Executive Summary:
- Having a strong HR department can bolster overall productivity, ensure compliance accuracy, and enhance employee retention.
- A provider with scalability options, comprehensive database management, and robust analytics and reporting capabilities will help you plan for future business growth.
- Finding software that supports streamlined onboarding, integrated time tracking, and payroll and tax automation will keep your employees content and engaged.
- Before picking an HR software, consider your specific needs and see which provider matches them to the fullest extent.
All business owners know the importance of their employees. Acting as the face of your company, they are positioned as one of your most valuable assets, working together to carry out the business’s vision. For many, the time spent at the office and the connections formed there can turn it into a home away from home. This makes having a strong HR software all the more important - without one, you run the risk of compliance issues, payroll errors, employee dissatisfaction, and high turnover rates.
At Payday HCM, we’re always getting asked: “what does HR software do?”. HR software consolidates employee data and streamlines HR functionality. This means things like timetracking, hiring and onboarding, and workforce management are overseen by an automated system, providing your HR department with more time for big picture tasks. We are well aware that a business can only be as strong as its employees, and your employees can only be as strong as their HR department. Which is why we want to ensure your business is backed by the strongest software for your specific needs.
So, in this article, we are going to go over six key HR software features that you should consider when choosing your provider. We’ll look specifically at each feature's functionality, how it will bolster your business, and what each would look like in a vendor context.
- Scalability
- Time Tracking
- Payroll and Tax Automation
- Onboarding Capabilities
- Database Management
- Analytics and Reporting
Scalability
Identifying a scalable HR software is crucial for ensuring stable business growth.
Improving Business Functionality
Having a scalable software means pairing with a platform that is able to evolve and change in pace with your business. This means adaptive capabilities that allow you to stay with your initial provider despite any changes that may arise in your business future.
Being able to add or drop services as their importance fluctuates will be key in keeping confidence with your provider. Without scalability, you may need to reconsider your HR software as business headcount increases. This leads to the potential for compliance mishaps and manual integration errors as you switch systems.
Scalability in Vendor Context
Consider vendors that provide easy plan upgrades without the substantial fees. You need a platform that is thinking about long-term performance, meeting you in the future instead of struggling to meet you in the present. This level of forethought will keep your business from operating in a reactionary way.
Also consider a provider that has a more piecemeal approach to building out HR systems. This looks like the ability to add, drop, or tweak your plan quickly to stay on top of your business needs. Don’t be afraid to ask your potential vendors about upgrade policies during your consultations.
Time Tracking
Accurate time and attendance tracking helps prevent errors, ensure compliance, and provide important, real time data for high level decision making.
Improving Business Functionality
Keeping an eye on employee hours, PTO accruals, and approaching over time limits is one of your HR departments biggest jobs. Having an HR software that automates and streamlines time tracking with scheduling and payroll software is a great way to enhance workforce management. It also establishes a content workforce, as you are making sure everyone feels acknowledged and taken care of.
An HR platform lacking strong timekeeping systems can lead to scheduling errors, incorrect deductions, and error latent paychecks. It can also lead to higher rates of employee turnover and more HR time spent rectifying mistakes. Take the time up front to make sure you’re not wasting time later on.
Time Tracking in Vendor Context
One of the easiest ways to see if a potential vendor is right for you is if they have a strong selection of clock-in methods. Whether it be biometrics, web-based platforms, or physical time clocks, you need access to the exact right time-keeping system for your business. This will make it easier to track employee hours, securing proper documentation of all in and out times.
You should also see if your vendor has automated over time and break rules, PTO tracking, and easy integration with established payroll systems. Again, keeping accurate records that are automatically shared with payroll will keep you safe from costly errors. Scheduling stress and hours spent calculating employee hours worked will become things of the past.
Payroll and Tax Automation
Automation of repetitive payroll and tax tasks is a great way to maintain timeliness and accuracy while providing your HR department ample room for other important work.
Improving Functionality
In the modern age, most payroll software automates tax calculations, filings, and deductions. Automated compliance alerts will be in place, notifying your vendor's team of any changes in regulation and any snags you may be approaching. Many platforms will also automate direct deposit, allowing paychecks to go directly to employee bank accounts without the manual hassle of handing out checks every pay period.
When it comes to streamlined tax and payroll management, having an integrated payroll and HR system is key. Instead of dealing with two vendors, paying two vendor fees, and running the risk of information lost in translation, you get the benefit of a single platform taking care of all your business requirements.
Payroll and Tax Automation in Vendor Context
Beyond automated tax calculation and filing, also consider softwares that offer multi-state capabilities, integration with timekeeping systems, and wage garnishment management. This works hand in hand with scalability, keeping your business in the clear even as you begin to branch into higher headcounts and multiple locations.
As far as maintaining compliance, finding a provider with W2 and 1099 form generation will ensure accurate documentation and taxation. In addition to saving HR management time filling these out manually with every tax season and new hire, it will help to keep all employee information up-to-date. Self service portals where employees can access their W2s will allow them to update their profiles if any personal changes occur, safeguarding your business even further.
