Top benefits of HR software for small businesses

Here, we take a look at how small businesses can take advantage of HR software and how it can help you manage your staff.

HR software makes managing people simple by streamlining admins tasks such as requesting and approving holiday. This allows you or any HR staff within your business to spend less time wading through spreadsheets.

People are the most important part of any business, so this can be a vital tool for any organisation.

In this guide we’ll explore the main benefits of using HR software, and why it might be right for your small business.

See also: HR for start-ups – how to get it right

Read on or skip to a relevant section below:

  • Saving money
  • Improved efficiency
  • Better security
  • Better decision making
  • Improved regulatory compliance

Improved efficiency

Saving time is the number one benefit of using HR software. By outsourcing tasks that would normally take a significant amount of your time to an automated system you can dedicate yourself more to the things that matter.

Making HR a single-sign-on solution, means you can have everything in one place. This works whether you’re a sole trader or employ multiple people, as any HR manager you hire will be able to streamline the work they do too, and anyone accessing the platform will find it quick and simple to use.

Also see: Five trends in HR to be aware of – What you should know

Saving money

Saving money is of course a big priority for any business, and HR software is another good opportunity to do so. While HR software often asks for either a one-off or subscription fee, this can pale in comparison to having to hire a dedicated HR manager, which for a smaller business with lower revenue can be a life saver.

Better security

Keeping your employees’ data secure is a huge part of your responsibility as an employer. Many SMEs still log data physically due to concerns about security when storing it online, but by using the cloud, software-based HR systems are more secure than ever.

With the data stored in the cloud, you’ll be able to access it from any computer or other online device and you won’t have to worry about physical documents being destroyed in the case of flood or fire. You’ll also be able to cut down on storage space – ideal if you’re working in a home office. Plus, as a paperless office, your green credentials will be secured.

Better decision making

HR software overwhelmingly offers built-in analytics and reporting tools, making employee development more seamless. Using this type of software, you’ll get visualised data about your employees at the press of a button.

Keeping track of development in this way makes it easier for your employees to see a tangible benefit, as you can log performance reviews, schedule training courses and track objectives and qualifications.

Improved regulatory compliance

GDPR rules require you to manage and store your data in a compliant manner; with HR software, this is much easier. That’s because all your employee data and information will be stored in one place, and you’ll get an automatic reminder if you need to take action to become more compliant.

As well as GDPR compliance, this can also help with logging other forms of checks, including right-to-work and health and safety training.

Further reading on HR software

Owen Gough, SmallBusiness UK

Owen Gough

Owen was a reporter for Bonhill Group plc writing across the and titles before moving on to be a Digital Technology reporter for the

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Small Business HR

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