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by Jen Leigh on June 9, 2020

Why entrepreneurs should deploy effective cloud HR management software


Regardless of the size or scope of your business operations, effective human resources (HR) management is vital to the its success. Most entrepreneurs are small-business owners who may believe that investing in cloud HR management systems (HRMS) is unnecessary. Adhering to that view, however, can have a severe impact on workflows, scalability, operational efficiency and relevance in today's business landscape.

The impact of emerging technologies on HR operations

Some of the key driving forces in that landscape include augmented and virtual reality, the internet of things, machine learning, big-data analytics and artificial intelligence, among others. Those technologies have given birth to a lot of innovative solutions and made it possible to automate virtually all business processes, especially HR management.

Why modern entrepreneurs need smart cloud HR management software

The development of robust automation and digitization solutions has several implications for HR management. With New call-to-actionresearch showing that companies with engaged employees outperform those without by as much as 22%, the importance of HR solutions and the role they play in increasing employee engagement levels comes to the fore.

Entrepreneurs can choose from a wide variety of HRMS packages such as core HR, strategic integrated HR or strategic HR suites. They also have a choice of major categories, including HR learning, talent acquisition & management, or HR administration systems, and of integrated systems versus best-of-breed platforms. All those solutions have improved on the traditional methods of executing HR processes and can help professionals recruit and onboard new employees, increase engagement levels, connect teams and manage resources.

Here are some of the reasons modern entrepreneurs should take advantage of Cloud HR Features.

Building and maintaining a competent workforce

The solutions help automate several key hiring processes, from internal job postings and mass recruitments to employee onboarding, payroll management, grievance redress and other internal HR processes.

Big-data and data analytics capabilities enable HR professionals to use their business data to gain insights for better decision-making. That helps entrepreneurs identify, onboard, engage and maintain a competent workforce, a vital element for an organization's growth.

Improving organization productivity

HR management software can help improve your organization's overall productivity. Few sections of the organizations handle as much information or juggle as many duties and responsibilities as that department.

With HRMS, you can gain insights into employee productivity and engagement levels, streamline recruitment tasks and handle payroll management and performance evaluation efficiently, thus reducing the HR personnel workload and freeing them to focus on more-critical tasks. With more time to do their job, professionals can dedicate their expertise to improving organization productivity by building a cohesive and more-engaged workforce.

Compliance

Although employment laws vary from state to state*, there are federal regulations that all businesses, regardless size and number of employees, must comply with. They typically focus on labor laws, health care, taxation, insurance, employee rights and so on. HRMS can help entrepreneurs navigate and maintain compliance with all employment laws and regulations. 

*If you're Arizona-based like us, contact us about Arizona Labor Law Compliance.

Scalability

Since many entrepreneurs only have a few employees on their team when starting out, they may feel that HR management isn't crucial. Several HR issues (such as payroll management, inefficient recruitment workflows, absence and leave management, and compliance issues), however, become important as their operations and company size expand.

Unlike traditional legacy systems, today's HRMS, which is based on software-as-a-service, offers you the ability to scale seamlessly along with your operations. You can use those capabilities to manage HR responsibilities and establish organizational practices and policies from the outset.

Automation

It's largely agreed upon that HR professionals spend too much time on administrative and maintenance tasks. HRMS automates many of them, such as preparing job descriptions, onboarding new hires, scheduling and approving employee time-off requests, handling employee taxes and reconciling payrolls. They also can avoid human errors that occur when entering data on spreadsheets and manually executing workflows.

In today's digitized and highly competitive business landscape with low employment rates, a huge number of job openings and a dearth of qualified personnel to fill key positions, entrepreneurs can use HR management software to differentiate themselves, reduce employee turnover rates and bring about transformational change in their business operations.

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Jen Leigh

Jen Leigh is a Senior Product Specialist with Inflection HR's Cloud Based HR and Workforce Management Solutions. Connect with Jenni and the rest of the Inflection HR Team on Twitter, Facebook, Linkedin, or Google +.