The startups around the world are witnessing exponential growth. Building a startup is tough and comes with its own set of challenges for entrepreneurs. HR solution firms need to understand these challenges faced by a startup in setting up a company and adhering to the laws and regulations of the country.
There are End to End HR Solution firms that offer customized Solution for Startups to set-up the key HR processes that include Performance Management, Payroll and Compliance, Attendance & Leave Management, and Travel & Expense Management. These HR solutions are backed with technology that aids in access to the right information at the right time for boosting the efficiency of the business to function. Swaying by the recent HRTech news section every day we can easily garner how the latest innovation in the HRtech sector is changing the face of the regular HR industry.
The HR software market is growing rapidly. Vendors are turning out more solutions, and businesses are purchasing them. As per the 2019 KMPG Digital Trends Survey, “two-thirds of Human Resource executives believe that HR has undergone or is undergoing a digital transformation.” But businesses feel they’ll only succeed in driving digital transformation by making a large software purchase, which needs a reliable and often large budget.
Why End to End HR Solution for startups is important?
There are numerous challenges that startups face that may be decreased with correct HR processes and systems in place. As an example, some believe that the startup boom is also swiftness down, inflicting startups to manage internal culture issues in order to still thrive. As an absence of proper HR management solutions, a start-up often suffers from a lack of outlined business processes. There should be complete end to end HR solution systems in place for managing staff, responding to complaints, compliance related to, PF, ESI, Ptax, LWF, their payroll processing issue inside the startup world. When employees don’t get complete solutions for their HR issues and complaints, their Payroll issues than they realize themselves and change firms usually that is the reason why HR solution for startups is important. Basically key staff can leave an organization for one more chance, and also the tiny startup is forced to soak up the losses concerned in recruitment and training a replacement.
Pain points for startups
In the year 2016 Special Expertise Panel, the Society for Human Resource Management, SHRM members recognized some of the top challenges facing HR departments today: steeper competition for talent, a rising sense of insecurity, demographic shifts, new developments in technology, and the economy ranked high on the list.
Businesses of every size are impacted by the requirement for better recruitment practices and talent management, and the software industry itself has evolved to meet these demands. At the industry level, things are looking up. But small businesses and startups still face a number of more nuanced challenges:
No dedicated HR staff: Many small businesses and startups either assign HR responsibilities to a cross-functional manager or to a single, in-house HR administrator. In either situation, a single individual handles payroll and benefits, grievances/disciplinary action, time tracking, recruitment, promotions, and so on.
Record-keeping and regulatory compliance: HR regulations are in a consistent state of flux. Startups must balance record-keeping etiquette with tax codes, healthcare reform, and labour laws. Equipped with only a file cabinet and the Sunday paper, this is sure to result in mistakes, processing delays, and, in worst cases, legal fines.
Employee attrition: As per the TechnologyAdvice Employee Satisfaction and Loyalty study, 42.6% of employed workers are actively seeking or at least open to a new job. Without a strategy for investing in talent and developing an attractive work culture, startups, as well as small businesses, lose good employees to competitors that offer higher salaries and better benefits.
Performance gaps: On smaller teams, it turns out to be quickly apparent if particular employees aren’t pulling their weight. But without a formal performance management or training system, how would you orchestrate consistent improvement?
Top 5 End to End HR Solutions for Startups
Namely is a web-based platform specializing in core HR and talent management for growing business. Their product covers payroll and benefits administration, performance reviews, time tracking, and of course, serves as a system of record for all of your employee data. To be specific, Namely also offers built-in social news feed and custom reports for individual and team metrics.
The system is designed to be adaptable and user-friendly, which makes it stand out against various more complicated enterprise solutions. But penchant of Namely for startups, small and growing businesses doesn’t mean they hold back on resources: business clients receive 24/7 customer service via a dedicated Namely account manager. Namely has been utilized by thousands of small businesses and startup firms all around the globe, as well as some bigger brands such as Mashable, Kayak, and Vimeo.
Unlike Namely and PeopleMatter, JazzHR is a best-of-breed HR solution, which means that it is designed for specialized use, in this case, applicant tracking and interview management. JazzHR helps companies post jobs, screen applications, and manage the interview process via a centralized, real-time platform. Managers can create custom recruiting stages with automated to-dos such as follow-up emails, reminders, and add stakeholders to the process as users with varying permissions and privacy levels.
Post directly to job search sites like CareerBuilder, Glassdoor, and Indeed, and use built-in SEO tools to make sure you have picked the right title and job description. JazzHR also offers employee referral programs, social recruiting, applicant screening, resume review, branded career sites, interview guides, recruitment calendars, background checks, and more.
In spite of the fact that it doesn’t have a native mobile app, career sites and interfaces are automatically optimized for the device in use. Along with 3,000 other businesses, TechnologyAdvice has utilized JazzHR to more than double their team from 20 employees to over 50 since 2013.
BambooHR is a cloud-based core HR solution designed to meet startup business administrative needs and give employees efficient access to self-service. Even though BambooHR doesn’t offer some of the robust features of its competitors, the price point is hard to beat, and the user experience is simple.
The web application serves as a central repository of employee information, such as job and salary history, training, and benefits. Employees can access the organizational documents, request time off, as well as view and edit their personal data.
With varying levels of custom access, administrators can manage time-off requests, set accrual policies, and produce custom reports on the basis of any data in the system. For expanded use, BambooHR integrates with many popular applications for applicant tracking, payroll, eSignatures, and performance management. The system is also accessible on mobile devices through their native applications for Android and iOS.
Zenefits began as a free, core HR solution, but their product and company have come a very long way in recent years. Zenefits now offers built-in payroll, native mobile apps, time tracking, and impressive integrations in addition to the main functions of their platform: HR management and benefits administration.
Zenefits offers two tiers with a monthly subscription cost per employee in addition to add-on apps. What you pay will rely upon which features you need, but in general, the cost is still much lower than solutions from the enterprise market.
As of last year, that is 2019, Zenefits boasted more than, 10,000 startups, small and mid-size customers across the United States.
Kronos is a well-known brand and is a leading provider of workforce management and human capital management cloud solutions. Kronos industry-centric workforce applications are purpose-built for businesses, educational institutions, healthcare providers, and government agencies of almost all sizes. Kronos Workforce Ready platform provides real-time updates and streamlines HR databases via a uniform interface and a singular record for each employee across all portals.
A huge number of organizations, including half of the Fortune 1000, and over 40 million people in more than 100 countries use Kronos every day. Its prominent clients include St. Charles Health System, University of Toronto, American Fidelity Assurance, City of Springfield, Hannaford Supermarkets, and many other large employers of the market. I think these names and number are enough to convince you why we have listed Kronos in our list of top end to end HR solution providers for startups. Kronos is a privately held company and was founded in 1977.
Headquarter of Kronos is located in Lowell, Massachusetts, Kronos employs nearly 5,600 people around the globe.
Thanks to modern innovations like software-as-a-service (SaaS), the market is overflowing with affordable solutions for businesses of every size, from startups to big enterprises. Regardless of whether you need to do is track time off and digitize employee records or a complete end to end HR solution, a centralized HR solution can help you do this more efficiently and accurately. With a little luck, your business will begin to grow, and you’ll be glad when your HR infrastructure will grow with you.
ABOUT THE AUTHOR
Chandrima is a Content management executive with a flair for creating high quality content irrespective of genre. She believes in crafting stories irrespective of genre and bringing them to a creative form. Prior to working for MartechCube she was a Business Analyst with Capgemini.