Workplace is going away. Move to Workmates
now to get the first 90 days free.

Why Do Small Businesses/Agencies Need HR Software?

Why Do Small Businesses/Agencies Need HR Software?
15-day free trial workmates logo Try Out Our
Employee Engagement Software For Free
checkmark No credit card needed checkmark Less then 5 min to set up

From managing the payroll to taking care of recruitment, the human resource team has a variety of tasks on their plate daily. Sometimes, a few tasks can be a hit or even a miss. 

With stepping into the new year, you need something more to stand out. Something that is efficient and can help streamline your operations in a hassle-free manner. This is where the human resource software comes into the picture.

HR software provides small businesses and agencies with the necessary tools to automate and optimize critical HR functions, such as recruitment, employee onboarding, and more. It not only ameliorates productivity but also brings forth a variety of other advantages. What are they? Do you need HR software? All this and more coming right up.



What Is Human Resource Software?

Picture this. You are at a lovely coffee shop and order your favorite latte. As you are sipping on your drink, you notice that the barista is like a one-man army. From taking orders to making the most complicated beverages. She was handling everything on her own flawlessly. This is how human resource software works as well. 

They are a digital solution developed to streamline and automate various HR tasks. It takes care of a wide range of functions, including personnel data management, payroll processing, benefits administration, time and attendance tracking, and more. 

When you opt for a robust solution, it centralizes and organizes essential HR data, making it easily accessible to your entire team. 

To put it simply, you take off a burden from the HR team and allow them to focus on the strategic aspects of their job rather than struggling with manual chores.

10 Reasons Why Small Businesses and Agencies Need Human Resource Software

Now, without any further ado, let’s unpack all the top reasons why small businesses, agencies, and even startups must go with comprehensive human resource software in the upcoming year.

1. Time Savings

The final reason why you need human resource software for the upcoming year is because it can save you precious time. HR Cloud’s employee time tracking tool is the tool that manages employees time in your company.

Automating a plethora of HR tasks, from recruitment and onboarding to payroll and performance evaluations, frees up the HR team to concentrate on necessary strategic initiatives and take care of employee engagement.

What happens then? Well, it, in turn, leads to a more efficient and productive work environment, which is the end goal. As a small business, it is so important that you always redirect your valuable time and efforts toward activities that help you grow.

2. Compliance and Regulation

In the upcoming year, small businesses and agencies may go through a myriad of challenges. Why? Because we live in a time where change is constant. 

Here, human resource software has become an indispensable tool for organizations due to several reasons. 

HR software ensures compliance and regulation adherence. It effortlessly helps companies navigate the complex web of labor laws and regulations that often differ by region and change. 

It also minimizes the risk of legal complications and penalties. End of the day, as a small business, it becomes imperative to safeguard yourself, and robust human resource software can help you with it. 

3. Talent Management

Did you know? It can take anywhere between a week to even 30 days or more to recruit the ideal candidate.

However, with comprehensive human resource software by your side, you don't have to worry about it. 

HR software provides the tools and resources necessary to attract, nurture, and even retain top talent.

There's more. It streamlines the recruitment process and simplifies onboarding. Some other advantages it brings forth include performance evaluations, which help you create a workforce that is not only skilled but also engaged and loyal. 

Today, talent is precious. Almost 69% of organizations are struggling to recruit the right candidate. Here, HR software helps you manage the talent well.

Workmates logo

Employee-Centric Engagement, Internal
Communications, and Recognition

Learn More about Workmates

4. Employee Engagement and Satisfaction

As aforementioned, attracting and retaining top talent is a real struggle. So, what more should you do?

Well, this is where employee engagement and satisfaction come in. It is fundamental for small businesses and agencies. 

However, HR software has got your back. It offers a comprehensive suite of tools developed to enrich the employee experience. Workmates (by HR Cloud) is a great solution for employee engagement.

5. Payroll and Compensation

Imagine this. You work for a new and exciting startup that can be at the forefront of innovation. But as you eagerly wait for your salary to hit your bank account, there is a delay because HR has a taxing workload. 

It would make you lose your morale a little bit, wouldn't it?

Relying on traditional methods to process payroll can adversely affect your reputation. 

With HR software, you can automate and streamline the intricate and often time-consuming processes related to employee compensation. This ensures precision in salary disbursement, takes care of tax compliance, and benefits the staff. 

Also, let's not forget that technology curbs the likelihood of costly errors. All this comes together to keep your employees happy.

6. Data Security and Privacy

We live in the era of data! So, data security and privacy must be vital concerns even if you are a small business. However, HR software today comes with the necessary security measures. 

By providing a secure environment for HR data, the software not only navigates through any risks of data loss or unauthorized access but also improves the trust and confidence employees and clients place in the organization.

