Medium- and large size businesses are already enjoying the many benefits of automating HR and Payroll. Adopting a reliable HRIS to streamline processes enabled them to become agile and nimble. Thus, they can make more timely decisions about operational and market changes. But what about small businesses?

A lot of small businesses continue to overlook the value of automation and digital transformation. In the Philippines, small businesses cannot realize the benefits of using an HRIS solution to automate HR and Payroll. Moreover, if they do invest in automation, HR and Payroll is often the least or last area of concern.

Instead of streamlining processes, small businesses and start-ups focus on increasing profitability. Because they have a smaller workforce, they believe they can still manage their HR and Payroll using traditional methods. They also have limited budget and IT resources, and would rather improve on income generating areas than administrative tasks.

When you own a small business or starting one, you are also responsible for managing everything. You must make sure every element works well—from back office operations to sales and marketing. This means you might also end up managing payroll and compliance requirements.

However, operations, employee management, payroll, and compliance can become more complex as your business grows. Add unprecedented events to this mix and you will find yourself overwhelmed with paperwork and extended work hours.

benefits of hris for small businesses in the Philippines
HRIS solutions are for all businesses – large or small

Human resource information system (HRIS) enables you to streamline HR and finance-related tasks. This includes all your HR’s administrative tasks—from recruitment to exit, and payroll and accounting. Contrary to what some businesses think, an HRIS is not only for large organizations.

An HRIS is a powerful tool for small businesses and start-ups looking for long-term growth, while saving on costs. As your business grows, you’ll be needing more time to look for opportunities to compete with larger businesses. While doing this, you must also address employee and productivity concerns, and manage your financial resources.

The right HRIS solution can help you manage your workforce and finances efficiently, while reducing HR-related costs. An HRIS also helps you keep track of your cash flow and payables, and ensure you have updated compliance requirements.

Further, an HRIS can help your small business or start-up adapt more quickly to operational changes during disruptions or crises. An HRIS ensures continued communication between you and your employees and guarantees business continuity.

Benefits small businesses in the Philippines can get from an HRIS solution

Businesses large or small need an HRIS to ensure accurate and reliable management of their employees and finances. In addition, all businesses can enjoy the following benefits of an innovative HRIS solution:

hr and payroll solution
Optimized Human Resources

One of the key benefits small businesses in the Philippines can enjoy from an HRIS solution is a streamlined HR process. 

Most small businesses or start-ups don’t have a dedicated HR staff. The owner is often the one who handles all the HR responsibilities, or delegates it to one admin staff. Managing payroll and benefits, timekeeping, hiring and promotions, and accounting can be quiet overwhelming.  

Automating your HR can reduce repetitive admin tasks and free up your time, so you can focus on growing your business. Remember, more time means more money.

Spending more time on client-facing activities or growing your network can help your business become more profitable. Constant communication with your suppliers also helps ensure you can meet the changing demands of your clients. 

Streamlined day-to-day workflows

An HRIS can be configured to give permissions to key personnel and streamline responsibilities. This not only guarantees better communication between management and employees, but also efficient monitoring of each task.

Knowing how each project is progressing and tracking the time spent on a particular task can give new insights for improvements. You can also determine how to create a standard for each working method and optimize internal processes.

Set new goals and KPIs

An HRIS also offers performance analytics, to help you provide better appraisals and determine areas for improvement. You can also gain new insights to make better decisions and propel your small business or start-up forward.

To support your business goals, you will need accurate and reliable data on your employees’ productivity and HR records. An HRIS can autogenerate reports with a few clicks, allowing you to set more achievable goals for your growing your business.

benefits of hris for small businesses in the Philippines
Straightforward execution of recruitment plans

An HRIS can help reduce time, costs, and resources spent in recruitment campaigns, and simplify the entire recruitment process. 

You can easily configure your HRIS solution to receive and sort through resumes, and find the best candidates. It can also track and monitor applications, approvals, and employee transfers, and automatically create a profile for your new hire.

Convenient self-service features

Employees of small businesses in the Philippines can also gain benefits from an HRIS solution.

