HR software makes managing people simple by streamlining admins tasks such as requesting and approving holiday. This allows you or any HR staff within your business to spend less time wading through spreadsheets.
People are the most important part of any business, so this can be a vital tool for any organisation. In a study conducted by LinkedIn Learning in 2024, 82% of global business leaders agreed that having a strong HR presence is more important than ever.
In this guide we’ll explore the main benefits of using HR software, and why it might be right for your small business.
See also: HR for start-ups – how to get it right
Improved efficiency
Saving time is the number one benefit of using HR software. By outsourcing tasks that would normally take a significant amount of your time to an automated system you can dedicate yourself more to the things that matter.
Making HR a single-sign-on solution, means you can have everything in one place. A 2022 research report by HiBob and CIPD found that having an all-in-one HR system was the top priority for businesses investing in HR software.
This works whether you’re a sole trader or employ multiple people, as any HR manager you hire will be able to streamline the work they do too, and anyone accessing the platform will find it quick and simple to use.
Also see: Five trends in HR to be aware of – What you should know
Saving money
Reducing costs is essential for every business, and implementing HR software presents another valuable way to save. Although HR software typically involves an upfront or subscription-based cost, this investment is often significantly lower than hiring a dedicated HR manager, making it particularly beneficial for small businesses operating on tighter budgets.
Better security
Protecting employee data is a vital responsibility for any employer. Many SMEs continue to use paper-based records due to concerns around digital security; however, modern cloud-based HR software now offers more robust security than ever before.
With cloud storage, your employee data becomes accessible from any internet-enabled device, and there’s no risk of physical documents being damaged by fire or floods. Additionally, digitising records saves office space, which is especially beneficial if you’re working remotely or from a home office. Plus, transitioning to paperless operations enhances your environmental credentials.
Better decision-making
HR software usually comes equipped with built-in analytics and reporting tools, streamlining employee development processes. These platforms provide immediate visual insights into employee data, enabling quick and informed decisions.
Tracking employee performance digitally helps clearly demonstrate development progress, allowing you to log reviews, schedule training sessions, and easily monitor objectives and qualifications.
Improved regulatory compliance
HR software simplifies the management of GDPR and other compliance requirements by centralising employee data securely in one location. Automated reminders and notifications help ensure compliance deadlines aren’t missed.
Beyond GDPR, HR systems also streamline the recording of other essential checks, such as right-to-work documentation and health and safety training, ensuring ongoing regulatory compliance.
Top HR software for small businesses
If you want to take advantage of the above benefits, you could subscribe to one of these three HR software packages.
Sage HR
Sage HR is ideal for SMEs needing streamlined HR solutions, with powerful tools covering recruitment, employee engagement, and talent management.
Key features:
Leave management
Employee database
Performance tracking with mobile access
Pricing: From £4.60 per employee/month, with optional add-ons.
Breathe HR
Breathe HR offers user-friendly, customisable HR solutions tailored specifically for small UK businesses, focusing on simplifying absence, performance management, and reporting.
Key features:
Absence management
Performance management
Document storage and reporting
Pricing: From £22 per month per account, plus affordable add-ons.
BrightHR
BrightHR is a comprehensive HR platform ideal for businesses prioritising compliance, health and safety, and efficient administration, complete with integrated payroll and cloud storage.
Key features:
Leave and attendance management
Payroll integration
Health, safety, and legal support
Pricing: From £11.20 per employee/month, with add-ons available
