{"id":32295,"date":"2024-04-22T05:40:52","date_gmt":"2024-04-22T05:40:52","guid":{"rendered":"https:\/\/mihcm.com\/?p=32295"},"modified":"2025-04-25T00:42:42","modified_gmt":"2025-04-25T00:42:42","slug":"10-important-questions-you-need-answered-when-buying-hr-software","status":"publish","type":"post","link":"https:\/\/mihcm.com\/id\/10-important-questions-answered-when-buying-hr-software\/","title":{"rendered":"10 important questions answered when shifting to HR software"},"content":{"rendered":"\t\t
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Okay, let\u2019s start with an exercise.\u00a0<\/span>\u00a0<\/span><\/p>

Instead of drowning in paperwork, imagine your HR team soaring through tasks with the agility of a digital eagle.\u00a0<\/span>\u00a0<\/span><\/p>

Imagine real-time data at your fingertips, offering insights as clear as a mountaintop sunrise.\u00a0<\/span>\u00a0<\/span><\/p>

Imagine a system that empowers employees, streamlines processes and scales effortlessly as your business grows. This is the magic of cloud-based HR software.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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With <\/span>MiHCM<\/span>, you can get all the necessary information<\/span>\u00a0<\/span>with one click<\/span>. <\/span>No one likes to<\/span> spend <\/span>a lot of <\/span>time <\/span>going <\/span>through endless <\/span>stacks of paper and spreadsheets<\/span> only <\/span>to find that one piece of <\/span>information<\/span>.<\/span> This<\/span>,<\/span> unfortunately, still <\/span>represents<\/span> the reality for many HR departments today.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The problem with manual paper-based HR systems<\/span><\/b>\u00a0<\/span><\/p>

Manually managing HR processes is becoming increasingly unsustainable, and inefficient, making a profound impact on business growth. Information should flow easily and be instantly accessible. This can tremendously improve the time spent on routine work and the decision-making process in any organisation.<\/span>\u00a0<\/span><\/p>

Manual paper-based HR systems engage in time-consuming processes that suck out any creativity. These manual HR systems pose the following problems:<\/span><\/p>

  1. Too much time spent searching for information:<\/span><\/b> Different <\/span>studies<\/span><\/a>1<\/sup><\/span> have shown that humans spend much of their time searching for information. McKinsey reported that employees spend around 1.8 hours searching for information, while Gartner reported they spend 50% of their time, taking an average of 18 minutes to find a document.\u00a0<\/span>We could assume that this number is better today. However, if information is scattered, employees will spend more time looking for it than using this information.<\/span><\/span><\/span>

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  2. Too much time spent on managing documents:<\/span><\/b>\u00a0By utilising HRIS systems and electronic signature applications, HR professionals can save up to <\/span>2 hours per document<\/span><\/a>2<\/sup><\/span>.\u00a0<\/span>Based on a single HR professional who works on 2 documents a day, <\/span>20 hours per week<\/span><\/i><\/b> is spent on processing documents. This is time that can be saved by implementing an HR system.<\/span>\u00a0<\/span><\/span>Additionally, cloud-based HR systems allow multiple integrations that help you do almost everything on one HR platform.<\/span><\/span>

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  3. Human errors & compliance mistakes: <\/span><\/b>Since all sums are calculated manually, there is a higher likelihood of human errors in manual than automated HR systems. Even a one-value error could result in additional costs and statutory, tax, and legal issues, which can ruin the reputation and morale of the company.<\/span><\/span><\/span>

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    A survey done by EY<\/span><\/a>3<\/sup><\/span> revealed that it costs companies on average $291 to rectify a single payroll error, either directly or indirectly. The report exposed 1,139 errors per 1,000 employees for time & attendance and expense type, costing $248,735.<\/span>\u00a0<\/span><\/span>These errors include missing expenses\/not inputted, missing\/incorrect time punches, incorrect allocations, employees not in the system and expenses not being approved on time.<\/span><\/p>

  4. Compromised security & privacy: <\/span><\/b>Anyone can access sensitive information with a manual paper-based HR system<\/span>. Since information is stored in a physical cupboard, anyone can break it and access the information. This information can also be lost easily – it could be destroyed through shredding, stealing and even by other means such as a fire.<\/span><\/span><\/span>

    Manual HR systems may have no proper save mechanism to back up information. Once the physical document is lost, there is no way to retrieve that information. This leads to spending an enormous amount of time and money in recreating those documents. <\/span>\u00a0<\/span><\/span>With a manual HRIS system, efficiency is at an all-time low as data is always in a compromised position.\u00a0<\/span>\u00a0<\/span><\/span><\/p>

    In comparison, automated digital HR systems have more security measures in place with two-factor authentication (2FA), and other policies that make it harder for unauthorised people to access your information. Cloud-based HR systems also have daily backup measures with disaster recovery methods to help safeguard and restore your data easily and efficiently.
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  5. Inefficient processes:<\/span><\/b> It\u2019s harder to track and manage attendance, expenses, and employee-related information on a manual HR system.<\/span><\/span>

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    How to make the shift to a digital HR system<\/span><\/b>\u00a0<\/span><\/p>

    Embracing the digital revolution and switching to HR software sounds like \u2018THE\u2019 thing to do, especially because:<\/span>\u00a0<\/span><\/p>

    1. It\u2019s the current trend to shift to anything digital and;
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    2. It comes with many benefits, where the return on investment exceeds the investment cost for decades.<\/span><\/span>

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      However, small, and large businesses alike still have a lot of questions about how cloud-based HR systems work:\u00a0<\/span>\u00a0<\/span><\/p>

    One research<\/span><\/a>4<\/sup><\/span> found that some of the biggest time wasters in our day were handling employee expenses, arranging business travel and accommodation, and manually processing invoices and payments. Due to an overload of manual administrative tasks, 40% felt that these tasks prevented them from performing their core tasks.<\/span><\/span><\/span><\/p><\/li><\/ol>