HR managers say they feel more overworked amid shrinking departments, and a big part of the reason is not enough digital or human help.
More than half (56%) of the 136 small and mid-sized organizations polled by BerniePortal, a cloud-based HR software system, say they have just one person working in HR. While 64% of the respondents report using software to help manage workflow, few are using technology to manage the full scope of HR.
“Part of the challenge is that HR software built for small employers has not been able to satisfy a broad enough spectrum of what HR needs,” says Alex Tolbert, BerniePortal founder and CEO.
HR personnel are burdened by compliance pressure, administrative tasks and recruitment and retention challenges. Understaffed HR departments cite the need to better automate the applicant tracking process so they can focus on training, employee support and seeking out top talent.
Tolbert notes that unlike a sales automation system, which mostly relies on a database that tracks sales and potential leads, HR software must be far more complex. Along with integrations with third parties such as insurance companies, Tolbert says HR software must address various tasks including “benefits, clocking in and out, time and attendance systems, approvals, paid time off, compliance, absent tracking and onboarding with W4s and 99s.”
According to the survey, some of the least-automated tasks were applicant tracking and compliance management. HR directors, especially those who work in one-person teams, struggle to stay current with changing regulations.
In the current labor market, HR directors report they need help recruiting and retaining talent. The recent jobs report was one of the most robust in the last decade as wages ticked up and employers added 312,000 new jobs.
Given the tight labor market, Tolbert was surprised to learn that few employers have an applicant tracking system. “It would seem like applicant tracking would be a facet of HR software that employers are ready to learn about and adopt,” he says. But some, he says, weren’t even familiar with the term.
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Audrey Hogan, product manager at TimeForge, an employee scheduling software, says that HR departments are not choosing the right automation software.
“We have more options than we’ve ever had before, and I don’t know that that’s a good thing,” she says.
Hogan adds that because competition has driven the price down for HR software, cost has become the determining factor when employers make a purchase.
“Purchasing the cheapest HR software is not the same as purchasing the right software for your organization,” she says.
