CRM systems are primarily designed to manage customer relationships, but they're also surprisingly effective for handling HR tasks. Wondering how a CRM could be a smart alternative to traditional HR management software? Let's dive in.
Statistics reveal that only 36% of businesses with fewer than 100 employees use HR management software. The main deterrent? Cost. Smaller companies find the investment hefty, yet managing HR without proper tools can quickly become overwhelming—even with just a twenty-person team.
A CRM system can be an invaluable tool for HR planning. While its main role is managing customer relationships, it turns out to be a perfect fit for HR management in small to medium-sized businesses. So, how can CRM make a difference in HR?
1. Employee Database Management
Every business needs to keep records on its employees—from basic contact details to birthdays and even hobbies. Instead of rummaging through a calendar or tracking down a coworker to get this information, CRM makes it easy. All details are stored on an employee's digital card, accessible and updatable by employees themselves. The human resources department can even use an AI solution for HR to help automatically manage employee questions.
2. Benefits Management
Ever had an employee leave suddenly while your Office Manager was on vacation? Scrambling to find handover protocols for company equipment can be chaotic. CRM simplifies this by displaying all necessary information on the employee’s card, making transitions smooth and stress-free.
3. Training Tracking
Unsure which employees have completed their training? Instead of asking around and getting uncertain responses, a CRM system allows you to quickly view training statuses. Updates are easily added to each employee’s record, along with necessary documentation, while keeping sensitive data secure through user permissions.
4. Leave Management
Handling leave requests via email or paper can lead to lost or forgotten submissions. With a CRM, requesting and approving leave is as simple as a couple of clicks and a mini form, streamlining the process for everyone involved.
5. Time Sheets and Scheduling
Beyond just tracking hours, CRM-integrated time sheets contribute valuable data for payroll and project costing. They help ensure you're always on top of scheduling, avoiding potential conflicts and missed deadlines by notifying you if someone is already committed to another project.
HRM vs. CRM
While traditional HR tasks can consume a significant amount of time, integrating HR functions into your CRM can save hours each month. Unless your company has intense recruitment needs or other specialized requirements, a standalone HR system might be an unnecessary expense. By leveraging a CRM, you're not just investing in customer management but in a holistic solution that enhances overall business efficiency by linking HR with other operational facets.