Growing companies strive to achieve excellence and compete by offering better services or products that help attract potential customers and enhance their confidence in their offerings. In light of this competition and the desire for growth, success, and sustainability, these company owners seek to enhance the importance of the human element. They recognize its importance in contributing to achieving the company's goals. This is achieved by focusing on human resources management as a strategic partner that effectively contributes to shaping the company's vision and achieving its objectives. However, there are many challenges that growing companies face when implementing an HR system, which represents an obstacle for business owners.
In this article, we review the importance of implementing a human resources system for growing companies, the most prominent challenges that may hinder the implementation of these systems, and offer recommendations to help overcome them.

The Importance of Implementing an HR System in Growing Companies
Human resources systems contribute significantly to achieving the goals of growing companies by improving productivity, enhancing employee engagement, ensuring legal compliance, and working to attract the best talent. This is due to the effective tools these systems contain that automate the routine tasks performed by any HR department, such as payroll management, leave management, and employee contract management. They also save time and effort, allowing you to focus on more important tasks, such as workforce planning, tracking and analyzing employee performance to provide training programs to develop their skills, and building a positive work environment that enhances employee confidence and loyalty.

All of these reasons, and many more, can save a lot of time for developing companies, helping them achieve their growth and sustainability goals and enhance their competitiveness in a rapidly evolving labor market.

Key Challenges of Implementing an HR System in Developing Companies
Budget Limits
One of the biggest challenges facing developing companies in implementing an HR system is limited financial resources and high initial costs. This is especially true when investing in systems with integrated solutions, given the flexibility and ease of task execution, data flow, and much more they offer. This is especially true given that the cost of the system is not limited to the implementation costs alone, but also includes the costs of implementation, training, maintenance, and the desire to customize the system to suit the company's needs. This makes it difficult to make the decision to invest in these systems.

Proposed Solutions:

Seek software solutions that offer monthly or annual subscriptions at prices that suit growing companies. Invest in these solutions as a first-line solution rather than investing in more advanced software.
Start with the main benefits: Companies can implement an HR system for core tasks, saving significant time and effort, such as payroll management, contracts, and recruitment. Then, work on expanding gradually in the future.
Lack of technical expertise and knowledge
Many growing companies lack the technical expertise to select an appropriate HR system, or to manage and operate within it. This is due to their habit of performing tasks using traditional methods and their lack of awareness of new developments in HR systems and their working methods. This can lead to the selection of a system that is not aligned with the company's needs and ultimately failure to manage it.

Proposed Solutions:

Helping external consultants: HR specialists can assess the company's needs and guide the process of selecting and successfully implementing the appropriate system.
Training Programs: Provide training programs for HR employees to familiarize them with the features and tools of the HR system. How to use it to perform tasks and maximize its benefits.
Resistance to Change
Some of the challenges emerging companies face when implementing an HR system include employee resistance to change. This is due to employees' habit of performing tasks through traditional methods and their fear that technology will impact their job roles.

Proposed Solutions:

Effective Communication: This involves holding discussions with employees and explaining the benefits of implementing an HR system for both the company and the employee. It also explains how this contributes to enhancing their skills, rather than displacing them, and their ability to manage.
Enhancing Participation: Holding discussions with HR staff and surveying their opinions on various systems is essential to fostering trust between the company and the employee.
Lack of Data to Support Decision-Making
Some emerging companies suffer from a lack of data related to human resources management. This is due to the lack of a central database, duplication of data, errors due to manual recording, and other reasons. This lack is one of the challenges that hinders emerging companies from analyzing employee performance, identifying training needs and departmental needs, and lacking effective workforce planning. This can impact the ability to achieve the desired benefits from implementing an HR system.

Proposed Solutions:

Key Performance Indicators (KPIs): Identify the performance indicators that should be tracked to measure the performance of all aspects of the HR department.
Collect and Update Data: By implementing an HR system, a central database containing all data can be created, which is automatically updated. Performance analysis reports can be used to make informed decisions.
Difficulty Choosing an Appropriate HR System
With the availability of many HR systems, and the varying solutions they offer, whether integrated or systems with limited features, developing companies may face difficulties in deciding which HR system is right for their needs. This may result in choosing an HR system that doesn't precisely meet those needs.

Proposed Solutions:

Define Needs: Before searching for an HR system, you must first identify and evaluate the company's needs. Then, work on developing a plan.