HR Software: 7 Big Benefits for Your Small Business

August 11, 2023
HR Software: 7 Big Benefits for Your Small Business

HR departments manage people over the course of the employee lifecycle, often juggling many different components from payroll and benefits to performance tracking and talent management.

As businesses grow and evolve, they sometimes buy different software and technology solutions to simplify HR functions. Unfortunately, they can easily wind up with an unwieldy array of vendors and software with overlapping functions. This complicates and compromises interoperability, not just among HR solutions, but also with other point solutions employees use.

Full-service human resource software can solve this problem by increasing HR functionality and boosting employee engagement. HR software streamlines human resources tasks and goals, optimizing workflows with digital solutions.

HR software can include online self-service tools, reporting and analytics, benefits enrollment, document management, expense management software, applicant tracking, professional growth tools and more. These features allow businesses to help manage HR in real time with a comprehensive platform that helps support business growth.

Types of HR Software

Businesses of all sizes take advantage of HR software, whether it's basic payroll software or cloud-based, comprehensive HR software packages.

With streamlined administrative tools and employee self-service options, the benefits of HR management software for small to medium-size businesses (SMBs) are vast. The best HR software is the one that works optimally for your business. Here are some things to look for.

  • Applicant tracking system (ATS)—This recruiting software helps streamline a company’s recruitment process. It makes it easier to store job applicant data, cross-post job openings on multiple sites and screen applicants. At the same time, it lowers overall recruiting costs. A good ATS promotes effective recruiting lifecycle, simplifies recruiting and makes applicant tracking easier than ever.
  • Performance management—Designed for HR professionals, performance management systems allow employers to track employee improvements and oversee talent management. It also provides a platform for training, helps gauge employee skills and accommodates time tracking. It's a great benefit for HR management.
  • Onboarding—Onboarding software streamlines the hiring process and helps with follow through on training and questionnaires for new employees. Automated functions help the HR team stay on point to make the most of the all-important onboarding time. This is a great tool for human capital management.
  • Human Resources Information System (HRIS) —This comprehensive software that helps to automate HR processes, including hiring, HR data collection, payroll, and benefits administration.
  • Employee engagement—This type of platform helps a small business improve employee engagement by centralizing and organizing feedback, coaching, and analytics. This can improve both individual and team engagement, providing a platform for connection.

Benefits of Using HR Software for Small Businesses

HR software may be accessible to multiple users within a company, from top managers to the newest, first-rung employees. These HR systems make it easier for managers to focus on their primary goals. They offer easy access to core HR functions like time tracking, employee benefits and scheduling time off.

The right HR platforms can save businesses time and money—possibly even paying for themselves. Let's take an in-depth look at the possible benefits.

1. Improve efficiency and productivity

Workforce management is time consuming and tedious work for HR teams and the business. Although essential, they can be an unnecessary time-suck that pulls core HR attention away from larger business goals.

HR managers can spend up to 40% of their time on administrative, manual HR tasks and transferring data from one system to another. The software can drive efficiency through several key features:

  • Online self-service—Some HR software solutions integrate self-service tools to help you and your employees manage documents, benefits enrollment and other administrative tasks. This streamlines data input and tracking. It helps keep employee information stored and easily accessible in a single platform. Self-service knowledge articles for managers and employees can also help answer questions and provide clarification without taking time away from your internal HR department.
  • Online payroll processing—Simplify payroll administration with direct deposit, electronic paystubs and electronic Form W-2 preparation and delivery. You can also automate expense management easily and conveniently. HR software systems that integrate with leading accounting solutions like NetSuite®, Intacct®, Xero™ and QuickBooks® Online allow for maximized efficiency. Employees can also review their payroll data and income tax-related documents.
  • Software integration—Human resources software with an integration capabilities makes it easy for you to sync data between the business applications you use on a daily basis. This helps your team make more informed decisions, which can increase productivity across the workforce. These capabilities also help keep your data up to date across applications. In addition to the accounting solutions we just mentioned, HR software may also be compatible with popular business solutions like Microsoft®, Google™, Greenhouse and Lattice.
  • Mobile access—HR software systems may also come with a mobile app to put real-time information at your fingertips. This freedom and flexibility, from home or at the office, can further improve efficiency and productivity.

2. Boost employee experience

HR software may also benefit the overall employee experience. A small business may see a boost in job satisfaction and productivity when employees have easy access to onboarding materials, performance metrics and other useful HR applications.

