Whether it's to manage employee health benefits or facilitate staff needs that need handling, a human resources department is an important component to have set up in a business. However, perhaps in an attempt to rein in expenses, many companies are implementing automated HR departments, thereby avoiding the labor costs that are associated with them.
And, according to highly regarded resource planning specialist David Vanheukelom, automation may be worthwhile in this aspect of a business, be it large or small.
Speaking to Small Business Computing, the HR expert noted that automation serves as a good alternative because it frees up employees' time so that it can be devoted to other important aspects.
"[Small business owners] spend way too much time managing the business on spreadsheets," said Vanheukelom.
50th employee may be the 'tipping point'
He added that by their nature, SMBs generally don't have the type of volume that large companies do, but there is a tipping point in which things can start to get complicated. In his experience, this usually happens by the time companies hire their 50th employee.
Before you know it, the HR department can monopolize the amount of resources a company needs for it to stay on course, not only involving the management of employee benefits, but also the issues of recruiting, hiring, professional development and keeping track of work absences.
That's why human resources management systems, or software that enables companies to manage multiple HR responsibilities simultaneously, are so valuable.
"Functionality may differ, however vendors generally aim for an automated, one-stop HCM environment that lets HR workers efficiently process and coordinate practically all of the employee-related aspects of running a business," Small Business Computing reported. "This can also include self-service capabilities that let workers request time off, review their benefits, download forms and update their information using an employee portal."
Where automation should not be included in small businesses' production is with marketing. For instance, according to Entrepreneur Magazine, many companies will use automation in order to update statuses on websites like Twitter, Facebook and LinkedIn, which a growing number of small and large firms utilize to increase their following. The problem, here, though, is that automation doesn't account for questions or comments that potential customers might ask.
It's far better to use automation as a supplement to personal social media updates, but not as a substitute, experts at Entrepreneur Magazine recommended.
