Can Cloud Based Software Replace a Small Business HR Department?

By May 27, 2015 July 14th, 2017 Uncategorized

Human Resource departments are needed when the process to manage employees becomes too burdensome and complex.

For decades, the HR profile has been a desk job piled with papers of employee information. This process of management consists of recruiting, training, paying, monitoring and transitioning out employees. Human interaction is another reason HR departments are needed; employees feel valued and respected when someone’s job is devoted to care about them.

The development of HRMS (Human Resource Management Software) has eliminated many tedious parts of this process through automation. Information can be easily used and shared, and the cost of cloud based software and hardware has become more affordable.

Recruiting, paying, monitoring (evaluating), and transitioning out employees are steps that benefit significantly from HRMS. Companies such as BambooHRZenpayroll and Zenefits are some of the many companies in the fast growing HRMS market.

Replace Entirely?

Now, is HRMS effective enough to replace a small business HR department? The answer is no. HMRS cannot entirely replace HR but it can entirely reshape it.

Despite the great effectiveness of HRMS, software cannot replace the needed interaction and behavior of people. Human interaction, policy administration, and strategy development are key roles that HRMS cannot eliminate.

Human interaction from the HR department/manager is a key to keeping employees motivated. As mentioned previously, people will feel valued and respected when someone’s job is devoted to care about them. A computer system lacks the value of effort, respect and decision-making. For this reason, a HR manager is needed to make decisions through effort and respect.

HR Managers are also effective at implementing company HR policies and strategy. Policies for safety, termination, or recruitment require specific judgment and interpretation, which HRMS is not fully capable of performing. The same goes for HR strategies; HRMS cannot provide the needed creativity and responsibility.

In reference to responsibility, a company does not implement a computer system for the purpose to obey or follow its results, but to use the results to make more accurate and effective decisions. For this reason, a HRMS cannot effectively replace a HR department/manager because someone needs to be in control making the decisions.

Reshape, however, it what a HRMS can do to a HR Department. HR managers are reshaped to focus more on HR policies and strategies, rather than wasting time with the mundane and tedious tasks. In essence, the HR department will not feel entirely replaced, but empowered.


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