HR tools can reduce your hiring and staff management costs for a really small cost.
Few small businesses can afford the overhead of a dedicated HR department.
Although the absence of this admin function from the office is a cost saver, it does mean that small businesses often fail to plan their HR requirements properly and can create ill will among staff through the haphazard treatment of HR functions such as pay and sick leave.
Incompetent HR management can lead to production limits and uncooperative staff.
Fortunately, there are a number of online HR tools that can help the busy business manager cope with the demands of HR needs.
Let’s examine the 5 of the best HR tools currently available.
Top 5 Human Resources Tools
- The Resumator: Automates hiring processes, integrates with employment websites and social media, offers onboarding and training modules for businesses with regular staff intake.
- Zenefits: Manages employee records, payroll, taxes, and benefits, ideal for US-based businesses due to compliance with US laws.
- oDesk: Connects businesses with freelancers for short-term projects, offering a platform for tracking work and making payments without additional equipment or office space costs.
- Staff Squared: Cloud-based HR tool facilitating HR tasks remotely, includes employee interfaces for managing requests, suitable globally except for payroll functionalities.
- Jobatar: Streamlines the interviewing process through recorded questions and answers, accessible via PCs, tablets, and smartphones, ideal for business owners with limited time.
Why You Need HR Tools
- Cost Efficiency: HR tools significantly reduce the overhead costs associated with hiring and managing staff, eliminating the need for a dedicated HR department.
- Improved HR Management: They offer structured and efficient management of HR functions like pay, sick leave, and hiring processes, preventing potential staff dissatisfaction.
- Enhanced Productivity: Proper HR management tools can prevent production limits and foster a cooperative staff environment, crucial for small businesses’ growth.
- Predictive Analytics: Advanced HR tools incorporate analytics and modeling to predict future staffing needs, enhancing decision-making processes.
- Legal Compliance: Tools like Zenefits ensure businesses remain compliant with employment laws and taxation requirements, reducing legal risks.
- Remote Accessibility: Cloud-based HR solutions allow for remote access to HR functions, enabling flexible working arrangements and ensuring business continuity.
- Scalability: HR tools adapt to your business growth, managing increasing HR demands without the need for proportional increases in HR staff or resources.
1) The Resumator
The Resumator automates the hiring process. It integrates with your email system, enables you to post job vacancies on a list of well-known employment websites, and then reads through and parses arriving resumes sent in PDF or Word formats.
You can also post jobs on social media platforms through this HR tool or have your own jobs webpages, which The Resumator will host for you.
The system also sets up workflows, which give you a schedule by which to complete the necessary steps the hiring process requires. However, you would need to have a fast turnover of staff or operate an employment agency to justify the cost of operating The Resumator.
The system is available only on a monthly subscription; therefore, if you hire only one or two people a year for your small business, you probably wouldn’t require the unlimited capacity this HR tool offers.
If you do have a regular staff intake, you can add “onboarding” and training modules to the basic HR tool for an additional fee.
2) Zenefits
Zenefits covers the operational aspects of HR.
It keeps employee records, calculates payroll, and manages tax, insurance, disability, and compensation payments. The system records time sheets and logs employee attendance.
Payments to employees can include a range of benefits, such as stock options.
As you would expect with all that operational data going into the system, Zenefits is also able to produce a range of reports to help you file taxes and analyze resource utilization.
This is a comprehensive HR tool, but it is specifically written to comply with US taxation and employment law, so Canadian, British, or Australian readers are unlikely to benefit from Zenefits.
3) oDesk
Small businesses need to be quick on their feet.
Web-based businesses frequently need programmers and content creators for short periods, which doesn’t make long-term hiring worthwhile. Instead of paying a high rate for a consultant, consider visiting oDesk to find freelancers with the skills you need. Many of the talented workers on oDesk are based in remote areas and prefer to work from home.
The benefit of this method of employment to you is that you don’t need to provide equipment or office space for these short-term workers. You don’t have to worry about the overhead cost of bringing in a specialist from far afield, either.
This HR tool is more than just a job board; uou can track goals and work hours through the system and even make payments to the freelancers. oDesk charges freelancers 10 percent of their fees, and you don’t have to pay anything for the service.
4) Staff Squared
The payroll functions of Zenefits are specifically written to cater to a US customer base.
Staff Squared is very similar to Zenefits, but it does not cover payroll. Therefore, it is suitable for use by companies both outside and inside the United States. This is a cloud-based HR tool, so you don’t have to worry about losing data if your system crashes.
The remote storage of your HR records also means that you can access your HR files from anywhere, so if you take a day working from home, you can still perform all your HR tasks.
Staff Squared has an employee interface that mediates requests, such as vacation and shift change requests. The requests get directed to the relevant manager via email for approval. The system is charged on a subscription basis and is US $4.50 per month, per user.
Unfortunately, because every employee needs to access the system for functions such as time-off requests, every staff member is counted as a user; thus, if you have a lot of staff, it could get pricey.
You can try this HR tool for free for 14 days.
5) Jobatar
If you are fully stretched running your business, you may not have the time to dedicate a full day to interviewing applicants for a vacancy. Jobatar has a solution to this problem.
This HR tool is an interviewing scheme.
You record questions for interviewees and then send them invites to access the questions and record answers. The interviewees are recorded through the webcam of their PC or laptop, and then you can view each respondent whenever you have the time.
You don’t have to be in the office to review the interviews because the system can be accessed from tablets and smartphones. Therefore, if you are always on the move in your job, this HR tool should tie in with your lifestyle.
HR solutions for small businesses
These new HR tools mean that small business owners can better manage their HR functions themselves without needing to have an HR manager on the team. After reviewing each of these HR tools, consider whether any of them could help you manage your own staff more effectively.
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