Still in Doubt? 50+ Reasons to Use HR System in SMB

When the future of a business depends on every step you take, each decision must be made deliberately. This article lists 55 reasons why a company would benefit from using a HR system.

With the vast HR software choices available on the market, companies might find it confusing and overwhelming to choose the right fit.

Yet today’s world demands keeping up with the latest technology advancements; piles of documents, manual processes and time-consuming tasks are swiftly becoming history.

HR has rapidly evolved from just an administrative function into a more active role of managing the most valuable part of the company – its people. The growing HR management market is highly competitive; HR software vendors strive to improve and streamline employee activities through one central database.

But even with all the new, better and faster technology solutions available on the market you are probably debating over the need of a HRMS.  To help you make the final decision we have listed 55 reasons that show the benefits of having a HRMS.

If the clerical tasks, such as record keeping and payroll, are performed by the software, then the employees in the human resource department can focus on more important issues such as employee training designs and crafting job designs

Are you unable to get the necessary analytics? Are you looking for an improved user experience? Does the current technology stop you from reaching your business goals?

What are the reasons that will make you say YES to a HR management system?

1. Mostly cloud-based

When we hear about HR modernization, digital journey and moving to cloud-based is among the top priorities. See how much your company can benefit from using cloud-based solutions here.

2. For companies of all sizes

Apart from the fact that every business deals with core HR functions like hiring, onboarding, payroll and benefits administration, HR systems are powerful and continue to address more and more business-related challenges. Here are some HR market trends and an overview of essential software features.

3. One online dashboard

What is the purpose of a HR dashboard? This website provides a clear explanation.

4. Easy and convenient

Work in a human resource department has become easier than ever! One of the latest trends is to work smart not hard and with a HR software it clearly IS possible.

5. Innovative and automated

Get to know the benefits of automated HR here.

6. Organized, visually appealing

This blog proves that having HRMS is a key to an organized HR department.

7. Scalable

In case you have a small business, this article looks at HR scalability and a more fluid future using a HRMS software.

8. Flexibility

Society of Human Resource Management (SHRMS) discusses the advantages and recommendations of workplace flexibility.

9. Data storage

Here’s what you need to know about employment law, data privacy and security.

10. Access to data from anywhere at anytime

Employees are now given the power to do their own updates and address changes. Read here how freedom leads to success.

11. Can be used on mobile devices

Game-changer! Informative article about how mobile solutions can drive employee productivity and increase work satisfaction.

12. Integrates with other internal systems

Foster your business outcomes! Here’s a few reasons to implement an integrated HR solution suite.

13. Automation tools accessible in several languages and multiple currencies

Tired of manual repetitive tasks that add no true value to your business? Make it productive with the 10 Best Automation Tools for HR

14. Modern, well-designed user interface

While this is an especially useful study for software developers that teaches how to design and improve user interface, it may also be informative for companies choosing the right HR software.

15. Eliminates paperwork

Save the stress. Think green. Check this article to see how eliminating paperwork can improve atmosphere at work.

16. Replaces manual processes

Due to its rapid expansion Prudential PIc had to undergo several challenges to retain its competitiveness in this globalized marketplace. Read here how the adoption of SaaS solution enabled the company to improve the employee experience.

17. Facilitates day to day labor

Overview of the positive impact HRIS can have on a company.

18. Saves time

The right HRMS solution can save time that you would normally spend on routine tasks. This way it allows you to focus on what really matters and to ensure that the business is running effectively and efficiently.  What can HRMS do for you? See this article from BAASS insights technology blog.

19. Cuts costs

Looking for ways to reduce your company’s cost? India’s business service helpline SME Joinup offers some insights.

20. Improves overall performance of the company

Heather R. Huhman of business magazine Entrepreneur discusses  5 ways HR technology can improve performance reviews.

21. Empowers employees

See here how HRMS can address common issues like poor internal communications and inadequate employee training.

22. Increases productivity

It is not a secret that growth of a business goes hand in hand with employee productivity. Here’s some tips how to increase productivity.

23. Increases transparency

While lack of transparency may have its benefits (for example, privacy), in the long-term transparency and honesty will unite the organization with its employees. This blog discusses ways how HRMS can improve transparency during performance appraisals.

24. Enhances strategic decision-making

Ever wonder what role does HRMS play in decision-making? Here’s the answer.

