5 Benefits of HR Management Systems

Unsure if investing in an HR management system is the right move for your business? We’re here to help you make up your mind!

Many organisations think twice about getting an HR and payroll management system due to the added expense, which can be heavy for small businesses and start-ups. It comes with a wide range of benefits that make up for its huge price tag, though. 

Read on to find out how an HR and payroll management system can make businesses more efficient, solve internal problems, and ultimately pay for themselves.

1. Puts data at a glance

With an HR and payroll management system, everything you need to know is accessible in a single database. It allows you to collect and access company data anytime and anywhere as long as there's a stable Internet connection. 

There’s no need to connect to the company network too, so you can use it even when you’re not in the office. Some HR management systems even have their own mobile applications.

These are why HR systems are strongly recommended for companies with multiple locations and offshore employees as well, not just start-ups. 

Since it puts data at your fingertips, it will be easier and faster to make crucial company decisions. 

2. Saves time and improves productivity

From recruitment to leave management to payroll to other admin tasks, HR managers are constantly swamped with paperwork. 

Unless you work in HR, you don’t know how stressful it is to keep track of company data and employee information when you’re doing it all manually. 

With an automated HR system, you’re giving your HR managers time to breathe and time to focus on more important tasks as it reduces the time and effort to complete everyday tasks. 

Tasks like approving holidays, tracking absences, managing payroll, and processing benefits, among others, become more seamless and accurate.

3. Improves employee development

There’s no doubt that employee development is crucial to the long-term success of any type of business. Without a satisfied and engaged workforce, it will be difficult for an organisation to thrive. 

HR and payroll management systems help with workforce development by keeping track of each employee’s performance and points for improvement. No need to use pen and paper to record information about every employee.

By automating HR systems, it becomes easier to give accurate year-end feedback and conduct regular appraisals. Those who have been consistently working hard get their due!

It results in boosted employee morale because everyone feels appreciated and engaged. It gives them an objective to work for as well. 

When your workforce is satisfied, the less likely resignation letters will end up on your table. 

4. Safer data management

It may sound old school, but some businesses opt to store sensitive company files in physical folders and cabinets.

But it doesn’t mean these files are safe forever. What’s going to happen if there's a sudden fire or flooding?

One of the best benefits of an HR and payroll management system is protection from manmade calamities and, to some extent, online hackers. 

HR software typically uses cloud-based storage and file-sharing platforms that make it possible to access company files anytime and anywhere while protecting them from unauthorised access. 

Some even come with weekly vulnerability scans to catch potential data leaks before they even happen. 

5. Improves regulatory compliance

Did you know there are potentially hundreds of rules and regulations that HR managers need to remember and comply with?

As an HR professional, it’s impossible to follow and monitor all these regulations on a daily basis, especially if you’re not an expert on law.

Another outstanding feature of HR management systems is the automated compliance process that makes it easier for HR staff anywhere to know and fulfil these obligations. 

Since businesses handle employee and customer data, you’re likely obligated to follow data security and data retention regulations. Fortunately, most HR and payroll management systems can guide you through these. 

You’ll find that automating your HR processes will save you from potential corporate fines and the stress of dealing with a pile of paperwork.