OrangeHRM Blog
Voice of Free & Open Source HR System
16
Oct

The Advantages of Using a HRMS for a Small Business

Posted in General  by Tina

Typically, small businesses employ well below one hundred people, but this relatively small number is still substantial in terms of human resource management and the significant amount of work it involves. Effective human resource management (HRM) is a great way to streamline the human resource functions of any sized small business, making overall operations run more easily and efficiently.

These days it is now possible for companies to obtain high performance HRM software cost-free. A variety of open-source software is available now, making it possible for a company to handle its work force reliably and efficiently. Open source HR software enables employers to use cutting-edge technology. These systems are often quite user-friendly, allowing professionals with even the most basic technical know-how to quickly learn how to operate the software.

Manage Employees Effectively

Human resource management serves a number of functions. For small businesses, these functions may vary according to the size of the work force. In order to effectively and efficiently handle each and every one of your employees, you need the best possible human resource management. There are functions available to handle everything from recruiting and applicant tracking to organizing vital company documents. This means you’ll want to implement the latest technology – specifically open source HR software – to stay competitive and yield the best possible output from your work force.

What are some of the most common functions of human resource management and how do they relate to small businesses?

  1. Training of employees: Even in a small business, new employees need to be trained and trained well. The HR team is often charged with developing a training program that will quickly and thoroughly prepare new hires for their job responsibilities.
  2. Providing employees with incentives and rewards: In a business of any size, rewards and remuneration obviously cannot be handed out at random. For small businesses, it’s even more critical that any financial incentives be developed and planned in order to spend wisely and avoid any employee discontent.
  3. Verifying the business’ staffing requirements: Many businesses start small, with the intention of eventually growing in size. Human resource directors need to be able to verify what type and amount of personnel is required and design a method for finding the best candidates.
  4. Retaining talent through best practices: It’s critical for small businesses to be on par with their competitors in the field so that their employees are not tempted to look elsewhere.

Promotes Communication

Human resource management also makes it easier for HR professionals and other employees to communicate effectively. This is especially important in small businesses where it’s more common for an employee to perform multiple functions. With an open-source approach, for instance, communication between HR and employees becomes much clearer for everyone. As an example, the software for one company takes up just 5.7 MB on a disc and offers many valuable features like a benefit module, personal information management module, applicant module, employee self-service module and more.

Cost Savings of Using HR in the Cloud

One of the most important benefits of using HR in the cloud is the cost savings. The setup cost is often very small, so it is easy to fit into even a strict budget plan. Even better, there is no infrastructure investment needed to get started.

Another money-saving benefit of HR in the cloud is the self-service technologies available. Employees can easily perform typical office duties and record-keeping without the company needing to hire an office manager to perform these tasks. Making the employees self-sufficient can reduce the need for additional staff which leads to major cost savings.

Over the years, human resource management methods and techniques have continued to grow and change, and now the software available offers businesses a cornucopia of HRM options. For small businesses, the best way to go may very well be the cost-free option of a high quality open source HR solution.

This guest post was provided by Erin Palmer. Erin is a writer and editor who covers topics discussed in programs like masters in public administration online. She also writes about business-related topics covered in HR degree programs.

Leave a Comment

 

Copyright © 2014 OrangeHRM Inc All rights reserved. Powered By WordPress