Is HR software for small business worth the price? How can it help your business stay on top of HR tasks like compliance, reporting, and employee information management?
These are common questions you might have before signing up for HR software. You probably want to know the features of HR software to determine if the return is worth the investment.
Read on for an HR software overview and learn about the features of HR systems for small business.
What is HR software?
Human resources handles policy development, recruitment, onboarding, compensation and benefits, labor law compliance, recordkeeping, and performance management. HR software, or human resources software, is a system that streamlines these HR processes.
Employers and HR professionals use HR software to improve efficiency, employee satisfaction, workflows, and compliance.
According to the U.S. Chamber of Commerce, 94% percent of small business owners think using technology—such as HR software—helps them run their businesses more efficiently.
HR software can integrate seamlessly with online payroll, a system employers use to calculate taxes and deductions and pay employees.
What does HR software for small businesses do?
HR software streamlines HR processes like employee information management and compliance. But what exactly does it do? What kind of features can you expect? How will it help your business?
Features of HR software may include:
- Employee information management
- HR document templates
- Compliance
- HR reports
- Learning management system
- Employee handbook builder
- Manager designations and permissions
- Benefits administration
Take a closer look at each of these key features.
- HR document templates
- HR reports
- Federal and state compliance
1. Employee information management
When you have employees, you have documents up to your ears: company-wide documents, like an employee handbook, and individual documents, like a performance review.
Put away the filing cabinets. With HR software, you can manage paperless files and documents online.
Examples of HR documents to store in your software include:
- Position information and history
- Emergency contacts
- Employee handbook
- Benefit enrollment forms
- Performance reviews
Depending on your HR software, you can also include notes for each document.
2. HR document templates
You may be able to access HR document templates in your HR software so you don’t have to create policies and other forms from scratch.
Available HR templates and policies may span benefits from discrimination and Equal Employment.
Examples of HR document templates include:
- Non-disclosure statement forms
- Salary increase letters
- Bereavement time off policies
- Performance review forms
- FMLA policies
Your HR software might also help you create benefits documents, such as a premium only plan (POP) document.
3. Compliance
Complying with federal, state, and local regulations is paramount. But keeping up with ever-changing laws is a challenge for many small business owners.
HR software may include compliance features such as:
- Compliance dashboard: Get an overview of your company’s federal and state compliance obligations.
- Law alerts: Get software and email alerts if a new legal update impacts your business.
- HR assessments: Take a questionnaire to assess compliance risks.
- HR resources: Get access to videos, webinars, how-to guides, checklists, forms, and more.
4. HR reports
Want to see all your HR-related data pulled together in one easy-to-view location? Another feature of HR software is reporting.
HR reports make mandatory reporting—such as EEO-1 and new hire reporting—a streamlined process. You can view all the necessary information in one place instead of scouring through your records.
Examples of HR reports include:
- Demographics report: View each employee’s demographic info (e.g., gender, race, and veteran status) for easier EEO-1 and VETS-4212 reporting.
- Retirement plan contributions report: View your and your employees’ retirement plan contributions during a period.
- New hire report: Reporting new hires to your state is a mandatory task. A new hire report gives you the information you need to make this process a breeze.
You can generate, filter, and export HR reports with HR software.
5. Learning management system
A learning management system (LMS) is a platform you can use to assign, track, and schedule employee training. Some HR software systems include an LMS so you can share in-house training materials.
Examples of LMS courses include:
- Workplace harassment prevention training courses
- Employee health and safety training courses
- Cybersecurity courses
- Leadership and management courses
6. Employee handbook builder
An employee handbook builder is a tool that helps employers create, manage, and update a compliant handbook. It includes customizable templates and policies, state-specific regulations, and automatic updates.
On their own, employee handbook builders can cost hundreds of dollars. But, some HR systems include these builders in the HR software price.
7. Manager designations and permissions
You can use HR software for small business to designate managers and assign direct reports. That way, your managers can view their team’s information in one place.
You can also assign permissions to determine what the manager can view. For example, you might want a manager to only view their direct reports’ contact information and not their pay information.
Your managers can then log in to their employee self-service portal (if applicable) to view this information.
8. Benefits administration
Health insurance, 401(k) plans, and group-term life insurance are a few of the benefits you can offer your team. HR software can streamline the way you administer these benefits.
Benefits administration includes creating and managing your employee benefits package. You need to withhold employee contributions and remit them, alongside any employer contributions, to the applicable agency.
Do I need HR software?
Deciding whether HR platforms for small businesses is a necessity or a nice-to-have can be a challenge.
On the one hand, HR software typically has a price tag. But on the other hand, it can save you administrative headaches and time (and isn’t time money?).
You might consider using HR software if you want to:
- Save time and streamline your HR workflow
- Use compliant HR document templates and policies
- Stay up to date with federal, state, and local law changes
- Designate managers to view their direct reports’ information
- Securely store paperless documents online (e.g. employee handbooks, performance reviews, etc.)
Some HR software systems, like Patriot Software, offer a free trial so you can test out the program before you buy.
Looking to manage employees and compliance without breaking the bank? Patriot’s HR software, a payroll software add-on, has the tools and resources you need to streamline your HR tasks. Features include law alerts, HR document templates, an employee handbook builder, HR reports, and more. Start your free trial today!
This is not intended as legal advice; for more information, please click here.