Despite dealing with tighter budgets and limited technology resources, small businesses still need efficient workforces. Competition for skilled and educated workers require sharper workflow processes. Onboarding, demographic changes and data-driven HR practices are some of the challenges for businesses. These shape how managers should approach keeping focused on building a stronger company.
The need for better talent impacts all businesses. Employee management software for small business, in particular, has evolved to help employers meet new strategic demands. Still, there are a few nuanced challenges. This article examines a few with suggestions for overcoming long-term impacts.
No Dedicated HR Staff
Most small businesses assign HR responsibilities to an employee with other duties. This person juggles multiple roles and may not keep some of the daily tasks related to employee management current. Introducing workforce management solutions into the business becomes a tremendous assist for keeping things on track.
Rather than leaving manual processes to a single person, an employee management system can help with:
- Payroll processing
- Benefits administration
- Attendance and time tracking
- Disciplinary actions
A complex environment does not mean HR professionals need to be an expert at everything. Instead, the expertise comes from finding supportive tools to streamline seemingly mundane, yet very important workforce practices.
Maintaining Regulatory Compliance with Good Recordkeeping Processes
Because HR regulations are in a constant state of flux, compliance becomes a bigger issue. Small businesses must learn the delicate balance of recordkeeping for labor laws, tax codes and healthcare reform law.
Software programs help alleviate pain points with automated administrative tasks. These programs can track and manage hiring, attendance tracking, and employee benefits. Many of these technology tools also include mobile and self-service access to keep up with an evolving landscape.
Problems with Buddy Punching
One thing that diminishes a company budget is buddy punching and other forms of time theft. Manual time tracking processes guarantee that these practices will continue. This leaves small businesses weak and unable to compete for top talent.
Biometric based employee management software eliminates this profit consuming practice. Every employee has a unique fingerprint, which prevents someone else punching in their time. Systems like this offers a good solution for small businesses dealing with time theft.
Intuitive access and modern capabilities deliver the best return on investment for small businesses. Features may vary from one vendor to the next. However, time tracking systems should offer a combination of:
- Applicant screenings and tracking
- Employee self-service
- Compensation planning
- Performance management
- Mobile access
- Reporting and analytics
- Time and attendance tracking
Types of Employee Management Software for Small Business
There are different types of software the small businesses can use to manage employees. Most solutions are cloud-based, which can help save upfront costs for implementation. On-premise options also work. Still, a hybrid of web-based, cloud-based and network solutions is ideal for employers with a diverse workforce.
Based on user intent, management software is structured within three primary HR levels:
- Core HR: These solutions help with administrative tasks to manage the workforce. Such functions include time & attendance tracking, payroll, benefits administration, scheduling, labor planning and regulatory compliance. Most software programs include an employee self-service module, which is an integral feature for an efficient workforce.
- Strategic HR: Partnered with the primary strategic focus of human resource departments, these software systems manage the process of hiring, retaining and developing employees. Known as talent management, these solutions assist with recruitment strategies, training and development, performance management, and succession planning.
- Integrated HR: Probably the most beneficial to small businesses, these solutions offer end-to-end functionality. Core and strategic HR functions combine to fulfill all areas of HR management. Employers may have the option of purchasing modules based on business needs.
Managing Employees Effectively with a Solid System
At the start of a small business, keeping track of employees might only require looking across the office to see who is at their desk. As the business hires more employees, simple tasks of managing a staff becomes more complex. Enter a sophisticated employee tracking system that does not remove the human factor.
Employee management software for small business covers simple and complex tasks to keep things running smoothly. These management systems negate the need for error-prone manual processes and spreadsheets. Employers know who was hired as part of the team, where they are, what they are doing and how well they are performing.
As an electronic form of recordkeeping for personnel, HR processes integrate with daily operations. Whether producing reports to analyze workforce metrics or ensuring employees have the latest benefits information, a good system takes the worry out of employee management.