7. Remote Work and Collaboration

According to Flexjobs, it is seen that the hybrid work model will grow from 42% in 2021 to 81% in 2024. And talking about remote work, 32.6 million Americans will be working remotely by 2025. That's a huge number!

So, to ensure you have talented staff on your team, a remote or hybrid work model is something you must embrace. Here, proper collaboration is crucial.

HR software provides the necessary tools for remote team management, internal communication, and collaboration. It assists you with seamless coordination to make sure that employees stay connected and productive, regardless of where they are working from.

WM logo

Social Intranet Software that Encourages Employee Communication

Finally, a Better Intranet Experience Your Employees Will Love.
Learn More
Workmates Tour

8. Effortless Growth

Even if you started as a small agency, the goal is always to spread your wings and grow. 

Human resource software is designed to accommodate your growth and the changing needs that come along. It makes sure that you can easily grow your workforce as it stands tall to meet any changing demands. 

Whether it's a sudden increase in hiring or an expansion into new markets, the software provides the flexibility and tools you need to adapt and thrive.

9. Cost-Efficiency

As a new or small business, being savvy with your spending becomes vital. Instead of hiring full-time employees for minute human resource tasks, the HR software automates them. This not only curbs the administrative burden but can significantly reduce the associated overhead costs. 

It even minimizes the risk of errors that could lead to costly legal or financial repercussions, saving your business both time and money. 

While you end up spending on HR software as well, the comparative collective cost is still less than what it would come to if you hire extra full-time interns or employees for small tasks.

10. Employee and Clients Feedback Managing

Feedback can help you enhance the employee or client experience and tailor your actions to meet their demands.

So, you can use user feedback HR software to gather online comments and evaluations that your employees and clients share.

HRC logo

A New Way to Manage
Frontline Workers and Remote Teams

Learn More about HR Cloud®
desktop app

Factors To Keep In Mind While Choosing HR Software In the Upcoming  Year

Eager to get yourself comprehensive human resource software? Well, here are a few factors you must consider to ensure you end up with the best. Take a look!

User-Friendly Interface

Make sure the software is easy to use and doesn't require any complex tech skills. 


Make sure the software can grow with your company. You don't want to switch software every time your organization reaches a new height.


Check if the HR software can integrate with your existing tools like payroll systems, time tracking software, or other HR-related applications. It will help simplify your HR processes and you will not have to manage multiple dashboards.

Data Security

Your employee data is sensitive. Therefore, it is crucial to ensure the software has strong security measures in place to protect this information from breaches.

Mobile Accessibility

In the following year, mobile access will be crucial. Your HR software should work well on smartphones and tablets, allowing both your HR team and employees to access it from anywhere. This is especially crucial in the remote and hybrid work environment we live in.

Cost Consideration

This is up to you, of course. But understand the pricing model of the software. Since it is mostly a one-time purchase, calculate the long-term costs and choose the best.

Support and Training

Check if the software provider offers good customer support and training options. This can be invaluable if you run into issues or need assistance in using the software effectively.

“As soon as we saw HR Cloud’s Onboard demo, we knew this was the perfect solution for us. We loved that it was extremely simple and powerful out of the box, but that we could customize it with advanced capabilities to make it work in our company setting.”

Elisa Garn Vice President, HR and Talent Christopherson Business Travel


Your HR processes are unique to your company. The software should be customizable and must easily align with your requirements.

Reporting and Analytics

Look for software that provides insightful reports and analytics. This data can help you make informed decisions and improve your HR processes.

User Feedback

If you have HR software in mind, look for reviews. This can tell you so much about the software's strengths and weaknesses.

User Permissions and Roles

The software should allow you to set different levels of access for your team members, assuring data privacy and security.

Lastly, make sure that the HR software you choose fetches you all the benefits we have mentioned above!

Wrapping Up

Now you know how human resource software can support you Today, only embracing the traditional methods won't help you stand out. You need something more to gain a superior edge, which is possible with the right human resource software that resonates with your company's needs. By investing in HR software, you position yourself to not only survive but to thrive!

Are you ready to jump on the tech bandwagon and let human resource software help you ace recruitment?

WM logo

Try Workmates Interactive Demo

Click trough it yourself with
interactive demo.

Author Bio:

Firaol Birhanu: Digital marketer and content writer since 2017, he loves sharing his experience and research results with those who start their business career. 


Was this article helpful?
Yes, thanks
Not really
🎉 Awesome!
Thanks so much for your feedback!
Got it!
Thanks for your feedback!
The 12 Most Common HR Mistakes
Learn how to avoid common HR mistakes that frustrate employees and plague organizations.
Download Now