There are many benefits of HR software that make life just a little bit easier in your business.
The business world has gotten decidedly more complicated in the last year. With the global pandemic changing how we commute to the “office” and mental health becoming a vital priority for managers and employees alike, the importance of a well-run human resources department has never been more apparent.
Improving HR isn’t easy though. The human element creates a wide range of complicated challenges and remote work policies have forced many of these processes into the virtual space rather than face-to-face. Fortunately, you can keep up with the shifting trends of the business world by organizing and digitizing the process with HR software.
As with most business tech, HR software is designed to make life a little bit easier for the people on your team. By streamlining daily processes, improving communication, inspiring productivity, providing actionable data, and ensuring compliance with state and federal regulations, the best HR software platforms will give professionals the tools they need to truly get the most out of their team.
Not convinced? Well below, we’ll go through five major benefits of HR software that are of the utmost value to your business, particularly during a global pandemic.
No, it’s not just for healthy relationships; good communication is equally important to the success of a business. In fact, a study found that 28% of employees cite poor communication as the reason for not being able to deliver work on time.
Whether it be coworkers on a project or a manager to their team, you need to find a way to keep the lines of communication open and functional, and that’s essentially the main advantage of HR software.
The right platform will allow you to stay in touch with your employees on a regular basis with check-ins, provide tools for them to reach out when they need to, and will facilitate praise for a job well done after a completed project.
Yes, HR software costs your business money, but keeping employees happy is always a good return on investment. And with 58% of professionals stating that clear and regular communication is the most important factor when it comes to a positive work environment, it’s safe to say that it’s worth the cost.
One of the best ways to ensure that your company is headed in the right direction is a solid recruitment strategy. After all, your company is made up of employees, and those employees had to be recruited at some point, so it stands to reason that your ability to attract and retain talent has a direct and significant impact on the success of your business.
This is where HR software can really shine. For one, it allows you to organize your recruitment strategy with meaningful, actionable data right out of the gate. You can tailor searches, filter candidates, and generally streamline the entire process of finding the right candidate.
HR software isn’t just about finding new talent either. With the right platform, you’ll be able to establish a promotion funnel that asks and encourages current employees to apply for higher positions. This not only guarantees that your company culture will develop with term employees, but it will also improve morale among employees who see growth as a possibility rather than an obstacle.
To be frank, most established companies are already taking advantage of HR software to recruit talent, which is why the best candidates last an average of only 10 days on the market. In fact, 98% of Fortune 500 companies use some kind of recruitment software, and 94% of recruiters say that it has positively impacted their hiring process.
Arguably one of the most helpful aspects of any type of online business resource is the ability to track and analyse reports. As any social media CEO could tell you, the value of data is undeniable, and it’s even more helpful when it comes to managing your employees and how they work.
HR software tracks a wide range of metrics that can give you the insights you need to really improve your business, including employee turnover, job performance, approval processes, and many more. Understanding this data will not only help you ramp up productivity, but will also show employees that you’re invested in their success.
Again, it’s hard to deny that this element of HR software isn’t vital, particularly with 85% of HR professionals believing people analytics are going to be very important in the future.
It may seem like an innocuous department at your company, but the reality is that HR professionals are granted access to a whole lot of privileged information that should not be made available to the public.
Subsequently, HR software that can provide you with the safeguards necessary to stay compliant with state and federal laws in regards to employee privacy can be a serious help for even the most seasoned employees.
From pay stubs to medical data, HR software can keep the important information as private as it needs to be, by law. After all, the last thing you want on a Monday is for HIPAA complaints and I-9 fines to start piling up, particularly when lawsuits can reach the millions of dollars range before you know it.
HR software isn’t just an online portal for employee benefits and time-off requests. These platforms are incredibly robust and offer a wide range of features that not only helps you manage employees, but also give them the control to manage themselves. As you can imagine, these kinds of empowering features naturally improve productivity, if only because it’s streamlining processes that would otherwise take up someone’s valuable time.
Additionally, HR software improves productivity most for, you guessed it, HR professionals. From the ability to delegate tasks, to the inherently distraction-reducing nature of the average HR software, you’ll likely make the job of your HR team infinitely easier simply by installing one of these platforms. And taking the load off your HR employees can be quite beneficial, especially considering 72% of HR professionals are stressed out because of high attrition rates at their business.
Simply put, investing in your HR department is going to inspire productivity, because it will give them the tools they need to get the job done, and get it done right.
So there you have it, the benefits of HR software far outweigh concerns regarding their effectiveness or cost. By using this kind of software, you will be vastly improving your business performance by making life simpler for your employees.
Looking for more ways to improve your business efficiency? Check out our other blog posts.
There are 5 primary recruitment tactics that every business and company recruiter should place at the heart of their direct hire recruitment strategy if they want it to consistently succeed.
When you’re looking to hire the best talent for your business, it’s inevitable that you’ll run into a few recruitment challenges along the way. Here we discuss what some of these biggest challenges are, and some useful tips that help solve them.
