All companies need a human resources department to provide efficient and effective management of human capital. The HR department is also responsible for tracking employee data such as skills, employment histories, accomplishments, and salaries. It’s a large undertaking, especially for small industries.

To make things easier, many enterprises use human resources management systems, which are basically mergers of human resource processes and information technology. These can be used in a variety of ways to make a small business owner’s operations more efficient.


An HR system’s payroll capabilities work to automate the payment process by collecting data on employee time and attendance. It also calculates deductions and taxes, and generates periodic pay checks and employee tax reports. Time-keeping modules feed the data into the payroll system.

Time and Attendance

The time and attendance function keeps standardized time for hourly employees. To help business owners ensure their workers’ productivity, the time and attendance function also analyzes cost and efficiency measurements.

Benefits Administration

Administering and tracking employee participation in benefits program can be challenging for small-time traders. The benefits administration module in HR systemshelps keep up with the administration of benefits like health and life insurance, compensation, profit sharing and retirement.

Talent Management

Many HR departments rely on online recruiting to hire candidates for vacant positions within an organization. Some HR systems include talent management programs, which can do the following:

  • evaluate personnel usage within a certain organization;
  • identify potential candidates;
  • And recruit via online sites or publications that market to both recruiters and applicants.

Because maintaining effective recruitment efforts can be costly, many businesses use a dedicated employee development system. The module allows the organization to track employee training and development efforts.

The HR department can track employees’ education, qualifications, and skills and identify courses, books, web-based learning opportunities and the like to help employees further their skill sets. Such system also assists businesses in finding candidates for positions internally rather than having to pay to advertise open positions in mass media outlets. That leaves more funds available to market the business itself.

Employee Self-Service

Some systems allow employees to access HR-related data and perform transactions. For example, an employee could check their attendance record without going through HR personnel.

To ensure their businesses run as efficiently as possible, many owners have turned to human resource management systems to support recruitment efforts, hiring, benefit analysis, and payroll functions. Using a system like this can help a small-time entrepreneur to dedicate more time and money to promoting his or her business and ensuring a good profit margin is maintained.