Small businesses (micro, mini, startups, proprietor-based entities) usually follow a lean business model for obvious reasons. One of the regular segments they might omit is the function that a dedicated HR department serves within the organization. This could prove to be a huge mistake down the line.

Once the bootstrapping phase is over and the bubble bursts, your company should be ready to scale. This won’t happen without the right functioning HR strategy. It is better to include a well-maintained HR system from the initial stage to avoid any probable future issues in this regard.

But it’s not when we talk about problems that the concept generates interest in us. The key here is to think and lay out the opportunities and business prospects that a properly executed HR system can provide to your company. 

We will talk about the value-addition and benefits of HR services for small business projects in this article. We will also look at some of the specific use cases with proven examples to understand how small businesses leveraged HR functions to their advantage.

Cloud-based HR Solutions for Small Businesses – Merits

For making any decision related to technology and digitization, laying out its salient features and understanding them are important. Without a crystal clear idea in the initial stages, you might be hesitant to proceed with the onboarding of new technology or devices. To help with the same, we are listing out the top merits that HR software provides to small businesses.

The below points apply to small businesses in general, and to know about your specific use case, direct consultation with the corresponding channel might be needed.

  • Systematic management – Maintaining an effective HR process in place will ensure the systematic scheduling and operations of a multitude of streams within the company. This would ease the company procedures in the long term, offering clear benefits.
  • Planning your resource pool – Placing focus on an active HR process is beneficial in creating, developing, maintaining, and scaling a matching talent resource pool. Automated software systems are the ideal choices to ensure that this happens consistently. 
  • Boosting business efficiency – Though iterations are part and parcel of the business world, small companies cannot afford to make too many mistakes. If you have a foolproof plan of action and are willing to set it in motion with no time to waste, automated HR support is a must. You may even achieve a guaranteed efficiency boost with the adoption of appropriate HR components for a remarkable business breakthrough.
  • Improved privacy, security, and compliance – A functioning cloud software is crucial to contribute value to the privacy, security, and compliance features of an organization. There is no way you can bypass these factors if the organization’s vision involves growth. The primary contributing feature of this segment is a well-crafted and conceptually designed HR system.
  • Manage KPIs – Key Performance Indicators (KPIs) are an asset for maintaining the analytics status of any organization. These metrics will help you make informed decisions about the future of the organization. HR software can widely assist you in monitoring and managing the top impactful performance metrics within the firm.

The above is not an exhaustive list of cloud HR advantages for small businesses. But we know for sure that your company is looking at these pointers to grow the business and improve efficiency. The next segment also covers a few use cases to help you better understand the value of HR systems for small business organizations.

Use Cases of Cloud-based HR Solutions for Small Businesses

To examine and understand the HR application for small businesses in a better context, we will elaborate on the impact with some specific use cases.

  • Employee Retention

Let us think of a promising startup in the Middle East. The organization is performing well, numbers are strong, and market prospects seem strong. A routine manual analysis shows that one company division is seeing a high turnover ratio of employees. It is affecting the company’s growth in that particular division. Imagine a strategic HR management system is in place. The automated system can help detect the exact reason for the high turnover rates in that division and give data to the management. This would help them create an environment where the employee retention rates improve for the said division and company progress won’t be affected.

  • Hiring Assistance

Hiring and recruitment in small businesses is a big headache that needs to be addressed. Let’s imagine a situation where a startup project in the health tech industry with sufficient coverage and marketing wants to recruit an accounts team head. Many suitable candidates apply for the vacancy with genuine interest. Even after initial screening rounds, the management is struggling to filter the best resource matching their potential. With an HR system’s advanced filters working on this scenario, the hiring procedure becomes rather easy. Though the number of right candidates is higher, HRMS can help you pinpoint the one person who uniquely matches your company’s business model, vision, and current potential. It would ensure the creation of a professional relationship for the long term as well.

  • Conflict Management

Since the hierarchy levels between employees and management are lower in small businesses, conflicts or crises within the organization will reach the whole environment faster. It is important to resolve any crisis scenario faster. Automated systems are the best to understand all potential conflict situations at an early stage and detect appropriate action plans for the management to implement. It would help you build a more harmonious work culture.

  • Cost for Company

For any business project, the cost incurred is a critical factor. In small businesses, the cost-efficiency is even more relevant as it could determine the company’s future potential. Early-stage companies with a dedicated HRMS in place can ensure that effective cost-related strategies related to hiring, training, employee development, retention, and optimum staffing are executed properly.

  • Training Support for Employees

Small businesses might be following unique business models thanks to a new invention, technique, or product in the industry. While training your employees, it is important to assist them in fully adapting to the business model. It could take some time and perhaps need a take on the A/B/C testing model to recognize the best route for a particular employee. Automated HR systems can help you the best in this regard. It can also help you analyze the strengths, weaknesses, opportunities, limitations, and specialties of each employee.

Artify 360 for Small Businesses – Meeting Needs with Technology

The biggest obstacle that small businesses face regarding the adoption of any new technology is related to the investment potential incurred. It could prove to be a hassle as you might be overseeing the benefits part. An optimum solution to tackle this is to opt for a proven HR software system that adds significant value to all aspects of a small business unit.

How does cloud HR software support employees beyond regular recruitment tasks in a small business? Artify 360 HR payroll software is an excellent choice for achieving the optimum HR requirements demanded by a small-scale organization. It comprises 15 feature modules that cater to all the core functions stated in most HR function requirements. Try this awesome SaaS product with a personalized free trial version crafted only for you.