When it comes to startup companies, it’s often the case that human resources and people management take a backseat to more fundamental aspects, like those which have to do with customer service, innovation, and revenue. But startups that prioritize the more technical aspects of business operations while choosing not to develop skilled and satisfied staff are often doomed to fail.

According to INC, weak staff composition and poor leadership, two aspects that often go hand in hand, are two of the top reasons why startups fail. Of course there are companies that want to invest in adequate human resources but can’t because of time limitations, lack of resources, and/or other constraints. It’s companies like these that often incorporate human resource systems to carry out all the fundamental HR tasks, like payroll management, applicant tracking, and information management.

Let’s go more in depth to see how and why successful startups incorporate human resource systems to achieve long-lasting success.

Applicant Tracking

According to research published by ERE, the average corporate position can garner close to 250 applicants, though this number can vary when factors like job type and industry are accounted for. The average startup manager typically has a wide range of responsibilities, and therefore he/she does not have the time to devote to adequately sorting through a vast number of applications. This is why many startup companies use applicant tracking systems (ATS) to handle recruitment electronically—these systems are great at filtering out candidates who don’t meet a given criteria. If you’re intent on finding the best person for your posted job, quickly and without hassle, ATS can be incredibly useful. There is, of course, a fee associated with using ATS, but when one compares this small fee to the thousands of dollars that would be spent annually on paying a dedicated HR manager, ATS looks a lot more attractive.

Payroll Management

It’s been found that one in every three small businesses receives a penalty from the IRS, and in some instances a business can spend more than $20,000 paying for legal fees, taxes, and other costs associated with a payroll mishap. Startups depend heavily on rapid growth, and nothing slows that down quicker than wasting money on payroll mishaps. Payroll management systems are specifically designed to prevent penalties, and they clear up a lot of the hassle that’s typically associated with keeping track of payroll. If you want to avoid clerical errors and manage time effectively, a payroll management system can help immensely. Startups prefer high-quality payroll management systems because they’re budget-friendly and easy to use.

Human Resources Information

There are many pieces of important information employers track, such as employee names, titles, addresses, vacation time/sick leave, and disciplinary actions. There are also broader employee-management tools—like books, safety guidelines, and proceduresthat can make a lot of difference in terms of running a business effectively. This is where human resource information systems, HRIS, come in. These systems eliminate disorganization, keeping employee information on file under an encrypted key for extra security.

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