The Benefits of HR Tech for Startups

The demand for technology-based business solutions is growing rapidly and now more than ever, companies are choosing to outsource their HR – but why? HR technology has a huge range of benefits to your business, but even more so if you are a start-up.

Accessible and Simple

Switching from a paper-based payroll processing system to outsourced payroll software is the most effective way to simplify your payroll. Payroll systems ensure that everything is managed in one place, from benefits to pension submissions and payments, which keeps things simple.

Having all of your documents stored in one place online means that they can be accessed anywhere, which is a huge positive now that hybrid working is becoming the norm, particularly among start-ups. Electronic records are easier to keep secure than paper-based records, due to the ability to keep them encrypted, and won’t be lost or damaged if your office space becomes compromised. This helps your start-up to retain employee documents correctly as required by law and ensures that records can be kept up to date easily or referred back to after an employee has left your company.

Aids Recruitment Process

HR technology helps to make better, and faster, hiring decisions, which could aid your start-up if you are in a position to expand your workforce. 

Some HR software includes applicant tracking systems and allows for the addition of any personality or skills assessments you may require candidates to complete so that these results can be tracked throughout the hiring process. This can help your start-up to ensure that you are hiring the right people for the right roles.

Automating your recruitment process also means that candidates can be kept up to date on their application process without the need to get in touch with you directly. This allows you to spend your time on more strategic tasks rather than answering calls and emails requesting updates on applications.

Reduces Recurrent Tasks

If your start-up isn’t using an automated HR platform, one of your staff members is likely inputting data by hand at some point in the process, be it payroll, performance reviews or annual leave requests.

When it comes to repetitive tasks, many workers find them a burden, as monotonous work has been shown to be more stressful. If your employees are not engaged in their role, they are much more likely to become less productive and, if the task is required long-term, it could be a detriment to their mental health and your business growth due to a lack of innovations.

Manual data entry is a repetitive task which increases the likelihood of human error, which could be a costly mistake for your new business. Mistakes made due to negligence and carelessness can cost time and supplies, as well as fees, which can affect your turnover. Entering data by hand is also a highly time-consuming and boring activity, so by automating this via HR technology, your employees can spend their time more productively elsewhere, which will be a benefit to both your company and the morale of your staff.


When you outsource HR, you are only paying for the functions that your company requires. This can make it a much more cost-effective option than hiring an in-house HR team, especially for start-ups that are unlikely to have the budget to hire highly-qualified HR managers. As such, outsourcing your HR needs can save your company a vast amount of money which can be invested into other areas of your start-up to help it further expand.

Investing in HR tech also means that time-consuming processes such as pension enrolment, expense claims and P60 handouts can be automated, which saves both time and money as staff productivity increases.