HR Software can reduce inefficiencies and improve bottom lines
The right Human Resources (HR) software can help your company optimize its workflows and gather key metrics. Even more importantly, it can increase your employees’ satisfaction and improve your bottom line. There are several different types of HR software that address recruiting, training, payroll, scheduling, benefits administration, and employee wellness issues.
Businesses can use different programs to handle each of these areas or they can look for integrated solutions that manage multiple HR needs. Ultimately, the right choice depends on your business's unique objectives. To help you understand the importance of HR software, this guide looks at 10 of its benefits and how it can improve your company's well-being.
1. Reduce workflow inefficiencies
HR software reduces workflow inefficiencies by automating processes. Employees no longer have to deal with inefficient paper-based processes. Instead, they can use the software to file, classify, and route documents without human intervention.
The right software can even save time on digital processes by syncing information between multiple programs, rather than relying on manual entry to transfer data from one area to another. For example, if the HR team has to manually enter amounts contributed to benefits programs when doing payroll, they risk accidentally keying in a wrong number. But, if the benefits program and the payroll software are synced, this process can be automated, reducing the risk of human error.
2. Free up time for recruitment and employee engagement
When the HR team isn't buried in paperwork or routine tasks that could be easily automated, they have more time for recruitment and employee engagement. Improving the recruitment process leads to more effective hiring and better fits for people and their positions.
Additionally, when your employees are more engaged, they tend to be happier and more productive. HR managers want employees to enjoy their work and engage. Employees’ satisfaction also safeguards the company's bottom line.
Right now, just over a third of employees say they are engaged at their jobs, but finding ways to engage your employees is extremely valuable to businesses — companies with engaged employees enjoy 21% higher profits, on average.
3. Reduce turnover costs
Businesses can reduce turnover costs when they leverage HR software to improve employee engagement. In 2021, one in four workers left their jobs because they lacked advancement opportunities and flexibility.
Approximately 80% of people who leave their employers are doing so because they are worried about their ability to advance with their current companies, and 72% say that they rethought their skill sets during the pandemic. The majority of workers who want to quit report that they want more flexibility and even half of people who aren't planning to change jobs say that they will look for something new if their employer doesn't continue to offer remote-work options.
Companies that have better development and management practices in place reduce their risk of turnover, and when HR teams use software to handle the essentials, they have more time for recruiting, developing growth, and improving training programs. This use of HR software leads to greater employee engagement, which is in desperate need of an increase from just over a third. These companies, in other words, have more time to focus on finding the right fit with new employees and ensuring existing employees are well trained and satisfied with their roles and paths forward. This helps to reduce turnover and saves businesses money in the long-run.
4. Streamline hiring processes
HR software can help with every aspect of the hiring process including marketing positions, interviewing candidates, and onboarding new team members. For instance, applicant tracking systems can scan through thousands of applications and identify the best fit based on the position and the company's culture. This saves time while also improving processes.
Only about 26% of employers use applicant tracking systems, but with recruitment costs ranging from $3,000 to $4,000 per applicant, these systems can save even small companies an average of $10,000 per year.
5. Make recruitment more effective
The right HR software can help companies assess their recruitment efforts so they can identify and eliminate inefficiencies. Software can give you data on your candidate per hire rate, how long it takes to fill positions, and how much time and money you spend recruiting.
Then, you can use this data to make decisions about where to increase spending and where to cut costs. Recruitment software can also help you identify the most effective recruitment channels, giving the recruitment team insight on which job boards or hiring processes they should use.
6. Assess engagement and retention
If you're hiring and firing without tracking the numbers, you are missing out on critical data about your engagement and retention rates. HR software can help you calculate metrics related to retention rates, voluntary turnover, and turnover costs, and it can also facilitate employee satisfaction surveys so that you can assess engagement.
7. Track HR efforts
HR software doesn't just simplify and streamline processes for the HR department. It can also help you track how well your HR team is doing. In particular, there is software that can help you assess the quality of each hire by quantifying information about their job performance and engagement. Then, you can use those scores to assess how effective the hiring decisions your HR team makes are.
8. Improve time tracking
HR software can also be used to improve time tracking. In addition to tracking employee hours for payroll purposes, you can also use the software to discover if some employees are coming in late or going home early, and you can use your data to reduce overtime rates and improve the effectiveness of your scheduling.
Research indicates that companies that update their time tracking, attendance, scheduling, and leave management capabilities save an average of $1,600 per employee annually.
9. Assess progress toward corporate goals
Businesses can also use their HR software to see if their corporate culture aligns with their HR efforts. For instance, they can assess the diversity of new recruits, retention rates, and internal advancement rates. HR software can even help you look at the employability of workers who are leaving your organization.
If your workers are consistently leaving for better opportunities and more advancement, you may need to focus more on internal development and advancement to boost retention rates.
10. Organize and administer corporate wellness programs
In addition to helping with traditional benefits programs, HR software can help you organize and administer corporate wellness programs. These programs help your employees create and maintain healthy lifestyle choices for their physical, financial, and mental wellbeing. They can include a blend of education and tools that facilitate healthy living.
Whenever you onboard new technologies or benefits, make sure they sync with your existing HR software to make administration as smooth as possible. We can help with that. SecureSave offers an employer-sponsored emergency savings solution that integrates directly with your payroll solution, making it easy for HR teams to set up, deploy, and manage.
Contact SecureSave to add emergency savings to your employee benefits
Regardless of the exact HR software you select, you need to offer the right benefits if you want to attract and retain quality talent. Our purpose-built benefit program prepares employees for emergencies, which reduces their stress and improves their engagement. To learn more about this high-engagement, low-cost benefit, contact us at SecureSave today.