Small business owners and the companies they build are the lifeblood of a nation’s economy. Without this critical infrastructure, unemployment would skyrocket, Main Street would crumble, and many would struggle to make ends meet. A small business isn’t just an entity with a storefront, a balance sheet, and a product to sell. It represents dreams, success stories, hard work, and determination. Small business owners often put everything on the line for their company to succeed. They also bring people and communities together in special ways that cannot be replicated by large, global corporations. In short, our world is in desperate need of small businesses.
We also know that a small business is not an easy thing to manage. Many business owners have to do it all–from hiring, managing operations, marketing and sales, getting taxes filed, and so much more. Large companies hire teams of people to do each of these functions, but the small business doesn’t have the resources to enlist that kind of help.
Unfortunately, for many small business owners, a handful of these responsibilities, although critical, are well outside of the reason why they got into business in the first place. These things take time away from their core work, and they also tend to drain their energy.
So if you’re running a business and you don’t want to worry about things like paperwork, payroll details, and HR compliance then don’t! Off-load those responsibilities to an HR technology product and let the software do it for you. We live in a day and age where many of the painful, detailed processes that typically keep a small business owner up at night can be automated or eliminated through the use of software solutions.
Let’s breakdown the reasons why all small business owners need HR software.
Why Do Small Business Owners Need HR Software?
To Hire the Right People
Hiring great employees continues to be one of the top concerns for many small business owners across the country. Small business owners understand that they need help, but because their resources are limited, they often cannot afford large teams. So when it comes to hiring, they absolutely have to get it right. They need employees who are flexible, reliable, committed, and punctual. As competition grows fierce for the most talented employees, a small business owner needs HR software to give themselves a leg up.
Many HR software companies sell an Applicant Tracking Systems (ATS) as part of their product offering. An ATS is designed to help a company post and distribute job listings to job sites and social media platforms, gather candidate applications, and manage the interview process.
A good ATS will automate a lot of the work you typically spend trying to find the best candidates, and it will increase your speed to hire. This is essential as many of the top job seekers will receive multiple offers in as little as a few days. If you’re unable to identify, interview, and offer your top applicants faster than the competition, you won’t be able to hire the best.
An applicant tracking system is also a critical component of the candidate experience. Remember, even if every person who applies will not be hired, you should make it a goal to ensure that every job candidate has a good experience with your company. This means that your communication with each candidate is professional, punctual, and forthcoming. You should notify candidates about when they should expect to hear from you, or when you’ve decided that they’re not qualified for the position. This can be difficult without an ATS because of the volume of candidates you work with. However, when you’re equipped with an applicant tracking system, much of this work is easily automated and will be done for you.
Need help hiring the best candidates, faster? Eddy makes it easy.
To Stay Compliant
There are often two sides to every business. One is the fun, exciting, this-is-the-reason-I-do-this side of the business, and the other is the dull, repetitive, confusing, why-do-I-even-do-this side of the business. Of course, small business owners get started because of the first side. They’re passionate about something and they want to share it with the world. Their business is what allows them to dedicate their time and effort to their passion while being able to make a living.
The other side of the business, the side that no one likes and no one wants to deal with, can be brutal without the right tools. Unfortunately, we’ve spoken with countless business owners who don’t have the right tools. Let’s get this fixed!
A small business owner needs HR software to keep their company compliant. Business compliance is a mess of webs and hoops that everyone has to jump through, and without the right expertise, you could end up with some major complications. Luckily, by using the right HR software, you can automate much of these worries away.
A lot of business compliance has to do with paperwork, payroll, and taxes. There are certain forms (like the I-9 or W-4 form) that all employees need to sign and that the business needs to keep on file for years, even if the employee is no longer with the company. There are also quarterly business taxes to be filed, payroll taxes to be deducted, overtime to be calculated, and paycheck withholdings to managed. If you’re like many small business owners, you did not get into business to deal with all these problems.
So what can you do? Try using an HR software product to help you manage and organize all this information. HR software can help you get your documents signed and stored securely so that you’ll be ready for audit season. Many HR software products will also have a payroll component that will walk you through all the steps to get your payroll, taxes, withholdings, and overtime calculations squared away.
You should never go to sleep at night worried about compliance. HR software was built to make this easy.
To Simplify Processes
There’s an old saying that goes, “Winners repeat.” In a business, it’s never going to be good enough to make one sale or to make one customer happy. You need to create repeatable, scalable processes that will help you make multiple sales and delight multiple customers every single day. Why? Because winners repeat.
This is also true with the internal processes you develop inside the company. You can’t just make one good hire, or have one employee sign the correct paperwork. And unless you want a lot of unhappy employees, you can’t have inaccuracies when you run your payroll! Everything in your back-office needs to be repeatable, scalable, and consistent.
This can be really complicated without the help of HR software. Creating a simple, repeatable hiring process, that leads into a structured onboarding process, that leads to an employee being properly trained, that leads into the employee’s first paycheck is no small task! Each one of these steps has its own share of complexity, compliance, and detail. Trying to manage it all yourself will take you away from your core business which will lose your company money.
Small business owners need HR software to create repeatable, simple processes that allow the back-office to run smoothly. With the right software tools, a small business owner is able to create workflows, templates, tasks, and trainings that all run on auto-pilot. Once you set up your process it will save you hours of time, and numerous headaches. Your employees will come to know and expect consistency. And if the time ever comes where you pass these responsibilities on to someone else, you’ll be able to set them up for success.
Great businesses are built on great processes. Why? Because winners repeat.
Eddy has made its HR software to fit the needs of small businesses today.
To Maximize Freedom
Most small business owners get started because they want to maximize the freedom and control they have over their life. They choose to set out on their own because they want to dictate what they spend their time on, who they spend it with, and how they spend it while they work.
So what are the things that might impede or get in the way of this freedom? Typically, its all the things that you don’t want to do.
We’ve covered much of this already, but it’s worth emphasizing within this frame.
If your small business is built to bring you more freedom and control over your life, then what are you doing to maximize it?
Small business owners need HR software to truly free themselves to do the work they love. Without good HR software, too much of their time, energy, and mental capacity will be filled with tasks and responsibilities that do not move the business forward.
The compliance, processes, payroll, and paperwork that you deal with every day are obstacles in the way of freedom. They prevent small business owners from doing what they love.
Luckily, the solution is simple. Eliminate the bulk of the work by automating its function. With reliable HR software, a small business owner really can spend more time focusing on customers, products, and people.
Small business owners need to be the vibrant face of the company they run. Let the HR software be the back-end anchor that keeps it stable.