The benefits of HR software for SMBs

  • Last Updated : August 23, 2023
  • 5 Min Read
HR Software for SMBs

Employees are the most important asset in any organization, but this is especially true for small and medium-sized businesses (SMBs). If you’re running an SMB, you’re constantly trying to expand and innovate, and your workforce is going to grow with you and become a driving force in your overall success. According to research conducted by Capterra, without improving employee effectiveness, more than 40% of USA-based SMBs will not be able to achieve their growth goals. That’s why SMBs have to put extra effort toward improving their people management. Effective HR initiatives and management techniques will help employees to be more engaged, productive, and motivated.

One way to improve people management is with a cloud-based software solution, but a study conducted by Lenovo revealed that only 26% of SMBs make use of cloud-based tech tools. As your organization grows and its number of employees increases, cloud-based HR technology allows you to manage employees more effectively. This is vital for staying competitive and attracting new talent. HR software provides all the necessary tools and modules to help SMBs take care of their people and improve their employee experience. When your employees feel nurtured and enjoy working at your organization, they’ll perform better and turnover will decrease.

But with everything that goes into your HR process, which areas should cloud-based software target? Here are some HR tech features that automate or simplify key HR workflows, making your job easier:

  • Onboarding management system

Onboarding is where new employees get a first look at what it’s like to work in your organization. It’s important to make it as exceptional and effortless as possible so that new hires feel valued and appreciated. This improves new hire retention, which is critical for SMBs because the cost of turnover is very high. For the onboarding process, HR software helps automate and simplify all the tedious paperwork. All documents can be e-signed and stored online in a centralized location. On top of this, new hires can find the information they need about company policies, their team members, their job description, benefits, and the organization as a whole—all in a single place. This will start their journey with your organization off on a positive note.

  • Employee self-service

The success of SMBs is directly dependent on the success of its employees, so it’s important to empower them in as many ways as you can. When employees feel trusted, they tend to be more willing to go the extra mile to do something for your organization. With HR software, employees can track and manage their own tasks. They can mark their attendance, fill in their work details, raise requests, ask questions, view announcements, initiate discussions, and more. For instance, if they need to know about their remaining days off, they can just log in to their portal and all their time-off information will be readily available.

  • Performance management system

SMB leaders should be tuned in to how they can help their employees perform better. Making them work long hours or on the weekend is not the solution. This will only cause employee burnout, making them less productive. Using HR software, it’s easier to align your employees’ performance with organizational goals in effective and balanced ways. Clear goals and objectives can be assigned to employees, helping them maintain a sense of direction. Continuous performance reviews can be conducted every month or quarter to see how your employees are progressing towards your organizational goals. HR software also facilitates a 360-degree feedback system to make performance reviews more accurate and unbiased.

  • Learning management system

Learning and development opportunities are highly necessary for SMB employees to overcome workforce challenges, stand out in their industry, and grow as professionals. The growth of your business is tied to the professional development of your employees. The learning management system that comes with HR software advances employee training and development. Several courses can be developed and made available to your employees through a centralized online learning platform. Online training brings the course instructors and learners together digitally, cutting the cost of lecture rooms and travel. Training ends up taking less time away from normal work because employees can access their courses from anywhere they need. There is also a built-in feedback system, so learners can make suggestions and comments to improve course efficiency.

  • Automation

Automation frees your workers from repetitive tasks while simultaneously reducing work delays and human error. This means that you’re spending less time on paperwork and more time on your employees. One of the major benefits of HR software is its ability to automate and simplify most essential HR operations. For instance, while onboarding your employees, workflows can be created to automatically send welcome letters to your new hires. This will save you from sending multiple e-mails. This is one of the many tasks that can be automated using HR software.

  • People analytics

Using people analytics can bring significant business advantages to SMBs. People analytics provide insights based on employee data, so you’ll be able to better understand where your employees are currently at, what they expect, and what issues need to be resolved. Workplace needs can be identified before they start interfering with other aspects of the business. This makes implementing new HR initiatives more effective and less time-consuming. For instance, analyzing employee performance data can give you clear insights into the skills that different teams need to perform better. This will help you to conduct targeted learning sessions for your employees.

Also read: Improve these four HR processes with People Analytics

  • Mobile application

With an HR mobile app, your employees can access the documents and information they need without depending on laptops or personal computers. They don’t have to print documents and take them wherever they go. Offering a more flexible and tech-savvy employee experience is appealing to today’s workforce. Choosing HR software that includes a mobile app shows that your organization isn’t afraid to use modern tools to make employee lives that much easier.

  • Exit management system

Offboarding, which is as important as onboarding, should be organized and conducted effectively in your organization. From conducting exit interviews and managing credentials to sending recommendation letters, each step is important to maintaining compliance and a smooth relationship with your former employees. With HR software, the whole process of exit management can be completed from a single window. Offboarding management plays a huge role in improving your employer brand, which is essential to stay competitive with larger organizations when attracting top talent.

Also read:What are the different steps involved in offboarding?

Effective HR management is essential for SMBs to improve their overall growth and establish a name for themselves in their respective industries. As your organization continues to grow, a cloud-based HR system can help you build an engaged and productive workforce. With the right HR software, you can manage your employees well with less unnecessary effort.

Zoho People, our HR management system, automates all your essential HR operations, from onboarding to offboarding and everything in between. By transforming HR management, Zoho People helps your organization to overcome all the HR hurdles. Learn more about Zoho People.  

Also read:Everything you need to know about HR software

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  • tarika

    Content Specialist at Zoho People

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