  • Mobile onboarding—New employees can easily complete core onboarding tasks from anywhere on their mobile device. The ability to fill out time-sensitive forms and set up their preferred methods of payment at any time from their smartphones helps simplify the administrative tasks surrounding onboarding and creates a positive first experience for new employees.
  • Performance management—A comprehensive HR management system can help maximize employees’ potential and support professional growth. With real-time feedback, you can facilitate regular and informed conversations between managers and employees, set realistic goals and expectations, and allow employees to monitor their own performance. You can also provide employee performance reviews and time tracking in one convenient platform.
  • Simplified personal finance—With integrated accounting apps, employees can import their Form W-2 or Form W-4 directly into tax-filing software like TurboTax® and manage their accounting in a simple, efficient manner. The reduced stress provided by this integrated software improves the employee experience.
  • Easy benefits enrollment and renewal—HR software may provide employees with detailed information about benefit plans, comparisons between providers, and a dynamic cost calculator. However, when combined with a full-service HR solution, benefits administration features can simplify the entire process. Look for a provider with easy-to-use navigation and human capital expertise.

3. Conserve resources and money

While having an internal HR team is important, automating tasks can increase the time and resources available for your team to pursue big-picture strategies and organizational efficiency.

This is especially true in regard to electronic Form W-2 or Form W-4 preparations. HR software may be a cost-effective option for SMBs.

4. Less errors

Using a comprehensive HR tech platform means less manual entry and input, resulting in fewer human errors. This is particularly true when it comes to processing payroll and withholding income taxes.

Using integrated technology can also help your employees check their work or review submissions to reduce typos or double entries.

5. Simplify HR document workflows

Using a comprehensive HR platform often means your employee data is stored in one place.

TriNet helps you transform your approach to document management with an intuitive self-service platform that helps streamline common business tasks. Access certain employee HR documents conveniently from the TriNet platform—all with flexible document storage so you can comply with industry-specific standards. Since this information is kept in one place, it can help you improve regulatory compliance.

6. Strengthen data security

The HR data held by SMBs is vital to their ability to grow and succeed. Managing this type of data through a sophisticated HR platform allows SMBs to address a critical concern that is often vexing: cybersecurity.

Top-end HR platforms help protect your data and minimize vulnerability to malicious attacks through firewalls, encryption and other cybersecurity solutions. Additionally, an HR platform can ease some concerns around business continuity and disaster recovery. Look for HR management software that has systems to back up your data.

There is no replacement for vigilance with respect to a small business' cybersecurity. Every business should run regular scans for viruses and unwanted computer activity.

TriNet is dedicated to security functions with a core mission of enabling enterprise and client business success through a risk-based platform designed to keep our most critical assets safe, resilient, and secure.

Our goal is to become an industry leader in security with key assets in business enablement, competitive differentiation, innovation and growth.

7. Elevate reporting and analytics

Employee engagement is a key factor in the overall success of an organization. Businesses with an engaged workforce tend to have happier employees, which may in turn, boost overall productivity and retention rates. TriNet’s Workforce Analytics allows SMBs to make smarter decisions that can improve employee engagement and see what’s needed to drive your company forward.

  • Dashboards and visualizations—The TriNet platform gives managers the ability to turn data into actionable insights. This helps business owners monitor employee performance and create personalized dashboards using pre-built key-performance indicators like turnover, tenure, headcount, hires and terminations. Data can also be transformed into graphs, charts, metrics and scorecards for ultimate visualization.
  • Compensation benchmark reports—Workforce Analytics also allows you to generate compensation benchmark reports that provide you with critical visibility regarding compensation decisions. They also enable custom analytics for smarter job matches and more accurate salary pricing.
  • Custom reporting—With Workforce Analytics, you can create custom reports to gain important insights into your HR, payroll and benefits spending. Some options include standard reports about KPIs, turnover and earnings, flex reports, payroll registers, multi-company reports and more. These can be automated to help you save valuable time.

TriNet offers expertise on the issues that affect your people. In tandem with our full-service HR solutions, TriNet offers a comprehensive, reliable HR platform with self-service and mobile tools so you can manage your human resources needs.

Our HR platform helps support your business growth. You can easily access payroll, view TriNet-sponsored benefits, visualize your HR data, connect with external applications and more.

With everything integrated into one platform, you’ll spend less time on HR and gain insight to help you make decisions on every aspect of your business. The TriNet Integration Center allows you to further customize your experience by connecting popular business apps and unifying your data so you can drive productivity. Learn how TriNet’s comprehensive HR solutions can help your business.

This communication is for informational purposes only, is not legal, tax or accounting advice, and is not an offer to sell, buy or procure insurance.

This article may contain hyperlinks to websites operated by parties other than TriNet. Such hyperlinks are provided for reference only. TriNet does not control such web sites and is not responsible for their content. Inclusion of such hyperlinks on TriNet.com does not necessarily imply any endorsement of the material on such websites or association with their operators.

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