Why is it that companies are often reluctant to invest in HR specialist technology?
Although the cost of HR software has come down dramatically in the past few years, many businesses are resisting technological change and instead sticking with spreadsheets and paper-files or out-dated internal software. This can be frustrating for those working in HR or those assuming HR duties, who are forced to use outdated means of collating employee data which is often slow and drastically decreases productivity.
This article will help you build a case for HR software by giving three business imperatives as to why it would be an essential addition to your company.
GDPR compliance
With new legislation regarding data protection just around the corner, it’s more important than ever to stay on top of your employees’ personal information and to keep it secure. The General Data Protection Regulation (GDPR) will come into action on the 25th May, bringing with it new requirements such as enhanced rights for employees over their data, and more emphasis on data security and transparency. Failure to comply with the new legislation will have severe financial implications on your business, with penalties reaching up to $20 million or 4% annual turnover – whichever is more.
So how can an integrated Cloud-based HR software system like Cezanne HR help with GDPR compliance?
- Better security than paper-files or Excel spreadsheets: Where is your company’s HR data kept – and who has access to it? Paper-based files and spreadsheets are notoriously hard to keep track of, and to keep safe. The best SaaS HR systems are built with security at their core, so can protect your data better, meaning you are less likely to get caught out by the new GDPR legislation and thus reducing the risk of being financially penalised.
- Easier to keep accurate: Under GDPR, you are more accountable for your employees’ personal information than before and you must ensure that their personal data is up to date. However, this is difficult when your employees can’t see their own details. With modern HR software, employees can keep up to date with their own information whilst you remain in control.
- Quicker response to subject access requests: You are also in a better position to respond to employee data requests, another aspect of data transparency which GDPR is cracking down on.
Learn more about GDPR compliance here.
Better business efficiency
When pitching for budget, you should make it clear that Cloud based HR software is an investment, not an expense and that it benefits everyone, not just HR. By automating many of the day-to-day HR processes, your software will free up time, so employees and their managers have more time to focus on the valuable aspects of their job.
- Increase efficiency: Handling spreadsheets and inputting data manually can take a lot of time and effort and is unlikely to be the favourite part of anyone’s job. Manual, paper-based processes eat up hours of HR’s time. Instead of wasting time (and therefore money) approving holiday requests, logging sickness and making sure employee data is accurate, managers can concentrate on the more important and strategic aspects of their job.
- Fewer mistakes: Human error causes data inaccuracies and it can be frustrating when spreadsheets are passed around the office and nobody knows if they’re dealing with the latest version or not. Using HR software means that your spreadsheet data is collated into one system, thus ensuring that everyone is always working with the most up to date data and greatly reduces the risk of errors, for example, with payroll.
Better management information
Collating all employee data into one collective system not only benefits your company by saving time and money but also by making it easier to manage personal information and spot employee trends. This can have a hugely positive impact on the efficiency of the company and will allow you to make informed decisions regarding your employees. For instance:
- Was there a trend in absences around a weekend and was there a reason for this?
- What is our level of overtime, and are we allocating time off in lieu appropriately?
- Do we have higher than expected numbers of employees leaving the company?
- Have all recent leavers been from the same department under the same manager?
- Are those employees who went on a specific training course performing better than those who didn’t?
- How many employees missed their performance targets last year, and do we know why?
Using HR software to spot trends allows your company to get to the bottom of a problem quickly and can greatly improve productivity.
Download the HR software buyers’ guide for more tips on how to win budget and select the right HR system for your business.
Chris Wells
A graduate of the University of Birmingham, Chris is an experienced marketing manager who now works for prestigious publishing firm HarperCollins.
