By Sayeed Anjum
A McKinsey study reported that MSMEs account for more than 90% of all businesses worldwide.
The MSME sector makes a significant contribution to a country’s economy. However, many businesses face multiple challenges pertaining to their workforce and processes. Unlike their counterparts in larger organizations, HR/admin team members in MSMEs are expected to multitask and do more for the business. Oftentimes, this practice leads to lowered individual and organizational productivity.
Today’s HR tech solutions can help empower MSMEs by adding speed, simplicity, and efficiency to their HR processes. Let’s examine a few key benefits of deploying an HR tech solution.
Streamlined HR Processes
Not all businesses have structured processes. Also, many businesses in the MSME sector follow manual methods for HR documentation and payroll processing, among other tasks.
This can lead to operational inefficiencies with an adverse impact on business performance.
When a business deploys HR tech, it can automate, simplify, and streamline the entire employee lifecycle process. Some full-suite HRMS platforms provide built-in workflows,
tasks, and checklists for HR. The outcome? Enhanced HR efficiency, resulting in higher employee satisfaction.
Empowered Employees
Employees in emerging businesses may not always get what they want, at the time they need it. Budget constraints, resource crunch, and unstructured processes are the primary reasons. Eventually, this can impact their productivity and morale.
Using modern cloud-HR solutions, employees can access their personal information and also perform multiple HR tasks without the help of HR. This, in turn, results in higher productivity, higher satisfaction, and improved loyalty.
Guaranteed Compliance
As labor laws become stringent, players in the MSME space confront a slew of challenges. Their admin/HR team members may lack the know-how to abide by the legal requirements. The results? Compliance discrepancies, delays in filing, and probable penalties.
Most of the HR tech solutions have compliance processes built into them. Be it for payroll processing, collecting investment declarations, or filing IT returns, HR can bank on these solutions. The system does all the calculations and makes provisions for the required filing and payouts.
Optimized Resources
Businesses in the MSME sector still follow manual processes. Therefore, they incur higher expenses due to time-consuming methodologies and frequent errors. Wastage of resources and manpower is another result of manual, under-optimized processes.
An HRMS has the features to automate repetitive tasks for HR teams. This is a great advantage for businesses in the MSME space. The best part? They need fewer people to carry out core HR activities and payroll processing, among other employee lifecycle activities.
Standardized HR Policies
Growing businesses may not have standard HR policies. If they do have something, the documents may not be easily accessible. Hence, not all employees would be aware of their rights and responsibilities for working in an effective and disciplined manner.
HRMS platforms have a provision for centralized document storage. Employees can access them via the employee self-service portal. These platforms also provide a collection of policy templates for HR and employees easier, thereby saving time and effort involved in the creation of these policies.
Improved Decision Making
Unlike large enterprises, smaller businesses may not have the financial resources to appoint specialized people for multiple HR operations tasks. Therefore, they are forced to make critical decisions with limited information and know-how.
Modern HR software solutions leverage AI, machine learning, and analytics tools to analyze large amounts of data easily. Since HR gains access to the right data and insights quickly, they can make suggestions based on past trends. They can also make workforce-related predictions for the benefit of the organization.
The greytHR Edge for MSMEs
A full-suite HRMS platform, greytHR empowers small and medium businesses (MSMEs) to automate, streamline, and simplify HR processes. Powered by 40+ tools, the AI-powered platform has an employee self-service portal (ESS) with a mobile app for remote access.
By deploying greytHR, MSMEs can expect higher productivity, streamlined operations, better cost savings, and improved employee satisfaction. HR and payroll team members of these businesses can also upskill themselves by taking up the affordable courses offered by greytHR Academy.
Trusted by 23,000 customers across 25+ countries, greytHR provides an entire HR ecosystem.
Conclusion
As HR has begun to play a larger role in organizations of all sizes, they need to be empowered with the right tools. Their contribution to the business is significant in emerging organizations. Modern HR tech solutions are helping them address their varied operational challenges, so they have the bandwidth to perform more value-added activities for the benefit of the business.
A business that’s powered by an efficient HR and satisfied employees is a business that’s
ready to do more and be more.
About Sayeed Anjum, Co-founder and CTO, greytHR: Sayeed Anjum is the Co-founder & CTO of greytHR. He leads the R&D, Innovation Labs, and Product Development initiatives. As a passionate techno-marketing professional, he aims to establish his company as a thought leader in the HR tech domain. Sayeed focuses on improving the product development process and has been overseeing all aspects of product development, including requirements engineering, usability, programming, and quality. As the custodian of Greytip’s flagship cloud HR platform, greytHR, he is committed to addressing the diverse challenges of the HR fraternity, and the views expressed in this article are his own
