4 ways HR can contribute to maximize ROI
No matter what the type of business is, it takes lot of effort, time and not to forget ‘investment’ to make it a successful one. With an era of rising number of startups and technology being the center piece, demand for HR technology is on the summit.
This is where investment comes into the picture. HR software contributes to every subject of HR. Whether it may be assisting in hiring processes or handling payroll for employees, HRMS system plays an important role in making any business a huge revenue business.
Talking about small business or startups, investing in HR is a big deal and cannot afford to lose on ROI. Whilst, an HRMS system can help them by boosting their ROI through practices like automated payroll, automated attendance tracking, tax handling, etc. which later avoids any expensive errors, thus maximizing ROI.
Some of the mistakes / errors which tend to decrease ROI are:
Complex or badly organized websites can drive your customers’ attention to other user-friendly websites from where they can easily purchase or subscribe to the product or service. Being an internet-dependent era, it becomes necessary for business owners to make their purchasing available on websites as well. Not displaying contact information, office address, etc. can lose customers. Not attending such things can decrease your profits.
Also disregarding possible risks could sink your motive. After you have planned an opening or business activities make sure the risks like weather, on-going issues in the nation, etc. is determined. Ignoring these conditions can bring unpredictable losses to you. Understand this with an example – In Bollywood when there are two great movies being released on the same day with highly paid actors experience huge competition and may lead to shared profits. Instead, one of the movie’s release date could have been rescheduled to avoid such clash and increase profits. Same applies to you.
Well now let’s go through some ways through which an HR can contribute to converting your efforts into tangible money, a return on investment:
- Invest only in what you trust:
Investing in any area or service which has won your trust or you’ve heard of, reduces risk of your investment getting sunk. Also doing research on particular objective can give you a collective of good information. There are many tools dedicated to HR trusted by larger enterprises to lower the expense for improved productivity and results. With minimum risk, maximum is the chances of improved ROI.
- Reducing expenses:
Also, way to improve ROI is reduced expense of HR department. The software discussed in above point (HR software) tends to reduce all expenses invested in HR duties like hiring costs, onboarding, processing payroll till retirement. Lengthy procedures involved in these activities is replaced by 1-2 clicks, thus saving your time as well. Poor employee management / engagement techniques may lead to employee absconding thus resulting in high employee turnover. Perhaps, HR software has integrated modules like ESS which assists in employee engagement. Thus expenses are reduced.
- Reducing errors in accounts:
Add-on modules dedicated to accountants are helpful for your HR to calculate the precise amount for freelancer (if any), or employees to be paid for OT or less worked hours. Automated payroll using HRMS (HR management system) makes it clear and error free. Investment in an HRMS system never goes wrong for businesses until they do good research on different brands depending on their goals and requirements.
- Retaining impactful hands:
A major source for HRs to contribute to ROI can be retaining their most impactful and effective employees. It only requires timely appraisals, payroll and easy HR processes. Integrated appraisal system in HRMS ensures automated feedbacks and rewards to their employees as an appreciation to them, which is often loved by them. User-friendly ESS portals with AI integrated HR bot is a bonus for them.
So if you wish to subscribe for such software and simultaneously worry about the costs of installing them, I would like to mention that there are vendors offering free trails and also support monthly subscriptions.
Pocket HRMS can be an ideal software for you. To know more about how Pocket HRMS software can help your business, SMS SALES to 56767 or write to us at firstname.lastname@example.org