Many HR admins and managers rely on spreadsheets to help them record key people-related data. It may be sufficient enough when you are managing a small number of employees or want to work with a very specific set of data. However, using spreadsheets once your organization starts to grow and staff numbers increase isn’t going to work long-term.

The resources associated with tasks such as approving time off, changing demographic information and managing performance evaluation becomes very quickly. Before too long, there comes a point the HR team will need to look at other solutions – such as an HRMS – to help reduce time and resources and process tasks more efficiently.

Here are 5 reasons why it’s time for your business to move away from the spreadsheets: 

Spreadsheets are not secure
Spreadsheets are typically housed on PCs or laptops and frequently get emailed back and forth between colleagues who need to update them or access information. It’s easy to forget to password-protect them, which leaves confidential information at risk.

Additionally, when spreadsheets get passed around frequently, it’s very easy for information to get corrupted, as there’s a risk of files being accessed on unprotected devices. This leaves them vulnerable to becoming infected with viruses.

They’re out of date
A company’s HR data changes almost constantly – new employees, terminated employees, employee demographic changes, direct deposit changes, etc. The list goes on and on. There’s a high probability that HR personnel could forget to record any of this information at the time it occurs. With an HRMS, the employee enters the information into the system and the records are updated in real-time.

No Central Source of Information
HR teams are often juggling numerous spreadsheets. There could be one for demographic information, one for benefits management and another to track time off. Not to mention that the finance or payroll department has their own to keep track of.  HRMS systems can cut down on all the unnecessary processes, providing one central place where all HR information—from basic employee data to HR policies—can be safely stored.

They’re time-consuming
A spreadsheet-based data system can take an excessive amount of time to manage. HR people often find themselves inputting the same information into more than one file or having to dig through one spreadsheet in order to extract information and put it onto another. An HRMS can streamline this whole process, cutting down on admin time significantly and allowing HR to concentrate on the more value-adding aspects of its role.

They are not easily accessible
Spreadsheets should be manipulated and accessed by a few people, due to the confidential nature of the data in them. Even with straightforward requests such as PTO balances for a specific department, managers have to go through HR. This leads to frustration and delays when people can’t access the information when they need it.