The days when an HR department was just another part of a business are long gone. Human resources are vital if modern organizations want to thrive and excel. This article explores why HR systems are important, particularly in web3 and decentralized workplaces. We cover the benefits of upgrading from traditional HR tools to a well-structured HR system and cover BeInCrypto’s own journey in upgrading our HR system. Plus, we give five compelling reasons why other companies should consider doing the same.
In this guide:
What is an HR system?
HR systems are crucial to the functioning of a modern workplace. A good HR system will help employees hone new skills, advance their careers, monitor performance, manage work schedules, and document workplace concerns. In other words, it facilitates and streamlines many HR processes, improving the overall employee experience.
“What’s the secret behind high-performing organizations? They are most keenly aware of the critical role that their organization’s human resources function plays in activating its overall success. If you think human resources is just a support system […] for your business, it’s time to reimagine your relationship.”
Joey Price, CEO of Jumpstart: HR via Forbes
What can you do with an HR System?
A company can leverage its HR system for various purposes, enabling various teams and individuals to streamline processes and enhance the overall employee experience.
- Managers: Can use HR systems to support new and existing employees’ professional growth and development by providing skills enhancement and career progression tools. It enables them to monitor employee performance, offer feedback, and identify opportunities for improvement.
- Finance teams: HR systems offer valuable insights and reports to finance teams, aiding in tax compliance, payroll processes, cross-border payments, and benefits administration. These reports provide a clear overview of expenditures related to payroll and benefits, helping finance teams project future costs accurately.
- Employees: HR software often includes self-service functionalities allowing employees to access and manage their personnel information, leave balances, and other HR management matters. This empowers employees to take more ownership of their HR-related needs and enhances their overall organizational experience.
- Hiring process: Recruiters and HR professionals may use HR systems in talent management and include the technological tool in their HR process map. Some ways of utilizing HR systems in the hiring process include onboarding, career planning, performance management, learning and development, compensation, and succession planning.
- Workforce management: HR systems equipped with workforce management functions offer efficient time tracking, time off, absenteeism, and so on.
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The perks of having modern HR software
From a practical standpoint, having an HR system offers numerous benefits to organizations, whether they operate in web2 or web3 environments. These benefits enhance efficiency, improve employee experience, and streamline HR operations. We’ve wrapped up the main advantages of implementing HR software in the graphic below.
Centralized employee information for quick decision-making
An HR system centralizes all employee-related data, including personal information, work history, skills, and certifications. This streamlines data access and enables HR teams to make informed decisions quickly.
Enhance employee experience through self-service features
With self-service features and easy access to HR information, employees can efficiently manage their leave requests, update personal details, and access training resources. This self-sufficiency fosters a positive employee experience and reduces the administrative burden on HR staff.
Efficient recruitment and onboarding processes
The automation of talent acquisition and onboarding also gets easier. An HR system can track applications and job seekers, screen resumes and schedule interviews. It also facilitates smooth onboarding with electronic forms, training modules, and a clear task checklist. For remote working environments, this is particularly important.
Streamline employee payments and benefits administration
HR systems automate payroll processing and candidate and employee verification, making calculating wages, deductions, and taxes easier. Additionally, they streamline benefits administration, ensuring employees receive the benefits they are entitled to promptly.
Employee training and development
Organizations can use HR systems to identify skill gaps and design personalized employee training programs. This ensures continuous learning and development, enhancing the workforce’s capabilities and adaptability.
Remote team management for decentralized workforces
As organizations grow, HR systems can easily scale to accommodate the increasing number of employees and their changing needs. In web3 environments, where decentralized teams are common, an HR system helps manage employees from various locations seamlessly.
HR systems in web3
In web3 companies, implementing an HR system brings forth many advantages, revolutionizing traditional HR practices to cater to decentralized environments. The HR system serves as a centralized platform for managing teams that are spread all over the world.
If utilizing blockchain technology, the organization ensures transparent and immutable records, safeguarding data integrity and enhancing security against manipulation or fraud.
