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October 21, 2019
How to Choose the Right HR Software for your Business
It’s the same old story. Too much to do. Too little time. The pressure of meeting all the responsibilities of running a business or HR department can be overwhelming.
Do you find yourself wishing your manual processes weren’t so arduous? Or maybe you lie awake at night worrying about the latest legislation change you need to comply with? Do you want to take a more strategic approach, but your data is holding you back?
If you’re considering investing in HR software but don’t know where to start, read on to find out more.
What do I need to consider before investing in HR software?
Start by asking yourself what you’re trying to achieve from using a HR solution.
Do you want a system that will ensure employee records are up to date and secure?
Or maybe you want an easy way to track and analyse absence?
Do you need an effective performance and talent management process?
Or is your director requesting data to inform their people strategy?
There are numerous ways business owners can see a significant and meaningful return on their investment.
Is it worth investing in HR software or should I continue with the status quo?
There’s several reasons why businesses should invest in HR software. Ultimately, they all come down to either saving time and money or ensuring compliance.
In addition, it’s likely that your business will boost efficiency levels by moving away from manual processes.
Furthermore, businesses can reduce absence rates by as much as 20% by having access to real-time and live data.
Perhaps more importantly however, HR technology gives you a system to protect and monitor data. If you’re relying on paper or spreadsheets to run your HR processes, you could be running the risk of a data breach, and a potentially hefty fine as a result.
What questions should I be asking?
Here’s four important questions to ask when looking for a HR software provider:
Does it integrate with payroll?
This is fundamental. Not only will this half the time of potentially having to key information into two systems, it also drastically reduces the margin for error that comes with duplicate input.
Is it secure?
With GDPR compliance being paramount for all businesses, data security should be your number one priority. HR data is the most sensitive personal data held by most businesses so ensure the data protection and security processes are designed to meet your GDPR compliance requirements.
Are analytics built into the platform?
Analytics will help you to develop and inform your HR strategy. From absence records, to gender pay gap reporting, to predictions of which employees might resign, analytics can help you make informed decisions based on real-time, data-driven insights.
Can the system scale?
When selecting HR software, it’s important that you think beyond ‘as-is’ requirements. Look for a system that can scale as your business grows.
How can I make the most of HR software?
So, once you’ve invested in HR software, how can you ensure you’re using it to best effect?
First, you should start with making sure you have clear processes in place for keeping the data in your system up to date. You’ll be relieved to hear the best HR software integrates with your payroll software to automatically do much of this for you.
With good data in place, you can reap the rewards by really understanding the power that people data holds.
A good place to start is by having the right set of questions you want answers to. These may include:
What is my employee turnover rate?
Who is a flight risk?
When does absence peak and trough?
Getting answers to these kinds of questions will deliver tangible impacts and ROI to help shape the strategy of your organisation.
A graduate of Lancaster University and holder of a Professional Certificate and CAM Diploma in marketing and digital marketing, Hannah is our Communications & Content Manager. Hannah is responsible for all customer communications for Moorepay, and for leading on and producing key content on legislative and industry topics for the Moorepay knowledge centre.