Top benefits of HR software

With inflation reaching a 40-year high in 2022 (ONS), any opportunity to reduce operational costs is hugely advantageous.

While it’s an initial investment, a lot of HR software can help organisations cut overall costs of tech ownership by providing access to all of the tools needed by HR professionals in one place, as a single solution.

Whilst this reduces long-term costs, it’s also fundamental to being able to provide a complete overview of people data across your organisation. From payroll and expenses to salaries and benefits, HR professionals can make data-driven decisions that can reduce costs even further, without impacting the employee experience.

HR software also allows for the automation of time-consuming processes, saving time and reducing the risk of human error. By streamlining HR processes, businesses can enjoy substantial cost savings over time and expect to see an overall increase in return on investment against tangible and intangible KPIs.

Studies show that 69% of employees state they would work harder if their performance was better recognised. When managers recognise and reward their employees, individuals feel valued, respected and motivated, leading to further high performance and increased productivity.

HR software with integrated employee recognition tools and performance management and appraisal processes makes it easier for businesses to identify and reward great performance. Employees can be given instant feedback, which is then collated for future performance reviews. HR software can also provide the functionality for 360-degree feedback, helping to foster a positive and open culture, which can often be particularly difficult for organisations and businesses to achieve.

HR software that offers mobile self-service capabilities has huge benefits for the employee experience. When people are able to manage their own time, annual leave or rota scheduling, at any time, from any location, employees feel empowered and valued. This leads to reduced human error and frustration and improved well-being, whilst benefiting organisations through increased employee productivity by reducing the number of manual requests

As organisations grow, self-service HR software functionality will be crucial to reduce admin, ensure data is secure and compliant, free up time for employees to get on with their jobs and give HR and managers the opportunity to focus on more strategic initiatives that drive business value and growth.

HR software that includes integrated people management, talent management or career development modules offers additional benefits around learning and development. With specially designed software that encourages the tracking of objectives, training courses and appraisals, managers are better supported to train and develop employees. 

Rather than getting lost in notepads or emails between one-to-ones, outcomes and next steps are clearly outlined. Employees are encouraged to reflect on their goals and the feedback they’ve received, and managers are encouraged to offer coaching and mentoring. 

As a result, trust is built between employees and managers, leading to upskilled staff, improved performance and increased retention. 

The optimal solution for large and growing businesses is to invest in integrated software that can combine payroll and HR.

Modular HR systems allow organisations to tailor the software to their unique requirements, from payroll, talent management acquisition or learning and development. Data from these multiple systems can be viewed and analysed in one central location, helping managers to easily make data-driven decisions and inform future strategies. This also makes administration and reporting much easier for HR and non-HR professionals.

Smaller businesses still benefit from simple out-of-the-box HR software, though growing businesses and organisations looking to scale should consider modular systems for a future-proofed solution. 

With the ability to automate processes and procedures, HR software helps to reduce human error. This is particularly beneficial for payroll, which can lead to costly fines and non-compliance. HR software with integrated payroll solutions is particularly useful for ensuring all data is kept in one place.

By showing a clear overview of key dates and figures, and with functionality such as the ability to schedule and automate payroll processes and set reminders, your software can help you spot trends easily and mitigate the risk of potential errors.

As an organisations grows, employee paperwork inevitably increases and can result in thousands of documents which need to follow GDPR compliance and retention laws. Finding the information you need can be slow and frustrating, resulting in hours of lost time.

HR software eradicates the need for paperwork, storing information within a secure and compliant database. Not only does this reduce the risk of non-compliance, but it allows HR and non-HR professionals to find the data they need in just a few clicks, reducing frustration too.

Statistics show that hybrid working is on the rise, with teams now spread between the office, the home and other external environments. Cloud-based software can support HR teams working remotely or in multiple offices, ensuring employees have secure access at all times.

HR professionals must regularly monitor and manage compliance across a range of ever-changing laws and legislation. Often, it can be difficult to keep up.

HR software is designed with compliance at its heart, helping businesses to stay away from costly fines or reputational damage. A major benefit for busy organisations, automated backups ensure you stay instantly up to date with regularly changing laws and legislation.