Another common issue HR departments face is the acquisition of top-notch talents. Using a proper HR system, talent pool acquisition, and employee verification is facilitated through decentralized networks and blockchain-based reputation systems, enabling the identification of skilled individuals for specialized roles. Culture-wise, HR systems can be key in decentralized organizations, helping to promote a culture of meritocracy, autonomy, and transparency.
Why should you upgrade your HR system in web3
In a startup, every action and decision is critical. A bad hire or a disorganized system can be very expensive.
BeInCrypto has been operating for nearly five years. After a rough patch, the HR team is the highest performing in the company, bringing outstanding results and consistently hiring top-notch talents on the market. The implementation of an effective HR system contributed to this success.
Arina Koganelok, human resources director at BeInCrypto, managed the company’s journey in upgrading its HR system. She shared five key reasons why other companies should consider doing the same.
1. Overcoming chaotic growth by adopting a structured HR system
Like many startups, BeInCrypto initially relied on the expertise of its people to handle HR tasks. However, as the company expanded, this ad-hoc approach became untenable.
The lack of a centralized HR system led to ambiguity and inconsistency in managing processes. Arina explained that the main challenge was getting managers on the same page, as each had their own vision for HR processes. To address this, the company documented and fine-tuned processes in real-life scenarios before configuring them in their new HRM system.
BeInCrypto’s experience: By adopting a structured HR system, the company brought order to its HR processes and facilitated seamless communication among managers, increasing efficiency and reducing errors.
2. Step-by-step implementation for better employee adoption
When implementing the new HR system, we realized that achieving 100% employee adoption required a thoughtful approach. The migration process was divided into stages, focusing on different HR functions. The step-by-step approach began with the recruitment process, followed by onboarding, leave management, a knowledge base, invoicing, and more. This allowed the company to refine and fine-tune each function before moving on to the next.
BeInCrypto’s experience: Taking time to implement each module meticulously resulted in greater employee acceptance of new features and a smoother transition to the new HR system.
3. Aligning objectives to streamline HR processes and enhance efficiency
The primary objective of BeInCrypto’s HR system upgrade was to bring order and clarity to once-chaotic HR processes. This involved streamlining and standardizing practices across the organization. Additionally, BIC aimed to increase team efficiency and reduce human error.
BeInCrypto’s experience: With the new HR system in place, managers and employees now work cohesively under unified rules and guidelines, leading to better decision-making and optimized HR operations.
4. Streamlining recruitment processes and reducing time-to-fill positions
Recruitment is a critical aspect of HR operations, and improving this process was a significant focus for BeInCrypto. The HR system facilitated data analysis, identified bottlenecks, and enabled informed decision-making. As a result of significant changes, the company achieved a remarkable 2x reduction in simultaneous vacancies and decreased the average time to fill a position from 60-90 days to 35-45 days.
BeInCrypto’s experience: By leveraging the HR system’s capabilities, BeInCrypto significantly improved recruitment efficiency and secured top talent for their decentralized team.
5. Seamless integration with existing tools for enhanced collaboration
To enhance productivity, BeInCrypto’s HR system integrates seamlessly with Google tools such as Calendar and Email. This integration streamlines communication and scheduling processes, improving coordination among team members, particularly in decentralized work environments.
BeInCrypto’s experience: Integrating existing tools has proven invaluable in ensuring smooth collaboration and efficient HR operations, enhancing overall productivity.
HR systems are key to decentralized web3 workforces
As our own case study shows, upgrading or investing in a modern HR system can effectively transform a company. It’s particularly important for connecting, empowering, motivating, and streamlining decentralized workplaces (be that newly decentralized organizations, moving from web2 to web3, or new web3 startups). While an HR system upgrade might seem like a significant or extravagant investment, it is actually mission-critical for sustainable and successful growth.
Frequently asked questions
How does an HR system benefit a company operating in web3?
How does an HR system enhance talent management in web3 companies?
Can an HR system in a web3 company promote a decentralized work culture?
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