How HR Software Increases Productivity & Profit

Effective human resource (HR) management plays a major role in organizational performance. It allows HR managers to find the right talent and handle human resources as effectively as possible. Moreover, it can be instrumental in ensuring smooth business processes and change management. 

The above-mentioned aside, recent research in the field of HR has established that human resource, when managed in line with big-picture business goals, leads to increased productivity. This, in turn, enhances the overall performance and profitability of organizations. However, before you can achieve this, it is essential to have the right set of tools for managing internal affairs and customer relationships and know how you can use them to your advantage. 

In this article, we present key points on how HR software increases the productivity and profitability of organizations. In this way, you can have a better idea of how to leverage these solutions to cater to the unique needs of your company. Here are 8 ways of increasing productivity with an HR software:

 

HR Software Lets You Employ the Right Candidates for the Right Positions

Today, job applications are filtered by AI-powered platforms that match the qualifications of applicants to the specific job description as stated in job postings. The presence of AI in the hiring pipeline ensures that applicants that move onto the next stage of the recruitment process are the right candidates, thus eliminating the possible wastage of resources.

The candidate selection tool is a digital platform that facilitates various types of assessments to identify key skills and characteristics that will match the specific requirements for the job. The shortlisting process is data-driven and allows HR teams to predict job performance as well. The assessments are meant to determine the candidate’s personality, cognitive ability, and culture fit, among others.

Automating the selection process helps HR teams save time spent on manual processes. These include: 

  • Resumé selection
  • Pre-hiring assessments
  • Candidate Screening
  • Background checks 
  • Shortlisting 

HR teams create automated selection workflows using HR software so that candidates that meet the criteria for specific positions are automatically shortlisted. HR software is also equipped with self-service application features that facilitate the early stage application process online. This increases the efficiency of the candidate screening and recruitment process and at the same time identifies the most qualified applicants for the position. 

Applicant tracking systems for talent acquisition also provide recruiting and hiring tools to companies. The automation delivered by these solutions creates value for organizations by fast-tracking the recruitment process and ensuring accurate selection through AI-powered HR technology. Optimal matching of the skills and experience of candidates for each job opening positively contributes to overall productivity and performance.

 

HR Software Can Quantify Employee Productivity and Performance

Every organization has a clearly defined set of key performance indicators (KPIs) when it comes to employee performance. The automation of these processes in a single platform has enabled organizations to monitor KPIs in real-time. HR software enables managers to achieve optimal productivity by using time tracking as well as project management tools to determine the number of productive hours per employee. As productivity is measured based on the type of industry, HR software can be customized and integrated with other business apps to measure productivity levels. 

Productivity monitoring is the biggest challenge to remote work. With 56% of organizations intending to keep hybrid workplaces, teams will be requiring HR platforms that can monitor the performance of employees in a remote setting. Remote worker monitoring tools have been quickly adopted by organizations at the onset of the COVID-19 pandemic and will be a mainstay in the HR management toolbox. Based on productivity reports, HR managers can identify possible areas for improvement and at the same time do interventions as needed to address underperformance.

While most HR systems measure performance against agreed company objectives, there are other ways to measure employee performance such as:

  • 360-degree feedback, which involves the feedback, opinions, and assessments of co-workers and immediate supervisors from which trends can be identified
  • Graphic rating scales, which typically use sequential numbers to rate an employee’s performance
  • Self-evaluation, which lets the employee do self-assessment to provide the HR team with a more comprehensive appraisal, and
  • Checklists, which identify deficiencies in performance and training

The HR performance management software automates processes and enables teams to easily collect data on employee performance. Through this process, the HR team is able to identify the key areas that need further training to improve workforce productivity and enhance overall performance.

 

HR Software Can Incentivize Good Performance

Rewarding good performance has always been at the core of performance management. The automated performance scorecard shows who among the team members are able to accomplish key metrics. Specific performance incentives integrated into the HR platform are automatically awarded to employees once KPIs are achieved. 

Employee recognition platforms facilitate a simple reward system where managers and HR teams can reward top team members with ease. Linked to performance management systems, these platforms track multiple KPIs while at the same time allowing team members to recognize their peers. 

These HR softwares that focus on employee recognition allow HR teams to strategize awards and recognitions that power business results and at the same time motivate employees with a reward of their choice. In addition, these HR tools also become instrumental in aligning company culture with the motivations of employees.

HR software is at the core of measuring employee performance through analytics. The consistent affirmation of employee contribution to the overall performance of the company not only increases engagement but also builds loyalty. The rewards platform is able to drive behavior consistent with company objectives while ensuring that accomplishments are celebrated.

 

HR Software Eliminates Errors in Payroll and Other HR Processes

Inaccuracies in processes can translate to additional billable hours or worse, hefty fines. HR software uses time tracking apps that accurately record time ins and time outs. The compensation tool as provided by HR software manages payroll and all its associated processes, including tax and contributions. 

