How to Find the Best Free HR Tool for a New Business

Human Resources (HR) is an important department because it plays a pivotal role in hiring, onboarding, and training new employees.

It is also responsible for regulatory compliance and the broader employee lifecycle. Integrating the latest technology into the department can improve its efficiency.

Startups need the best HR tools they can get, so they can streamline operations. If it weren’t for HR tech, startup employees would lose a lot of time, struggle with scaling, and there would be a greater risk of manual data entry and compliance issues.

But how can you find the best free HR tool? For starters, you should look for tools with features like payroll integration, employee record management, and time off tracking. This post will explore this topic in more detail and offer insight into finding the perfect tool for your small business.

Identify Your HR Needs

In order to find the best free HR software, you first have to identify your needs. You can start by establishing the core features you would use from a free HR tool for new business so you know which software qualifies and which doesn’t. At a basic level, an HR tool needs recruitment, onboarding, time off tracking, and third-party integration features. It also needs to be able to meet your business’s compliance needs, i.e., automated tax management.

When choosing a tool, think about your company’s size and whether or not you want immediate growth. If you do, you need a tool that is easily scalable. Make sure the tool you use can handle the amount of data your business currently manages, too.

Finally, choose between all-in-one and standalone software. The former is ideal if you want to streamline HR and centralize everything. Standalone software allows you to pick and choose features, but also means you miss out on certain things. The latter is best if you are on a budget and won’t need all of the functions of comprehensive all-in-one HR software.

Check for Ease of Use & Accessibility

According to research, the HR software you choose to integrate into your business’s operations needs to have a user-friendly interface, so your team doesn’t run into problems using it. All team members need to be able to navigate it. Find a platform with a clean, uncluttered design. Ideally, the HR system you choose should come with a training manual.

Another consideration is whether you want a cloud-based or on-premise tool. The former is exclusively online, whereas the latter is installed and hosted on your company’s private servers. Many consider cloud-based technology to be much more secure since it is typically protected by a more robust security infrastructure than on-premise servers are.

If your team already uses other tools, i.e., Zoom, Skype, or Slack, find a tool that integrates with them. It is also ideal to find an HRIS that has a mobile app, so your team can access files from their work phones, or when they are working remotely.

Evaluate Compliance & Security Features

Irresponsible handling of employee data can get your business into serious trouble with industry regulators. One of your main priorities as a business owner should be safeguarding data. You therefore need to find employee management software that keeps data secure.

The tool you use should comply fully with local labor laws and industry regulations, otherwise, you could end up becoming the recipient of fines and penalties. Also worth noting is the fact that adopting a casual attitude toward your business’s data can lead to you losing employee confidence.

Find a tool that has audit logs, so you can see who has been working with data. Studies show that most data breaches occur from within, so audit logs allow you to identify the culprits in the event that data is ever mishandled, leaked, or worse, stolen.

Consider Scalability and Upgrade Options

Steady growth is, for obvious reasons, the dream of most entrepreneurs. However, if the technology you use does not support growth, your business’s progress can be stunted. Find a tool that’s easily scalable, so it can support your growth. As your business grows in size, you need a tool that can be upgraded along with it.

Something to think about from the very beginning is the costs of upgrading. In the event your business grows, you need a tool that isn’t going to suddenly become obscenely expensive. Take a look at your chosen tool’s price plans, so you have an idea of how much you are going to have to pay in the future.

You also need to be confident that the tool you use isn’t going to prevent you from transferring data out if you choose to use another.

Test Before Committing

HR tools, free and paid, typically have trial versions available. This means you can test tools out before you use them. Testing before you commit to a specific program is a great way to determine if it meets your team’s needs.

You can run a small test by integrating it into your HR department for a few weeks. Let your team decide if it is right for them, as they are going to be the ones using it. It is unwise to force software on them if they think it isn’t compatible with the way they run the department.

Finally, make sure you assess a program’s customer support features and its employee onboarding. Both of these functions play an important role in your department’s daily operations, so they need to be optimized for performance.

Choosing an HR tool can be difficult. However, just because something is a challenge does not for a second mean it is impossible. Look for a tool that meets all of your needs, is easy to use, is compliant with labor laws and industry regulations, is scalable, and has a free trial. The tool you choose needs to be compatible with your team and your future plans. With all of this in mind, start testing a free HR tool today.