Quickly evolving technologies constantly change the HR landscape, giving businesses many ways to resolve their needs. While this technology automates tasks and improves employee experiences, these tools aren't readily available to all businesses or are too complex for easy application.
Maintaining competitiveness or scaling your business without adopting the newest HR technology leaves less effective alternatives as your main options. However, allocating the budget to switch or stay updated with the latest software can itself hurt the efficiency of other HR strategies.
Fortunately, businesses do not need to take this path by themselves. Professional employer organizations (PEOs) can provide the latest HR tech to their clients and help them implement and manage it. That helps them stay competitive without hurting other aspects of HR or putting a significant portion of their budget to it.
Let's look closer at what PEOs provide for businesses and how HR technology can help streamline your business functions.
Technology is an integral part of successfully managing your company's HR and supporting your employees. Around 3.2 million SMBs today rely on cloud tech to perform complex HR tasks. From recruitment to benefits administration, high-quality programs make it easier for the HR team to build strong strategies.
Software such as the Human Resource Information System (HRIS), Applicant Tracking System (ATS), or payroll processing reduces errors, improves compliance, and gives HR teams more time to focus on employees. They empower your HR department to achieve more so they can support your business as it takes on new ventures or increases in size.
HR technology helps improve productivity by automating repetitive tasks and reducing the administrative burden. With this software, your teams can handle more tasks in less time and allocate more effort to improving employee experience.
With HR tech, your internal HR team can also improve data accuracy and avoid compliance issues that often stem from manual data entry errors.
HR technology, such as employee self-service portals, allows your workers to:
It gives your employees control over their own information and reduces the need for them to contact the HR team to resolve it. With such software, your workforce can feel empowered, appreciated, and satisfied.
HR teams use advanced tools and platforms to streamline recruitment and talent management tactics. This HR technology can also facilitate performance management, optimize succession planning, and make onboarding processes smoother.
A better recruitment process makes a better impression on talented candidates and employees, which improves retention and allows new workers to become productive more quickly.
High-quality HR tech is also scalable. So, it can accommodate your changing needs as your company grows by standardizing recruitment and training. As you bring on new employees, there will be less burden on teams to conduct hands-on training. The pre-set process gives them tasks for their first day and allows their team to get them acclimated steadily.
While HR technology can be highly beneficial for businesses of all sizes, its implementation comes with some challenges.
Suitable top-notch HR technology comes with significant costs, including software licenses, implementation fees, customization, training, and ongoing maintenance. SMBs that often have limited budgets could have issues paying for these tools. As a result, many of them settle for software with limited functionality that doesn't achieve the desired results.
Integrating HR technology with existing programs, such as payroll, time and attendance, or ERP systems, isn't always simple. Ensuring seamless data flow and compatibility between different systems may require significant technical expertise.
Integration challenges can lead to data discrepancies, delayed implementation, and frustration. Many internal HR teams could experience resistance to change, especially when implementation is complicated.
Choosing the right HR technology vendor isn't always easy. HR teams often don't know what to look for in a solution and end up choosing incompatible vendors. That leads to such problems as inadequate support, lack of timely updates, security issues, or growing costs.
One of the most common problems with poorly chosen tools is a high learning curve that strengthens resistance to change and leads to burnout. Advanced software implementation may require changes in the HR processes. This change can be time-consuming and costly. Without assistance, the new tool may bring more harm than good.
Professional employer organizations leverage the latest HR technology to help their clients reap all the benefits of using high-quality tools.
They provide access to top-notch software that many small and mid-size businesses may be unable to afford. At the same time, they offer guidance to the internal HR team to help implement these technologies smoothly into their operations.
PEOs monitor all the latest solutions and invest in the most effective programs. They don't just readily share the tech but also answer all the related questions and help with ongoing management. In short, their technology comes with a partnership aimed at helping businesses by guiding them and answering any questions they may have. The ideal scenario is finding a PEO that will be a true partner that goes beyond just giving clients access to technology by helping them make it a business foundation.
Many SMBs have issues with purchasing and implementing advanced HR technology. Meanwhile, large enterprises that have sufficient resources to leverage this software take away their market share.
Besides helping you manage administrative tasks and providing access to higher-tier benefits, a professional employer organization can share high-quality tech. Once you enter this partnership, you can take advantage of all the HR tech benefits without experiencing the majority of downsides.