Challenges and Scopes of HRIS Software for Small Business

If we ask you about the core responsibilities of an HR team, what would be your answer? Taking care of employee information, making important decisions regarding payroll, bonuses, and providing data-driven insights for better decision making, right?

Do you notice that they need to handle a massive amount of data and utilize it to ensure a company’s better future?

Now, you tell me without an automated system like HRIS (Human Resource Information System) software, is it possible to utilize that amount of data and run the company seamlessly? Maybe, it’s possible, but it absorbs a lot of effort, time, money, and, eventually, makes a cliche company that would be shut down anytime.

To make your company stand out and utilize your HR team in the best possible way, provide them an HRIS software. And, to know everything about it, keep reading to the end!

The Role of HRIS Software in a Small Business

HRIS software for small business

A great company is like a well-oiled machine. All the various parts work together to keep it moving forward, fulfilling its function which, in the case of business, is making a profit. And since HR affects every other department in your business, HRIS software can help all the various parts of your company work better as well.

We can describe it more precisely as the following,

  • Productivity: HRIS software can automate a huge number of HR functions, most notably payroll and benefits administration.  By doing so, you free up your HR workers to focus on other issues like attracting new hires and employee training strategies.
  • Reduced Errors: Human error can result in serious complications both financial and legal. A misplaced decimal point could cause serious issues, but HR software reduces the amount of error to a bare minimum. 
  • Employee Satisfaction: HRIS software allows employees to navigate their benefit choices, review and update their information, easily request time off and receive approval, and learn about their company culture.
  • Data Security: Your important and confidential business and employee data will be encrypted and backed up on the cloud, protecting you from losing files due to fires, computer failures, or other catastrophic events.
  • Cost Saving: There are many ways in which an HRIS will help an organization cut costs. The time saved in HR, as well as the increased efficiency and productivity, can reduce labor costs.

Challenges to Implement an HRIS Software for Small Business

Challenges to Build an HRIS Software for Small Business

Building an HRIS software for small businesses is tough in some cases. As it determines how well you will be able to utilize the potential of the system. Here, we are going to discuss 5 challenges you will face during an HRIS software implementation stage.

  1. Configuration & Testing: Make your team aware of the configuration levels and customization needed for an HRIS system to perfectly fit with your organization. Consider your team’s workflows, processes, and challenges they are facing right now to get it customized the best way possible. Ensure that there is proper testing done to get ideal results.
  2. Data Security Risk: Security of the data shared with the system is very important as there are sensitive data involved. Credit card numbers, other financial information, and health details are also among the critical data managed by the HRIS system. Understand the risk involved in each process and ensure proper safety measures.
  3. Understanding of HRIS Goals: Prepare a clear guide of HRIS goals that align with your business. Make sure your HRIS software has been building in a way that is going to meet your company goal.
  4. Lack of Communication: It is usual that HR and IT speak different languages. Build a common channel for them or assign an expert to bridge them so that you can avoid missing tasks or poor cross-functional communication.
  5. Pricing: Putting the right budget at the right place is a key mantra for running a small business successfully. The implementation cost of HRIS software can be a burden for small businesses in some cases. So, think wisely before taking the final move.

Failing to ensure any of the points that we have discussed above can drag your company down. So, think twice before starting the implementation of an HRIS software for your small business.

Scopes of an HRIS Software for Small Business

Scopes of an HRIS Software for Small Business

You may think HRIS isn’t a perfect fit for a small team. But, you may have noticed that small HR departments become overwhelmed with piles of paperwork, which leads to data errors, delays in onboarding and training of new employees, and poor use of the HR team’s time.

You can completely get rid of these complications using an HRIS software. It can assist you in many ways like the following.

Easy Access to Data

With all the information recorded into the system, HR has the authority to get into those employee details directly and process them for further enhancement. As a result, it becomes easy to measure employee performance and overall growth through analytics-based insights.

Generally, most HR tasks depend on documentation which needs additional time and more heads. Such as employee attendance, benefits enrollment, health safety matters, sending confidential property, etc. Digital HR, however, can perform all these tasks within a few clicks only. It includes everything that involves the HR department on a single platform.

Moreover, you can minimize your workload for scheduling, attending time-sheet, or employee training by incorporating an AI into your HR system as well.

Effective Recruitment & Onboarding Process

Recruitment & Onboarding Process

Dealing with employee screening process and interviews may become too much for HR Managers and business owners. Thus, modern companies rely on automated systems or external job opening websites for such cases. But, are they reliable? Will they provide you the right candidates?

