Article 5 min read
Using HR software in the UK offers a wide range of benefits for businesses of all sizes, from startups to large enterprises.
There are the advantages for opting to use HR software and the costs may not be as limiting as anticipated when you weigh this up against the time spent completing HR administration tasks:
1. Compliance with UK Employment Law
- HR software can help organisations stay compliant with UK employment regulations, such as GDPR, HMRC payroll requirements, right-to-work checks, and holiday entitlement rules.
- Automated alerts can notify HR teams or line managers of upcoming deadlines (e.g., probation reviews, visa expiries).
2. Time & Cost Savings
- Automates repetitive HR tasks such as payroll, leave management, and onboarding.
- Reduces the need for manual paperwork and administrative overhead.
- Saves costs on errors related to payroll and compliance.
3. Improved Employee Experience
- Self-service portals allow employees to manage leave requests, view payslips, and update personal information without contacting HR.
- Mobile-friendly HR systems mean staff can access info anytime, anywhere.
4. Streamlined Recruitment & Onboarding
- Applicant tracking systems (ATS) simplify job postings, CV screening, and interview scheduling.
- Digital onboarding tools ensure new hires get the right documents, training, and welcome packs.
5. Data-Driven Insights
- HR software centralises employee data, making it easy to analyse trends in retention, absenteeism, and performance.
- Provides HR analytics for better workforce planning and forecasting
6. Payroll & Benefits Management
- Many HR systems in the UK integrate directly with HMRC for Real Time Information (RTI) submissions.
- Handles pensions auto-enrolment and benefits tracking in line with UK legislation.
7. Increased Security & GDPR Compliance
- Stores sensitive employee data securely with encryption and access controls.
- Helps meet GDPR requirements by managing consent, retention, and data access requests.
8. Scalability & Flexibility
- Cloud-based HR platforms scale easily as the workforce grows.
- Adaptable to hybrid and remote work environments.
9. Performance & Development Support
- Enables regular performance reviews and goal tracking.
- Supports learning and development by tracking training and certifications.
10. Better Communication & Engagement
- Some systems include engagement tools like surveys, recognition platforms, and internal communication hubs.
- Improves company culture by keeping employees informed and connected.
Business Gateway are not in a position to make recommendations however below are some of the more commonly used HR Software packages that you may want to have a look at: