How HR Technology Can Help Grow and Scale Your Business

If you’re a small or mid-sized business owner tired of drowning in HR paperwork and administrative tasks, you’re not alone. Many business owners struggle to balance the demands of HR while trying to grow their organization.

There is an easier way. For organizations that track time on spreadsheets, manually calculate payroll, or struggle with inaccurate payroll and missed tax deadlines, an HR technology platform can be a game-changer. By automating these tasks, HR tech helps reduce your workload, giving you more time to focus on growth initiatives.

And HR technology is a solution for businesses of all sizes. In fact, it’s the complexity of your HR needs that matters most when considering if HR technology is for you. Industries with complex scheduling needs, nonprofits that track labor on projects, and growing businesses that need to quickly scale their HR needs are examples of businesses that can reap significant benefits from HR technology.

HR technology encompasses a range of digital tools and software solutions that streamline and optimize human resources processes. With HR technology, small and mid-sized business owners can manage core HR functions throughout the employee lifecycle more efficiently, freeing up time and resources for more strategic, revenue-generating efforts.

At its core, HR technology automates and streamlines essential HR functions that, in the past, required significant time and resources. Core HR functions that benefit from HR technology include (but are not limited to):

• Recruitment and talent acquisition
• Onboarding
• Time and attendance tracking
• Payroll processing
• Benefits administration and enrollment
• Performance management
• Learning management
• Employee recordkeeping

HR technology comes in various forms. Some platforms provide solutions for a specific HR function, such as a payroll software solution, benefits administration system, or recruiting platform. Other solutions are integrated and more robust, providing access to platforms for multiple HR functions.

No matter what type of system your business may use, the role of technology in HR is primarily the same: to automate repetitive tasks and streamline HR processes, boosting productivity and increasing operating efficiencies.

Human resources has come a long way since the 1980s, when its purpose was primarily transactional – focused on processing paperwork and storing employee files. At that time, even the most well-designed HR processes were time-consuming, labor intensive, and often inefficient.

That began to change in the 1990s when human resources information systems (HRIS) emerged as a way to help HR teams manage basic functions, namely processing payroll and administering benefits. HRIS also provided a centralized database to house employee data, allowing HR teams to move from manual recordkeeping to digital systems. However, HR’s purpose remained transactional.

In the early 2000s, human resources technology shifted to human resources management systems (HRMS), which built upon the foundation of HRIS with additional platforms to manage performance management, recruiting, compliance, and more. These integrated platforms helped reduce data redundancy, improve accuracy, and streamline time-consuming tasks. HRMS also gave businesses HR reporting tools and analytics.

While HRMS offered improvements upon HRIS, many employees were still entering data on paper forms that an HR professional entered into the system. Though the roles of technology in HR were changing, HR teams were still heavily focused on administrative tasks and compliance.

A significant change occurred in the 2010s, as comprehensive cloud-based platforms emerged and the idea of human capital management – or aligning HR practices and people management with your business goals and objectives – gained momentum. Sophisticated HCM platforms paved the way for the shift. This software further simplified administrative tasks, introduced more self-service options to employees and managers, and gave HR teams the time and resources to move toward strategic HR.

Today’s HR landscape continues to evolve, as does the HCM technology that supports the change (mostly recently due to advancements in artificial intelligence). Long gone are the days of processing paperwork. Now, HR leaders can think strategically and align HR’s efforts with their company’s goals and objectives – including transforming onboarding and professional development as part of a robust employee retention initiative.

Human resources technology plays a valuable role in human resources management (HRM), which is the day-to-day management of basic HR functions, such as recruiting, payroll, benefits, onboarding, performance management, and more. Across all HR functions, HR technology automates repetitive tasks, streamlines processes, and improves operational efficiencies.

Let’s look at a few specific HR technology examples:

• Recruiting software helps businesses more efficiently screen resumes, reduce bias within the hiring process, and conduct initial candidate assessments. HR technology can also schedule candidate interviews.
• Onboarding platforms guide new hires through the onboarding process, send reminders to keep the process moving, and utilize chatbots that can quickly answer new hires’ HR questions.
• Time and labor management systems aid in scheduling workers, give employees the ability to clock in/out and request paid time off, track employees’ leave balances, and allow managers to easily approve requests and view leave reports. They can also alert managers when employees are approaching overtime hours.
• Learning management systems give your employees access to a library of e-learning courses that satisfy compliance training requirements and help your employees refresh current skills or acquire new ones. You can assign courses to individuals or a group, send automatic reminders to employees about deadlines, and track who has completed the training.
• Employee self-service allows employees to perform routine tasks such as request time off, update direct deposit details, elect to receive an electronic W-2, view paystubs and leave accrual balances, enroll in benefits, and more. Overall, the self-service capability gives you and your HR team more time to focus on other initiatives.

