Businesses of every size require better talent management, and in present day workplace culture, it is not possible without the help of an effective software solution. Good HR tools for small business are required not just to save time, money and other resources of the company, but can also optimize the process of organizational performance tracking and consistent improvement.
Small businesses and startups face more challenges in talent management than that of corporates and enterprise setup. This is mainly because most of the startups and a lot of small businesses assign HR responsibilities to a single HR administrator who has to handle just everything, from payroll to benefits, time tracking to grievances/disciplinary action, hiring to promotions, and so on.
For a single person to handle so much is technically impossible without a good HR tools and following are some of the reasons for startups and small businesses to use good HR tools for improved organizational productivity.
1- To Save Time & Resources:
Rather than a single person recording attendance of 25 employees, if a software tracks their time in and time out right when they arrive, is faster yet error free. It also reduces paper waste, time waste and cost of hiring an individual for HR record keeping.
2- To Increase HR Productivity:
Moreover, the HR administrator can be more productive by creating & implementing actual HR policies in close coordination with law and organizational goals rather than just record keeping. This will help organization to develop a better and more productive workplace.
3- To Avoid Serious Consequences: Small businesses and startups must balance record-keeping in accordance with the healthcare reform, tax codes, and labor laws and at times mistakes can lead to serious legal consequences.
4- To Retain the Best Talent:
Did you know that startups and small businesses are at higher risk of losing good employees than enterprise? Because large businesses and even small business competitors can offer them a higher salary and better benefits. With an effective HR tool, you can strategize the workforce retention better.
5- To Increase Organizational Productivity:
As a fact of the matter, small business and startup teams are more prone to performance gaps, because they due to one reason or other there are certain employees not pulling their weight. And, you cannot improve the team performance without a formal performance management or training system in place, which can be developed easily and quickly using a good HR tool.
The Bottom Line:
According to a Jobvite survey of over 2,000 adults working for small businesses, 51 percent of employed workers are actively seeking or at least open to a new job. This should be an alarming situation for startups and small businesses who do not have a strategy and right tools for talent management.