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10 Ways You Should Automate Your HR Process as a Small Business

10 Ways You Should Automate Your Small Business HR Process
Dan from MergeYourData.com

For small businesses, success can come with some unexpected complications. When adding employees, tracking HR issues such as payroll and scheduling can gradually become a fulltime job. To keep costs down and your records accurate and complete, you should consider automating your HR processes. These are 1o ways you should automate your small business HR process so you can get the most out of your HR department.

Instead of hiring someone to manage your HR needs or trying to take it upon yourself, there are online businesses specialized in managing your HR needs, allowing you to focus on your business and smoothly continue to grow. Here are some advantages to automating your HR processes that you may not have even considered.

1. Onboarding New Employees for Your Business

As you grow your company and add new employees, the process can be time-consuming. Automation means never forgetting to record necessary information about your new employees, from tax information to the distribution of new employee materials and any necessary NDAs you might have.

It also allows for employees to onboard themselves, following an automated process online.

2. Keeping Track of Your Employee Data

Having an online HR system makes keeping up-to-date employee data quick and easy. It provides a central repository for updating employee information, such as a change of address or salary.

It also allows for adding performance reviews and can track training requests as well as completed training. This tracking can be particularly useful if employees require regular recertification for their job.

3. Automating Your Payroll

Running payroll can take up hours or even days, depending on your business. Having automated HR allows you to automatically run payroll as the system has direct access to employee hours and pay-rate or salary.

Having this payroll system also gives you accurate records in the event of pay disputes or audits.

4. Requesting and Recording Vacation and Leave Requests

An online HR system can both allow employees to directly request vacation days and leaves of absence, as well as provide management a centralized place to manage those requests and record approved ones.

With scheduling also handled within the same system, you will be alerted if you try scheduling someone who isn’t available.

5. Providing Security for Your Vital Records

Often records are needed for legal or tax purposes, and their loss can cause severe financial and legal risks. Using an HR automation system ensures there is no chance of data loss due to human error, fire, etc.

Records are stored on the cloud where loss is virtually impossible, and backup records exist. As your company grows, you’ll also not deal with overflowing file cabinets and banker’s boxes or expensive off-site storage for vital records.

6. Automating Both Ongoing and End-of-Year Taxes

Taxes can present a continual drain on your time as you calculate and handle them with each payroll run. And you always run the risk of costly personal errors when calculating your employees’ taxes.

HR software will also assist you with end-of-year tax assessments and payments. You’ll also have the peace of mind that comes with knowing they are always complete and accurate.

7. Track Benefits in One Centralized Place

Tracking employee benefits can be a logistical nightmare. Keeping track of insurance can be automated as well as tracking benefits that might accrue over time in your company, such as access to vacation and sick days.

You can also track when those benefits are used, with scheduling linked to an employee’s accrued vacation days.

8. Accurate Time Management and Scheduling

Scheduling can be hectic as your business grows. You may need to ensure shifts are properly covered, and you need to account for employees out sick, on leave, or on vacation. You can manage both easily when an HR system has direct access to all this information.

Additionally, automation software provides for a more accurate recording of employee hours. You may have the most honest employees available, but mistakes happen.  Mistakes could particularly happen if employees must track their hours and submit them at week’s end, as they may have to guess sometimes if they failed to record hours daily.

9. Financial reporting

Poor cost analysis can cost a business real money. You can easily lose track of how much labor you’re paying for on a project, particularly when business is doing well, and you must handle multiple projects at once.

Using an automated HR system allows you access to data crucial for decision making and effective costing. You’ll be able to take on new customers with the confidence that you know exactly how much labor costs need to be in an estimate by leveraging historical data on similar projects.

You’ll also be able to analyze data on a project by project basis to get a more accurate picture of which services bring in the most revenue for your company. This analysis can be invaluable for long-term strategic planning within your company, showing you what service areas you may wish to focus on when it is time to expand.

10. Offboarding

The offboarding of employees is just as important as onboarding. You can track what equipment an employee has been issued, such as costly laptops, to make sure everything is recovered when an employee leaves.

Equally important, employees leaving your company can present a security risk. You may need a checklist to perform, such as retrieving keys and deleting passwords.

This risk is especially true in the case of employees being discharged involuntarily due to poor performance or necessary downsizing. Therefore, having a comprehensive offboarding process in place can be vital for protecting your company’s assets, data, and proprietary information.

An Automated HR System Pays for Itself

Business owners may be put off by the idea of outsourcing their HR. However, there are clear advantages to doing so. First and foremost is that it allows businesses to focus on what they do best and not have to add personnel to deal with HR needs.

While some small business owners try to avoid the cost by doing the work themselves, if they add up the hours they’re spending handling their HR needs, they will invariably find this isn’t cost-effective either. It’s an unwanted distraction from the actual running of the business as well.

Automated HR systems can cut administration costs by over 80%, allowing your business to focus on growth. It will also assure you that payroll, taxes, and scheduling are being done accurately and on time.

Finally, you’ll have the security of knowing your essential data is always protected, backed up, and available. This gives you the added relief that all your records are available at a moment’s notice, and you’re shielded from any tax or legal issues that could arise due to a loss of your records.

We recommend looking into platforms like Gusto that specializes in automating HR processes. Gusto and similar tools have now been around for years. They’re an easy way to save tons of time and money compared to what you have to pay for the tool.

MergeYourData.com Automates HR Processes

We hope you were able to take away some value from our blog. If you don’t know how or where to start with HR automation, MergeYourData.com offers Business Automation Services if you want experts to get your HR processes where they need to be.





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