Managing Employees

How Technology Will Shape The Way Startups Manage Their HR

How Technology Will Shape The Way Startups Manage Their HR
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Managing Partner, SOURCEitHR
4 min read
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An entrepreneur wears many hats: CEO, CFO, Business Development Manager, Head of Human Resources, and everything else in between. However, there aren’t enough hours in the day to effectively work on business development, while keeping track of HR issues at the same time.

Many entrepreneurs struggle with the HR side of their company, despite knowing that when it comes to moving their business from the startup to the growth phase, having a well-managed and efficient team is critical. What’s ironic is that many startups and growing companies, even the ones working in the tech industry, still cling to outdated methods when it comes to managing their HR. 

Whether it’s using spreadsheets for payroll, manually keeping track of attendance, or relying on traditional recruiting methods, spending too much time and hiring people to manage these things is inefficient, and can really drag down a business. Luckily in the last few years, HR technology has come a long way and with greater proliferation of cloud-computing solutions, it has become an inexpensive and effective way for entrepreneurs to manage their HR.

Here are some ways entrepreneurs can use HR tech to keep their businesses running smoothly:

1. Outsource payroll 

Many entrepreneurs worry about paying their employees’ salaries on time, and for some, this could involve trips to the bank and tedious record keeping, not forgetting to mention the stress of making sure all income tax and social security payments are made correctly (relevant in Jordan and Lebanon, and other countries in the region.) With technology and services available today, this entire process can be moved online or on mobile devices, so you can make salary payments with a single touch. Instead of hiring payroll officers, you can pay per employee to automatically process their salaries accurately and timely, without raising any regulatory compliance issues.

2. More data = better decisions

Whether it’s a team of 10 or 100 employees, access to information on a variety of different metrics can help you make better decisions about your workforce. Big data can help you pick up on trends happening internally and find out what’s driving them, so you can adjust course accordingly. This isn’t just limited to employee’s attendance, there are tools to help you measure an employee’s performance, and determine whether they need more training or if they are in the right role. This is just the tip of the iceberg of big data, and can practically be implemented on any internal metric.

3. Recruitment and determining salary

Is a face-to-face interview the only level of vetting you have for potential employees? Finding the right people is another major stress point for entrepreneurs. As HR technology gets more sophisticated, the more accurate competency and personality testing has become. Instead of hiring based on a gut feeling, these testing tools can improve the quality of candidates. Combine that with data from salary surveys and reports, not only can you hire the right candidate, but offer them a salary package that is competitive in their exact field.

4. Serving a new generation of talent

Millennials are now the largest generation in the workplace, and their demands for an employee-friendly workplace has led employers to rethink the way employees interact with their HR departments. For such a tech-savvy generation, HR platforms have now moved beyond desktops to mobile devices and user-friendly apps that allow your employees to clock in and out, submit vacation requests, or view their pay slips. Better employee services mean a more efficient and satisfied workforce. This type of interactivity and functionality will also help position your business as a preferred employer.

Just because you are a busy entrepreneur doesn’t mean you have to let your HR suffer because you either don’t have experience in the field or can’t afford the resources required to manage it. Developments in cloud-based software that require no hardware or expensive servers are making it easier for entrepreneurs to control virtually every aspect of their HR inexpensively. Startups in the region need to embrace this technology. They are the ones who are pushing the digitization and tech revolution, so they need to also consider it for their internal HR functions. 

Related: Three Hiring KPIs Every Business Needs To Master In 2018

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