Author: David Pack
There are three things that if you had more of and could manage well, could scale your business faster. Those three things are people, money, and time.
The human resource department is often the last in the company to get fancy new tools because they don’t bring in revenue. Unfortunately, companies too often miss the impact HR can have on company growth if they’re armed with the proper tools.
Modern HR Technology however, can help you scale your business by helping you manage and find better people, save money on HR expenses, and cut time spent on menial work.
With that in mind, let’s dive in and see how HR tech can help you scale your business through good management of people, money, and time.
Improve People Experience
Pretty much everyone agrees that people are a company’s most valuable asset. It should be obvious that people should be a company’s most carefully managed asset.
A primary goal of human resource management is creating an excellent employee experience. There’s more to this issue than tech can solve alone, but there’s a lot it can do too.
An interesting thing about creating a good employee experience is that it needs to start before someone even becomes an employee. You can make your company much more attractive to great talent by having an awesome company brand and a smooth hiring process.
Here’s a quick example of the drastic difference that HR tech can have on the candidate experience.
Skipio, a Utah-based SaaS company, was having hiring difficulties. Their process was unorganized, communication was slow and inconsistent, and candidates often fell through the cracks.
This chart of their Glassdoor ratings over time makes it pretty clear how HR tech helped them out when they adopted an HR software solution called EddyHR in early 2019.
Because of HR tech, Skipio was able to offer a better candidate experience with simple job applications and an organized hiring process.
A better candidate experience gives you a competitive edge in the labor market because excellent candidates are more likely to join a company they actually like.
Being able to hire amazing people directly translates to higher company performance. This allows your company to achieve more and scale faster.
The importance of a great employee experience extends beyond the offer letter. You can save huge amounts of HR-related expenses by nailing your employee onboarding experience.
According to Gallup, 88% of employees think their employers did a poor job during the onboarding experience.
An article for Forbes continues this thought by claiming that up to 20% of turnover occurs in the first 45 days of employment due to poor employee onboarding.
Turnover is expensive. Some people estimate that replacing an employee can cost about 20% of their annual salary. Others estimate that the cost of turnover for highly-skilled positions can exceed 200% of their annual salary.
When you lose trained employees, you lose expertise and time. You also have to spend money recruiting and fixing new-hire mistakes. It’s usually worth it to keep your employees if you can.
By improving your employee experience with a strong onboarding process, you can improve new-hire retention by up to 82%. Good onboarding lets you spend less on recruiting and training and gives you more room in the budget for revenue-earning projects.
Time spent on menial tasks is time essentially wasted. These tasks don’t contribute directly to overall business goals, so you should minimize the time you spend on them.
According to G&A Partners, tedious administrative tasks take up about 73% of an HR professional’s time. HR tech can help you cut down that time by simplifying and digitizing paperwork.
Your HR team can spend the additional time you get by streamlining administrative tasks on projects that help you achieve your company vision. Building culture, growing engagement, and meeting employee needs are just a few things they’ll be able to work on. These are the kinds of things HR can do to help your business grow.
One interesting thing about a company’s people, money, and time is how they all interact with each other.
If your HR people can spend time away from paperwork, they’ll be able to create a better employee experience. The better your employee experience, the better talent you can attract and keep. Better talent and lower turnover mean more revenue and fewer expenses.
By finding the right HR tool for your business, you can maximize your greatest three assets — people, money, and time allowing you to accelerate your business growth.
David Pack is the head content writer at EddyHR and Tesani Companies. He realized early in his college career at Brigham Young University that he had a knack for writing. That budding skill of getting words on paper grew into a passion for crafting them to be rich with meaning. When he’s not agonizing over word placement, David loves going on adventures with his family.