What is HR management software?
When you run a small business, there’s always something to do. In fact, a 2023 Gallup survey found that 39% of small business owners work over 60 hours a week. And although that sort of stretch can be required from time to time, working consistently at that level isn’t healthy or sustainable.
So what’s the solution if you want to run a successful small business?
In my experience, the key to success is typically how you work, rather than how much you work. The old saying ‘work smarter, not harder’ has probably never been more true than when it’s applied in the context of small business.
Over the years, I’ve found that one of the best ways to work smarter is by using tools that speed up and automate all of those time-consuming, repetitive, but very necessary tasks.
And perhaps the most essential of these tools is HR management software – because automating as many tasks as you can when it comes to HR, makes more sense as a business so you can free up space in other areas.
But exactly what is HR management software? And does it really make such a difference to a small business?
Well, that’s what this article is here to tell you…
What is HR management software?
HR management software digitises and automates all essential HR tasks so that businesses can manage them more easily and efficiently.
Good HR management software will enable you to effortlessly manage the lifecycle of every employee, from recruitment and onboarding to performance reviews and time off. It streamlines the way you handle all necessary HR tasks, improves people-related decision making, ensures compliance, and helps you to better understand and support your team members.
In short, HR management software is a bit of a game changer — especially for small businesses who don’t have the luxury of big HR teams with years of combined knowledge and expertise.
What’s more, HR management software moves small businesses away from error-prone paper files, spreadsheets and computer folders. And provides you instead with an easy-to-access and secure platform that saves you time, hassle and worry.
Note: HR management software goes by a multitude of names. So if you hear someone talking about any of the following, they are just referring to HR management software by a different name:
- HR system
- HR software
- HR automation tool
- Human resource management system or HRMS
- Cloud HR software
- Human resource information system or HRIS.
What does HR management software do?
HR management software is software that you use to manage anything related to human resources — i.e. your people.
Though not all human management software is created equal (ideally, you want something that’s easy to use, has great functionality, and is specifically created for small businesses), they all should provide most of the following:
- A secure place to store employee data, company HR policies and other important documents
- Automated onboarding of new employees
- Time-off tracking and attendance management
- Automated performance reviews
- Employee engagement polls and surveys
- Perks and benefits
- Compliance with UK employment law
- Automated offboarding for exiting employees
- Data analysis and reporting
- Integration with other software
HR management software removes all of the time-consuming and fiddly manual elements of essential HR admin, helping you to stay compliant and freeing you up to concentrate on other things.
We’ve built our own HR management software, Charlie, specifically for small businesses. It’s a simple and easy-to-use system that gives you all the functionality you need (everything in the list above).
What are the benefits of HR management software for small businesses?
HR management software brings big benefits for small businesses. Benefits like:
Better recruitment
With the right HR management software, recruitment becomes easier and more efficient for both you and your new hires. The key is finding a tool that seamlessly integrates everything — from your ATS to your HR software — all in one place.
This not only speeds up the hiring process, but also makes it fairer. Smart tools like AI-powered CV screening and scorecards help you find the right talent faster and more objectively. For small businesses, an ATS like this is a game-changer in the long run.
Improved retention
Automated performance reviews and surveys can strengthen relationships with your team. When people feel heard, they’re more likely to stay with you longer.
That’s why it’s important to focus on these areas of HR, even if they seem small at first. By embracing automation, you'll not only improve team engagement but also free up time from managing complicated processes that you don’t need to worry about anymore.
More efficiency
HR management software streamlines all of your HR admin and related tasks through digitisation, automation and self-service (where employees are responsible for uploading and updating their own information), removing many jobs from your list and giving you time back to focus on other parts of your business.
Data-led decision making
With all employee data stored securely and centrally, and analytics and reporting built in, HR management software will help you to better understand your business, and make decisions based on true, up-to-date information relating to your team.
Compliance
HR management software like Charlie ensures compliance with UK employment law, reducing the chances of mistakes. Automatic reminders mean that nothing important is missed — your team never forgets, and you never have to chase them up.
Good HR management software should ensure compliance with UK employment law. Charlie, for example, is fully GDPR-compliant for total peace of mind.
When should you start using HR management software?
My recommendation to small businesses, especially to those starting out, is to use HR management software as soon as possible.
HR management software will save you a huge amount of time on essential and repetitive HR admin, streamline your people processes, and ensure you do it right the first time.
This will make a big difference to you, your employees and your business as a whole.
At Charlie, we believe that getting HR management software should be an easy decision, so we’ve made it completely hassle-free for small businesses:
- Start a free trial and launch Charlie in seconds
- Invite your team
- Import your existing data securely
- Start using it straight away
Why Charlie is the best HR management software for small businesses
Charlie is HR management software built by a small business for small businesses, so it’s designed to deliver everything you need.
Charlie automates all of your essential core HR processes:
- Data management
- Onboarding
- Time off
- Performance management
- Engagement polls and surveys
- Offboarding
You can also have access to our Charlie Recruit tool, the first ATS for small businesses on the market to offer a complete solution in one go.
With solid HR processes in place from the very beginning, your business will have the foundations it needs for growth and success.
I would highly recommend CharlieHR to any other small business. You get so much more than just an HR platform: you also get insights into your team and help on hand whenever needed.- Ellie Mckenzie Burrell, HR Officer, SEO Works
Charlie will:
- Help you automate boing, time-consuming and repetitive HR tasks, and cut down on the time that’s wasted flicking between different folders and systems
- Enable you to better understand your small business from a people perspective, and demonstrate the impact of good HR
- Allow you to actively impact your team’s happiness and engagement.
All of your HR is streamlined and automated with a single platform, and it’s so quick and easy to set up and use, your team won’t require any training.
If you’re a business with under 50 employees and are looking for a solution that’s effective, simple and affordable, why not try Charlie?