Most of these solutions can also automatically integrate with accounting and finance software to streamline these processes. This eliminates costly errors and ensures that payroll is accurate and payouts reach employees at the exact dates. Timely compensation contributes to employee engagement as employees feel that their services are appreciated by their employer. In addition, automating payroll lets HR management teams focus on other tasks that enhance employee engagement.

Payroll processing aside, service delivery has also become an important aspect of human resource management. Luckily, many HR platforms offer help desks, chatbots, online privacy protection, and feedback tools to provide employees with secure channels where they can communicate their needs and concerns. 

Employee self-service features are even available on employee devices to enable them to access their dashboards anytime on the platform. When employees are given transparent processes and multiple channels of communication through HR software, they are able to focus on their work, and overall productivity is not compromised.

 

HR Software Can Reduce Employee Turnover

The great resignation of 2021 revealed the multi-faceted challenges of HR management and increased the need for more robust tools that can monitor employee sentiment. The high turnover rates, that continue to affect the HR management landscape as brought about by the pandemic, have shown that it is now more important to be attuned to employees’ well-being.

In 2020, the overall percentage of engaged workers is 36%. The workforce analytics feature of HR software can identify specific sentiments by conducting regular workforce surveys. Mismatch of skill sets and job requisites, absence of career development prospects, and poor work-life balance are just some of the reasons for high employee turnover. HR software can help minimize this occurrence in organizations by ensuring that employee concerns are addressed through the voice of employee solutions. HR software can help avoid employee attrition by enhancing engagement.

Employee retention is crucial because each time an employee leaves the company, it destabilizes operations. In addition, the recruitment process to replace the vacated post will require resources that could have been used for other purposes. Aside from the costs associated with hiring, employee turnover also affects the morale of other employees. Reducing employee turnover impacts overall productivity. Using talent management software, HR managers can identify and address both the intrinsic and extrinsic needs of employees.

 

HR Software Can Ensure Compliance With Industry Standards

Organizations with HR systems that monitor compliance have higher rates of success as fair practices build trust between the employer and the employees. HR teams need to monitor compliance with regulations affecting employment such as fair labor practices, anti-discrimination laws, and workplace safety. 

Using HR information systems, companies can monitor practices that can have legal implications and help them avoid costly legal procedures and fines. As compliance is prioritized, HR teams are able to make talent management modules that are up to code and follow privacy laws on storing employee records.

In 2020, HR managers identified federal and state law and regulation changes as the most challenging compliance-related issues. Some of the laws that govern the relationship between employer and employees include: 

  • Americans with Disabilities Act (ADA)
  • Age Discrimination in Employment Act (ADEA)
  • Fair Labor Standards Act (FLSA)

The HR team needs to constantly monitor amendments in existing laws and update company policies accordingly. Both state and federal level regulations need to be monitored and compliance needs to be regularly reported. Since the onset of the pandemic, entirely new work models that involve workplace health protocols paved the way for new policies for which HR teams are in-charge of implementation and monitoring.

The ever-changing government regulations affect company performance, and HR tools ensure that such effects will be minimized by streamlining systems and workflows. HR information systems offer apps that specifically address compliance. The HR compliance platform also provides customizable HR documents for different types of policies and provides administrators with the tools to manage documents and communicate compliance risks with employees.

 

HR Software Enables Gamification to Boost Employee Engagement

Gamification is a strategy where gaming elements are used in a non-game context and it is increasingly being used in the modern workplace to keep employees engaged. Research has shown that gamification can cultivate healthy competition among teams, which results in improving organizational performance.

Aside from the fact that it caters to millennials who currently comprise the workforce majority, gamification has a moderating effect on the relationship between employee engagement and performance. These tools integrate social recognition as one strategy for improving engagement and are being used by companies in developing habits of excellence among employees. 

Some activities that HR teams use to gamify the workplace and achieve desired results in the process include:

  • Goal-tracking progress bars
  • Interactive leaderboards
  • Social media-style recognition platform
  • Employee points reward program 
  • Qualification based-travel events 

Gamification supports overall value creation by aligning the gaming mechanics with the objectives of the organization. As employees become motivated by the rewards that are in store for them, the entire organization also benefits from their enhanced performance.

Engagement requires physical, cognitive, and emotional involvement—and gamification stimulates all these factors. As employees contribute their competencies, abilities, and effort to achieve the desired results, gamification creates value both for the employee and the company. 

 

HR Software: Strategic Tool of HR Teams for Organizational Success

HR software plays a crucial role in the management of human resources in organizations. From benefits administration and keeping employee records private to onboarding, payroll, and compliance, HR software performs all core HR functions. As such, choosing the right solution is critical. If implemented carefully and strategically within the context of organizations, all these HR tools can help organizations achieve productivity and profitability. 

Checklist to Select the Right HR Software