Four Things Every Small and Midsize Business Should Know About HR Software

Many small and midsize businesses reach a point when they outgrow their manual HR processes and start considering HR software. With the right technology, they can save time and drive bottom-line benefits by automating manual processes, eliminating risk of human error, improving employee engagement, and reducing attrition.

Why purchase HR software?

When looking for technology, HR leaders often encounter phrases such as human resources management systems (HRMS), human resources information systems (HRIS), or human capital management (HCM) software.

While different terminology and acronyms can be confusing, it’s important to focus on connecting the full spectrum of HR responsibilities – such as recruitment and onboarding, time and attendance, benefits, learning and development, and performance and compensation. By combining these processes, you can align business and HR objectives, improve the efficiency of traditional processes, and make strategic decisions with visibility across the entire organization.

What benefits could small and midsize businesses expect from HR software?

While it might be tempting to implement a solution focused on a specific need, such as scheduling or attendance tracking, this one-off strategy does not give HR leaders the intelligence they need to grow their organization as a whole. Having such a limited view of the overall workforce can limit potential growth and lead to the failure of critical business strategies that address issues such as skills gaps, high turnover, and low productivity.

By connecting all HR processes, data, and workflows, you can:

  • Attract the right talent
  • Help employees reach full productivity quickly
  • Keep employees engaged and motivated
  • Ensure employees are managed and compensated fairly
  • Remain compliant with legal regulations

You can also dramatically lower the manual workload traditionally associated with HR administrative activities through automation and self-services. Employees can quickly and easily complete forms, update their information, request time off, communicate goals, and apply for open positions across the business. Managers can approve timesheets and requests immediately, oversee and foster employee development, and trigger a search for new talent.

What should small and midsize businesses consider when selecting HR software?

As small and midsize companies grow, HR administration inevitably becomes more complex. Suddenly, the acts of hiring, developing, engaging, and compensating employees – the heart of your organization – do not fit nicely on a spreadsheet.

A new solution that simplifies HR processes is a worthwhile investment. You may not have thousands of employees scattered across the world right now, but your business may be moving in that direction.

As you consider different solutions, think about the following:

  • Are your existing processes working for your organization? If not, now might be a good time to reevaluate and update your processes, then find the right technology that supports these processes. It’s easier and more effective to find the right solutions to fit your needs versus the other way around. Force-fitting your needs into the wrong solution is not effective and can lead to frustration and failure.
  • Can the solution scale to support your company as it grows? Investing in the right infrastructure today and supporting your company in the future no matter how large it grows helps ensure business continuity and avoid disruption.
  • Is the solution agile enough to change as your business evolves? Market and competitive environments are constantly shifting for small and midsize businesses. You need a solution that can adjust quickly to shifting demands so you can stay in front of the competition and be successful.

Why consider SAP SuccessFactors solutions?

Connecting HR strategies to bottom-line outcomes – including profitability, revenue generation, and market-share growth – is a tremendous opportunity to establish the HR function as a critical business partner. But first, HR teams require a digital approach.

With SAP SuccessFactors solutions, you can leverage flexible, comprehensive, and easy-to-maintain technology. Our cloud HR solutions are cost-effective and designed so you can start with the functionality you need now and add on as you expand. We simplify technology for small and midsize companies so you can consume our software the way you want and to meet your unique needs.

Learn more about the SAP SuccessFactors Talent Management Suite or visit our solution tool finder to answer a few questions and receive the  resources you need to learn more.

Discover what specific digital technologies mean to small and midsize companies. Bookmark the Getting Started series page to keep up with the basics of analytics, HR and people engagement solutions, digital platforms, procurement and expense management tools, and ERP and CRM applications.

Janne Wise is director of Solution Marketing at SAP SuccessFactors
Susan Thomas is director of Solution Marketing at SAP SuccessFactors