5 Benefits of HRMS Software to Small Business

If you’re running a small business, you may not immediately see the benefits of HRMS software but you may be surprised at the advantages a reasonably-priced system may bring to the smooth running of your operation.

When asked, many small business owners shy away from HR IT. They assume that the cost will be excessive. They believe a simple spreadsheet will do as well for their small number of employees. Smaller companies often take an ad hoc approach to HR, just dealing with issues and problems as they arise. What’s more, the recessionary economy of the last few years discourages ‘unnecessary’ investments. Finally, there can be a “We’ve been fine without one so far” attitude. However, with the proliferation of cloud HR systems now on the market, HRMS for small business is becoming a viable option, with a multitude of cost-effective pay-as-you-go options that offer a number of benefits.

Advice and Guidance

When you set up and run your small business, the chances are that everything rests on your shoulders – supply chain management, production, marketing, sales, and so on. When you begin hiring staff, it can be an extra burden to have to become an HR expert too. Good HRMS for small business will have *built-in systems, procedures and prompts that keep your people processes efficient and legally-compliant. You don’t have to worry about what to do when faced with a grievance or a disciplinary situation, the system will tell you. Furthermore, an up to date, properly implemented HRMS will ensure your business is in line with legislative requirements such as submitting real time tax information or auto-enrolment of employees in pension schemes.

Secure Data and Easy Access

With HR in the cloud, you don’t need to invest in serious hardware (often the biggest expense for on-premises systems), you just need an internet connection to reap the security and ease of access benefits of HRMS. Data security becomes the contractual obligation of your HRMS supplier and you (and your people) now have the opportunity to access it anytime, anywhere using the internet-enabled device of your choice. Off-site data storage may actually make more sense from a security point of view; keeping everything in your own office is putting all your eggs in a single basket.

Improved Competitiveness

As the whole world climbs slowly out of the economic crisis of the last few years, survival strategies are superseded by growth strategies. One of the keys to growth is your workforce and the efficiency of that workforce is enhanced by having proactive people policies and procedures in place; rather than just engaging in HR fire fighting. HRMS for small business also offers access to your people data via HRMS analytics and reporting and when used wisely, that information can provide new perspective on key business decisions regarding growth, expansion, diversification and so on.

Finally, investing in the potential benefits of HRMS is a tangible signal to your people that you’re taking their employment seriously; that you are committed to meeting your obligations as an employer; that you are focused on internal issues as well as external. In terms of employee engagement and ‘going the extra mile’, when your people see the business cares about them, they’re much more likely to care about the business.

author image
Dave Foxall

About the author…

Dave has worked as HR Manager for the Ministry of Justice for a number of years, he now writes on a broad range of topics including jazz music, and, of course, the HRMS software market.

author image
Dave Foxall