Does my organisation need HR software?

From inefficiencies in your processes, to concerns about data security, here are six signs that it’s time for your organisation to invest in HR software

A growing organisation faces many changes to its processes and workflow. With the help of specialist HR software, you can streamline processes and improve efficiencies and employee engagement, but when is the right time to invest in specialist HR software? Here are Ciphr’s six signs that show it’s time for your organisation to turn to HR software.

Six signs your organisation needs HR software

1. There are inefficiencies in your existing processes

Would you like your processes to run faster and more smoothly? HR software can streamline and automate processes – from tracking absence rates, to allowing employees to update their personal details.

Once you input accurate data into your HR system, the processes that depend on that data will always be more accurately carried out by your software than by a human. Fewer mistakes also mean much less time spent rectifying those mistakes.

Are you looking to make hiring more efficient? Add an applicant tracking system (ATS) or eRecruitment tool to your HR tech stack, enabling you to quickly publish vacancies on many websites, job boards, agencies, and social media channels. Choose one that features onboarding functionality so new hires can complete any admin work before their first day, creating a smoother candidate experience. ATS recruitment software will also enable you to tailor application forms and processes to manage your talent pool and to find the best candidate for the job.

2. There are regular errors, delays, or rushes in paying your people

Paying people accurately and on time is always important. Integrated HR and payroll software stores all of your job and pay data in one system, meaning your HR, payroll, or finance teams will also have fewer payroll queries to resolve each time they complete a pay run, giving them more time to improve people performance and productivity.

3. You can’t meet demand for management information on key HR metrics

To make informed decisions for the organisation, senior leaders require accurate data they can rely on. Key HR metrics such as absence rates, cost per hire and turnover are essential when making decisions and planning for the future.

In a 2019 survey, 89% of respondents agreed that they could use HR metrics to plan the future of their workforce. If, however, HR teams are unable to track key HR metrics, the best decisions might not be made. With HR software, you can keep track of any HR metrics and use these for accurate reporting.

4. Your team spends a high proportion of its time on low-value admin work

How much time does your HR team spend on admin work? If you don’t already invest in HR software, then the answer could be a significant amount.

From filling in data, to transferring information between systems and file formats, low-value admin work can take up a large proportion of the day for HR teams. If this is the case in your organisation, HR software can free up a lot of your time by automating admin tasks.

Specialist HR software that links with other systems such as learning management systems (LMS), ATS, payroll software, and time and attendance solutions, can dramatically cut down on the data re-entry work your HR team is tasked with.

5. Data security concerns and breaches

With many of us working remotely or in a hybrid way, there is an increased risk of our personal data being hacked. Whether you’re working at home or on site, it’s likely that much of the sensitive data you’re handling needs to be stored securely.

If you’re operating without specialist HR software, it’s likely that you’re storing sensitive and confidential personal information in multiple unsecure locations such as email, databases (such as Microsoft Excel or Google Sheets), or even on paper in filing cabinets.

Having data in different locations creates the risk that it might be lost, stolen, or become corrupt, and that it is out of date and incorrect. HR software helps you bring all that important staff information into a single location, stored securely (both against cyberattacks and access by unauthorised users), and in a format that’s easy to keep  even when working remotely.

6. You’re a growing organisation with employees in different locations (and/or time zones)

In an organisation where employees are not only working remotely, but also working in different

Specialist HR software stores all of your documents and files in one place which can be accessed quickly and easily whenever  needed, without the need to directly contact HR.

This article was first published in October 2020. It was updated in June 2022 for freshness, clarity, and accuracy.