What is an Online HR system and Why Does it Matter?
From small start-ups to multinational companies, almost every organisation can benefit from using HR software in order to make their processes and the day to day running of the business more efficient. The majority of online HR systems enable companies to carry out tasks with more sophistication and speed. But what does an online HR system entail and why should more businesses be taking note?
What is an Online HR System?
A HR system is software that is designed to simplify and improve HR tasks. These systems are built around recording data and storing information in one easily accessible place, so organisations can manage their processes and data more easily from one location. Most HR systems are a combination of a main programme which then has optional modules that can be integrated to make the software more suitable for different business needs. A small company will have very different requirements to a global brand with multiple branches around the world. From holiday and absence management to performance reviews, career planning, recruitment and employee onboarding, HR systems can help with a wide variety of tasks.
How Can Businesses Benefit?
There are several reasons why HR software is so important for businesses. Firstly, it’ll improve the efficiency of your HR team by taking tedious and time-consuming tasks such as chasing managers to complete performance reviews or approving holiday requests and delegating them to other members of the company so that staff can make use of the functionality themselves. Other tasks can be automated which makes the challenge of time-consuming processes such as recruitment a lot easier to tackle.
HR software does involve one-off set-up fees and annual or monthly costs, but over the long-term, this type of system can save your business money. The efficiency it brings and the time it saves staff, allowing them to work on more pressing and important matters, will reduce staffing costs to allow employees to be redeployed on other projects. It will also reduce costs based on human error as well, as many processes can be automated.
One of the biggest frustrations in business is the inability to accurately and easily report on different metrics. Good HR software makes it much easier for staff to find and analyse data, to create reports that matter the most to each department in the organisation. This also allows for decisions-makers to make better choices that are based on data and facts rather than assumptions. Being able to provide evidence quickly to support initiatives will help to cement the credibility of HR within the business as a whole.
Finally, HR systems will ensure that compliance to various regulations will be much easier to implement. From right to work checks to health and safety training compliance and greater data storage to comply with GDPR rulings, HR software makes it easier to take action when it’s necessary and to keep all data stored securely in one location that can only be accessed by those who need to access it.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.