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The Best HR Tools for Small Businesses in 2022

hr tools small businesses

Over the last few years, HR managers from small and large businesses have come to realise that the best way to improve productivity, save time, and reduce costs, is by adopting HR tools.

These HR tools assist HR and people teams in performing their job most efficiently. Day to day HR administration tasks are extremely time-consuming. From holiday and absence management to hiring candidates and onboarding, etc. And needless to say, these tasks are considerably challenging, especially if it’s an HR team made up of 1 or 2 people. 

In this article, we will share the top HR tools to help small businesses in 2022.

Related video: What is an ATS: And its benefits? In this video, we explain what an Applicant Tracking System is and how you can use this in your hiring process.

Surprisingly, a lot of HR managers and people teams still manage their HR processes the old fashioned way. Working with mountains of paperwork, manually sending emails, and outdated hiring processes. Is it the most effective way of working? Nope! HR Teams and people teams can save time on these incredibly tedious tasks by integrating HR tools and HR technology into their small businesses. Not only can this boost the overall operational productivity of the company, but it will cut down on your workload, and stress level.

With today’s technological advancements, there are many tools available to solve common challenges in small businesses’ HR workflows. Incorporating these HR tools, small to medium-sized companies can streamline their HR processes, thus alleviating excess stress for admins. Therefore, The best decision small companies can make right now is to integrate an all-in-one HR management software into their business. 

7 Must-have HR Management Software Tools for Small Businesses

An HR tool, also known as an hr management tool, is used to automate and improve HR operations. Whether it’s recruitment, payroll, performance appraisals, or employee training, these tools help streamline a wide range of tasks and procedures, allowing HR admins to more effectively perform their duties.

It’s not difficult to see how using HR tools to improve human resource processes and increase productivity, save HR teams time, and most importantly, make the most of the company budget. Now it’s time to decide which types of digital HR tools every Human Resource department should consider incorporating.

Recruitment Software – Applicant Tracking System (ATS)

As the name implies, HR tools for recruitment are designed to simplify the selection and hiring within the recruitment processes. Through the use of recruiting software, recruiters can post job openings on job boards and other websites to reach as many potential candidates as possible. Through an ATS, companies can track, manage, rank, grade, and perform background checks on applicants through the hiring funnel before sending them an offer. This and more will help them to track the entire hiring process without effort.

Payroll and Benefits Management Platform

Whether it’s a start-up or an established business, using payroll software can speed up the end of month tasks. In addition, these tools help hr professionals keep better track of employee wages, calculate total compensations, and reduce human calculation errors. Some payroll software even gives HR managers the option to administer certain benefits such as paid vacations, health insurance, and other perks.

Organisational Chart & Personnel Management

The managing of personnel is a crucial, yet often overlooked aspect of HR management. Using personnel software offers companies an excellent opportunity to leave ‘start-up mode’ and better formalise department hierarchy. Keeping track of employee data is time-consuming, especially in a growing team. It’s for this reason that investing in HR tools assists companies in more effective management. With software like Factorial HR, the company’s organisation chart is updated automatically every time someone joins or leaves the team.

Time and Attendance

Sometimes the simplest tasks require the most thought. Although time tracking may not be law all across the globe, the practice of monitoring worked hours to ensure compliance with labour laws is. Offices, retail establishments, factories, and even hospitality centres, can all improve productivity through the simple act of time tracking. Tools like this allow employees to easily clock in and out themselves, request time off, whilst allowing management to streamline absence management. Not only that, with little effort, the cooperation between departments and team members will be improved.

Performance Management

Tracking the progress of employees is essential to the success of a growing organization. Through several performance appraisal tools, HR managers can set individual employee goals, track their performance, collect feedback from the team and report on performance metrics all from one place. Tools such as these better help facilitate performance evaluations, meaning that employee performance reviews can be done quicker and more efficiently much faster and easier for both the supervisor and employee.

Onboarding Tools

Employee engagement should start on day one, and while onboarding processes are essential, they are often complicated. In addition to teaching the incoming team members their new role and company culture, there is a lot more that goes into onboarding. Using human resources management software to help handle onboarding documentation, tax submissions, payroll and more, is a time saver for the HR team.

Employee Training

To retain talent, one of the best things companies can do is invest in their employees. How? By providing employees with constant opportunities to develop and grow by learning something new. The company has the choice to choose to invest in online training programs (ie. slideshows and virtual classrooms) or intuitive learning software. HR admins can create training material that merges different multimedia formats to create dynamic training programs for their team. Over time, managers can track the team’s award certifications, progress, and more.

The tools mentioned above are just a selection of the best tools HR departments with benefit from. If you want to find out more ways to optimise your HR processes, head over to Factorial HR.

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This post is also available in: English US

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