5 ways how HR technology is proving to be a key differentiator in the success of small businesses – Times of India

Thousands of small businesses get registered in India every month, but very few of them survive beyond a few months or years. There are many things that businesses need to do to succeed such as raise funding, get co-founders from different backgrounds, and create a profitable business model. But there are certain things without which no business can succeed, and they arepaying your employees on time and staying compliant with laws. And HR technology has a big role to play in these areas.

So, lets look at the 5 ways how HR technology helps in these areas and increases the chances of success of small businesses:

KEEPS BUSINESS COMPLIANT WITH LAWS

There are too many laws in India, and they are very complex. It is not at all easy to comply with them unless you hire dedicated compliance professionals such as chartered accountants or legal agencies. Unfortunately, small businesses cant afford them and thats why the most small businesses are not fully compliant with laws and a lot of them end up paying penalties because of that.

HR Technology is of great help to small businesses here.

The modern HR apps not only suggest the applicable compliance such as PF, PT, or ESI, based on the team size, location, and industry of small businesses, but they also automatically calculate them, make deductions, file reports, and pay the relevant compliance on the due dates. Some of them even offer a compliance guarantee and if anything is missed, the apps pay the penalty.

So, small business owners need not worry about the ever-changing laws. The HR apps keep small businesses 100% compliant with laws and therefore, they greatly increase the chances of success of small businesses.

HELPS IN ATTRACTING AND RETAINING TOP TALENT

Employees work for money and just a few errors in employees salaries or late payments are enough to make employees quit small businesses, and there can be nothing worse than your top performers leaving your business.

HR tech helps small business owners in avoiding such mistakes. Salary payments apps automatically calculate 100% accurate salary by considering various aspects of payroll such as time & attendance, overtime, reimbursements, expenses, income tax, etc., and transfer the salary to employees bank accounts on due dates. So, the employees always get paid on time without any errors.

Also, unlike old times, businesses no longer need to waste time in writing cheques, visiting a bank branch, or paying their employees one by one. Salary payment apps handle the payments seamlessly to all employees with just the tap of a few buttons. HR Tech also helps companies in rolling out employee-friendly payroll policies such as flexible benefits plans, which can help employees in saving taxes and taking home more salary and that helps in attracting and retaining talent.

PREVENTS FRAUDS

Financial frauds can break any businessno matter big or smallswiftly and decisively.

Small businesses need to collate data from multiple data providers from within and outside the organization , and they use error-prone spreadsheets to manage their data, mistakes are inevitable, and the consequences can be especially catastrophic. The HR technology guards small businesses against unauthorized data manipulation and fraud through suitable access control measures. It also helps in version control and in tracking changes. Additionally, with data storage options on the cloud, the risk of data loss is also eliminated.

INCREASE IN PRODUCTIVITY OF EMPLOYEES AND BUSINESS OWNERS

Small business owners generally get tons of queries from their employees. E.g.how many leaves do they have, how much income tax would be deducted from this months salary, when can they get their last months payslip, and many more. All such queries result in waste of time as well as frustration due to delay of information both business owners and the employees. HR tech completely solves this problem by providing on-demand access to employees.

HR tools provide self-service apps for employees, and employees get access to all the information that they need with the tap of a button. They can view their payslips, check their income tax deductions, apply for leaves and expense claims, or view their attendance records right on their smartphones. Employees no longer need to wait to get the information that they want, and business owners no longer get the frequent queries from employees.

This saves a ton of time for both employees and business owners.

MAKES IT EASY TO SCALE BUSINESS

Using spreadsheets for managing hr, or payroll department puts small businesses at a disadvantage because of lost productivity arising from the lack of integration and digitization.

By automating the gathering, organizing, storage, and processing of employee data, HR tech makes it easy to handle growth in the organizations size.

It eases working with multiple teams spread across multiple locations, and also provides the flexibility for the business to stay updated with evolving trends and changing compliance requirements.

Views expressed above are the author's own.

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5 ways how HR technology is proving to be a key differentiator in the success of small businesses - Times of India