5 benefits of HR Software for Startups

5 benefits of HR Software for Startups

31 January 2023

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As a startup business owner you’ll have lots of things to do and lots of things to think about. The nature and needs of your business will be different to those of a larger company, but both will have employees and making sure that you have everything in place to manage all your employee related processes can be a real headache. As a startup it’s highly unlikely that you’ll have a dedicated HR specialist. If someone does look after your HR, then it will no doubt be one of many hats that they wear.

To relieve the burden of HR processes it is worth investing in HR software that can grow with your business. Here are our top 5 benefits HR software will bring to your startup business.

What are the key benefits of HR Software for Startups?

1. Increased productivity

Using HR software to automate time consuming, repetitive, boring tasks will free up time for your employees to be more productive and do what they do best. Time really is money for startups and the more time that can be saved and ploughed into growing the business, the better. All the paperwork that goes along with managing your staff, instantly becomes a thing of the past when you use HR software. Whoever has responsibility for HR will be given the gift of time to focus on and be more productive in other elements of their job. By using the self-serve element of HR software, other staff will also be more productive as they can use their phone to book a holiday in a couple of clicks rather than wasting time filling out forms and waiting for approval.

2. Enhanced employee experience

The overwhelming majority of people now use a smartphone in different ways in their day to day life. By having HR software which allows employees to self-serve, a startup will create an enhanced employee experience from the outset. The use of such technology creates a great first impression with new staff. It shows that a business is modern and forward thinking and as a startup, you need to do everything possible to engage and retain employees. Using effective HR software that actually makes employees’ lives easier will assist your business in producing a positive buy in from staff.

3. Cost effectiveness

The costs of HR software will vary between providers. Some will charge a set up fee and annual licence fee, some will charge per user per month. The software though will quickly deliver a return on investment for your startup through efficiencies and time saving. By using HR software you eliminate vast amounts of paperwork so the saving in paper, printing and storage costs alone will allow a startup to divert vital funds to areas where they can make a real difference to the business.

4. Data gathering

For a startup, using HR software is a great way to gather and manage staff data and information in a quick and simple way. There’s no filling in of hard copy forms and no filing cabinets stuffed with odd pieces of paper. With HR software, you can see an employee’s full record at the touch of a button. Your HR software will manage holidays, staff absence and all employee information from the start of your business. As your business grows, your data gathering can start to identify trends and patterns which you can report on and analyse and this will help to inform some of your business decisions.

5. Data security

Startup businesses are no different to any other business in that they have a legal obligation to keep the sensitive personal data of their staff secure in order to comply with GDPR and data protection legislation. Using HR Software is the best and most secure way to look after that data and ensure that only those people who have a genuine reason to access it, can do so. By implementing a HR software system, a startup business won’t need to worry about data security and it’s another headache that is taken away.

How can HRX software help startups?

HRX was specifically designed for SMEs to take the pain of managing HR processes away, so that a company can focus more on its core business – whatever that might be. HRX is perfect for startups and by using our FREE 30 day trial, you have nothing to lose!


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