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Why should Small and Medium enterprises invest in HR & Payroll Software?

human resource management

SMEs are the backbone of every economy in the past, today, and in the future too. This is because most of the organizations in the world are small scale and it contributes more than 70 percent of jobs globally. Moreover, considering a company or a state the number of Small and medium-scale establishments are in much higher numbers than the multinational as well as larger establishments. In addition, most of the SMEs are regional bases as they have been put up and operating in the neighborhood of the locality for years and will be present there in the future too.

So why is it that there are mostly small and medium-scale establishments all across the world? One of the key factors is the smaller the investment and most of the people live in the same locality. In addition, the main reason while inquiring to the business owners they point out that they could be their bosses and run the company as per their willingness. However, a status conducted on SMEs depicted that half of them will fail in the initial years of establishment. So why is this? Can it be avoided? There are the questions that will pop up in your mind after hearing the above-mentioned statistics. I am not here to discourage you from starting your own SMEs. Rather, we are here to point out the aspects of why the management operations of SMEs fail and provide a solution.

Here are certain aspects of why and when SMEs should adapt to HRMS tools for in-house management operations.

Improve the flexibility

Although the small and medium scale establishments are considered as the most flexible business models rather than the larger establishments there will be instances where these companies should be able to flex the HR operations to suit and adapt to the changes of business. Moreover, the right HRMS tool will even improve the flexibility quotient of the functioning of the company and prove you with dedicated tools for the management of the employees, attendance, leaves, vacation, payroll, recruitment, report generation, and many more. Additionally, the provision to add reimbursements, allowance, expenses, and other benefits to the employee will allow the HR operations to run as per your needs.


Reducing the HR department operations cost

With the use of HRMS tools, there will be a further reduction in the HR department’s operational cost although there will be an implementation charge of rit. All the data will be stored in a central database, which reduces the use of pacers allowing the company to function in a greener path. Moreover, you can store the employee details as well as keep the records and associated ledgers on payroll and benefits song with the employee vacation operations. In addition, an HRMS software will generate alerts on the various certification expiry as well as the license of the employee, which the company is bothering about, this can be set by providing the exact dates of expiry and enabling the alerts.


Managing a variety of workforce

Just like in larger establishments even in small and medium scale establishments, we will have to deal with a variety of workforce and employment methods of operations such as contract, permanent employment, outsourcing, part-time, full time, and many more. A good HRMS tool will allow you to list out all these modes of employment and the allocated salary structure of operations. Moreover, you can define the shifts as well as the workweek and duration of work liable for the employee to work in a week.


These are some aspects that will add up to the HR operations and the performance and impact on functioning in an SME with the use of HRMS tools. Today there are various HRMS software solutions available to choose from, FactsHRMS is one of the best tools available in Dubai, UAE for you to manage the HR operations. You can contact us by dropping an email at   to have a demo of the software in operations along with a consultation regarding it.