Did you know?
- MSMEs account for 90% of businesses, 60 to 70% of employment and 50% of GDP worldwide.
- As per government reports, there are around 63 million MSMEs (micro-, small and medium-sized enterprises) in India, and the sector employs over 110 million people.
- The Indian MSME sector is expected to contribute over $2 trillion to the country’s economy and create 50 million additional jobs by 2024.
Impressive, isn’t it? ⭐
MSMEs are driving change with their significant contributions. However, they face a unique set of challenges. Unlike their larger counterparts, they may have limited access to manpower, financial resources or technology. Also, they may have to work harder to survive and thrive. One of the hurdles these organisations face is the herculean task of managing their employees. Why is it so hard? Many use obsolete processes that result in inefficiencies, delays, legal issues and employee dissatisfaction.
Can a business in the MSME (micro-, small and medium-sized enterprises) sector acquire the advantage larger corporations enjoy? Can they overcome their HR challenges without much ado? The answer is ‘yes’ to both. But they need to automate every HR process with an HRMS (Human Resource Management System). The HRMS can help them save time and money while boosting operational efficiency. What’s more, these MSMEs can also anticipate a slew of other benefits that can transform their HR function.
Let’s explore five key benefits of an HRMS 👇
1. Streamlined HR. Simplified Operations
Many MSMEs still use spreadsheets or some rudimentary software to manage HR tasks. This can result in slow and inefficient operations. An HRMS automates all the repetitive HR tasks across the board, simplifying and streamlining processes. This leads to an increase in speed and an improvement in efficiency. The team members will also have more bandwidth to focus on new initiatives for boosting employee satisfaction and driving organisational growth.
2. Simplified Documentation. Amplified Efficiency
HR teams handle numerous documents related to core HR, payroll, leave & attendance, compliance and more. Organisations with manual processes spend more time and resources. An HRMS helps streamline workflows, digitise data and ensure accurate reporting. Forms, payslips and declarations will be made available online. When information is easily accessible on the cloud, team members can complete tasks faster, and stakeholders can make data-driven decisions. Built-in HR analytics and intuitive dashboards make this possible.
3. Smarter HR. Happier Employees
Onboarding bottlenecks, documentation errors and delayed responses can demotivate employees. Manual/offline processes often result in these issues. But an HRMS eliminates all of them with digitisation and automation. Employees can access their HR-related information from anywhere on any authorised device. It becomes easier for them to seek assistance and resolve queries promptly. When HR teams are empowered, they can help enhance the employee experience in the organisation.
4. Statutory Compliance. Made Hassle-free
The legal landscape is ever changing, and not all organisations have the resources to meet compliance requirements accurately and quickly. Different laws and rules govern different areas such as hiring, compensation, employee safety, leave and data security, to name a few. In this situation, HR, payroll and finance teams are expected to maintain different records for different laws. All of this can be a tall order for those who don’t have access to experts. An HRMS is designed to handle all compliance requirements automatically and accurately. Isn’t it a boon for MSMEs with limited resources?
5. Data Security. Made a Priority
Imagine what can happen when sensitive information is stored in different places in different formats. Data loss and misuse are the common implications of a setup that’s not well-organised. Organisations that follow physical documentation processes are likely to experience this. These instances can also result in hefty fines and a tarnished reputation. A robust HRMS eliminates all these issues by keeping all the information in the cloud and providing controlled access. Modern platforms have automated backup systems and also adhere to data protection regulations.
Ending Notes
HR automation 🤖 platforms are transforming organisational processes by automating tasks, digitising documents, addressing employee needs, ensuring compliance and enhancing data security. Once considered the preserve of larger organisations, these platforms have now become accessible to MSMEs.
Want to learn more about registering a new business in the MSME sector? Visit the government portal.
While the world celebrates MSME Day 2023 on 27th June, greytHR dedicates 💐 this blog to all the MSMEs out there.
Made for MSMEs, greytHR is a fully-integrated, cloud-based HR & Payroll software that helps HR manage activities across the employee lifecycle. Packed with 40+ tools, the platform ensures simplicity, speed and efficiency in HR operations. By using greytHR, MSMEs can streamline their HR processes and focus on enhancing the employee experience and fostering business growth.
Want to be a frontrunner in the race for HR excellence? See how greytHR can help.