An HRIS makes it easier for employees to lodge sick and vacation leaves, and overtime requests. What’s more, it will notify the key personnel about all requests that are waiting for their approval.

An HRIS also enables your employees to access their payslips, and request reimbursements even while off-site. Moreover, because the HRIS can be accessed 24/7, you can easily monitor absences and emergency or sick leaves of shifting employees.

Enhanced workforce

Opportunities for development and advancement are some of the career aspects employees consider when choosing to stay or look for a new job.

An HRIS can give you more time to focus on employee management. Conducting correct evaluations and providing appropriate rewards and benefits can help boost employee morale.

Knowing how each employee is performing and monitoring their progress can help you identify their weaknesses. Hence, you can find trainings to maximise your employees’ capacity to learn more skills and boost productivity.

benefits of hris for small businesses in the Philippines
Safe and always available data

HRIS enables you to save all your company data and employee information in the cloud. Cloud solutions offer strict security assets and sophisticated data encryption. Thus, ensuring all your data are safe, while effectively reducing paperwork and paper wastes. Further, a secure cloud storage enables you to keep all your records and transactions during disruptions or crises.

An HRIS solution also gives you access to the information you need, anytime and anywhere. As long as you have a stable Internet connection, you can have the data you need, when you need it. Moreover, you can use any device to login to your HRIS and perform all the necessary tasks with ease.

Compatibility with other systems

One concern small businesses in the Philippines have with HRIS is the need for other software to fully automate their HR processes. Not to mention the extra cost of subscribing to additional applications, and the time needed to train their employees on the new processes.

Nowadays, there are several HRIS solutions available that were built specifically for small businesses and start-ups. They also offer seamless integration with your existing systems, so you won’t have to subscribe to new ones. Further, some HRIS solutions offer full customization to ensure that you have the right features you need to grow your business.

Automated payroll process

Automating payroll is one of the key benefits an HRIS solution can provide to small businesses, particularly those in the Philippines. 

We have one of the most complex payroll frameworks in the world. For example, we have regular, special non-working, and special working holidays—each with different pay calculations. Not to mention night differentials and overtime pay for worked holidays.

Moreover, our standard salary payout is every 15th day of the month. This means you might have to go through different holiday pay calculations twice a month. What’s more, the Philippines also has several salary brackets, depending on the employment type and status.

Automating your payroll using an HRIS can help you reduce errors and avoid costly penalties. Error free payroll calculation also ensures your business remains compliant with labor and tax laws. Correct and on time salary is also critical for keeping your employees happy, motivated, and productive.

hurey and gcash app integration
Guaranteed compliance

Businesses in the Philippines are required to withhold a certain amount of an employee’s salary. Employers remit the withheld compensation to the Bureau of Internal Revenue (BIR) every month. 

Moreover, businesses are required to outline the total tax on withheld compensations for each employee in their annual tax return. Businesses must ensure that the annual tax filing and withheld compensation tax match in order to remain compliant.

An HRIS can automatically generate reports and fill out the required forms for both monthly and annual filings. Thus, enabling you to file accurate information on time, and maintain compliance with labor and tax laws.

Accurate contributions

Businesses in the Philippines are also required to deduct and remit contributions to three (3) government agencies:

  1. Social Security System – offers social insurance program and pension fund for when employees retire.
  2. Home Development Mutual Fund (HDMF) – also called PAG-IBIG Fund, offers a national savings program and affordable home financing.
  3. Philippine Health Insurance Corporation (PhilHealth) – offers national health insurance program.

An HRIS helps you guarantee you are remitting the correct amount for your employees’ contributions. It also ensures that you never miss a submission for an employee or to an agency.

Knowing you care for their well-being and future can strengthen your employees’ loyalty to your business. Thus, you will have higher retention rates, with more experienced people working for you.

How can Hurey help?

Hurey is the most scalable HR and payroll app in the Philippines. It is a cost-effective HRIS solution built specifically for businesses in the Philippines.

We understand how critical it is for small businesses and start-ups to gain a competitive edge over larger businesses. That is why we built an HRIS that can be easily scaled to suite your changing needs as your business grows.

Book a demo now and start enjoying the benefits of using an HRIS for your small business or start-up.


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