Five benefits of using HR software
3 minute read
Whether you’re a small business or a multi-national company, nearly every organisation will benefit from using a specialist HR system. Here are our top five ways HR software could help you
There will almost inevitably come a point during an organisation’s growth that it can no longer successfully manage people-related data and processes without using specialist HR software. The vast majority of HR systems enable organisations to carry out similar tasks related to the attraction, retention and management of their staff and HR data, but with a varying degree of sophistication.
A relatively small charity of 200 staff, for example, will have a significantly different list of requirements compared to a global company of 10,000 employees. Whether you’re looking to invest in your first specialist HR system or upgrade your existing software to something more sophisticated, here are five top benefits of using HR software.
What are the benefits of HR software?
1. It’ll improve the efficiency of your HR team
One of the most immediate benefits of using specialist HR software – once you’ve completed the implementation and launch phase – is an improvement in the efficiency of your HR team. Repetitive, admin-intensive tasks such as chasing managers to complete probations or annual performance reviews can be automated, and others – such as approving holiday or managing absence – can be delegated to managers and employees through self-service functionality.
2. It’ll improve your digital employee experience
Rapid advancements in consumer technology means workers expect even more from the digital devices and services their employers provide. If you’re used to using your mobile for everything from booking an Uber to order a new outfit, you’d expect to be able to do the same for booking holiday or viewing your benefits – and certainly not have to send a form to HR, for example.
User-friendly, well-designed self-service HR software can help to transform your employee experience, and their perception of your HR department – from regarding it as an outdated or ‘behind-the-times’ function to seeing it as one that is forward-thinking, and a strategically relevant enabler of good work.
Choosing to integrate your HR software with other applications – such as learning management systems, expense management systems, and time and attendance systems – and enabling single-sign on, will help take your users’ experience to the next level.
3. It’ll save you money – or enable you to redeploy staff on other projects
Implementing HR software will of course involve one-off setup fees and, if using a cloud HR software, annual subscription costs. But, in the medium and long-term, your organisation should find that the efficiencies the HR system brings and time it saves will either allow you to reduce staffing costs or allow you to redeploy your HR team on more strategic projects. Better data accuracy should mean you experience fewer costly errors, too. For more information on cost savings, see our article on HR software pricing.
4. It’ll help you make better decisions
One of the most common frustrations associated with keeping people data in disparate sources, or in unsophisticated HR systems, is an inability to frequently, automatically and accurately report on key people management metrics.
Good HR software should make it easy for you to find, analyse and report on the people data that matters most to each function in your organisation – enabling you, managers and senior stakeholders to make smarter, more timely decisions. Being able to provide evidence quickly and easy for your ideas and initiatives will also help to cement the credibility of HR with the wider organisation.
5. It’ll improve your regulatory compliance
Because you’ll store all your people data and related information in one place and be able to send automated reminders when action needs to be taken, your compliance with regulatory requirements will be much improved. Specific compliance areas where HR solutions can play a significant role include GDPR compliance (especially around data security and data-retention periods), right-to-work checks, and health and safety training compliance. You’ll also find that HR software will help you report on gender pay gaps, too.
This article was first published in May 2017. It was updated in February 2019 and again in December 2022 for freshness, clarity and accuracy.