HRIS Software for Start-Ups

HRIS Software for Start-Ups

Author: Dave Rietsema - Matchr CEO

When a start-up company comes onto the scene in any industry, it starts off with a few employees that wear many hats and a simple system for managing processes that extends across what would be several different departments in a larger business. As the company becomes more established, the number of employees and the complexity of the processes inevitably increase. If you are beginning to suspect that a HRIS may help your start-up, the following are a few points to consider.

HR Data Will Grow

If your start-up company is enjoying even moderate success, your HR data will inevitably grow. Your company will need employees and you will obtain applications, references, resumes, tax forms, and other necessary information. You will also begin to receive employee requests off and to collect performance data.

As the mass of information grows, many companies become disorganized – which can be detrimental to the company’s overall health. If applications or other important information is lost, it can cause legal woes and effect employee relationships. A HRIS can provide a clean and convenient way to begin storing data before the data becomes overwhelming.

HRIS Could Help Avoid Legal Issues

The average employee lawsuit costs an employer roughly $250,000. Government fees and penalties may also apply if scheduling or benefits administration does not follow the laws that are in place. Unfortunately, keeping track of all of the changing laws and all of the moving parts of even a start-up company is difficult.

Implementing a HRIS can make it much easier to keep the necessary information organized. Some systems may come equipped with compliance aid that automatically updates so that your business is never out of the loop regarding a new regulation. Additionally, the system may make it easy to compile needed reports and send them to the proper places with just a few clicks.

May Ease Payroll Issues

Payroll can be difficult to figure out, but is one of the most important things to get right every single time. Delayed paychecks or incorrect calculations can ruin employee relationships, causing your best employees to seek employment with a company that has more consistent payroll practices. Using a HRIS to communicate with the payroll company or to handle payroll needs can help to avoid payroll problems and can make it possible for employees to view their own information.

Can Begin Good Habits

HRIS often come stock with analytics tools and other features that can help to organize systems in the most efficient way possible. By using these tools while the company is still young, it can help to begin good habits that will carry over into the future. If managers are already accustomed to using analytics to make decisions, it will be easier to keep these habits in place as the company grows.

May Set Up for Future Success

Purchasing a scalable HRIS is a good move for start-up companies that plan to grow in the near future. Acquiring the HRIS while the company is still young will allow all of the data that will one day be seen as “historical” to be collected as it happens, saving the company from having to try to piece this information together in the future. Making sure that the selected system is scalable will ensure that the HRIS will be able to grow with the company.

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