Why do companies need HRM software

Why small and medium-sized businesses need HR software

Around 70 percent of small and medium-sized enterprises (SMEs) do not employ their own HR manager for important HR issues. In ten percent of these companies, the specific responsibilities are assumed by the respective CEO in addition to his actual responsibilities. In over 50 percent of the companies, the owner takes care of the recording of working hours, payroll, employee training, recruiting, vacation planning and other HR-related topics. This was the result of a large-scale study by ADP on the subject of ad-hoc HR management *. There can therefore be no question of a systematic or even efficient implementation of HR-relevant activities. Rather, the tasks are done on the side when there is time. In addition, around 82 percent of those responsible for HR have no experience in the field. After all, 23 percent of all managers believe that they are using the right IT solution for their work and that they are supported by well-designed software. In return, this means that 77% of those responsible believe that they are insufficiently supported. These numbers are revealing - and they show how important good HR software can be for small and medium-sized businesses! But what can you, as an HR manager, do if this scenario sounds familiar to you and if you want to optimize and digitize your area?

These are the HR tasks that create the greatest discomfort

These are figures that should worry any manager responsible for HR issues: around ten percent of employees in SMEs who are entrusted with personnel activities in the broadest sense actually enjoy their work. After all, 35 percent would dare to deal in detail with HR activities because they are interested in and enjoy them. Nevertheless, 22 percent of those in charge claim that their job satisfaction has decreased significantly since they started dealing with HR issues. If you look at the tasks that most often cause discomfort, certain connections become clear. Almost 80 percent of those responsible are afraid of legal changes that they cannot implement as required in day-to-day operations. 60 percent of the respondents shy away from dealing with the performance of their employees. As a rule, one feels even more uncomfortable when an employee resigns. Another 60 percent find themselves in a difficult position to correctly implement the laws and occupational safety regulations currently in force. Almost as many respondents find the constructive resolution of conflicts between superiors and employees or between employees among themselves unpleasant and difficult. Only 50 percent claim to have their workforce through regular
To keep trainings and further education up to date and to invest specifically in the important capital "employees".

HR activities cost valuable working time 

If the most important and most frequent HR tasks are assessed using business figures, HR managers spend around 20 percent of their working time on activities that are unpleasant for them, that do not bring them any added value, that they consider themselves to be insufficiently trained for and that they face are afraid because they do not know whether they are doing them adequately. Each company accounts for around 700 working hours each year on these activities, which cause discomfort for everyone involved - and which can be easily optimized and digitized with a manageable effort. Good HR software helps you to make HR processes more efficient in order to save costs in the end. But how does such HR software support you and your employees in terms of HR?

Good HR software provides support here 

The main goal of HR software for SMEs is to optimize the majority of administrative tasks and, if possible, to automate them. In most companies, dealing with HR issues makes up around 40 percent of the working time of those responsible. If the processes are optimized, the time gained is available to the employees for their actual tasks and can be used profitably. Closely related to optimizing these activities is the cost savings that result from the reduced consumption of work equipment such as paper or working time. From a legal point of view, the services that HR software provides for data backup and data up-to-dateness should not be underestimated. Functions such as integrated employee self-service or a digital personnel file give employees the opportunity to take care of their personal data. This ensures that your data is always up to date. Above all, however, the clear distribution of roles and the personal responsibility of the employees help to comply with the GDPR guidelines. In addition, there is increased transparency in the area of ​​vacation planning, time recording and payroll accounting. In many SMEs it is still common today to plan vacation days and record absence times manually. Special features relating to payroll such as advance payments or advances are also recorded by hand and processed later. The error rate of these manual processes is immensely high, the follow-up costs can hardly be quantified. Functional personnel software makes it easier to switch from manually managed Excel tables or similar digital documents to paper form, which are confusing and prone to errors.

This is how SMEs benefit from HR software

Digital HR processes give you the opportunity to enormously improve communication between the HR department and your employees. They increase the transparency of all processes and reduce the likelihood of errors. Once the digital processes have been introduced and established in the company, you will achieve significant savings in time and costs by optimizing the processes. Employees who previously had to carry out all essential HR tasks on the side and with a certain degree of discomfort will be able to carry out their responsibilities with system support. This gives you greater confidence in dealing with the relevant HR tasks, which ultimately leads to the topic complex being carried out with more joy and enthusiasm. However, digitized support in all HR topics is not only essential for the individual employee and for the exchange between the HR department and the workforce. It is advantageous for SMEs because it makes it possible to react faster and more effectively to legal changes that can affect the company at any time with little advance notice. Those who keep their HR processes up to date with clever and well thought-out digitization are well prepared for legal changes and have the good feeling of being able to react quickly.

* Source ADP study: https://goo.gl/QtK6Z4