How much time and money are you spending on HR? Probably more than you think. On average, small business owners devote 25 to 35 percent of their working hours to HR tasks. HR specialists have a median annual salary of nearly $60,000, and paying an HR manager can cost over $110,000 per year. If you need additional consulting, that means spending another $600 to $2,500 per employee.
By contrast, you can get cloud-based HR management software for between $5 and $25 per employee per month. Even HR platforms requiring additional setup or training cost less than the annual salary of one HR team member! Before you waste another dollar on unnecessary expenses, consider how strategic software use can downsize your HR department and transform your business.
No matter the size of your company, chances are the people handling HR are overloaded. Many small businesses don’t even have dedicated HR departments and rely on employees lacking the training to handle administrative work. These employees may spend 13 or more hours per week on HR, amounting to a collective cost of $27 billion per year across all small businesses.
In larger companies and enterprises, HR teams spend over half their time in meetings and interacting with personnel. These face-to-face connections are critical in environments where executives and employees have fewer opportunities for direct communication, and every minute spent on paperwork is a minute taken away from building and maintaining internal relationships.
Whatever model you use in your company, HR is much more efficient if you offload some or all of the responsibilities from employees to a software platform. HR automation benefits far outweigh the investment in setup and monthly fees, especially when you consider the cost of poor HR management.
High employee turnover is one of the most expensive consequences. You could spend anywhere from 16 and 213 percent of a former employee’s salary on hiring and training their replacement. But when you have an automated HR platform with all employee information in one place, you can monitor and manage the employee lifecycle from the time staff members apply to the time they move on.
Bringing together all your employee data gets rid of the bottlenecks and silos holding back your HR department, cuts down on communication and record keeping errors and makes it much easier to analyze how each staff member is performing. With this data, you can make more informed decisions and personalize the way you address the needs of your team.
A cloud-based HR software system is the smartest choice for the modern business environment. These platforms have user-friendly dashboards easily accessible from computers and mobile devices to accommodate all the ways managers and employees access the system.
From this dashboard, you should be able to:
As you look for the best HR solution, don’t forget about scalability. Make sure it’s easy to access more resources or downsize as needed so that you always have the right amount of resources available. Scalable systems are also built to accommodate a growing workforce, ensuring detailed visibility regardless of how many new staff members you bring on board.
When everything you need for HR is at your fingertips in one easy-to-use cloud platform, your entire team can breathe a sigh of relief and start focusing on something other than tedious administrative tasks. A small business loan can help you get started with the right HR platform for your company.
Not sure what type of funding to seek? The specialists at National Business Capital and Services are available to discuss your options. Whether it’s time to invest in new devices capable of handling more powerful software or you just need a little extra cash until outstanding invoices are paid, there’s a loan to finance your HR management upgrade.
With 24/7 support from a staff of expert advisors, National is ready to get you on track so that you can focus on running your business.
Call (877) 482-3008 for a free consultation, or fill out a 1-minute application online to get the funds you need to start financing your growth, and decreasing costs in as little as 24 hours.
National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
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Megan Capobianco is the Marketing Manager at National Business Capital & Services. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.