Finding the right HR technology for your business is a little like shopping for a new smartphone – at least when it comes to determining what you’re looking for in a system.
Would you buy a new smartphone without first putting some thought into how you plan to use it or what you need it for in the first place? Probably not.
Chances are, you’re going to spend some time thinking about the features and storage capacity you need right now and in the future. You’ll likely weigh the pros and cons of different brands, considering things like audio quality, network reliability, the service contract and potential for upgrades. Finally, you’ll compare costs and determine the best value for your needs.
Whatever features you decide you need, you’re basically aligning your smartphone technology with your personal and business goals for the device.
The same basic principles hold true for HR technology.
Aligning software with strategy
To get the most bang for your HR buck, it’s vital your management team take the time to conduct due diligence so you get the “right” HR technology for your company. If you make a hasty decision that doesn’t take into account your unique needs, you’ll end up with a system that doesn’t solve your issues.
There are a lot of options to choose from, but don’t get lost in the bells and whistles. The best HR technology platform for your business will be the one that best aligns with your HR strategy to support your business’s goals. Period.
For example, are you hoping to reduce your payroll processing time by 25% in the next year? Maybe you’d also like to integrate time and attendance with your payroll system for a more seamless experience. Then, you should concentrate your search on platforms that facilitate payroll processing with integrated time and attendance.
You won’t find the ideal system or software overnight, so don’t rush your decision. Ensuring you find the right fit is critical. And once you do, your business will probably run more like a well-oiled machine than you ever thought possible.
Here are nine game-changing benefits that may result from incorporating the right HR technology into your business.
1. More efficient and focused recruiting efforts
When it comes time to fill a position, are you and your managers scrambling to find talent? HR technology can help you make better, faster hiring decisions.
Such software may include an applicant tracking system to manage the hiring process. It can give you the ability to build a database of qualified résumés that you can search and call on when a position opens. Then, your managers can rely on the software to organize the interviews, track feedback after interviews, and rank candidates.
If your company adds personality or skills assessments, the system can track the results. These types of tools can help your company sharpen its hiring process and make sure you’re hiring the right people for the right positions.
2. Actionable workforce analytics at your fingertips
If you’re constantly hiring people but the business isn’t growing the way you expected, your HR specialist can access available data to help you investigate and determine what’s going on. Is one particular department constantly turning over? What are the costs associated with this turnover?
By keeping your HR information in an integrated database, you’ll be able to track not just costs, but also characteristics of successful, long-term employees. Having workforce analytics readily available when you need them will also make planning easier.
3. Support for key HR-related compliance issues
A comprehensive HR platform can help you determine if your next growth spurt will push the company into a different category as an employer. For example, are you about to hire enough people that it will trigger government-mandated requirements related to FMLA or COBRA?
Once you cross the applicable employee threshold, HR software can help you meet the corresponding compliance requirements.
4. Less opportunity for data-entry and duplication errors
Does your company still rely on a paper-based system – or multiple systems that aren’t integrated – for payroll, benefits, vacation, HR-related government reporting and performance reviews? If so, chances are someone on your staff is inputting data by hand at some point in the process.
Not only is manual data entry time-consuming, it’s error-prone. Investing in robust HR technology can help make your HR processes more efficient and accurate by automating redundant tasks and integrating information system-wide.
For instance, if an employee opts for a new healthcare plan during open enrollment, that change will be carried over and reflected in their payroll deductions automatically – without the need for manual updates.
5. More time for HR strategy
Face it, it just takes longer to do things on paper or transfer information between disparate systems. Time equates to money, especially when you consider how many hours your HR team spends entering data or fixing errors caused by manual processes.
How much is this costing you? And, is that really the best use of your team’s time and skills? What if they were able to spend that same amount of time on more strategic initiatives?
The right HR technology will free your HR team from many of their data entry and administrative tasks. They’ll have more time to focus on revenue-generating activities, such as planning for your growing workforce and helping managers identify and retain top talent.
6. Streamlined onboarding
Ensuring a smooth onboarding process for new hires helps them get settled into their new roles quicker and creates a great first impression of your company. Instead of spending most of their first day on the job filling out paperwork, your new employees can actually get started meeting their new teammates and learning about their job right away.
Consider HR technology platforms that offer a paperless onboarding option. Electronic document retention makes it easier to maintain the information you’ll need from everyone you hire: I-9 forms, tax documents, ACA and HIPAA documentation, non-disclosure agreements, drug test results, and more. Plus, it helps establish a standard, documented process for all employees.
7. Less burdensome hiring across state lines
If you know you plan to grow your company into new markets, you’ll need to be aware of different states’ employer requirements. Taxes and compliance can vary dramatically between states. HR technology often provides access to the resources and information you need to better understand state regulations and potentially avoid hefty fines and penalties.
8. Convenient, secure access to HR documents at any time
Electronic records are easier to keep secure than files stored in a locked filing cabinet. They’re password-protected and also won’t get lost in a fire or flood. Who has the keys to that filing cabinet anyway?
When you have all of your employees’ data securely stored on an integrated, cloud-based platform, it facilitates the process of retaining their documents properly as required by law. If you terminate or make someone inactive, you can archive their record but still have access to their information if you need it later.
9. Room to grow
Where do you see your business in 5 years? What about in 10 years? No matter what your vision is for your business, you’ll be better equipped to get there by choosing HR technology that aligns with your HR strategy. That means finding a platform with scalable services and features that can help your business achieve its goals and adapt to its needs as they evolve.
Want a more detailed guide to help you navigate the complex process of selecting an HR technology platform for your business? Download our free e-book, HR Technology: How to choose the best platform for your business.