Do you need a HR system or a HR consultant?

Do you need a HR system or a HR consultant?

4 May 2023

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Having a great HR consultant or a fantastic piece of HR software will benefit your business, there’s no doubt about it. If you have both, it will transform it. But what’s the difference between a HR consultant and HR software? We explore this in more detail as well as what they both can do for your business.,

What’s the difference between a HR system and a HR consultant?

The very clear answer to this question is that one is an actual living, breathing human being and one is a bit of computer code that has been brought to life. But a HR system and a HR consultant can also fulfil very different functions within a business and you need to appreciate that difference to get the best out of both.

A HR system will computerise and streamline your HR processes and record keeping. A HR consultant will provide support, advice and guidance to employees and ensure that your HR practices are in line with relevant legislation. That said, there are ways that the two can work effectively together to complement each other and provide an HR function that is fit for a modern business.

What does a HR system do for your business?

A HR system is a piece of software can bring a host of benefits to your business. It can help you to automate and manage a number of its core HR processes through intuitive workflows and quick access functionality. Implementing a HR system will save your business time and money and it will increase staff productivity. A HR system will also help your business to be more environmentally friendly as it will eliminate the need for paper. And if that isn’t enough it will drastically improve your data security and compliance with GDPR.

A HR system is populated with an individual record for each member of staff which contains personal and work-related information. Various levels of users then have access to the system including the employee who will use it in a self-service way to request holidays, view documents and update any of their details as needed. There will also be a line manager or other higher level user who has a wider range of access to the system so that they can manage their team or the whole company depending on its size. That user deals with checking and approving requests, uploading documents and can also typically run reports on the data held in the system.

Basically, the HR system replaces many manual tasks and records as it improves efficiency and frees up time for you and your team to get on with the things that you do best. But be mindful that a HR system will not provide you with advice and it can’t guide you to make sure that you are compliant with employment law.

What does a HR consultant do for your business?

A HR consultant is someone who works for a consultancy business, or is self-employed, who is engaged by your business to support them to deal with their day to day HR needs. Typically, this engagement is either on an ad-hoc basis where the HR consultant is parachuted in to deal with a specific issue, or project before flying back off into the sunset.

Alternatively, a HR consultant is engaged in a retainer whereby your business pays a set amount each month and for that fee you receive outsourced HR support and advice from a HR consultant. They’ll work with you and get to know your business so they can help you to deal with any employee relations issues that arise. They’ll also help you to engage with your staff and make your business the best place to work.

A HR consultant will also be able to analyse and make use of the information that is held in your HR software so the two can work in tandem. By having a system that records and reports on absence, your HR consultant can identify trends and if staff have hit absence triggers, and they’ll advise on appropriate absence management processes with these staff. They may also use data from the system to analyse your turnover rate and work with your business to review retention which could also encompass pay, reward, training and staff engagement.

Find out how HRX can help with your business today

If you think you’ll benefit from implementing HR software in your business, why not see how the HRX software can help? Our software can bring you all the benefits listed above and more! You can even try it out completely FREE for 30 days by signing up to our free trial.

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