One of the biggest recruitment challenges is understanding the different tools are services out there, and which are most effective for improving the recruitment process. This can be a daunting task, with hundreds of potential solutions out there that claim they can get your job filled, making it hard to distinguish which are best for your recruitment needs.
From job boards and aggregators, to social media, sponsored advertising, agencies and RPOs, it can be hard to know where to start, as amongst the very good solutions, there are some very poor ones too. Each job will need a different set of solutions, so finding the ideal combination of advertising media, technology and processes is the best way to get your job filled efficiently and cost-effectively.
Luckily, there are now recruitment services available that let you centralise all your recruitment activities. Many of these services have integrated 3rd party tools so you can get several recruitment solutions in one, giving you better value for money.
A key tip to establish which is the best service for you is to first list your company objectives, then you can think about the tools you need to achieve them. For example, if you want to reduce recruitment costs, selecting tools that reduce your dependency on agencies could be the best option.
Inefficient administration processes and duplication of effort are what soak up the vast majority of a recruiter’s time. For example, sourcing potential applicants and reviewing CVs and profiles can take hours, if not days.
When lots of time is spent inefficiently on recruitment admin, it can actually create a substantial cost to your business. Yet, when calculating the cost-per-hire metric, many businesses don’t factor in the time and resources spent on these kinds of tasks.
Creating an efficient recruitment process is essential for getting high-quality applicants into your shortlist, as quickly as possible. It’s also important for managing efficient ways to reject unsuitable applicants quickly, while protecting the corporate brand.
A good recruitment management system is essential for improving your recruitment efficiency. Recruitment management systems let you coordinate all your processes from one single platform, where you can easily identify what tasks are the most time consuming, along with many other tools that automate and simplify the recruitment process.
This will dramatically reduce time spent on manual admin tasks, and save on long-term costs to your business. For example, you may notice screening applicants is taking far longer than necessary, so you could benefit from implementing tools like behavioural assessments, video profiling and technical assessments.
Company brand is all about reputation, and this can be significantly affected by the candidate experience throughout the recruitment process. This can be seen in research that found 80% of candidates who have a bad recruitment experience will openly tell others about it, with many proactively doing so.
A poor candidate experience can damage your brand image, impacting how both candidates and customers may see you in the future. Yet understanding how to execute a positive candidate experience seems to be one of the biggest recruitment challenges.
Improving the way you communicate with candidates is one of the best things you can do to improve their experience and protect your brand. This can easily be done with personalised automated email and SMS responses at each stage of the application process, acknowledging applications and providing additional information about your job opportunity to keep them engaged.
This is important even for candidates who aren’t suitable for your roles. According to a PwC survey, 61% of candidates have experienced recruiters withdrawing from all communication suddenly and without explanation, even after they have had an interview. This can leave candidates feeling negatively towards your brand, increasing the chance of negative word-of-mouth.
The person doing the recruitment may be under pressure to get the job filled quickly above anything else. This can lead to unsuitable candidates being selected, and bad hires being made. Bad hires can cost your business almost a third of the employee’s first-year earnings, and affect your team’s overall performance and productivity, so naturally this is something you want to avoid.
Applying due diligence even in the earliest stages of recruitment is key for avoiding bad hires. This can be done in the form of sophisticated candidate screening tools, such as CV parsing, behavioural assessments, and video profiling. Tools like this will help closely match candidate experience, behaviour, and cultural fit to your role and business.
Every recruiter is looking for the secret sauce to this recruitment challenge. Attracting quality candidates is important, but something many businesses struggle with. This isn’t helped by the fact that the typical drop-off rate during the application process is 80%, and this tends to be the strongest applicants passively searching for a new role.
Poorly optimised job adverts that don’t include appropriate keywords are often the centre of this problem, as the right candidates aren’t discovering the role. Many job adverts are also poorly written to convert, creating the challenge of turning a view into an actual application.
There are short and long-term solutions to this challenge. A short-term strategy would be to ensure your advert will be displayed by search engines like Google by using the most effective job title and relevant keywords that your ideal candidate will be searching for. Make sure to include these keywords in your ad copy, page title and meta description. Once candidates find your job ad, making it engaging and well-written will help improve conversions more than a simple job spec.
More long-term strategies that will help improve direct applicant quality are to improve your company brand and reputation using the tactics mentioned for improving the candidate experience. We also recommend building your talent pool and establishing relationships with quality candidates ahead of trying to recruit them, for example those that have previously applied at your company, follow you on social media or have joined groups you manage on LinkedIn.
With 81% of candidates expecting the hiring process to take 2 weeks at most, improving time-to-hire is a recruitment challenge increasing in importance. This is because candidates are far more likely to drop-off the application process if it is taking too long, or get snapped up by another company.
Instead of measuring your time-to-hire, use the time-to-offer metric instead. This is much more sensible to assess your performance on, as things like candidate notice period are beyond the recruiter’s control.
If you find that your time-to-offer is still too long, then you need to start looking for ways to speed up your recruitment process so you don’t miss out on talented candidates. Some ways to do this include posting your jobs to a wide enough network, writing optimised ad copy, communicating with the best applicants continuously, and automating manual processes through technology like CV parsing, to name a few.
