When you effectively manage the human capital of your business, you gain a host of advantages over your competition:
- Find and retain the top talent with competitive compensation and benefits packages
- Quick and efficient resolution of employee disputes keeps everyone happy and your business flowing
- Coordinated annual reviews based on measurable outcomes helps employees continue to push themselves to improve
These are only a few of the many benefits that come with efficient HR management
. Data can be hard to manage, but the right applications help HR professionals utilize all of the data at their disposal.
Here are some of the critical features
when implementing human resource software for businesses at any scale. If you’re large enough to have an HR department, you’re large enough to share some of these concerns. Centralized database
The most important element to any piece of HR software is the centralized database. If you’re going to work with employee data, you need a system that's built to hold at least salary, performance, payroll, and basic identification data in one location.
Your HR professionals won’t make duplicate entries, and any changes made to the system are made once and affect the entire database. For accuracy's sake, having a centralized database is a huge advantage, and typically forms the backbone of a functional HR platform. Time tracking
The ability to have automated data on employee hours is indispensable for companies with more than a handful of employees. Try managing the hours for 100+ employees in a spreadsheet. There’s a lot of room for error, which can lead to costly financial or legal challenges as well as general employee dissatisfaction.
Another feature related to time tracking is the ability to track vacation time without having to make manual changes to the system. Ideally, an employee’s vacation and sick days should be refreshed yearly or quarterly depending on how your company dispenses those hours.
Software that's in compliance with the Department of Labor’s basic wage standards
also helps identify the class of employee, such as someone who earns tips, which may affect how someone is paid and/or taxed. Self-service
HR is busy with its own set of duties, especially when a company is in a growth phase and hungry for new talent. The ability for employees to manage their own time-off requests, training, and benefits saves time for everyone. More software packages include some form of self-service employee portal, so this is quickly becoming a necessity rather than a “nice-to-have” feature.
Some HR software feature a mobile component as well. If this is the case, be sure to evaluate the mobile app for yourself before you implement it across the company. Check if the app functions on a variety of devices, if it's easy to use, and if it provides access to relevant data. Nice-to-haves
One of the bigger challenges most organizations face is quantifying an employee’s performance. If you don’t want to foster micromanagement, but you still want to make sure employees are being efficient, HR software can help by tracking the time spent on certain projects. Managers benefit from a snapshot of where resources are allocated, and workers can be guided on best practices to improve efficiency.
Application management is another feature that's nice to have when your company is growing. When you put out a job posting, you may field hundreds of applicants. Having a system that helps parse that data and pinpoint someone with the right skill set shaves time off the entire hiring process. Efficient software
With the right software, HR does less day-to-day people management and maintains a higher level view of talent. HR can become a helpful tool in handling employee evaluations, disciplinary actions and general record keeping that takes pressure off managers on the floor. When evaluating software, or software suites, look for features that will impact the efficiency of your organization.