HR departments have found themselves under increasing pressure in recent years, as their workload has increased, and staff find themselves responsible for more and more tasks within the business. HR software is being adopted by a large number of companies to make the HR department run more efficiently, but using this software can also bring a number of other benefits, especially in terms of finance.
Efficiency is key
When a HR department becomes more efficient, it also becomes more cost effective. If existing staff are able to better cope with the workload that they have, then hiring extra staff is not something that the business will have to consider. It also means that the HR staff that the business already has are less likely to lose time due to stress related illnesses, which could possibly result in having to find temporary staff. This benefits the business financially as it reduces their potential expenditure.
Making payroll a priority
There are other financial benefits that can be gained through the use of HR software, particularly if it is integrated with payroll. Wages are one area of a business where costs can quickly mount up if they are not checked regularly. This can be through payment of additional wages due to overtime, or because of mistakes in payroll that are going unnoticed. Although it will be the finance department that is ultimately responsible for the costs that are associated with payroll, HR can have a significant role to play in monitoring these costs and detecting any areas where potential savings could be made.
Using HR software to assist with payroll can also reduce the amount of paperwork that HR staff have to deal with. Software will be able to automate some of the most time consuming tasks that staff who are processing payroll commonly encounter. This not only gives HR staff more time on other tasks, it also reduces the chance that errors will be made when inputting data. Dealing with payroll can be something that would take up the majority of a member of staff’s time without the use of HR software, and this type of inefficiency can end up costing the business a lot of money.
The improvements that have been made to the way that payroll is processed using HR software will affect the whole workforce, which means that productivity can improve in all areas of the business. Problems with wages are one of the leading complaints that employees have about the company that they work for, but when many of the tasks are automated, the mistakes that may be made due to human error are significantly reduced. This reduces the likelihood of employees being paid incorrectly, which will make them happier and, in turn, more productive.
Effective management attracts investment
When people can see that the business is being run as efficiently as possible, and that the finances are under tight control, then they are more likely to want to invest in this business. This has the potential to increase the share price of the company and make it more profitable overall. This does not just apply to large companies, even small businesses with just a few employees will be able to enjoy the benefits that HR software can bring.
HR systems from CIPHR have more financial benefits then may be first imagined, and it will not be long before these systems start paying for themselves.