HR Digitalization for SMBs: How to Start Without Confusion?

Confused About Where to Start with HR Digitalization?

Ever feel like HR in your business is “just handling attendance & leave,” yet it still causes headaches every month?

If yes, maybe it’s not the system that’s faulty—but the workflow that isn't digital yet.

Many SMB players want to start HR digitalization but are confused about where to begin. Afraid it’s too expensive, too complicated, or simply doesn’t fit the scale of their business.

However, HR digitalization isn’t about using expensive systems or sophisticated software, it’s about making HR processes more organized, efficient, and minimizing error risks—with the right tools.

In this article, we will discuss realistic steps to start HR digitalization for SMBs, complete with examples and practical tips.

💡 1. Start with the Most Tangible Issue: Employee Data & Attendance

Don’t immediately think about performance management or AI dashboards.
The first impactful step is to digitalize basic data, such as:

• Employee biodata

• Work schedule & shifts

• Attendance & leave records

📌 Tools you can use:

• Google Sheets → initially, set up employee data formats & work calendars

• Simple SaaS HR like Haer → store all data in one place, easily accessible via phone

Why is this important?

Because 80% of HR issues in SMBs usually stem from manual attendance, scattered data, and inconsistent documentation.

⚙️ 2. Automate Repetitive Processes (Start with Leave Requests & Reimbursements)

Repetitive processes like leave approval and reimbursement claims often consume time and energy.
Without a system, everything is done through personal chats, spreadsheets, and constant inquiries.

Start automating with:

• Online forms for leave & claims

• Direct approval through systems, without print/signature

• Automatic recap at the end of the month

📌 Benefits immediately felt:

• HR no longer needs manual recap

• Employees know the status of submissions transparently

• All logged & documented

📊 3. Build a Simple HR Dashboard

After basic data is digitalized, you can start seeing patterns:

• Which employee frequently asks for leave?

• Which team works overtime the most?

• Are there specific resignation trends?

This can be built from simple tools like:

• Google Data Studio (free)

• Dashboard feature from HR apps like Haer

A dashboard helps you make data-driven decisions, not assumptions.

🛡️ 4. Secure Data with Cloud & Automatic Backup

Many SMBs still store employee data on laptops or office hard-drives. This carries high risks:

• Virus attack

• Laptop lost

• Not accessible remotely

Start using:

• Google Drive / Dropbox → store employee documents

• Use cloud-based HR software so all data can be accessed anytime, anywhere, without fear of loss

💡 Ensure access is restricted to authorized personnel only.

🧩 5. Choose a System that Grows with Your Business

Don’t be tempted to buy expensive systems with excessive features that you won’t use. Instead, choose a system that:

• Is easy to use (by HR team and employees)

• Can upgrade features as the business grows

• Has local support & clear documentation

📌 Tips:

Try a system like Haer, specifically designed for Indonesian SMBs—with modular features and easy onboarding process.

🔚 Conclusion: HR Digitalization is a Marathon, Not a Sprint

You don’t need to go 100% digital overnight.
Start with the most basic things: data, attendance, leave, then gradually build processes on top of it.

With the right steps, HR digitalization can:

• Save up to 40% of administrative work time

• Increase transparency & trust within the team

• Prepare your business for scaling up

Digitalization isn’t a luxury—but a necessity so you can focus on more important things: the growth of your business and team.

✨ Interested in starting HR digitalization without the confusion of setting up?
Try Haer — HR platform for SMBs aiming to work more neatly, quickly, and humanely.