Manual payroll processes, costly payroll tax errors, lengthy recruiting processes, and complex compliance needs are a few examples of issues many small and mid-sized business owners face as their companies grow.

An occasional bump in the road is to be expected, but there is a way to significantly reduce the risks, issues, and costs your business faces when you manage HR for a growing business: by implementing an HR technology platform.

Below are seven benefits of HR technology for your small or mid-sized business:

1. More Time for Your HR Team/Professionals
   Features like employee self-service save your HR team valuable time and improve accuracy. It also streamlines many processes, which is vital for small and mid-sized businesses that may have only one person managing HR or that choose to outsource HR to a third party, such as G&A Partners.
   
   
2. Improved Data Accuracy
   Reentering data, whether from a paper form or from one platform to another, can increase the chance of errors. When you work with an integrated HR technology platform, your employees enter data once, and then that data flows across systems.
   
   Payroll accuracy improves, too. Managing time and attendance or paid time off through an HCM platform rather than manually ensures payroll is calculated properly, especially when deductions for benefits, payroll taxes, and garnishments are handled automatically.
   
   This can also help your growing business avoid potential fines from incorrect payroll or payroll tax mistakes.
   
   
3. Compliance Assistance
   Though an HR tech platform cannot guarantee full compliance for any business, HR technology can provide valuable compliance assistance, allowing you to:
   1. Assign required courses that meet compliance requirements in a learning management system that allows you to set deadlines, send email reminders to employees, and track course completions.
   2. Create electronic handbooks and make policies easily accessible to employees through HR technology. You can also collect electronic employee acknowledgments indicating employees have read certain policies, which may be required by some laws and regulations.
   3. Implement automated workflows that improve compliance. A learning management system can alert managers when required credentials or certifications are expiring, or the system can alert managers when their employees are approaching overtime hours, ensuring proper compensation and compliance with labor laws.
      
      Some HR tech providers, such as G&A Partners, also offer access to HR expertise and resources to help you navigate regulatory compliance.
4. Protect Sensitive Data and Privacy
   HR technology systems help protect sensitive employee data through various features, including (but not limited to):
   1. Access controls that limit who can access sensitive employee data and ensure that when employees move to new roles, their access automatically updates
   2. User authentication methods (such as two-factor authentication) that limit the risk of unauthorized access to data
   3. Regular security audits that assess and enhance data protection measures
   4. Employee self-service that reduces the need for employees to share sensitive data with managers or HR professionals
      
5. Improved Employee Experience
   With an integrated HR technology platform, you can design a hiring, onboarding, and employee experience that facilitates better communication and improves employee retention.
   
   Recruiting platforms streamline the hiring process, improve communication with candidates, and reduce the time to hire, giving job candidates a better candidate experience. Onboarding systems guide new hires through the process, ensuring they complete online forms and training in a timely manner.
   
   For current employees, learning management systems offer employees opportunities to develop new skills, performance management facilitates feedback for employees, and employee experience tools give HR immediate feedback on satisfaction. This leads to better employee engagement, often improving productivity and retention.
   
   
6. Ability to Scale as You Grow
   A comprehensive HR technology solution allows your small or mid-sized business the ability to quickly scale as your business grows. That’s why it’s important for business leaders to consider long-term needs when you shop for HR technology solutions.
   
   For example, your most pressing need may currently be a payroll processing platform with time and attendance tracking. But as you hit certain employee headcount thresholds, you may be required to offer healthcare benefits. In that case, benefits administration software that integrates with payroll is invaluable.
   
   In addition, if you need to quickly expand your team, a recruiting platform that allows you to find and hire top talent is a difference maker. And if your long-term growth plan includes acquiring businesses in other states, you’ll need a HR software solution that supports compliance in those areas.
   
   
7. Access to Valuable HR Data
   With the help of AI, today’s HR technology platforms can provide real-time data, giving you insights to make more informed decisions. Predictive analytics can help you identify trends – like employee turnover – before they become an issue. User-friendly dashboards make it easy to access data when you need it.
   
   Choosing an HR technology platform that can meet your HR needs as your business grows can help ease these growing pains and keep your business running more efficiently.

Investing in an HR tech software solution is a major decision for growing businesses. Ideally, you want to find an HR technology solution that can address your current HR needs, scale effortlessly with your business, and provide a good return on investment.

In your search for HR tech software, you’ll likely come across several acronyms: HRIS, HRMS, and HCM, to name a few. Each refers to a specific type of software solution, but the definitions for each can vary greatly. What one vendor labels as an HRIS may be called an HRMS by another provider. For clarity, here are general definitions of each:

• Human resources information system (HRIS): A central hub for employee data that can handle essential functions, such as time and attendance tracking and benefits administration.
• Human resources management system (HRMS): Expands on HRIS to include features such as payroll, talent management, and reporting.
• Human capital management (HCM): Combines all functions within HRIS and HRMS plus additional features such as performance management and recruiting into one, cohesive system.

