Small and Medium Sized Businesses Investing in Human Capital Management: Is it Worth it?

Category : ERP

Blog posted by : Admin / 15 Jun, 2021

 

When you read about Human Capital Management Software, you are most likely to come across information about how the myriad modules of human resources are integrated for your convenience and how it will assimilate and streamline your workforce, leading up to more sales.

 

But does it really? Is investing in HCM Software worth it?

The question can be answered with multiple questions- 

• Can worth only be determined by quantifiable returns?

• How important are the unmeasurable savings of time, efficiency, compliance and more? 

• How beneficial is a more productive human resource?

Some would say a more productive team is essential for a business to run successfully but others would still have doubts about leveraging productivity against a software, to manage HR and payroll.

 

Here, the size of your company and its vision comes into play. 

For instance, a small business would be where one employee could be playing several roles within the organization. The many responsibilities could illicit a need to constantly communicate and update many departments. 

Working in groups of isolation for every department, the lines of communication are not as clear as one would like. 

Imagine all employees have access to a dashboard on their screens with just one click, where they have information they need, to efficiently carry out their tasks. The best part is – they can access it anytime and anywhere on any device!

Clearly, this would lead to better productivity, quicker completion of tasks and indirect savings of money.  

 

A Human Resource Management System caters to industry specific needs of an organization of any size. The functions and features required by any Small and Medium Enterprises (SME) will differ but a majority opt for attendance and leave management of employees. 

Completely automating attendance and records saves a considerable amount of time. To add flexibility to the HR module, it comes with an additional feature of geotagging. With it, employees can conveniently sign onto the system even if they are working from home, office or site. 

 

Another question on the minds of buyers is the cost. 

Myth- HR and payroll Software can only be afforded by large companies.

Fact- HRMS on cloud is the answer for small and medium sized organizations. 

 

A SaaS cloud-based system will have lowered license and maintenance costs. Within a month, workforce automation will be in effect. No deployment of software on a system or server is needed. 

Any authorized personnel can access it instantly without spending on infrastructure thereby saving indirectly as a result of opting for Human Capital Management on cloud.

It is scalable too. No worries about shelling out more money to upgrade your server space and systems. The provider hosts software for all in a shared space and can scale it as per your needs. 

 

Aid for smaller organizations can help them tackle bigger issues while HCM software can help automate and streamline process flows. 

Taking advantage of benefits would also give you room to invest in Human Resource Management System (HRMS) and give your company a big push forward among rising competition. 

Some countries prioritize small and medium sized businesses and offer schemes and measures as incentives. It would be wise to check if your organization is eligible to access government funds. 

Especially during the pandemic, many governments have provided aid to small and medium sized enterprises in order to modernize the sector and provide a push in the right direction. 

 

One of the first obstacles a small or medium sized business faces, is spending long hours on administrative tasks. The unforeseen huge amount of time required on manual tasks takes a hit on their sales. 

Again, Human Capital Management system would take out a big chunk of time dedicated to repeated manual responsibilities. Less time spent on daily repetitive tasks can be diverted towards tasks you really want your employees to be doing.  

 

One of the most important reasons for seeing desirable results lies in your company data. By implementing an online system, you are bound to acquire a lot of data. Static data has very little value.

HRMS on cloud helps turn static data into dynamic and actionable information.

To add value to data you need to run basic analytics to make sense of it. One of the HR modules dedicated to reporting will help you analyze your data and extrapolate valuable information. This actionable information will help make better decisions to steer your business in the right direction.

 

The biggest advantage of automating HR and payrolls is to focus on maximizing potential of human resources.

Few functions of HRMS that save you time and effort are listed below.

• All employees can log their attendance on HR modules integrated with Biometrics

• Notifications can also be customized so you do not waste time on unnecessary communication and updates

• Automated calculation of salary, arrears, bonus, leaves and salary slip creation, payment, leave application and much more!

• Scalable software with upgrades being easily and instantly accessible

• Can view new features during a demonstration and test out their functionality through remote access

• Information on software accessible instantly leads to quicker decision making 

• Security and maintenance provided so your workforce can focus on maximizing gains

• No upgradation of IT infrastructure to incorporate more functionality or more space required for HRMS on cloud 

• Basic analytics and report on valuable information turning it into actionable information 

• Easy collaboration and engagement among employees 

• Consistency in data

• Quick data recovery with the best scenario being recovery within the first few hours

• Protection from hardware damage 

• Easy compliance with tax laws and formalities 

• Acces to various HR modules with the mobile app 

 

Rarely can you directly measure the savings or the profits incurred after deployment of the software but this does not mean you cannot quantify the success of Human Capital Management Software. 

 

The processes that were upgraded through automation result in savings of time and money. You can explore the HR modules to extrapolate such data to provide an indirect measurable result of investing in an HCM system. 

 

Rapid growth and increased revenue are what you invest in when you purchase a Human Resource Management System on cloud, from a reputable and experienced service provider. 

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