Onboarding Capabilities
As a new hires first impression of your business, having a streamlined onboarding process is paramount to overall employee retention.
Improving Functionality
Along with payroll, onboarding is one of the more time consuming parts of your HR departments responsibilities. Getting an HR software that automates and streamlines the onboarding workflow is a great way to get new hires started in a timely manner. This looks like digitized paperwork, structured processes that new hires can understand easily, and task completion oriented self service portals.
As new hires move through the process, a system that has milestone tracking, social integrations, and training modules will also be key in their overall integration. Giving them access to these resources will bring them into the company fold quickly and eliminate the friction that can sometimes be felt as your team grows.
Onboarding Capabilities in Vendor Context
Before committing to a provider, check their availability for live support and training resources. Especially during initial setup, having access to dedicated account managers can greatly ease the transition process. Knowing what their average response time and communication style will help you establish your onboarding timeline, keeping everybody on the same page.
Having access to strong support and onboarding services will aid in overall implementation and ensure your HR department and employees at large will be able to successfully adopt new processes. Although it seems like a small step in comparison to other key HR functions, don’t let onboarding fall by the wayside.
Database Management
Strong database management systems eliminate duplicate entry and allow for easy access across departments.
Improving Functionality
For every employee and new hire, there is an individual collection of personal information, past work history verification, and completed tax form documentation. Without a designated system, this can be an overwhelming amount of paperwork to sort through, organize, and file. That’s why an HR software with robust database management is imperative.
A database management system would centralize all employee information in a highly secure online portal, allowing access to authorized personnel. With customizable fields, organizational charts, and audit trails, you will be able to store and sort through your files without any manual hassle.
Database Management in Vendor Context
When sourcing potential vendors, ask about their security controls and protocols. Do they have multi-factor authentication in place? How do they assign access controls? As we have established, your employees are your primary assets - protecting their info is akin to protecting financial assets in a bank. You want to make sure you have strong safeguards in place.
Additionally, consider platforms that have solid organizational foundations and easy search tools. This will make any work you have to do down the road easier. When time is money, every second spent doing tedious search tasks is cash down the drain. Your future self will thank you for establishing such a comprehensive system.
Analytics and Reporting
Allowing for real time reporting and a data driven HR department.
Improving Functionality
One of the hardest parts of running a business is not knowing what to expect next; without real numbers to base decisions on, you can feel like you’re throwing darts at a board with your eyes closed. But with advanced HR analytics and reporting, you are able to see things like employee turnover, compensation, and productivity as they happen.
Having access to this information takes your business planning to the next level. Instead of mere figures on the page, this data turns into actionable items. Being able to see your workforce trajectory allows for compliance ease and better HR management.
Analytics and Reporting in Vendor Context
As the HR feature that will best help you set your business up for long term success, be sure your vendors analytics and reporting provides custom report building and real time data visualization. Data on its own can only do so much, which makes having a clear way of understanding and communicating it incredibly significant. Being allowed multiple export options will assist in the communication aspect as well, giving your multiple departments palatable ways of grasping otherwise confusing information.
For further business development, consider platforms that offer trend analysis and benchmarking capabilities. This takes some of the pressure off of your HR team to plan next steps as the software will suggest potential courses of action. Having a clear understanding of industry baselines and predictions will ease your business growing pains.
Meeting Your HR Software Expectations
As we have seen, running a successful HR department is no easy task. Between running payroll and onboarding, ensuring compliance and proper tax deductions, and fostering a rich workplace environment, your HR team has their work cut out for them. This is why having a comprehensive HR software should be a top priority - it will assist them in their day-to-day tasks while freeing up their time for bigger opportunities. Especially for SMB’s, finding the right small business HR software for your specific needs will help boost productivity and save money overall.
An HR partnership with Payday HCM looks like streamlined software, attentive customer support, detailed reporting, and full commitment to your stability and growth. As an HCM, we put just as much focus on HR as we do payroll and benefits, they are all equally important in your business anatomy, and should all be treated with attention and care. We know that HR is more than paperwork and filing systems, it is the heart of your organization. If you want to see how Payday HCM can keep your lifeblood pumping, reach out today and schedule a consultation.
Frequently Asked Questions (FAQs):
Q: Do I need a separate software for payroll and HR?
No, on the contrary - having the same payroll and HR software can be a great way to save money and localize information onto a single database. Dealing with two separate vendors means twice the cost, and a higher risk of error as you transfer data between platforms. Unless you have incredibly complex payroll needs, it is recommended that SMB's have an integrated software.
Q: What should I look for in an HR software?
Consider a platforms scalability and payroll and tax automation, as well as their database management and analytics and reporting capabilities. These will all secure your business for future growth and keep you consistently compliant. Features like time tracking and advanced onboarding functionality will increase your employee retention and establish a strong work environment.
Q: Can Payday HCM's services be scaled to suit different business sizes?
Our HR services are highly scalable. Whether you're a small startup or a large enterprise, we tailor our services to fit your specific business size and needs.
Topics: