient the employer can be pro active in ensuring the post holder has adequate skills and training to carry out the job and if not ensure they get the training required, these are things that boost employee morale and confidence and shows in productivity and helps to ensure that everyone is pulling in the same direction which is critical to the success of any company. Parts of these HR software products are self service where staff themselves update their records and have access to various elements ensuring correctness and lets them know that promotion opportunities that match their skill set will not pass them by.

A fully integrated HR software application will also take care of payroll, cutting the costs of this critical business process immensely, payroll bureau costs become a thing of the past as the company becomes large enough to handle it on their own. Time and attendance, reward management and management reporting all combine to make any business more efficient and cost effective which translated to increased profitability and a greater chance of success in an uncertain economic climate. Human resource staff can become far more productive and valuable to the business when they are no longer bogged down with the complexities of the process management which means they are happier and much more able to help the company move forward and assist all employees become more productive and happier in their day to day function, and you thought it was just HR software!

HR Software is a subject that scares some small business owners but it really does not need to be. Now there are services available to medium sized businesses that were once the preserve of only the big corporations thanks to pay as you use type software.

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