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A Decision Regarding Small Businesses Software for HR

October 31, 2012 at 11:21 AM

Many small businesses often struggle when trying to decide whether it is better to spread out human resource tasks, like keeping personnel records together and up-to-date, among several employees, such as each department manager, or to keep those tasks centralized under one individual, such as an office manager. Of course, there are pros and cons to both choices when it comes to deciding who should use software for HR.

Pros and Cons of a Centralized HR System

Pros of relying on one employee to keep personnel records

  • Save on software training time.
  • Developed proficiency with the HR software.
  • One person to hold accountable for information accuracy.
  • One person contact for all HR issues and reports.
  • Increased responsibility translates into increased priority.
  • Simplifies security issues.

Cons of relying on one employee to keep personnel records

  • Data isn't entered when the individual is absent or leaves.
  • Data still needs to be collected from other individuals, which could mean duplicated work.
  • Slower entry process than if the work was spread out.
  • Training time of replacements

However, with well-designed HR software, some of the pros for the centralized system disappear. Training time can be very minimal if you are using HR software that is intuitive, designed with small businesses in mind and is easy to learn. Security issues also don't need to be a concern if you are careful to select HR software that allows individual security settings for each user.

Changing Your Mind About Who Should Keep Personnel Records

There is no right or wrong answer. For some companies, it will make sense to have one person updating employee information. For another, dividing the entries among several individuals will make more sense. You need to choose what will work best for your own situation and to choose a program that will allow for both situations, in case you change your mind and want to add more users after the initial implementation of software for HR.

If you have department managers who supervise and evaluate their own group of employees, you may want them to handle the entry of attendance data, performance reviews and training information for their own group of employees. This can ensure timely entry and more awareness for supervisors in terms of what’s going on with their employees over time.

You may want to have only one or two individuals, which are responsible for entry of information that relates to all employees, like the initial employee file setup or employee benefit enrollment information.

Regardless of which direction you decide to go, purchasing the right HR software for small businesses will be critical to making your system work efficiently.

Tags: HR software keep personnel records
Category: HR Software Solutions

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