The Importance of HR Software

The right HR software can help your business streamline workflows, improve efficiency and enable HR to act as a strategic partner

Investing in HR software can be a critical step for businesses looking to streamline operations and improve efficiency, whether they are in a growth phase or have reached a size and complexity where generic software (or manual systems) can no longer handle the administrative burden. HR software - which enables HR teams to perform essential functions and tasks electronically and to some extent automated - typically increases the productivity and efficiency of HR teams, managers and employees. But when considering why HR software is important, it is also worth considering the broader opportunities that HR systems offer to the business.

The basic functions of HR software typically include employee and manager self-service and the collection of employee data (e.g. job, salary, addresses, personal information, vacation and absence data). An HR system stores your HR data securely in a single location, eliminating the need to store your data in multiple insecure locations such as email, Microsoft Excel or Google Sheets, or even on paper in a filing cabinet. But today, HR software can do so much more.

Why HR software is important

HR software is important to ensure the privacy and security of employee data such as addresses and bank details. HR software is also important to enable growing companies to scale - allowing managers and administrators to automate as many basic functions as possible and focus their efforts on more important tasks. HR software with self-service access for employees allows them to maintain their own data, submit time off requests, and monitor their performance.

The strategic benefits of HR software

As companies grow, HR teams and leaders need to have a better overview of their workforce to make the right decisions. HR software can provide this overview and also drive growth, productivity, and performance. This allows HR to act as a strategic partner to other business functions and focus on delivering an excellent employee experience.

By being able to easily find, analyze, and report on HR data, HR teams (and the leaders who support them) can make smarter, more strategic, and timely decisions improving HR’s reputation across the organization.

HR self-management gives employees the ability to manage and update their personal information, request vacation, and log absences. This level of responsibility can help employees feel valued, which in turn increases productivity, performance, and retention.

Investing in easy-to-use, straightforward, and mobile-accessible HR software can help employees become more engaged in processes like appraisals and goal-setting—activities that contribute to better company performance and higher retention of talented employees.

Without HR software, your HR data could be at risk. The rise of hybrid and remote workplaces has led to a rise in cyberattacks that put your HR data at risk. HR software - especially those that support two-factor authentication - helps you more effectively protect against potential attacks and secure sensitive information.

How HR software automates processes and improves efficiency

HR managers, supervisors, and other employees can save time on manual and labor-intensive tasks - thanks to HR software like IceHrm HR that streamlines workflows and automates tasks and processes, giving them more time to focus on the activities and initiatives that really matter.

One organizational process that can really benefit from HR software is recruiting. Applicant tracking systems (ATS) streamline the hiring process through automated emails, auto-reject questions, and self-service interview scheduling, making hiring the right candidates easier and faster. Learn more about HR and recruiting software integration.

Investing in HR software that integrates with other third-party apps can help you further automate the hiring process. For example, artificial intelligence (AI) technology can match job postings with candidates who are the best fit for your company based on the words used in job descriptions and resumes. Without specialized software, companies—especially those that are growing quickly or hiring a lot of new employees—will quickly become bogged down in labor-intensive hiring processes.

HR software can also help strengthen the relationship between HR and payroll teams. With IceHrm's integrated HR and payroll software, for example, details of new hires, departures, or changes are automatically transferred from the HR system to the payroll software, eliminating the need for additional administrative work for HR and payroll teams and mitigating the risks of manual data transfer.

The relationship between HR and L&D can also improve thanks to HR software. When companies use an LMS integrated with their core HR software, employees can easily navigate their learning journey by identifying and booking relevant training courses themselves – helping employees take ownership of developing their knowledge and skills.

Investing in HR software like IceHrm can significantly enhance your company's efficiency, security, and strategic growth, ultimately fostering a more productive and engaged workforce.