Inevitably, the answer is it depends on what you want it for, but the overall advantages of using HR software are more than you might think.
Essential HR Software for Small Businesses
The first thing you’ll need is payroll software, and once you have more than a handful of employees it makes sense to do it in-house for greater control and rapid response to changes. HR software comes into play when the staff records on a spreadsheet become too unwieldy to use and multiple reports need to be easy to produce.
Once upon a time the cost of software wasn’t justified until you had maybe more than 100-150 employees, but there are now plenty of companies catering for the 1-100 market.
Key Benefits of Using HR Software
– Your employee data is in one place for quick reference.
– Notifications generate reminders for starters, leavers, probation end, expiring visas/work permits, and even birthdays.
– Workflow automation moves documents to the right people for approval, speeding up procedures.
– Easy set-up reports keep you informed on workforce trends in a readable format.
Managing Remote and Hybrid Work
If you are operating remote or hybrid work patterns, you’ll need a Time & Attendance module that records employee locations, tracks absences, and logs hours to ensure compliance with legislative norms.
Adding Recruitment and L&D Modules
Recruitment and Learning & Development modules can be added as you grow. Average labour turnover in the UK is around 30%. If your turnover is 20%, a company of 150 employees is recruiting about 2-3 people per month — at this stage, a recruitment module that screens, schedules, and tracks applicants becomes invaluable.
Learning & Development is important at any stage, but for a clear ROI, you’ll likely need at least 150-200 employees.
Modern HR Solutions and AI Integration
Modern HR systems for small business are easy on resources and budgets. Hosted in the Cloud, they’re accessible via app or browser and require no in-house experts. Subscription models based on employee numbers mean minimal capital outlay, and many vendors offer trial versions.
With AI now integrated into most systems, the benefits for smaller businesses continue to increase.
