With the advent of software in business management, the use of HR software has also been on the increase with several software companies coming forward to assist small businesses. The use of HRIS software in small businesses has created digital, online, and paperless, HR departments. According to the SBA, more than 400,000 small businesses start up annually, but fewer and a half survive past five years. Utilizing a Human Resource Information System could be the difference between the survival and death of a small business.

Why Should Small Businesses Adopt HRIS?

Time and Cost Saving

HRIS software for small business incorporates modules that ease the collection and monitoring of data. Information gathered from job applications is compiled by the system, keeping each of the candidates separate for analysis by the HR department. In addition, records on each employee, their performance, job descriptions and online profiles are managed through the system. For any business, saving time on recruitment and employee monitoring is highly beneficial.

Talent Identification

70% of business leaders are concerned about their access to talented employees. The use of an HRIS system is the key for every business leader to find the talent they need to expand their small business. It is impossible to remember how each of the employees performed after a long time, say one year. However, a digital record of each score will identify talented workers and compare them based on different tasks. A small business that aspires to be part of the other 30% needs a customized HRIS to find suitable employees.

Digital Disruption

Business management is turning into a fully digitized zone with companies already taking advantage of mobile applications. In 2017, 25% of enterprises were expected to have an enterprise app for managing corporate-sanctioned applications that run on PCs and mobile devices. Each of these applications provides access to HRIS systems to all employees, who can quickly update their profiles, and seek changes if errors occur. Small businesses stand to benefit by staying ahead of the curve through digitization at the beginning. An HRIS system is the first step towards developing a mobile app and staying connected with employees around the clock.

Payroll Implementation

An HRIS system compiles information on salaries, bonuses, and makes accurate deductions on taxes, and loans. A fully digitized payroll system keeps track of all finances and enhances transparency in the finance department since all transactions can be traced. In this case, the implementation of HRIS in pay system for small businesses has a multiplier effect on the finances. In fact, Payroll software continues to provide more satisfaction to businesses at 47%, compared to other functions such as time reporting (35%), analytics (34%) and HR (31%).

Performance Management

A review of all the employees and their performance over a period, is essential for businesses, when making decisions on retraining staff, assigning tasks, selecting team leaders, and even laying off employees. An HRIS system will keep track of all scores until a performance review is conducted to see how each of the employees and different sectors of the small business need improvement.

Training and Development

While talent exists innately in employees, new techniques come up in the field and necessitate the need for training. An HRIS software will efficiently schedule dates and set reminders for training and follow up procedures to ensure that all workers are proficient in the latest technologies.

Employee Recognition

The HRIS system will easily provide reminders and updates of tasks completed and achievements made by different employees. As such, it is easy for employers to congratulate successful employees, and also recognize them through the platform. Employee recognition is one of the ways of improving engagement at work and retaining talented workers. A recent study indicated that employee engagement programs help companies enjoy up to 26% increase in annual revenue . A simple HRIS system that can assist small businesses with engagement should, therefore, be a welcome idea.


In conclusion, small businesses should adopt HRIS to increase competitiveness, reengineer HR functions, and save time and costs. Digital technologies are rapidly taking over the business landscape, and small businesses should adapt to survive.