How Technology Can Improve Your HR Department

When it comes to how technology can improve your HR department, managing human resources information is paramount in the discussion. In reaching this objective, many small businesses can face tall challenges and obstacles.

According to an article on, HR technology is “at, especially those in smaller firms,” including various departments.

The article cites a 2015 report from The Starr Conspiracy Intelligence Unit, a marketing agency, which states 60% of firms with fewer than 100 employees plan on investing in human resources technology this year.

In addition, it’s estimated that the human capital management market could expand to $17 billion by 2019. In 2014, the market was at $11 billion. That’s a pretty astronomical growth rate.

Human capital and document management technologies are very intertwined.

Why People Want to Know How Technology Can Improve Your HR Department

A number of factors are in play here, but the spike is largely due to the fact that so many innovations are being made in the Cloud-based software industry.

These innovations are directly benefiting small businesses. Selling Software-as-a-Service (SaaS) eliminates the need for costly infrastructure, and these Cloud-based solutions can be accessed from any internet-connected device.

The usual benefits of Cloud software—ease of use, reducing paper usage, increasing efficiency and security—all exist in the HR world, and solutions are available for any and every business. The best solutions, however, will be able to simplify the on-boarding process at the document workflow level, and give HR directors the tools they need to chop the repetitive processes out of their routines at the document level.

One of the ways document management technologies can do this is through templates, which take a preexisting structure in a cabinet and folder solution, and mass apply them in other scenarios. So, if you are an HR professional handling a lot of new hires, using a solution that automates this process can be extremely helpful in saving time.

Small businesses usually don’t need an enterprise-level software solution when it comes to HR management. This is where another benefit of Cloud-based software comes into play—it can be scaled to the size of your company. But that’s not all there is to it when it comes to understanding how technology can improve your HR department.

Some SaaS companies sell one particular piece of software designed to handle one problem. Document management, backup, or secure file sharing are all separate products that can be cherry-picked by a savvy small business to create a completely customizable software experience.

Although this sounds like it may be challenging for some HR directors and managers, Ann Ruddy, an expert on organizational psychology and human resources management, noted in HRE Online that “an organization’s success hinges on its ability to push, engage, and encourage its employees to excel.” Notice how sixty six percent of the verbs in that sentence have nothing to do with comfort.

While technology can be stress-inducing, it is an investment for employees and employers alike; one that shouldn’t be jettisoned for the sake of short-term comfort, but taken advantage of for the sake of long-term growth.

What Experts Are Saying: How Technology Can Improve Your HR Department

Heather Neisen, HR manager for Technology Advice, was quoted as saying, “If I need to put off 10 hours per week for administrative tasks, I can either hire another team member or invest a few thousand dollars in a piece of software. It’s an easy choice.”

Although Neisen is correct in highlighting this figure, it doesn’t do the import of HR technology’s role in reducing human capital expenses justice. Technology doesn’t require any downtime to train. It just works.

Although the following figure ranges with a 2 or 3 month variance, most experts agree that a new employee on-boarding process takes anywhere from four to six months.

Not just in terms of paperwork, but also in terms of employee training and teaching the employee to learn his or her new role within a company.

Introducing new management technology into your HR department can eliminate the need to hire someone for an extra 10 – 20 hours worth of administrative work per week. If your organization has a lot of turnover (something no HR manger wants), these systems can save time so you can focus on tailoring employee retention policies to retain more talent, and this can be accomplished through file retention.

Most HR records have to save files for a period of 7 years, and setting these files to retain only that long can de-clutter the system over time, assuming HR managers stay in their current roles that long.
Small businesses have an advantage in the SaaS industry because a large majority of SaaS companies are small businesses themselves. This means you’ll enjoy more customized support for the software you purchase. Although on premises solutions can also be fitting depending on the circumstances, the cloud-based platforms tend to be preferable for HR managers and directors.

Neisen also said that she liked certain software vendors was due to the fact that, “They are small companies that cater to small companies. We get a lot of attention from them and if I need something, they are right there to help me.”

If You Want to Know More About How Technology Can Improve Your HR Department

Or even your entire company, now is the time to start looking at Cloud-based software solutions. The market has plenty of offerings, and finding something that suits your company’s needs has never been easier for businesses.

By | 2017-05-31T11:27:26+00:00 April 27th, 2015|
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