Is HR Software Worth It?
Is HR Software Worth it?
One of the hardest parts of software procurement is demonstrating the impact on your bottom line.
Are you considering HR software but don’t know if it will be worth the investment?
Read on.
Here’s four ways HR software is worth it:
One of the biggest gripes I hear from HR managers is the lack of process around onboarding. An inefficient process not only creates a bad first impression for the recruitee, but also wastes time and energy of the recruiting managers and HR team.
According to HR experts, it takes an average of 11 hours per employee to set up a new recruit. This includes time spent setting them up on various systems, allocating onboarding tasks, equipment, security checks, absence allocations etc. Several people may need to get involved with onboarding including learning and development managers, IT and security staff as well as line managers and HR.
With a single system approach you can half your onboarding time. Time savings can include, seamless candidate data porting from your applicating tracking system to your ERP, automated task management, employee enablement through self-service portals (for personal information and onboarding documents such as policies and procedures) and employee templates for easy allocation of working patterns and absences.
When things are set up swiftly and efficiently it removes lag and allows the new person to hit the ground running, avoiding costly delays and creating a great first impression.
It isn’t uncommon, for companies with paper based or manual absence management processes, to inaccurately record staff absence and holiday. In the US, where the average wage is $40.53 per hour, that represents $302.63 for every day that slips through the authorisation process. The larger the business, the bigger the loss.
Unreported or under reported holidays could be responsible for the loss of thousands over the tenure of an employee.
Investment in a slick, online absence management software will not only mitigate the cost of these missed days, but also remove much of the manual effort involved in absence administration. An HR system can calculate time off, force an authorisation process to mitigate errors and follow the accrual of paid time off, as well as manage future bookings to help you better plan your work force availability.
HR professionals can spend an inordinate amount of time, sometimes up to half their working day, on admin tasks.
Whether this is responding to employee requests, approval authorisations, reporting outputs or GDPR compliance, automating these processes can save valuable time. For example, an absence approval process can be routed to the right person using workflows and the timely approval handled by automated task management. You can also use reporting to give you details on candidate data that needs to be purged within your GDPR time frame or create dynamic reports which pull up to date information based on pre-set parameters, rather than manually crunching the data yourself.
Something as simple as giving staff access to their own employee record to amend and update personal information, bank details, and make absence requests can save valuable data input time and minimise the risk of error.
And speaking of human error…
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A whitepaper from IDC published in 2008, found that human error cost the average multinational $62.4m per annum. Another source suggests that every $1 of data entry equates to $100 once an error has occurred. If you consider all your different systems, the various fields therein, and the number of people daily inputting into those fields, even a typical 1% human error rate soon adds up to several thousands of unwanted costs.
Eradicating the need for duplicate entry into multiple systems will minimise this cost of error, and potentially eliminate it altogether.
Whether it is adherence to a working time directive in Europe, anonymised reporting of religious denomination in Northern Ireland, or mandated health and safety requirements, your company will inevitably have some, or multiple, government and sector specific mandated legislative requirements. Failure to meet these requirements can result in a hefty fine or even a legal sentence.
For example, when wage and hour laws are not adhered to in Europe, a company may find themselves in hot water. Not keeping an accurate record of hours worked or failing to compensate adequately for overtime can result in up to a €6k fine in the EU or an expensive lawsuit. In the UK the highest penalty for illegally employing workers is up to 5 years of jail sentence. In construction, failure to adhere to health and safety regulations lands employers with an average fine of £107k.
Using a system which helps you track employment legislation such as maximum working hours, overtime pay rates and employee certification can minimise your chances of breaching any law and reduce the propensity for large pay outs.
ESTIMATED SAVINGS SUMMARY
ONBOARDING = £180 per recruit based on 6 hours saved at an average HR salary of £30 per hour
ABSENCE MANAGEMENT =£250 average saving per employee for each unreported paid day off
ADMIN & HUMAN ERROR = £100 for each error
COMPLIANCE = €6k fine for failure to adhere to European working time directives
So, how much does HR software cost?
CloudTamers can offer you a Built for NetSuite HR for NetSuite application which sits inside your NetSuite ERP.
With prices starting from £4,200 per annum and out the box features such as
Can you afford not to invest?
To talk to someone about how HR for NetSuite can help you save money; get in touch
Written by Emma Stewart – NetSuite Evangelist and Sales & Marketing Director at CloudTamers LtdI