Personio: The Ideal HR Software For Startups and SMEs

There’s a reason why the market for cloud software is growing by an average of 17.6% per year. For small and medium-sized companies, in particular, the flexibility of the cloud presents a golden opportunity. The Advantages: An uncomplicated solution that you pay monthly to use, so the provider takes care of any and all technical issues or future development. Relatively inexpensive because your initial investment remains lower and you don’t have to pay for hardware or continual maintenance. Flexible, because your data is stored (securely) in a decentralized fashion. All you need is an internet connection to gain access.

This solution is truly only as good as your IT department, because you have to operate it completely by yourself. There is a one-off license cost, as well as costs for maintenance, operation, and development. The Advantages: You retain maximum control because the solution runs on your own servers in your data center. You not only have control of it, though, but you bear full responsibility if anything happens. A sense of independence, as you can adapt your own HR software as you wish and integrate it into other solutions. But, you need to be able to invest the time involved in making these changes.

Any SME looking for the best solution in every area, for each process, is what is often called a ‘best of breed’ selection (in IT terms). This allows companies to switch more quickly if a better option comes onto the market, across their different requirements and processes. Of course, this means switching between a host of solutions that don’t necessarily ‘communicate well’ with one another. It can lead to a mess that is just as cumbersome as a library of spreadsheets.

Especially for SMEs, an integrated solution that covers a large portion of all core HR processes is usually the better option. That’s because an all-in-one HR software can usually be supplemented by special areas such as knowledge management or recruiting — as long as the interfaces fit. For most companies like these, HR management software with integrated applicant management software is perfect for them.