Yeah! Indeed, it gives you the capability of recruiting the right employees directly from your website for your company. You can set a group of tasks like the following through HRIS software to get your recruitment job done.  

  • Publish job openings
  • Receive applications
  • Take personalized online exams
  • Review and rate applicants
  • Simplify the hiring pipeline and process
  • Move applicant from one stage to another instantly
  • Schedule interviews
  • Send notifications
  • Hire applicants and transfer their data to your ERP System

It also trains the new employees and helps them to learn about your company culture.

Leave Management

Leave management system

One of the biggest challenges small business owners face is managing their hourly paid employees. This gets tougher if a small business owner does not employ an automatic leave management solution to sort out. Especially, the tough things arise due to manual interventions.

For example, a great number of business owners still prepare timesheets by hand which requires a huge amount of time. Another example is they abruptly change work shifts via text message or mail every now and then which needs to be notified to the employees in time and then these changed shifts should be adjusted on the timesheets properly.

To get out of this hassle, HRIS software offers an advanced leave management system so that you can deal multiple employee’s leave request with a single click.

Rich Email Template

When you are operating a small company, then nothing but email marketing can help you more. As you know, email marketing has the highest ROI possibility with minimal efforts. And, as a small company, you need to grab that opportunity.

Here are a few important reasons you need email marketing for your business:

  1. Personal touch
  2. Get returning visitors
  3. Manage sales funnel like a pro
  4. Be more trustworthy
  5. Make more money

To run an email marketing campaign and ensure the reply from your recipient email template is must. A well suited HRIS software can provide you numbers of rich email templates for you.

Payroll Management

Payroll user guide

For a long period of time, it was a hassle to maintain employee salaries manually. There weren’t too many reliable Payroll solutions out there. Spreadsheets and papers were the only solutions to track and manage the company’s payroll system. But now things have changed in the WordPress era.

HRIS payroll offers you a variety numbers of benefits to handle your employee salary management.

  • Manage complete employee salaries in an automated way.
  • Get a bird’s eye overview of the payroll system from the dashboard.
  • Setup bank and tax details for every employee
  • Create dynamic pay calendars
  • Choose specific payment methods for your employees
  • Define employee remuneration and other fixed payments (allowance or deduction)
  • Generate detailed payroll reports
  • Create, print, and email individual employee salary invoices

Seems it can save your time in a large margin and makes complicated things easy for you.

Better Decision Making

As well as providing easy access to all the employee information and data you collect, HRIS software can be used to track ongoing performance data and much more. You can then measure and compare all this information to go beyond basic metrics like retention rate.

These data-driven insights can help you make better decisions, from budget allocation to delivering a better work experience based on what your employees want. This ultimately means helping your employees and your business become more productive to help achieve goals.

Bonus: Choose a Top-Notch HRIS Software to Manage Your Team

HRIS software to manage your team

Any Human resource professional can fully utilize the HRIS platform for facilitating their workflow, improving their work efficiency, and also storing and collecting their information. There are several companies today that offer HRIS packages to their employers.

So, why won’t you offer HRIS software for your company?

But choosing the best fit according to your company requirements can make you confused as a lot of options are available out there. To rescue you, here, we are going to recommend you an HRIS software that can be a perfect choice for a small team that consists of less or more 50 members.

You may have heard the name of WP ERP HR software. This is a full-fledged open-source HRIS software.

It helps to store and access all the employee information. This includes their database, performance, payroll, attendance, leave. Overall an HRM module makes the employee management easy as pie.

It also lets you create different departments and levels for employees so that you can control which employees can access which information from their dashboard.

HR will also be able to share important announcements, send emails right from the dashboard. Now, take a quick look at its feature list.

  • Complete HR management system
  • Manage employee information
  • Monitor the life-cycle of the employees
  • Employee evaluation made-easy
  • Send or add private notes
  • Smart leave management system
  • Scheduling and announcement management
  • Rich email templates
  • Highly effective HR reports and analytics

WP ERP HR software lets you doing everything described above electronically and seamlessly; sometimes even at the touch of a button.

Wrapping up the HRIS Software for Small Business

Use an HRIS Software for Small Business

To conclude, it is pivotal to have a strong HRIS for your business as it takes the company goals, objectives, mission, and values in a more serious tone and properly invests in its future and success.

As the system remains flexible in nature, it becomes easy to customize any HRIS to meet the unique needs of a company.

So, use an HRIS software for your company and let us know your feedback through the comment box below. Your real-time experience sharing will help other users’ to avoid mistakes.

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