The saying goes, “Each coin has two sides”; but it is difficult to believe that HR Software's also have an other side. Automating Payroll, storing huge data, enabling performance tracking and recruitment; HR Software's have been a savior to businesses but they do pose some serious threat too. Disadvantages like security issues, reducing human interaction, software malfunctions, expensive updates are issues that need to be addressed. Most of these issues have alternate solutions and Disadvantages of HR Software are subdued in the presence of its advantages.
Following are the 3 Major Drawbacks of HR Software:
- Software's with Fort Knox security is a myth
Irrespective of how much you pay for security, there are always some loopholes which do exist. When all your employees trust you with their private information, you cannot compromise on the trust. For better security, one needs to spend more and more. With any data leaks, one can not hold anyone responsible. Once the data is gone, it can’t be undone.
- The More, The Merrier.
There was a reason why companies earlier had an aura of trust, faith and respect. Earlier due to limited access to technology, companies had highest human interaction which induced such brotherly feelings among the employees. Now, with minimum human interaction, companies need to hire and organize events for employees to get to know each other. With adoption of HR software's, employee accomplishments, certifications and degrees all are mentioned, which makes the supervisor lose subjectivity of personal evaluation.
- Time is Money, but at what price?
Implementation of HR software saves time of many employees. This time, if wisely invested equals to money. But, for small firms where budget is tight, HR software's are an expensive expense. SaaS versions to an extent are solution for this problem. But, when the money invested in HR Software's is more than the benefits of it; the investment is a failure.
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