Small and Medium-Sized Enterprises, commonly known as SMEs, are organizations with personnel numbers under a limited amount. According to the 2018 Small Business Profile by the Office of Advocacy of US Small Business Administration, 99.9% of businesses in the US in 2018 were small businesses. In fact, according to the latest small business GDP data made available by the Office of Advocacy of the US, which is for the year 2014, small businesses account for approximately 44% of US GDP. This proves that small businesses are not to be taken lightly. Any small business has the power to turn into a multinational conglomerate if the business leaders make the right decisions at the right time.
One of the key decisions to make early on in the lifecycle of a business is to understand which software is crucial for your company’s growth. Investing in the right software can help in scaling the business smoothly when the time comes. Two such modules that need to be digitized are HR & Payroll. Human Resources Information System (HRIS) and Payroll form two foundational pillars for the financial growth of a company. Communication and correlation between these two modules are instrumental in maintaining productivity in the organization. There are countless beneficial reasons for incorporating HRIS & payroll software in your business. Let’s take a look at the Top 10 reasons:
1. Automated Payments
Payroll software for small businesses can be tailored to match the exact requirements that the business needs. Automated payments are a boon for small business owners as they take a lot off of their hands by digitally calculating wages for employees according to digitized time-sheets. Some payroll software also offers a direct deposit feature to reduce the payment process even more.
2. Employee Self-service
Self-service features of HRIS can be indeed fruitful. This allows employees to manage their personal and professional data by themselves on the portal. This gives them access to add or edit their data regarding time-offs, reimbursements, training, timesheets, and much more.
3. Remote Accessibility
One key benefit of digitized platforms is that of remote access. With the help of HRIS and payroll software for small businesses, employees and managers can work from anywhere in the world. They can also access official data from anywhere so the need to carry heavy files is eliminated.
4. Real-time Updates
Real-time is the real deal in today’s world. Gone are the days when employees used to wait till the end of the year for appraisals and feedback. With these new software tools, employers can give reviews instantly through messaging platforms, can receive alerts on successful completion of tasks by an employee, time-off requests, and various other matters that need quick resolution.
5. Legislative Compliance
Federal laws and legislations are subject to change. To keep track of those changing laws is no piece of cake. HRIS and Payroll software for small business takes care of these ever-changing legislation and updates it automatically, thus keeping you and your business 100% compliant.
6. Enhanced Security
Better the software specifications, better the security of data. With digital book-keeping, storing of records is much safer. HRIS and Payroll software for small businesses employ authentication factors to ensure that only authorized personnel can access confidential business records. This helps in minimizing liabilities to the business by storing everything in a password-protected database.
7. Improved Efficiency
Digital is efficient. HRIS and Payroll software for small businesses makes intercommunication between the organization much more structured and rapid. This elevates the overall efficiency of an organization’s workforce by multitudes.
8. Cost-effective
An HRIS and Payroll software for small businesses is much more cost-effective than an in-house structure dedicated solely to this requirement. Costs are saved on recruiting and retaining employees specifically for these modules.
9. Easy Report Generation
Accessing digital data through reports and charts can now happen in a matter of mere minutes with the help of HRIS and Payroll software for small businesses. This type of software can process a large amount of data much faster than a human and hence, reports are error-free, accurate, and detailed.
10. Eco-Friendly Practices
Sustainability is now a core strategy for any business to be successful in the future. With HRIS and Payroll software for small business, paperwork is almost non-existent. Every communication is digital and records are maintained online.
