Is your growing business ready for HR technology? With the human capital management (HCM) market projected to be a $26.5 billion industry by 2024, chances are your company may be more ready than you realize. Not too long ago, HCM software was thought to be technology only large companies needed or could afford, but thanks to Cloud technology, that is no longer the case.
For small businesses, it can be challenging to know when the benefits HR software provides offset the cost. Here are a few clues that your company could be ready to take a closer look at what an end-to-end HR platform can offer.
1.Rapid and steady growth
As your company grows, so does the need to keep better track of your employees with a tool that is more reliable and detailed than a spreadsheet. From payroll and scheduling to benefits enrollment and monitoring performance, there comes a point where manual processes require too much time and increase the chance for error. And we all know, if something goes wrong with your employees’ pay or benefits, it will not go over well.
In addition to automating payroll, benefits and employee data management, a comprehensive HCM platform can provide employees with self-service tools that allow them to complete routine administrative tasks without HR. It also can facilitate company communications and act as an online library for key corporate information like your employee handbook.
2.Increased risk of fines from non-compliance
Companies of all shapes and sizes face an increasingly complex and ever-changing regulatory climate. From keeping up with minimum wage and overtime laws to managing the record keeping and reporting requirements of the Affordable Care Act (ACA) and FMLA, compliance alone can be a full-time job. If you have a small HR staff, or are an HR department of one, HR technology can help you capture, maintain and report on the data required to meet local, state and federal compliance. The tangible (resources and time) and intangible (reduced risk) benefits technology can offer in the areas of compliance should be a core component in the business case for implementing HR technology.
3.Stricter work authorization requirements
Along the same lines as compliance, employee verification remains a very hot topic under the Trump Administration. In the first six months of 2019, the Immigration and Customs Enforcement (ICE) agency delivered approximately 3,300 Notices of Inspection (NOI) to businesses all over the U.S. and conducted more than 5,900 I-9 audits in fiscal 2018 compared to 1,360 the previous year.
While you may think your business is safe, the only way to ensure is to have required employment verification documents like I-9s properly completed and easily accessible in case of an inspection and audit. When evaluating HR solutions, be sure to ask about electronic I-9 forms management and integration with E-Verify as it can save time and resources while mitigating your risk in the event of an audit.