The Benefits of a good HR System

by Startacus Admin

Companies realise that investing in good systems brings many benefits. However, despite this there is only a finite pool of money available, which means that firms save money where they can. Inevitably, some departments are left behind. They do not get their software updated on a regular basis and less is invested in training.

One of the departments that is frequently neglected in this way is the Human Resources (HR) team. It is appreciated that HR is an essential department, but because they are not in the frontline so to speak of the business, the needs of this area of the business tend to take a back seat. 

Thousands of firms out there are running outdated HR systems without realising the potential damage it is doing to their business. There are many benefits to bringing your HR systems up to date. Below are the main benefits:

Time saving

One of the biggest issues with running outmoded HR systems is the time that is wasted. It is not uncommon for firms to be running multiple systems. For example, one for payroll and one to keep track of training and yet another that deals with sickness and maternity leave.

Often this wastes a lot of time. Usually at the very least, it means entering the same data several times into multiple databases.

Not only is this a waste of valuable time and resources it opens up the possibility for more errors to be made. The more times data has to be entered the more likely, it is that a keying error will be made.

Ensures nothing is missed

A streamlined system reduces the chances that important information about and employee will be missed or lost. This is very important especially because the contents of HR files contain information that could potentially be needed in the case of an employee tribunal or a health and safety investigations. 

Easily accessible data

Maintaining employee data in a good database also ensures all of the information the management team needs to improve the business is close at hand and easy to access. It is much easier to manage a person if you have hard proof of say the fact they are always sick on either a Friday or Monday. Access to data and good reports to interpret that data helps firms to make informed decisions.

Mitigates risk

Good HR systems help firms to mitigate risks. For example keeping good records of the fact that people have undergone the necessary health and safety training keeps everyone safe. It also helps to ensure that nobody works in the business that is not properly trained, which ensures the firm conforms to the necessary regulations. This protects the firm from the risk of fines and prosecutions.

If you have not reviewed your human resources systems for a while and checked that they are still fit for purpose perhaps now is the time to do so.

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Published on: 14th October 2015