HR systems for small businesses: The complete guide

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Small and growing businesses can scale faster and grow strategically with the help of an HR system. The right HR system can help small businesses increase employee engagement, improve team operations, and make data-based decisions that support change management. 

But, how do you choose the best HR system for your small business? And how big should your company be before you get one? Use this guide to learn more about the different HR systems available for small businesses, the various benefits, and how to find the right platform for your growing company. 

What is an HR system? 

A human resources (HR) system helps HR professionals manage and automate their core functions within an organization. It typically includes features and capabilities including managing team member data, processing payroll, administering benefits, and tracking performance management efforts. 

There are various HR systems available for organizations. For example, an HRIS (human resource information system) focuses on storing and managing people data, while an HRMS (human resource management system) offers more advanced tracking and performance management tools. An HCM system (human capital management) provides even more tools for developing a high-level HR strategy and long-term plans. 

A successful HR system streamlines HR processes to reduce

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