HR software is an ideal tool for simple, effortless HR management. It empowers organizations of all sizes and levels with the power to access, manage, and automate various organizational and employee data. This software also takes care of the complete payroll system of an organization and automates all payroll-related processes. When you opt for smart software, you can get away with bulky files of documents and salary slips. You can view and address complex taxes, deductions, funds, benefits, loans, and every other financial issue in this user-friendly payroll software.
Advantages of HR Software
- Reduction of paperwork:
Most of the documents needed are common for both the human resource department and the payroll system. The best advantage of integrating the human resources with the payroll system is that the amount of papers required for filing the information is very much reduced. This is because most of the payroll systems used are highly automated in nature and do not require much printing and physical storage. They are usually stored as digital data and is stored in the payroll system database within the company.
- Faster Recruitment
Automated recruitment has been made possible through the automation of HR processes, which comes with an Application Tracking Software (ATS). After the company advertises a vacancy on the internet, the applicants are able to send their resumes at the click of a button. This greatly reduces the number of applicants to any job advertisement. The ATS technology helps the HR team in sifting through the applications by matching a number of keywords in the applicant’s’ resume or cover letters to match pre-determined criteria. This greatly relieves the HR team a huge workload burden of manually sifting through the applications.
In addition to the reduction of paperwork, automated payroll systems also do a great job in automatic updation about the employees. Since most of the documents involved for both the human resource department and the payroll department are the same, they require the same database for future reference
The database includes employee information, wages and other personal details of the employee. When the database administrator enters the relevant information into the database, the payroll system automatically updates and computes the payroll relevant to the information obtained.
- Keeping Track of Employee Performance
An integrated HR system makes it easier to compare the performance of individual employees and track their improvement. The system makes it easier to plan for various employee programs like training and orientation. An analysis of this data can lead to picking up fresh employment approaches, employee appreciation, and recognition ideas and recruitment practices.
An added benefit of integrating the database is consolidating both the information from the human resource department and the payroll system. This makes it easier for the employees to access their information and also provide security so that no other third person can tamper with the given information.
If you could authorize the employees themselves to update and view their details, it could reduce the data entry and administration efforts by up to 80%.
Disadvantages of HR Software
- Lack of synergy:
While maintaining a small business, it is important to maintain a certain level of synergy within the different organizations and along with other companies. This level of synergy is expected for both the human resource department and the payroll systems.
Each department has its own set of rules and protocols that the employees are comfortable with.
Combining different levels of rules and protocols while integrating different areas can be confusing for the employees and can decrease the productivity of that certain branch.
- High cost:
Integrating different branches may save you a lot of money in the long term, but it can be highly expensive when used for short terms. Also, such integrations require a lot of resources and if your company does not have sufficient financial stability, this can provide loss for the company.
Moreover, problems arising from the leased and the native employees such as lack of communication, unmatched skills in both the department and insufficient training for both the departments can lead to a huge loss in capital and resources. This can also lead to a failure in delivering the results as expected by the company.
- Privacy Breach
A major disadvantage of automating HR processes is the increased risk of privacy breaches. There are so many laws and measures that are aimed at protecting the privacy of employees in a company’s database. However, if the database is accessed by a third-party or hackers, it could badly expose your employees’ private details. Using a password alone does not guarantee the safety of their data as technically savvy individuals can bypass it easily. The database should be fortified both internally and externally to safeguard the data.
- Difference in priorities:
Each department has its own set of priorities. It can be disastrous when different department does not follow those priorities and hence provide inefficient services. This can also create unsatisfactory customers, such as delay in providing customer feedbacks and delay in issuing paycheck for the employees and so on. This can create further misunderstandings between the two departments.
The more workers you have in a company, the more there are chances of communication and more will be the cases of misunderstandings and poor communication. Certain companies may treat integration as a chance of future layoffs, hence decreasing employee morale and productivity.
Once integrated with a different department, many problems will arise due to poor communication, the difference in priorities, disagreement or personal opinions. These differences both in the professional and at a personal level will provide many difficulties to the company in the future, such as slowing down the company’s productivity and agility. This can also create a bad name for the company.