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How to know that your small company needs HR software?

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5 signs indicating that your company needs HR software

So you’ve decided to start a company? Or maybe you already have one? That’s a great development plan, an amazing recruiting team, motivation, and belief that you can handle everything on your own – ready to conquer the market. But at some point, you find yourself overwhelmed. Documents, payroll, requests, recruitment, development plans. Each thing in a different spreadsheet, on a different piece of paper. Did a warning light go off that you’re overworking yourself? That’s your first signal that it’s worth considering automating certain tasks.

Let’s go further. Your growth continues, and you make decisions based on intuition? Unfortunately, your business instinct can often be unreliable. That’s the second signal advocating for the implementation of software that will help you generate reports based on hard data, not just hunches.

You might think, “My company is small. I know everything about it.” But do you really? Do you know the moods of your employees? Do you know how they assess themselves, their colleagues, or even you? Do you know their strengths and areas where they need assistance? Software that allows you to collect and analyze team data, such as periodic evaluations and eNPS surveys, would be helpful, wouldn’t it? That’s your third signal.

The more employees a company has, the more documentation is generated. Yes, Excel is versatile. You can enter time records endlessly. It may even help you calculate salaries correctly. But is that really what you want? Wouldn’t it be easier to have everything visible on a user-friendly dashboard instead of sifting through miles of cells and columns? One click and it’s all calculated – attendance, hours, leave requests, bonuses, and more. Multiply this task by the number of employees. Think about how much time you’ll save with good software, and that’s your fourth signal.

You work and work, but profits are not in sight. Time slips through your fingers, tasks are being executed too slowly. In reality, you don’t know how much time was spent on project A versus project B. That’s the fifth signal – it’s time to implement time and project management. Link it to the employees’ development plan, salary calculations, and compensation system.

If you already know that it’s worth reaching for software, let’s move on.

What can well-chosen tools do for us?

Software HR can benefit small companies, or any company for that matter, in several ways. It can help:

  • Improve communication between employees and supervisors
  • Simplify benefits administration
  • Increase recruitment efficiency and build employer branding
  • Minimize costs and operate more ergonomically
  • Analyze reports and data to support HR decisions, such as promotions and bonuses.

How to choose the right software?

Choosing the best HR software requires answering important questions:

What do you need?

  • Determine if you require a comprehensive HRM system or individual tools.
  • If you identified all five signals mentioned earlier, you likely need a complete system. Choose software that addresses all your needs.

What do you need it for?

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  • Identify the specific functionalities you require, such as payroll, recruitment, time and project management, performance evaluations, etc.
  • Each element represents a module in the system, so select the ones you will actually use.

Who needs it?

  • Consider who will be involved in using the system. Will it be only you, or the entire team?
  • Look for a software provider that offers comprehensive training, implementation support, and a demo version for employees to provide feedback before making a purchase. You can request a demo from companies like PeopleForce.

How much are you willing to invest?

  • Determine how much time and money you are willing to invest in implementing the software.
  • Consider potential additional costs, such as upgrading outdated computers or modifying the electrical installation for card readers required for time tracking.

Evaluate the financial aspect of the investment as well.

By considering these questions, you can make a more informed decision and choose the HR software that best fits your needs, budget, and team requirements.


Is your head spinning with thoughts? Take a deep breath! Every company needs to evolve if it wants to survive. Change is inevitable, so don’t cling tightly to your Excel spreadsheet, no matter how good it may be. At some point, you’ll run out of maneuvering space.

Before you purchase software, establish priorities that will help you choose the best solution for you. Test it, examine it from every angle, and make the purchase to automate your work, increase operational efficiency, and… avoid overworking yourself.

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