5 Warning Signs that Your Small Business Needs HR Software

Posted by Tom Gaydos on Sep 18, 2015 11:30:00 AM

5-warning-signs-that-your-small-business-needs-hr-softwareIn our daily lives, some of us have become pretty good – heck, some are even unofficial experts – in detecting warning signs for everything from car problems, to inclement weather, to whether our favorite team is going to pull it out or blow a lead in the last minute or ninth inning. 

However, in the business world, when it comes to sensing danger ahead we tend to rely less on hunches and knacks, and more on empirical evidence and objective facts. And with that in mind, here are 5 clear warning signs that your small business has reached a point where adding HR software isn’t optional: it’s critical.

1. Excessive workflow bottlenecks.

If HR tasks and activities that used to take minutes or hours are now taking days and weeks – and sometimes falling through the cracks – then it’s well past time for HR software. Remember: excessive workflow bottlenecks never suddenly “sort themselves out.” On the contrary, they get worse and worse, until chronic inefficiency becomes the norm, and costs and risks reach intolerable levels; if they haven’t already!

2. Lack of Accurate HR Information & Reports

If the leaders and managers in your business don’t have on-demand access to accurate HR information and reports , then they’re forced to “guess” instead of “know” – which rarely leads to good decision making (and when it does, nobody is quite sure why and so they can’t do it again!).

HR software is the answer to this problem, because it empowers leaders and managers with the information and reports they need to make informed decisions on everything from recruitment planning, to budget allocation, and more.

3. Seriously Stressed Out HR Staff

While stress is rarely a good thing (and chronic stress never is), if your small business has reached a point where HR staff is SERIOUSLY stressed out, then it’s time for HR software. 

Also, your HR staff can be assured that this investment won’t replace them. Rather, it will free them up to focus on high-priority activities -- and clear the looming backlog of overdue tasks that is stressing them out! The bottom line is that they’ll be more productive, and your business will be stronger.

4. High Turnover

Turnover isn't due to your employees not receiving enough money in their salary. While the average raise an employee can expect is 3 percent, given the cost of inflation, it actually amounts to more like 1 percent in additional spending power. Further, if an employee leaves a company, however, they can look forward to a 10-20 percent increase in salary. In extreme cases, they may even see as much as a 50 percent bump.

If you're seeing high turnover in your small business, it can often can be traced back to ineffective HR systems (i.e. manual, paperwork-based workflows) that employees find tedious and burdensome.

Switching to HR software can directly and indirectly reduce turnover by (for example) providing employees with on-demand access to their HR information, the ability to purchase voluntary benefits online, and so on. In fact, the advantages provided by HR software can be leveraged to make your small business a more compelling place to work compared your competitors. What was once a recruiting weakness can now be a valuable strength!

5. Non-Compliance Risks

And last but certainly not least, if your small business is facing non-compliance risks because it doesn’t have organized, updated information and efficient processes and workflows, then adding HR software is absolutely essential.

Penalties for non-compliance are significant, and there are strict filing deadlines that must be adhered to. Not having a firm grip on this aspect of your business means that high costs down the road are guaranteed, and it’s only a matter of time.

Choosing the Right HR Software

Small businesses have to be careful in choosing the right HR software – because the last thing you want is to get saddled with a solution that is designed for multinational enterprises. Yes, you want to get there in the future. But today, you need HR software that is powerful, easy-to-use, clearly affordable, and scales seamlessly as you grow. And that’s where ConnectedBenefits helps!

Take a 30-minute guided tour of our acclaimed, cloud-based HR software. See for yourself why the only regret our delighted small business customers have is that they didn’t find us sooner! Click here to get started.

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Topics: HR Management

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