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By Steve Rosenthal
Typically, the single largest expense for a company of any size is the cost of payroll and managing personnel issues. As companies grow, headcounts increase and so does the process of maintaining payroll, benefits administration and other corporate policies, such as vacation schedules, sick time, hiring, etc.
The good news for small- and medium-sized businesses (SMBs) is that they no longer need a dedicated department to manage human resources (HR) activities. The Internet is playing a pivotal role in this change.
By leveraging Web-based HR technology platforms, SMBs can now offer “big business” services to employees while enjoying the time and cost efficiencies associated with a centralized system.
For SMBs, pen and paper and technology ranging from QuickBooks accounting applications to more comprehensive HR and payroll systems have long been the staples to manage these processes.
While these methods and systems have their merits, the Internet has enabled SMBs to realize greater efficiencies by utilizing hosted HR platforms. These systems eliminate the need to purchase and maintain applications and servers, are extremely easy to use, and are accessible via standard Web browsers and an Internet connection. They are also secure and very affordable with pricing models typically scoped on a per employee basis.
A critical concern for embracing any type of technology is security, especially with respect to safeguarding personnel information. When selecting a hosted HR solution, make sure it offers multiple layers of security and that the data is protected. Balancing security with accessibility and scalability, open database platforms offer the most flexibility. This will ensure your payroll and personnel data is easily accessible, and can be integrated with other applications as your company grows, all while ensuring the tightest security. You also want to make sure XML (Extensible Markup Language) is supported. This offers a data standard that can easily pass information from one application to another. So if you want your payroll processing application to connect with your benefits provider, this can all be integrated via XML.
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