When should SMEs invest in HRMS?

If you’re a small to medium-sized enterprise, you may well be using spreadsheets to keep track of your employees. After all, software and technology is expensive, right? And you have more pressing business priorities to invest in.

Not necessarily…

Flexibility

One thing small businesses have over larger corporations is that they are flexible. But then, they need to be.

If you’re the boss, there’s a good chance you need to be in the office at least one day each month to run the payroll (and if not you, then somebody).

An HRMS payroll module with a companion app means you can run payroll from anywhere with an internet connection. If you have to be on the road often, an HRMS gives you access to all your people data anytime, anywhere.

This kind of access is especially useful for early-stage teams that rely on speed and need a reliable HR platform for their small business without unnecessary complexity

Keeping HR costs down

Very few small businesses can afford to hire a dedicated HR professional, but they are subject to the same compliance regulations as any other organization in terms of employee details and recordkeeping.

A good HRMS will keep track of your mandatory compliance responsibilities for you, prompting you to update records and file returns and reports, as necessary. In other words, investing in the technology means your business can grow more before you hit the point of having to invest in HR staff.

Find an HRMS to match your project budget with our comprehensive HRMS pricing guide

An increasing number of HR growth tools now bundle essentials like e-signatures, document storage, new-hire checklists, and training records. These features reduce administrative work and help you stay audit-ready throughout each stage of growth.

Some HR systems designed for startups and SMEs offer pre-made, compliant people policies for things like hiring, firing, grievances, and performance management. This saves you from creating your own.

While you can get standardized policies from organizations like SHRM (US) or CIPD (UK), an HRMS also helps you implement and manage them.

Dealing with a varied workforce

Small businesses are more likely to meet some of their needs by using contractors, hiring part-time employees, or outsourcing projects or functions to other countries or territories.

Managing a varied workforce can get complicated, particularly when it comes to payroll, expenses, and taxes. An HRMS simplifies this by keeping your records straight and prompting you when action is needed.

The wider your mix of workers, the more valuable it becomes to use a single system that handles everything from hourly tracking to contractor documentation. Many HR platforms for small businesses now include tools for global teams, helping you organise records without additional spreadsheets or siloed apps.

Key takeaways

In a nutshell, there’s never been a wider range of options on the market, and cloud-first HRMS has become the norm for many popular vendors.

They're easy to implement and offer simple ‘pay-as-you-go’ terms...Some even offer a freemium version so you can dip your toe in the water with no financial outlay at all. What are you waiting for?