Do I need to Automate? Is this the right time to Automate? Is it really worth it? What type of Solution do I need? Should I outsource instead?
These are some of the common questions that come up for companies who are either running their HR and Payroll through Excel or some basic legacy systems. These are all valid questions and their answers also vary from company to company. We did a thorough research and surveyed several organizations across different locations and business segments to come up with some industry pattern.
Following are the key factors that indicate whether it is appropriate for companies to automate their HR process or continue using manual/basic systems
Employee Count: Companies with up to 50 employees typically find it easy to manage manually. Post employee count of 250 automation starts becoming a necessity and managing employees over 500 manually or through a basic system becomes unmanageable and going for a reliable and robust solution offers an instant ROI
Location Spread: Next major concern for companies is managing multiple locations. Companies having multiple branches (typically in excess of 5 locations) find it difficult to manage without a web or mobile enabled system. Main concern for such companies is attendance automation. Companies with locations across multiple states typically prefer outsourcing their payroll while keeping their remaining HR process automated.
Age: Startups prefer to keep their processes flexible and find it easier to manage their process manually. If their employee count increase quickly they prefer outsourcing their payroll and compliance and keep managing the remaining processes either manually or through some sort of basic/in house system. Once the companies stabilise and have set HR processes (typically post 4-5 years of operations) do the companies start evaluating systems for HR automation. Managing companies after a 10 years of operations manually is not recommended and often has a high risk of non-compliance if using manual or basic system.
Profitability: The sooner the companies become profitable they start working on stabilising their process and start looking to automate.
Industry: Companies in Service Industry typically prefer to outsource their payroll while focus on automating rest of their HR functions. Manufacturing sector by large prefer to keep their payroll in house and attendance automation is their key focus after compliance. Real estate, ecommerce or sales driven companies typically want their Core HR and attendance automated at the earliest.
Management Experience: Second generation or young entrepreneurs prefer to automate over first generation experienced counterparts.
Factors that matter while selecting HR partner
Cost: This is one of biggest factor while selecting HR solution. Most companies have accepted that they end up going for the lowest cost option though regretted it later but found it easier to switch from manual to low cost basic solutions
Experience: Another factor that matters is the experience of the HR partner. Companies prefer to stay with the experienced service providers over startups.
Focus: Companies that focus on only on HR solution is largely preferred over companies that have multiple products as the management bandwidth is typically more focused if a company has one brand/solution rather than doing multiple things
Reliability: A robust, time tested and reliable system is preferred over new and unstable systems
Founded in 2007, Mentis is a leading HR and Payroll provider. Mentis has over 10+ years of rich experience providing products and services in HR domain. Following are the main reasons why companies prefer Mentis:
- Reliability: Mentis is highly reliable as it is a robust system which has gone through years of stabilisation
- Strong Partner network: With a strong partner network, Mentis is capable of providing additional solutions ranging from Biometric services to Payroll and Compliance outsourcing services.
- Cost: Mentis has one of the best cost to feature ratio in the industry
- Feature Rich: Mentis is feature rich HRMS. It covers all the HR processes from Employee Hiring to Exit. Modules range from attendance, leave, manufacturing, performance, feedback, training, learning, travel, recruitment, payroll, TDS, compliance, surveys, letter generation, promotion, transfers, connect, intranet and mobile apps
- Flexibility: Mentis is available both on cloud and on-premises. Our on-cloud has the highest level of customization capability in the industry