7 Ways HR Services for Small Businesses Can Help You (2021)
Human resource tasks are found in every aspect of a business. As a small business owner, it is your duty to ensure that your workplace runs smoothly, which means you have to figure out the best way to handle HR services for your small business. Here are just a few of the benefits that come from using HR software to help your small business thrive:
- Compliance with industry, local, state, and federal laws and regulations
- Put yourself in a better position to hire top-talent
- Structure onboarding for new team members
- Retain employees in the long-term
- Maintain better communication through necessary feedback
- Utilize historical data and in-depth reports
- Access to payroll and time & attendance software
For many small businesses, HR software is necessary for creating a more efficient and effective workplace. Streamline what you do, do it more effectively, and avoid the damages that come from mistakes. Using HR software for your small business may be what takes it to the next level.
Human resources can seem fairly unimportant for small businesses. Many elect to spread out the tasks related to human resources amongst their employees, without having anyone specialize in it. This method is key for many small businesses to save costs, but comes with risks that could sink the company.
With HR services for small businesses, you can manage human resource tasks right from your computer or mobile device. This HR software allows small businesses to do work correctly and effectively while keeping an efficient workflow. Here are the main ways that HR software can help your small business.
Small businesses may be exempt from certain legal requirements, but there are still a ton of ever-changing laws related to human resources that need to be kept up with and followed. When dedicating your time to a small business, this can sometimes take a backseat. It can feel like a full-time job to keep up with industry, local, state, and federal laws and regulations. Instead, turn those tasks over to HR software you can trust.
With HR software you will have help putting together the necessary documents, including insurance, tax, labor law, and healthcare documents. This software will also enable you to make changes to the organizational structure and legal framework of your small business quickly. Check out this page from Elite HR Team that highlights just how bad the cost of being non-compliant can be.
2. Hiring New Employees
It may be easy to cast off talent acquisition as “not a big deal” for small businesses due to the smaller workforce needs that they have. That’s the opposite of the truth though, as fewer employees means each member of the team needs to handle a lot. It is vital to have talented employees who are able to not just do their tasks, but have the ability to cover for others’ tasks.
Finding people who fit this description is tough, especially when your competitors are doing everything they can to be the ones to hire top talent. With human resource management software, you’ll have access to applicant tracking and have full integration between your software and job boards. These will give you a head start to getting the best hires to help grow your business.
The onboarding process is key for small businesses. New employees need to be ready for their assignments quickly and they need to be effectively prepared. HR software eliminates manual processing and streamlines the entire onboarding process. This means your new employees will be ready with forms, paperwork, and all of the other information they need quickly and efficiently.
HR software provides an effective onboarding process by ensuring structure. This gives confidence to new employees and leads to a smoother workflow throughout the entire office due to everyone having gone through similar onboarding processes. That means your employees will have the same goals in mind and will work together effectively.
4. Employee Retention
There are two aspects to employee retention that are affected by HR management: Avoiding making bad hires and being able to keep the good hires.
Making a bad hire can be incredibly costly. After it’s all said and done, bad hires cost businesses an average of $17,000, per a survey from Careerbuilder. You’ll want to make sure you hire the right people, or you’ll have to handle the damages you’ll get in terms of time and money. HR software will give you the structure you need in your hiring process to avoid making these bad hires.
Good HR software will also benefit your small business by helping you keep employees longer. Just by providing a structured onboarding program, an SHRM study found that employees are 58% more likely to stick with the organization for over three years. By utilizing HR software, your small business can ensure that you hire the right people, avoid the cost of bad hires, and keep the talented employees that you do hire.
HR software makes it simple to view goals for each employee and give quick feedback. Not long ago there was a time where businesses did monthly or yearly reviews of their employees. That time has passed. Employees need constant feedback, both positive and negative, in order to consistently grow and meet their targets. Utilizing HR software allows you to do this without wasting precious time.
6. Data and Reports
The best way to make decisions regarding your small business is by utilizing the facts. It can be tempting to make calls based on what you think or feel, but nothing will benefit your company more than in-depth data.
With HR software, you’ll have access to historic data as well as reports based off of your past activity. When making decisions, whether they’re about promoting or demoting someone, choosing a salary, or anything else in your small business, you can make it with confidence using HR software.
7. Payroll and Time & Attendance
A good HR software provider will have a software that is built for payroll and time & attendance, on top of human resources. These three aspects of your business often work hand-in-hand. Having them from the same software provider makes for a streamlined workflow.
Payroll software for small business means more efficient payroll management. This gives you more time for your business and helps you avoid costly errors. Make sure to find a payroll software provider with mobile access and manager self-service that allows for pay-your-way and will help prepare your year-end tax forms.
Small business T&A allows you to keep your business in line. With a good time & attendance software, you’ll have access to job costing, GPS timekeeping, and an employee in/out dashboard.
Running a small business is incredibly complex. There are a ton of aspects to understand, work with, and monitor. As you can see, there are a ton of things that HR software can do to help your company run more effectively and more efficiently.
From compliance to managing your employees, human resources software simplifies what you do. You owe it to your small business to consider how the cost of implementing such software compares to the benefits that it would bring to your company.