25. Increases competitiveness

Enhance company’s competitive advantage by HR planning.

26. Encourages teamwork

Never underestimate the value a great teamwork can bring. Here are six ways how to build a culture of teamwork in your company.

27. Provides comprehensive analytics

HRMS provides sophisticated and accurate data insights. Former HR Manager for the Ministry of Justice Dave Foxall recommends using predictive analysis for better insights. Read more in this article.

28. HR, payroll, time, attendance and absence management

Some tips on how to implement payroll functionality in your HRMS.

29. Reduces time-consuming payroll tasks

Here’s why you should be integrating payroll with your HRMS. This business practice is something worth considering.

30. Allows to view and monitor complete analysis of monthly payroll activities

This is a technology that makes employee data meaningful. Everything on a single dashboard. Avoid unwanted stress, payroll system keeps all the processes up-to-date. Read here more about payroll systems, choosing the right fit and find out more about the benefits.

31. Goal management

Get to know more about this HRMS goal management tool here.

32. Compensation management blog discusses the importance of compensation providing real life examples for a better understanding.

33. Benefits management

Want to know how to attract and retain top talent? Ensuring employee benefits can help you with that. Here’s five ways to improve your employee benefits management.

34. Scheduling and shifts planning

ClickSoftware blog gives a brief insight explaining what is staff scheduling and planning. One is clear – it is much more than filling out a calendar of shifts.

35. Personnel tracking and onboarding

Here’s answers to all your questions – what is it? Why use it? What are the benefits and more.

36. Employee background check

PreCheck blog reveals the HR department of healthcare rising request for background screening flawless integration with their Applicant Tracking Systems and HRIS.

37. Employee turnover and retention tracking

Retaining your best employees ensures continuous or higher levels of productivity. There can be many factors that impact employee retention but HRIS can help with quite a few of them. For example, HRIS allows employees to see goals set by employers as well as provide the guidance and ability to update their goal progress.  See more in this article.

38. Create virtual teams

Working with virtual teams is not an easy task. Does it feel like mission impossible to track your team? HRMS world shares their strategies to manage virtual employees remotely.

39. Succession planning

Get to know more about this complex process, learn about its benefits, design considerations, challenges and best practices. Click here for a SHRM article.

40. Applicant tracking

Make your hiring process efficient and user friendly. This article looks at some important features that applicant tracking software usually have.

41. Identifies hidden talent within a company

Selecthub offers some useful tips on how talent management software can help produce new leaders within a company.

42. Provides access to all employees or limits access to the chosen ones

Minimize internal data security threats by restricting employee access to unnecessary information. Read here how to make sure that the information in your HRIS is secure.

43. Tracks jobs and applications

See how HRIS can make the recruiting process much faster and easier.

44. Helps to identify potential candidates

Learn here about 5 ways to identify high potential in candidates.

45. Ability to store resumes electronically

Overwhelmed by all the resumes accumulated during hiring process? Looking for a storage? Find out here how to store resumes online.

46. Automatic reporting

Explore the advantages of a HR report here.

47. Employee self-service

This SHRM article discusses the pros and cons of online employee self-service programs to determine whether its beneficial for a business.

48. Automated time off requests

Should you use HRIS for time and attendance tracking? Here’s a few factors to consider.

49. Improved employee knowledge, skills, motivation and contribution

This study shows that HRIS can improve employee capabilities, motivation and commitment which are all important factors when it comes to individual as well as company’s growth.

50. Intensive employee training

Once the number of employees increases it is important to track the training. HRIS can help schedule, deliver, track and evaluate employee progress. Learn more about the modules used in tracking.

51. Safeguarding company’s data and employee privacy

Is there a reason to worry about data security risks? This HRMS blog discusses the security concerns related to the increased use of mobile HR solutions.

52. Real time updates

Here’s how to launch a HRIS update successfully.

53. Employee leave management

Are you wondering how to manage employee leaves?  CakeHR proposes a solution – software training.  Find out how the employee time is distributed and ways for better management. Learn more about it here.

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Now that we’ve given an insight into some of the benefits of HRIS systems, we hope you see the value it can bring to your company.

Be current – say YES to technology. Good luck implementing and using HRIS!


Written By

Sintija Valdez

CakeHR translator and content writer, born and raised in Latvia but currently living in the U.S. Passionate about preserving the “world” that each language encompasses. At present emerging into the art of HR - work life, management and other related topics.