Why is HRIS Relevant for Startups and especially for Nepalese startup
Startups are an exciting time for entrepreneurs to enter the market place. A fresh idea, a new team and a hungriness to survive and excel.
However, it can also be a stressful, tiring and hard period as your dealing with multiple roles. Often in a startup, till profits start coming in and a sense of stability is gained, many entrepreneurs perform more than one role required. One, in particular, is the role of the HR manager.
Whether you are managing HR duties for your team, or have a small organization with little employees, you may put HR to the least of your priorities. When the truth is, it may not be a priority now; however, later on, you could find it an urgent one.
Over time, the larger your company grows in terms of employees, so does the data. This could be data regarding holidays, payroll, attendance, taxes and much more. If you’ve not got a consistent strategy in place or don’t start logging your HR duties now on HRIS system, you could face significant difficulties.
What are the major difficulties of not using HRIS, then?
If you don’t use HRIS or manage your HR well when it comes to calculating annual payments, you could be making more errors than usual. HRIS allows for easy integration, and once set up; you only need to click once to automate payroll each month. If you’re in a startup, you can’t afford employees having their salary messed up. This way, they could take you to court when you have scarce funding anyways.
Similarly, having an HRIS system provides transparent and clear records. Which helps and prevents you from being investigated by the IRS or taxman.
Decreases Staff Morale
In the early days, you want a solid team in your company and a high employee retention rate. Sometimes employees need proof of income in the form of a payslip. If you are using a paper trail, this can take some time for employees to get. Similarly, they may not muster up the courage to ask for one as they don’t want to burden HR. As a result, their morale can decrease. HRIS software stops this from happening as they can access it at any time.
More time spent on HR duties
HR is not a single job; its multiple roles in one. At a minimum, it involves payroll, accounts, holidays, attendance, reviews and much more. To do a thorough job requires an adequate amount of time spent on each task and doing things in a particular order. An HRIS system allows staff to switch between roles from one interface. This is great in the days of a startup, as all HR duties can be met, and focus can be shifted to elsewhere.
If you’re using a paper trail or desktop software. It can take some time to search for staff files or specific areas of HR to perform. If it is in one area like on HRIS/HRM software, you know you can save time doing the role. Likewise, retrieve information at a quicker rate.
Not using a secure cloud-based HRIS software, means employee data is more accessible and easier to steal. If it did ever happen, your company could be at risk, and you could be at risk of being taken to court.
Given all this, why do Nepalese startups need HRIS?
When it comes to performing HR duties for a company in Nepal, many frustrations arrive, trying to figure out employee entitlements such as pay, insurance, taxes, and holidays. Combine flicking between an external calendar and a paper trail; it can take a good week to 10 days to provide a correct calculation.
Not just that, Nepal has its unique calendar, the Bikram Sambat system, and it can be tedious for companies. As this is what accounting is done off and the calendar that government holidays follow. Even though companies may operate and speak to the clients using the Gregorian calendar, it’s the Bikram Sambat one used for HR duties. An HRIS system is needed more than ever for startups to help them not get confused between the two and be able to quickly do their job when they don’t have much time on their hands.