It’s a common misconception that only large corporations need to have a working HR department. Many believe that you need to have numerous employees in order to make having a designated department for human resources viable, but that couldn’t be further from the truth.

In the digital age, it is now possible to run a small HR department with the help of some cleverly thought out software. However, the true benefits of this may be unclear, so I’ve decided to put together five reasons why all small business owners should consider taking a look at the HR software options available from many companies. Let’s take a look:

1) Better decision-making

Everyone knows that in order to make a great decision you first need to establish the facts. Having a high-quality software package dealing with your HR requirements will give you all of the information that you need at the click of a mouse. HR software allows you to update multiple fields into relevant areas and get the data you need quickly and efficiently. Having this information to hand could make a borderline decision clear cut, making your life a whole lot easier.

2) Greater productivity and accuracy

Staying on top of records manually can be extremely time-consuming and can also be open to human error. Allowing employees to access to their own personal information will give them the freedom to update their data at will, saving the time and resources of a HR department. Giving employees the ability to handle their own holiday booking and the like will empower them and keep them happy, while your HR staff will be less inundated with employee enquiries.

3) Cost effective

Many of the less savvy business owners out there would see HR software as a cost rather than an investment. However, choosing the right technology for your business could show an impressive ROI. Lowering employee overheads and improving staff productivity are just some of the ways that HR software can pay for itself over time.

4) Improved efficiency

By incorporating the latest HR software into your business you are making the management of your employees much more efficient. Choosing the correct modules for your business can help you with other processes such as accounting, recruitment and payroll management. By linking up your HR software with other software suites, you can streamline your business and make the task of business management that much simpler.

5) Greater security

Another huge benefit of taking on board some HR software for your business is the fact that by doing so you are improving your company’s overall security. Paper records are easily accessed, damaged or destroyed, whereas data that has been stored electronically can be secured by a strong password and made only accessible by trusted members of staff. Those members of staff who have access can obtain the information from anywhere too, making their job far easier. Equally, electronic data can be backed up, meaning that the old risks of fire and flood no longer apply, as they would have done with paper records.