The benefits of HR software

How HR software can help you and your business.

First published on Friday, Jul 31, 2020

Last updated on Friday, May 24, 2024

Managing your daily, monthly, and annual HR functions is time-consuming.

In the past, maintaining everything alongside your business processes (and huge amounts of employee data) was tough going for any business.

These days, you don't have to settle for outdated HR practices—digital HR software makes it all a lot easier.

There are many advantages to using it and, in this article, we'll uncover the benefits of HR software and why it's an indispensable toolkit for your business.

So, what are the benefits?

If you had all day, we still couldn’t list all the benefits that using HR software in your business could provide.

So, let's cover the top 10 benefits of HR software…

Streamlines your HR processes

Imagine having all your HR tasks automated—from onboarding new employees to managing leave requests, without the headache of paperwork.

That's what HR software offers. It's like having a virtual HR assistant that streamlines processes, saving you time and effort.

When you switch up your manual processes with automated ones, you're creating process efficiencies reducing the risk of human error and freeing your HR teams and yourself up for strategic initiatives.

Enhances your performance management and employee engagement

As a business owner, your employees' success relies on you. That's why it's essential to have a pulse on your team's attendance and performance reviews.

With the power of HR management systems, you can gather valuable insights into your team's productivity, efficiency, and overall performance.  You'll be able to identify areas for improvement and provide your team with the resources they need to enhance their skills and drive results.

Plus, by rewarding your top-performing team members, you'll boost their morale and motivation, ultimately leading to a more engaged and productive team. This can be done easily if your HR software has an integrated system to help you recognise great work, such as an employee recognition platform or an employee benefits platform.

happy employees around a computer engaged in work

Easily helps you meet your legal obligations

As HR and employment laws are constantly changing, keeping up with them is a task in itself. But having the right HR software makes all the difference. Especially if the software is backed by employment law and HR professionals, like the team at BrightHR.

From reporting to record-keeping, the software ensures you're always on the right side of the law—no sweat required.

Improves your business’ profitability by boosting cost savings and ROI

Using HR software can reduce overhead costs associated with manual HR processes like paperwork, printing, and storage.

This cost-effective solution pays for itself in time. But what sort of ROI (that’s the return on investment) can your business expect?

How could this look for your business?

Discover your savings with BrightHR’s payback calculator

Return on your investments

for every £1 you spend


Sources: The cost of HR documentation, recording staff lateness and absence to recording staff overtime is based on...

You could even boost savings come tax time if your HR software has business expense tracking. Allowing you to maximise your business tax savings with accurate records.

Provides data-driven insights from accurate data reporting

Using HR software, allows you to track key HR metrics such as employee attendance, payroll data, and turnover rate—to name a few.

With this data, you can identify trends and patterns in employee behaviour to pinpoint areas of improvement and create targeted HR strategies that address specific needs.

Some human resource management systems, also let you create customisable reports to provide a holistic view of your HR data. That way you can share these insights with your HR staff (if you have them) and department heads to help them make informed decisions and stay on top of their goals.

Allows for employee self-service

HR software provides employees with self-service portals, significantly reducing the administrative burden on your HR staff. With these portals, employees can easily access their own information, request time off, and update personal details.

Plus, if the HR software has a clock-in and out system, your staff can track their own hours and overtime.

Not only does this improve efficiency, but it can also help to reduce costs and provide a better employee experience.

Improves your internal communications

By centralising all your HR-related tasks, information and data, an all-in-one HR system eliminates the need for manual paperwork and simplifies communication between you and your employees.

This means that you can save time and reduce the chances of errors or miscommunications. 

Plus, by not having multiple systems, you're providing your employees with easy access to their employee records and transparency. Fostering a culture of collaboration, trust, and openness, leading to increased productivity and employee satisfaction.

happy employees gathered round their workspace

Strengthens your data security

HR software enhances data security by storing sensitive employee data securely in the cloud, eliminating the security risk of having sensitive data left in filing cabinets. With cloud-based document storage, you can rest assured that your sensitive data is secure.

It eliminates the need for physical data storage, reducing the risk of unauthorised access or theft. It also allows for centralised data storage, making it easier to manage and monitor access.

Plus, HR software usually includes security features such as document management, version control, and audit trails. So, you can track changes and access logs, providing visibility into who has accessed or modified sensitive data.

Accelerates your recruitment and onboarding processes

With the help of HR software, you can simplify your hiring process, making it faster and more efficient than ever before. Applicant tracking systems within HR software can help you easily create job listings and securely manage job applicants online.

And once you've found the perfect candidate, HR software can streamline the onboarding process, automating paperwork and scheduling training sessions. 

Supports your business growth

As your business grows, your human resources requirements are likely to increase. However, scaling HR processes can be challenging.

That's where HR software comes in, to help you easily scale HR processes without significant investments. It grows with your business, offering support every step of the way.

An integrated HR system is a key feature that supports the scalability and flexibility required for growing businesses, providing a complete solution to meet diverse HR needs efficiently.

Discover the benefits of HR software with BrightHR

As mentioned above, HR software can transform your business in countless ways.

From automating administrative tasks and safeguarding sensitive data to expediting recruitment and propelling growth. It's a comprehensive solution that can meet all your HR needs efficiently. 

By incorporating technology, you can optimise your human resources management, create a collaborative and trustworthy work environment, and ultimately enhance productivity and employee satisfaction. 

Embracing HR software is a smart investment that can contribute to your business's long-term success and growth.

Find out which HR software is best for your business by downloading our Guide to Choosing HR Software.

Jenny Marsden

Associate Director of Service

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