Here are steps to consider as you choose an HR tech software solution:

1. Assess Your HR Needs
   Identify pain points, inefficiencies, and areas for improvement within your HR operations and evaluate your specific HR requirements. If you currently utilize an HR technology platform, identify its strengths and weaknesses as you begin this process. Are you using specific platforms now that you intend to keep? That’s important information to know as you evaluate how systems integrate later in the process.
   
   
2. Establish Business Goals and Obstacles
   Ensure you have a clear understanding of your business goals and potential obstacles so you can align your HR software choice with these goals. For example, if retaining top talent is a goal now – or will be in the future – you may want a platform that can support strategic initiatives that will improve retention, such as learning and performance management systems.
   
   
3. Set a Reasonable Budget
   When researching software solutions, you’ll need an idea of your budget range. Consider your initial investment to get the software up and running as well as ongoing costs. As you evaluate the potential return on investment, factor in how improved employee retention, productivity, and operating efficiencies over time – all benefits of HR technology – can positively impact your bottom line.
   
   
4. Research HR Technology Platforms
   Assemble a team from HR, IT, and management to research and review potential options. Look for solutions geared toward small and mid-sized businesses, reputable vendors with scalable solutions, platforms that address issues for your industry, and providers who prioritize data security. Then narrow your list to include providers that meet your specific needs and budget.
   
   
5. Evaluate Features and Integration Capabilities
   Assess whether each solution’s features can address your core challenges and align with your organization’s goals. Also, evaluate if the solutions can integrate with your existing system and how they integrate, as some integrations still require work on your part.
   
   
6. Determine Ease of Use for Each Interface
   Single sign-on, an easy-to-use interface, employee self-service, and the ability to access the platform from anywhere are all features that can make it easier for your employees to use, which will increase software adoption.
   
   
7. Evaluate Client Support and Training Resources
   The level of support your vendor provides can be critical to your software experience. Consider these factors:
   -  Are you required to have an employee dedicated to setting up, running, and maintaining the system?
   -  Will the vendor support you by setting up and transferring data into the platform, or are you required to complete these tasks?
   -  Does the provider offer training for your employees?
   -  Is dedicated support available beyond implementation, or is ongoing support primarily offered via chatbot?
   -  Does the vendor provide any assistance or guidance with HR?
   
   Be honest about your support needs. If you have limited resources and need help getting up and running, a great option to consider is a software provider like G&A Partners, which provides best-in-class support as an HR outsourcing provider in addition to HR technology solutions. We’ll help you get started by managing the setup of your system and providing training to your staff.
   
   
8. Assess the Platform’s Scalability
   Consider the long-term goals of your organization and determine if the software solution can scale as your HR needs grow. For example, if you plan to expand beyond your current state, ensure the HR platform supports compliance in other states or regions.
   
   
9. Utilize Demos
   Take advantage of demonstrations or free trials to further assess the product’s functionality and ease of use.

Generative artificial intelligence (AI) has revolutionized the HR technology landscape, ushering in a new era of efficiencies and capabilities. Whereas HR technology was mostly focused on task automation prior to generative AI, recent and significant advancements have transformed HR tech into a powerful and strategic tool for businesses.

The latest HR technology trends illustrate how AI has transitioned HR technology from streamlined and automated administrative tasks to sophisticated platforms that leverage AI for data-driven insights and predictive analytics.

HR tech trends you can expect in 2025 include:

• Employee Experience Platforms: These integrated platforms help enhance communication, feedback, recognition, and wellness. Self-service capabilities move tasks that HR teams once performed into the hands of employees, and onboarding tools guide new hires through the orientation and new-hire tasks.
• People Analytics: Workforce data and insights give small and mid-sized businesses the ability to make data-driven decisions or identify trends (such as low employee engagement or retention) before they become an issue.
• Employee Data Privacy: Laws related to privacy continue to evolve, so it’s important for small and mid-sized business owners to stay informed of and comply with requirements. As the use of AI in HR grows, leaders must also evaluate whether its use is appropriate and ethical.
• Personalized Learning and Development: Today’s employees value professional development. Personalized learning and development tools, driven by AI, make it easier to provide your employees training that meets each of their needs and supports their goals.
• Remote and Hybrid Work Solutions: As businesses continue to offer flexible workplaces, HR tech solutions are evolving to improve the employee’s remote or hybrid experiences through better communication and collaboration. Protecting company data and systems also remains a top priority.

Ready to revolutionize your HR processes and empower your small or mid-sized business with cutting-edge technology? Don’t let complex and time-consuming HR tasks hold you back from focusing on what matters most – growing your business. G&A Partners provides HR technology solutions tailored to meet your HR needs.