The Benefits of Human Resources (HR) Software

The era of paper-dependent HR is over. Advances in technology have rapidly increased the popularity of cloud-based, software-led solutions. The arrival of Human Resources (HR) software means it has never been easier for businesses to manage their employees.

HR software is now considered a basic requirement for the collection of data for human management, including recruitment, training, policy compliance and attendance, as well as benefits and onboarding.

Perhaps the biggest benefit HR software offers is the amount of time and money it can save on labour-intensive administration tasks. Streamlining these processes will free up time for employees to focus on more important challenges in the workplace and become more efficient and productive as a result.

Human Resources in the Digital Age

The concept of maximising business value through workforce strategies – in essence, HR – is nothing new.

Changes and developments in Human Resources have continued to take place following the growth of the internet in the 1990s. It resulted in a seismic jump from client-server, locally installed technology to web and cloud applications that could be accessed remotely by anyone, from anywhere.

This meant both managers and employees could access a variety of key HR operating functions such as holiday and absence management and business developments which, in turn, led to a shared vision of achieving success.

One of the biggest attractions of HR software is the way it is used to build a happy workplace, drive productivity forward and reduce company costs in areas like recruitment.

The Benefits of HR Software

Human Resources software is designed to facilitate the management and storage of employee data by automating manual tasks and reducing labour time.

Everyday work processes including budget setting, decision making and future planning all benefit from the presence of HR software in the workplace. Take recruitment, for example. By monitoring attendance data using HR software, it is possible to identify staffing pinch-points and the number of employees required to perform certain tasks at different times of the year, allowing you to see where you may have employee gaps. This helps you plan for future hiring needs.

HR software can also cut costs in other areas of a business. It is more sustainable as it can help minimise the use of paper, ink and desk supplies that were once the ‘norm’ in an office administration environment.

1. Reduces manual processing time

Gone are the days of manual processing and paper trails. Cloud-based HR software collates all the information you need to do your job into one secure location.

You and your team can reduce the amount of time spent on one task and focus on the priorities at hand: growing and nurturing your employees (and employees to be).

In fact, in 2020, according to the Sierra-Cedar HR Systems Survey, nearly 80% of organisations are using HR software to “facilitate information gathering or add process efficiencies.” Essentially, software has made HR more efficient on tasks that don’t necessarily need human input, meaning that jobs that can’t be replaced by software have more time against them.

2. Makes timekeeping and attendance easily trackable

Key factors of the modern workplace including work scheduling, absence management and time tracking can all be monitored using HR software. Businesses need to keep track of staff attendance and timekeeping in order to operate efficiently. This is where HR software can offer vital assistance and greatly reduce labour costs.

Whether it’s through shift and rota management or timesheets, having all this information in one software that can then be synced with payroll software reduces the need for manual paper processing and saves time for both employers and employees.

As there’s no paper trail to follow, and less manual processing to upload, both managers and team members have access to second-level reporting and tracking for their tasks, ensuring maximum efficiency.

3. Secures personal data

A business or corporation needs to keep a ‘profile’ of its employees for a variety of reasons. Using HR software to store information about personnel has become standard practice in most industries.

With HR software, it is possible to build an employee database containing details on past and present salaries, employment status, availability, job anniversaries, annual reviews, staff feedback and more.

When compared to paper files, where information can easily be lost, misplaced or even stolen, data stored in a secure online database is more compliant and transparent. As there’s less reliance on paper, this also helps to improve business continuity.

4. Enables staff training and development

Providing employees with suitable training that enables them to fulfil a job specification is essential in the workplace. Using HR software is a simple way to monitor staff development and ensure their training needs are being met.

Functions such as assessment tools can be hugely beneficial, while eLearning management, certification management, gamification and goal setting are other useful functions that can generate constructive feedback.

Employees want to be able to develop in their job roles, their knowledge and their professional skills. There’s a variety of ways you can encourage development, and good HR software should enable employees to both log what their development wants are, as well as complete training modules.

Employees can develop in a variety of ways, such as boosting their professional skills by undertaking skills-based modules on new software or by going to conferences in their area of expertise. HR software can not only enable a record of the training undertaken but also allow for requests for additional training and skill gap identification with ease.

5. Speeds up recruitment

Sifting through printed CVs in response to a job advert can take up valuable time and doesn’t always produce the desired results. HR software uses algorithms to speed up the process so that all data is stored in a safe yet easily accessible place.

HR software makes it simple to keep track of job adverts, candidate applications, interview arrangements, onboarding processes and more. For growing or remote companies, having one source of information is a huge time saver, and reduces the risk of the wrong message being sent.

6. Enable remote onboarding

For remote employees, being able to onboard without needing to travel is often preferred. Good HR software should allow for remote onboarding without worry.

With HR software, you can provide detailed schedules and timescales of an employee’s onboarding, and balance video conferences with time to read and process. You can also give an employee access to all the core information they’d need in their first few months at the click of a button.

7. Boost staff retention

With an ongoing trend of poor staff retention, HR staff must be doing everything they can to boost employee well-being and aid retention. No longer are token gestures acceptable, employees want to see a change in areas of well-being, communication and value-led decision-making.

HR software enables you to see where employees are wanting to see change and be able to poll and communicate with them to help make business decisions.

What are the different types of HR software?

HR software often includes the following elements:

• Human Resource Information Systems (the technology involved)
• Human Resource Management Systems (managing HR data)
• Human Capital Management Software (recruitment, onboarding and development of staff)
• Applicant Tracking Systems (algorithm-based recruitment process)
• Payroll Systems (the management of paying employees for work undertaken)

Cloud-based vs on-site HR software

Most HR software today is cloud-based so that data can be quickly found on laptops and devices connected to the internet.

Using cloud-based HR software provides greater flexibility and is particularly beneficial to mobile workforces. It also allows employees to view, access and even edit their personal data when a self-service function is available.

Alternatively, HR software can be installed on-site on individual computers within a smaller network. This offers reduced flexibility and is becoming a lesser-used option with the introduction of cloud-based software. With traditional on-site software, updates are often costly to do, and can risk data being lost.

Key factors to consider before purchasing HR software

1. Search the market – visit software review websites that compare products on the market before drawing up a shortlist.
2. A good match – is the software compatible with the company and will its tools meet strict requirements?
3. Demos – demonstration videos provide vital detail and information about HR software products.
4. Additional value – try and determine exactly how much value HR software can add to a business. Maximise the benefits as price changes could occur during system implementation.
5. Read the small print – ensure a software licensing agreement is thoroughly examined and fully understood before signing a contract.
6. Set a budget – the cost of buying HR software may be insignificant for large businesses. However, small businesses should ensure they are receiving good value for money and the right tools for the right price.

How Staffology HR helps you

Staffology is a leader in UK cloud-based Human Resources and payroll software. We provide a wide range of services and applications to suit any business of any size.

Get a demo of our HR software today, and discover how we can help superpower your HR.