As a small business expands, its workforce also grows, necessitating a significant investment of time and effort in employee management. Here is where software tools come in to automate and streamline HR processes in organizations. These can seamlessly assist HR managers with work performance tracking, salary computing and processing, leave tracking, and employee records management, among other things. Most importantly, integrating such tools into a company’s digital infrastructure is relatively inexpensive.
Benefits of affordable HR management tools
A versatile and cost-efficient HR management software tool can enhance any organization’s resource usage.
Low cost and several use cases
Small businesses possess limited amounts of money and other resources. In such cases, business owners cannot afford to spend hundreds of thousands of dollars every year installing expensive HR management software. However, they can invest in low-cost software tools with various features and benefits. The most popular and affordable HR tools provide quality and functionalities comparable to much more expensive options, making them suitable for small businesses.
High employee retention
HR management software enables companies to track the periodical performance of their workforce accurately. This results in fair appraisals and employee growth in the long run. These tools have the potential to enhance employee retention, a crucial factor given the substantial expenses incurred in onboarding and training new hires, which can often take several days to fill a vacant position.
Reduced errors
When it comes to payroll processing, manual data entry can result in several human errors. Businesses can save time and avoid potential IRS penalties by automating this task with cost-effective HR solutions and tools. Automation helps prevent incorrect tax computation or reporting caused by human mistakes.
Regulatory compliance
An often overlooked responsibility of HR managers is ensuring that their organization complies with state and federal human resource regulations. HR managers must oversee everything, from working hour limits to adherence to new and existing labor laws to avoid state and federal penalties. Such penalties are entirely avoidable expenses, especially for small-sized organizations.
HR management software tools are specifically designed to continually monitor compliance and generate monthly reports for managers to review and use accordingly. Based on this information, organizations make decisions about new work models and employee policies.
Affordable HR software tools
There are numerous affordable software applications that can boost productivity and cost management for small and medium-sized companies.
GoCo
Like many HR management software solutions, GoCo offers clients features such as performance management, hiring, onboarding assistance, payroll and benefits administration, and time tracking, all from a centralized dashboard. It is one of the most cost-effective solutions for companies with fewer employees, especially if those workers operate remotely and maintain flexible schedules. This solution is available as a mobile app, enabling workers to request time off, view their performance, or manage their benefits using their smartphones. GoCo costs users around $5/employee/month, as it works on a subscription basis.
Bambee
Many small businesses do not have a full-fledged HR department. Often, one or two individuals are responsible for all the HR management tasks in such companies. It is an ideal solution for such businesses. With its base pricing starting at $99, Bambee is one of the most affordable HR tools. This software has a proven track record for reducing a company’s compliance risk. This tool can seamlessly carry out a host of compliance-adhering tasks.
- Crafting legally compliant HR policies and handbooks
- Auditing a company’s current HR practices to detect potential risks
- Offering automated and data-driven assistance and advice with onboarding, terminating, performance management, and company culture
- Addressing new and outstanding government agency claims, for instance, the updated Equal Employment Opportunity Commission (EEOC) notices
With features like these, this affordable HR software is rightly considered one of the most value-for-money solutions for small businesses.
Homebase
The best attribute of Homebase is that it offers the complete suite of features that any expensive HR management software provides to large organizations. At the same time, its design and configuration cater to the specific needs of small and medium-sized businesses and up-and-coming entrepreneurs. Also, Homebase has a mobile app, which simplifies its usage for employees from wherever they are.
This tool comes with a free plan that allows companies to manage an unlimited number of employees. The plan comes with time clocks, timesheets, scheduling, and messaging features. Homebase’s transparent pricing enables clients to know exactly what they will be paying for and getting when they sign up for a paid plan. Prices start at around $6 a month per active employee.
Paycor
The HR management software comes with various features and many lower-priced plans for businesses with extremely tight financial constraints. Clients can opt for a 30-day free trial to test Paycor’s features before fully integrating the tool into their IT infrastructure. The tool comes with a customized price upon request.
Some of Paycor’s features include a centralized employee data management function, time tracking of work hours, job costing, employee onboarding assistance, and new-hire reporting. This tool fully manages payroll, enabling real-time tracking of labor costs and scheduled, streamlined salary payments. This tool’s functionality allows employees to monitor their records, empowering them to take charge of their careers and meet the company’s and their goals.
Some integrations with this app include Instant Pay, GoodHire, WEX, bswift, Humana, Indeed, LinkedIn, and dozens of other HR-based apps and portals.
Other affordable HR management software tools include Zoho People, BambooHR, Rippling, and Gusto.
