Technology for Human Resources has advanced with the constant emergence of startups and small businesses around the world. Singapore is one of the leading countries for startups and has more than 4,000 startups. (Source: Statista). Although the startup ecosystem in the country itself is the fastest-growing globally, they do not necessarily mean that its management system is the most advanced.
Some believe that startups do not need HR management software to ease their processes. In fact, most would rather use the traditional way of using pen and paper, or the very least, a laptop with Excel installed. Of course, it is to save as much cost as possible as there is no guarantee that the startup can become a company. However, when the operation grew and the startup become a small company at best, the method has to change.
Small businesses would have increased expenses with more employees coming on board and the process becomes complicated with keeping track of employee details, training, payrolls, administrations, and human resources management going awry. There is only so much a person can do manually, which is why HR software is recommended for small businesses.
Why Do Small Businesses Need Human Resource Management Software?
The increasing number of employees means an increasing number of administrative and HR management tasks. Key-in data on excel sheets can become time-consuming no matter how good your knowledge of formulas and interface is. Plus, searching for HR managers that know how to use the software takes time and money if need to train them.
Acquiring HR software for small businesses saves time and money as all the features you need are included in one suite. With the software, you can automate your employees’ payroll, leave, and record their attendance with ease. Best of all, you can access the features with a mobile app!
This is especially beneficial for small businesses that are on a tight budget or want to save costs but also use software to ease their HR management.
HR Software Features that a Small Business Need
Compared to big businesses, a small business may need only the core features of HR software. The core features that a small company need:
1. Time Attendance System
Keeping track of your employees’ attendance can be a hassle with traditional methods like writing names or a punch card basis. There is a chance of losing the card or employees cheating by having a colleague write down their names despite their absence. Time attendance software helps remedy these problems, as well as reducing paper waste and time loss. Small businesses can set their own working & lunch hours and off days for holidays or weekends..
2. Payroll System
A late or inaccurate payroll can upset any employees, especially those in small businesses. To keep morale and trust among employers and employees high, payrolls need to be administered on time and accurately. This may be hard when a company calculates payroll manually with a calculator or excel sheets. Not to mention, management needs to keep track of the leaves and attendance of each employee and incorporate them into the payroll, risking mistakes happening. As such, payroll software can help with the calculation as attendance and leave data can be integrated together. Plus, it can help calculate the necessary taxes on the go!
3. Leave Management System
How many leaves an employee should have and how many they have left? It might get harder to keep track as your company grows. There would be times when employees take too many leaves than they deserved and you lost track of the numbers when there are too many that are absent. What’s more, you need to keep the data somewhere to calculate your employees’ wages as well. Leave management software will help you keep track of every leave application and assign approvers for your employees. Depending on the approvers, their leaves will be approved or rejected. All the leave data is stored within the cloud and the software itself can be integrated into the payroll system for immediate calculation.
4. Claims Management System
As a small company, expenses should be carefully made to avoid any wastage or losses. As such, employees may need to use their own funds first for medical, petrol or tolls and then accumulate the receipts for claims. Traditionally, these receipts will be given to financing and the claims will then be processed. This method is time-consuming and has a high chance of mistakes as receipts can be confused with one another, which may result in the wrong amount of claims reimbursed to the wrong employee. With claims management software, employees can simply scan their receipts and submit the automatically-filled forms from their mobile app immediately.
5. Performance Management System
Small businesses need to be careful when appraising their employees. A wrong appraisal of an employee can cost the company a fortune and time as they would need to spend time and money on training or searching for new candidates to replace them. Asides from that, you would need to recreate and print out forms for appraisals which creates more waste as those forms will end up shredded, damaged, or lost. You would also need to think about readjusting their leave numbers and payrolls if their performance is reported satisfactory and deemed qualified for a promotion. The process takes a significant amount of time since you need to pass the forms through human resources as well for the final verdict, which can take from weeks to months. With performance management software, appraisal forms are ready to be accessed immediately, design your own templates, set the approvers, and allow HR managers to receive the assessment approval suggestions before finalizing the appraisals.
How Do You Find the Right Human Resource Management Software?
HRMS software comes in a variety of shapes and sizes to fit the needs of the company and its employees. Due to the nature of small businesses, you need to consider which features you need most to help ease your human resource processes.
Fortunately, all the features offered in the software are optional and can be added later on as the company grows.
Best HR Software for Small Businesses in Singapore
If you are unsure if the features are up to standard or not, companies like Info-Tech offers a demo of the software that you need but are unsure if it would be up to your standards. We offer comprehensive software at affordable prices that are perfect for small or rising businesses. That way, you won’t be pressured to transition completely to using software to handle your human resource management while getting used to the technology.
Whether you only need Time Attendance Software, Leave Management Software, Payroll Software, Claims Management Software, or Performance Management Software, we have everything covered. They are also available on mobile even if you only choose one.
