Time and money: two things of which every small-business owner needs more. Entrepreneurs wear so many hats, that there is very often not enough hours in the day to accomplish all that is necessary to keep a company up and running. When it is time to finally share the dream (and burden) with employees, business owners find themselves handing over some responsibilities in exchange for welcoming in others. Management and administration coupled with human resources is enough to leave anyone overwhelmed. That is why 60% of firms with fewer than 100 employees are turning toward HR tech to lighten the load.
Turning to Technology
Mentally battling the statistic that 8 out of 10 businesses fail within the first 18 months is heavy enough, but when finances and actual workload are added to the mix, you have a stress-worthy equation. Areas that are usually up to an entire department in one company are in the hands of one to two people in smaller organizations. That said, there’s no doubt that startups and small businesses are a huge player in the job market. In a study conducted by the Organization for Economic Cooperation and Development, in all 18 countries studied, companies of less than 2 years old account for 42% of that country’s new jobs.
Similar to a family, with each new addition, there comes more responsibility. So much so that, small business owners admit it is accounting and paperwork that carries the most weight and stress when it comes to owning their company. In fact, 33% of owners say managing paperwork was one of their top challenges, followed by 27% saying managing payroll. When both employee and leadership embrace technology, there is great reward. Companies report that use of HR tech has lessened time spent on HR administrative tasks by 40-50%, saved up to 40% in administrative costs and increased business value by up to 6.5%.
Finding the Right Fit
Of course, knowing and accepting the need for new tools is only half the battle. The bigger challenge is finding what works for the team as a whole and what will fill all the gaps. When there is a great need, there are usually many answers. Wading through all the choices can feel overwhelming, but it is not impossible.
“Think about your business objectives, and where the business is going as you look at your options. You want technology that is innovative, but it also needs to scale with your needs.” – Anthony Abbatiello, Deloitte’s Human Capital Practice
Start-ups and small business have the added challenge of finding the technology that is cost effective and useful for small teams. This coupled with a limited budget adds quite a bit of pressure to the ordeal. As Abbatiello says, it’s more important that you take a step back and assess what is actually needed for your team.
Data and Records are a Win
In 2014, the top requested HR applications for small businesses were personnel tracking and applicant tracking systems. This probably isn’t too surprising as any startup or small company’s greatest asset is its employees and candidates. Every manager wants to continue building productivity and engagement, but what is even greater about introducing technology to that venture is the possibility of data-driven processes. When the right technology is selected and used, leaders can revisit what worked for employees, the bottom line and deadlines.
HR analytics is a broad term that generally inspires the thought of a large expense to the small business owner. What’s important to remember is that any technology being used can provide its very own analytics, whether it be numbers or the confirmation that a process is successful and should be repeated. It also introduces a leader to an employee’s work habits, something that can be lost with a particularly busy business owner.
When starting a company, most entrepreneurs are hoping to find success and eventually the need to scale. No matter how many employees are being welcomed to a team, this is challenging. HR technologies are helping manage those tasks while also providing great insight into how to do them better and more efficiently. The only challenge between finding what works and implementation is the cost. Luckily, leaders can look to Vitru for first-hand knowledge on how employees work as a team and at a price everyone can afford — Free! Sign up now.