In an age where time equals money, small businesses can improve their overall efficiency and improve their bottom line with the help of HR software.

Small business owners can benefit from using HR software at a specific period of growth to help manage employees. Automation of human resource tasks for small businesses can be of huge benefit. 

If you’re a small business owner or just starting out with your HR processes, here are the things to look for to expand your HR operations and support productivity.


Why should HR software be used for employee management?

Investing in HR software can be a crucial step in streamlining processes and improving efficiency within small businesses. The fundamental functionality of HR software includes employee management.

An HR system provides employee and manager self-service, allowing you to record employee data (such as job role, pay, contact information, holiday, and absence information) eliminating the need to store your important business data over multiple unsecured locations in your computer. 


What are the different types of HR software?

HR software is widely available in a variety of solutions. Typically, there are three main systems that dominate the digital realm of human resources, those are:

  • Human Resource Information System (HRIS)
  • Human Capital Management (HCM)
  • Human Resource Management System (HRMS)


These systems are not interchangeable, though they do overlap in some areas. Out of the three, the most popular form of HR software is Human Resource Information System (HRIS). This system’s main focus is on employee data organisation and can help aid small businesses in everything from onboarding to payroll and compliance.


What HRIS features typically include

There are many benefits of HR software for small businesses. Here’s a list of the top 7 features of HRIS software that you should consider leveraging to drive your business forward:

  1. Employee self-service

Self-service HR portals give your employees the ability to quickly find and view important details such as their leave and vacation hours, payslips, performance appraisals, requests for paid leave and other HR information. Because you can access HRIS self-service portals on multiple channels, employees have the freedom to manage their HR information anytime, anywhere. 


  1. Onboarding and recruitment management

HRIS software streamlines the recruitment process through its automation capabilities. By integrating with job portals, internal websites, and employment-service providers, an automated recruitment process can simplify the hiring process. 


  1. Payroll systems

Employees can use HRIS software to process their payroll and view their previous payslips. Employees can even log into the system to view their end-of-year tax records, too. 


  1. Attendance and schedule management

An HRIS system can help employers quickly and efficiently track employee attendance, schedule changes, and absences. This data can then be exported into the payroll system to save valuable time and resources. 


  1. Performance management

Having a strong performance management system is vital for any business that wants to support its employees and ensure they’re working effectively toward their goals. With HRIS, supervisors and teams can devote their time to focusing on more value-adding components of performance management, such as coaching and training employees since the software makes it easy to set goals, measure progress and develop feedback. 

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  1. Benefits Administration

One useful feature of HRIS software is employee benefits management. This feature allows employees to sign up for benefits offered by the company such as health insurance. The deductions are then automatically converted into tax-correct payroll deductions.


  1. Compliance

Small businesses can use HRIS software to automate compliance and reporting; mitigating risk and reducing costly human error. With so many industry changes and updates to workplace laws happening on a daily basis, keeping your business compliant can be extremely challenging without the help of HRIS automation. 

Typically, HRIS software is useful for small businesses when HR becomes unmanageable and is cutting into your valuable resources.

An effective HRIS should allow you to customise fields and reports, as well as be mobile-ready. This is particularly useful in this day and age where remote and hybrid work is increasingly more common. You should also look out for a user-friendly interface that is easy to learn and navigate. Lastly, when choosing an HRIS vendor, you should look to those that cater specifically for small to medium businesses. 


What can you do until you’re ready for HRIS?

If you’re a new small business or just starting up, it’s likely you’ll need help with your HR in some form or another. Select a partner who offers on-demand workplace advice and can help you operate compliantly. Contact us for more information to understand where you are as a business and what suits your needs.



The information provided in these blog articles is general in nature and is not intended to substitute for professional advice. If you are unsure about how this information applies to your specific situation we recommend you contact HR Connect for advice.

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