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What Are the Advantages of Technology in the HR Space in a SMB?

Carolyn Sokol is a regular contributor to The HRIS World.

There comes a time in an every company when adding technology becomes necessary in order for the business to expand efficiently and compete successfully in its market.

The technology can affect a single department or the company as a whole and nowhere is this fact more evident than in administrative tasks.

In particular, human capital management (HCM) can be significantly improved by the use of a Human Resource Information System (HRIS).

The Benefits of an HRIS

The benefits of a newly implemented HRIS are significant for any rapidly growing company and run the gamut from
improved recruiting and hiring, more standardized training across the company and better compliance with employment and non-discrimination laws.

New Employees

Recruiting and hiring are time intensive activities that usually take place over an extended time period.

Without a good reporting and tracking system, busy managers can easily lose track of the progress of a particular


Even with established company protocols, it is easy for a manager to lose track of the number of interviews conducted, background checks performed and the state of the onboarding process.

Current Employees

An HRIS is an excellent resource to monitor and gatekeep many administrative activities.

It can automate and monitor the hiring process so that the manager is always cognizant of the next stage necessary to move things forward.

An HRIS can also perform a similar function in the training arena and ensure that all new hires receive the correct initial training and that all current employees receive any training updates.

Problem Employees

Every business owner understands the problems inherent in administering fair and unbiased counseling and termination activities.

A major benefit of an HRIS is that it standardizes and monitors the counseling and termination processes.

At the initiation of a counseling or termination session, an HRIS can be designed to remind managers of the proper steps and paperwork necessary.


While upper management and business owners would like to trust their managers to completely comply with all company and government regulations, the prudent ones trust but confirm. An HRIS facilitates this process by providing regular updates that can then be reviewed to ensure compliance.

Similarly, HR compliance audits can easily be conducted to ensure that all company and government rules are followed.

Young happy smiling businesswoman at office

The Bottom Line

An HRIS requires a significant investment in time, energy and other company resources to implement and maintain.

In return, it provides an excellent ROI. In addition to the operating efficiencies that an HRIS will bring to a company’s HR department, it can also provide a significant defense against discrimination and harassment lawsuits as well as EEOC claims.

On a secondary, but still significant note,

an HRIS provides some fantastic “soft” benefits.

Superior recruitment and training techniques develop better employee morale, lowered turnover and greater productivity.

In short, an HRIS can promote a better working atmosphere that results in happier employees, happier managers and, most importantly, happier customers.

The results go straight to the bottom line.

What Are Your Thoughts??

Many of us fail to realize — or even remember — that some companies are growing from infancy, meaning QuickBooks and similar small business software is no longer fulfilling their needs. What suggestions do you have for companies ready to move into the world of technology in the HR space?

Have you heard of any programs that have been specifically designed to transition a small business into HRIS? If so, please share with the audience?

For those that are still getting into HRIS, this can be a daunting task. Companies like CompareHRIS.com in the USA and HRcomparison.com in Europe (and soon Latin America) will go a long way in helping this transition. What one thing would you tell a business owner he or she needs to do before contacting either of these companies?

Please share your thoughts in our comments section below!

Available in The HRIS World Resources

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Book Description

Publication Date: January 3, 2012 | ISBN-10: 111833633X | ISBN-13: 978-1118336335 | Edition: 1

The Human Resources Software Handbook is the essential resource written for HR professionals with little or no background in information technology. This book will be your hands-on guide for answering the most important software selection questions including:

  • Is this software company a sound business enterprise?
  • Will this product solve real HR problems?
  • Does the product have any hidden costs?
  • Have those who have purchased this product been happy with the results?

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Carolyn Sokol

Carolyn is an Advisory Board member with The HRIS World Research Network.

Carolyn is the founder & President of


as well as Business Development Director to


Both companies assist in matching businesses to the right HRIS Software or PEO provider for their particular needs.

You can contact Carolyn via eMail, Social Media or by leaving a comment below …

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More articles by Carolyn Sokol...

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