Small Businesses Are Buying HR Tech (But Not Using It)

Posted by Employer Flexible on April 26, 2019
Employer Flexible

HR technology can help a small business reward employees, structure better offers for new hires, and keep track of vendor contracts. But small businesses are finding it difficult to integrate that technology into their daily business, and owners are ultimately leaving money on the table when they pay for features they can't use. If you own a small business, learn how you can avoid this fate so you can get more from your investment. 

Time-Crunched and Budget-Strapped 

It's no surprise that small businesses don't have the resources for full-time HR departments. More than 55% of small businesses only have one person dedicated to HR — and that person may have a myriad of other responsibilities on her plate. If owners are in the market for new technology, it's hard to find the spare hours to research vendors, pricing and application benefits. It only takes one convincing salesman to end up with a new system that no one can actually use. 

A Dream of Automation 

The good news is that there are plenty of ways to automate HR processes with the right technology, freeing up valuable assets for everyone. It's why 64% of small businesses use HR software, and why HR leaders either want to upgrade systems or improve utilization of their current ones. And while larger businesses may see more noticeable results from the application of new technology, even small firms of five people or fewer could benefit from the right programs. 

Top HR Tech 

Small businesses have been largely looking for talent-management systems that can help them attract better candidates for open positions. In an age where it's easy to apply for jobs, HR has to wade through countless data points to come up with a short list. Swamped with information and staring down a deadline, HR professionals may accidentally pass on the perfect new hire. Applicant-tracking systems (ATS) make it easier to single-out people who will actually fit the position, so small businesses don't miss a beat.

Understanding Advancements 

How small-business owners implement their tech depends largely on their personal relationship with it and their employees' expectations. If people are ultimately tired of mastering a new system just to have it replaced by a new version, they'll begin to fear updates, upgrades and replacements. But there are ways to incorporate technology that saves you money and time (or the original reasons you bought it in the first place). 

Changing the Mindset 

Most of us know what it means to underutilize popular technology. We may use Excel, but we may not know how to take advantage of all its functionality. Part of this is human nature in that we learn what we need to learn and then find workarounds for uncommon situations. But part of it is a reaction to the employer's priorities. Business owners who refocus employees on how new tech can improve HR will eventually start to see a changing mindset.  

Finding a Partner 

Part of getting the most from tech means partnering with someone who understands it. If you're a small-business owner, a Professional Employer Organization (PEO) could be the answer. A PEO will not only walk you through the initial setup, but it will also be there when your employees have questions or concerns about the available technology. So if a new payroll law goes into effect next month, you'll have the expertise you need to configure new terms.

A PEO can be a huge money-saver in the long run, especially if owners and employees are only taking advantage of a fraction of what their tech can do. For more information about when and why to hire a PEO, please contact us


Topics: HR