What doesn’t get measured, doesn’t improve. Tracking data like application completion rates, drop-off rates, and declined offers is important for identifying areas where you might need to improve your recruitment process. It’s also useful for spotting what campaigns perform well, so you can replicate these in future and save on the cost of weak recruitment.
Recruiters need to generate simple, accurate reports that give this kind of information, and the recruitment challenges lies with what tools are most effective for doing this.
A good recruitment management system is once again an easy solution to this challenge. These systems provide you with detailed reports across all your recruitment activities that you can then analyse for performance and pinpoint areas for improvement.
Perhaps the most prominent recruitment challenge concerns reducing your recruitment spend. Many companies look to cut back on agency costs, which is unsurprising given standard fees range between 15 – 20% of the candidate’s first annual salary. Hiring directly in-house is one of the most effective ways to reduce these costs, but hiring the right candidate is what will repay that cost several times over.
Having the right tools, systems, and processes in place is critical to improving your in-house recruitment process, and reducing overall recruitment costs. Our Guide to Reducing Recruitment Costs covers this in more depth, and will give you all the tips you need to do this.
Many fixed price solutions are able to offer extremely good value for money when it comes to your media advertising, and some come with outstanding management systems that can help you to address many of the other challenges that recruiters face.
You may have noted that many of the biggest recruitment challenges can be solved using recruitment technology and services. Luckily, many businesses that provide these kind of services offer a free trial, so you can decide if they are suited to your needs.
Smart Recruit Online offer free online demonstrations of our talent acquisition platform. Our platform comes fully equipped to solve the challenges we’ve spoken about here, with recruitment management software, candidate communication tools, screening tools, job advert optimisation tools and so much more available on one, easy-to-use platform. If you like what you see, you can sign up for a 12 week trial completely free of charge.
What are you waiting for? Start solving some of your biggest recruitment challenges today.
It is critically important that recruiters and subsequently the business understand how to measure recruitment effectiveness, and find out what works and what doesn’t.
The population of the private business sector increased by 3.5% between 2018 and 2019 – that translates to 200,000 more businesses in the UK during that period alone. No matter what niche your company operates in, there will always be competition, and that makes every decision you make a critical one. If you’re aiming to grow and expand your business, one key decision relates to the employees you hire: will you be recruiting in-house staff, or will you be relying on contractors? The jobseeker market is booming at the moment, so it’s a good time for hunting down talent. If you’re looking towards expansion, now’s the time to consider how you will be filling the roles.
Polls show that 58% of small and medium-sized enterprises (SMEs) are now working more with freelancers. There are advantages to doing so, but there is no solid evidence that it is better than hiring employees. Choosing the most sensible and cost-effective model for your business simply means investigating the pros and cons of hiring different types of workers according to the role you need to fill.
The first step in doing this is to ensure you have a solid understanding of the key differences between contractors and employees. Work with a contractor involves entering a short or long-term agreement that an individual will do a particular task for a set fee. They are responsible for their own taxes and will have freedom over when and where they work. An employee, on other hand, will require your business to cover their expenses and equipment and will work within the rules and systems of your business. They will be on your payroll and will be covered by your insurance policies.
Freelancers are specialists within their niche, and if you are looking for someone to complete one-off projects or tasks not within your employees’ usual remit, they are a good option. If you need a logo or graphics, for example, hiring a freelance designer will fulfill an immediate need without having to add someone to your long-term payroll. This can save you money in the long run, helping you achieve your goals for expansion. As the business owner, you can control how much work you outsource to a contractor, allowing you to purchase their services on a pay-as-you-go basis.
A Forbes report shows that the ability to work remotely is a powerful motivator for many freelancers, and 90% of them do at least part of their work from home. If you’re looking to expand, working with freelancers is a valuable way to do this without moving premises to accommodate a growing team. This also saves your business money on equipment.
There are over 2 million freelance workers in the UK, and finding an experienced and reliable one who fits your budget can take a lot of research. Once you do find one, it may be necessary to book them several months in advance, as they’re likely to be in high demand. This requires you to think one step ahead, and may not be the best choice if you have regular deadlines that need to be met.
When you hire employees, a contract is put in place before an individual joins your company. However, with a contractor, they manage their own time, and you have no legal position if they quit partway through the work. If that work then needs to be updated, unless you can work with the same contractor, it may not be easy to get the work done time (or cost) efficiently. Additionally, while a contractor may be an expert in their field, you will need to take time to show them the specific workings of your business: hiring an employee may ultimately be more cost-effective if you want ongoing work completed.
There is no cut-and-dry answer to whether hiring freelancers or employees will be best for your expanding business. Each role will need to be considered carefully, and you’ll need to assess your needs for each position. However, as a rule of thumb, it is probably still advisable to employ full-time employees for ongoing work and keep them trained in the specifics of your business; for one-off jobs that fall outside of your employees’ usual remit, hiring freelancers could be a sensible move.