It’s difficult to be successful if you don’t have the right tools. After all, you can’t expect your mechanic to fix your car if all they have is a hammer and a screwdriver. They need a much wider range of tools to ensure they can do the job right.

The same is true of running an HR department or a business. With the right tools, you can not only succeed but you can become a leader in your industry. Here’s how the right HR technology powers leadership.

HR Technology Powers Productivity

The first thing the right tools do is make your team more productive. That means you can get more done faster. Many of the time-intensive tasks that eat into your HR team’s day can be handled efficiently with the right technology.

In turn, your team can devote more of their efforts to big-picture policy issues. From there, they can spend more time making and implementing better policy decisions for your business.

More productive HR departments translate directly into higher profits. With a more productive HR department, you’ll be able to reduce overheads, improve performance, and create policies that can keep your team members on board longer.

The Data Leadership Needs

The next thing HR technology does is give you the insights you need. Almost all technology today collects some form of data, whether it’s demographic data or usage data or both.

The right HR technology can help you collect the information you need to see how your team is performing and much more. If you want to know who is the most efficient worker or how long a project took or even which benefit is the most popular, technology like a human resources information system can provide you with the details.

This data can be used to see patterns. Analysis yields insights into why these patterns are occurring. In turn, you can start tightening up on overspending. It’s easier to trim benefits no one is using if you know for certain no one is using them.

You can also put more into what’s already successful. Perhaps you ask the sales team why they’re struggling to meet quota. It turns out they don’t have the right tools or the knowledge to use the tools you’ve given them. You then look into new tools and better training to help them. Better leadership starts when you know where the team needs your guidance.

As you can see, the data from HR technology can power business insights that make it easier to run your business more effectively.

Building Company Culture and Retaining Team Members

The powerful insights delivered to you by your HR technology can also be used to make decisions about your company culture. Again, it’s easier to see what’s working and what’s not.

You can then make better decisions, which improve company culture. In turn, you’ll make the workplace a more inviting place. Team members will be more willing to stay on for the long haul.

Think back to benefits. With usage data, you can axe the benefits that are merely eating into your budget because no one uses them. You can then pump those savings back into benefits that your team actually wants and uses. This better benefits package is likely to make your employees feel better supported—and they’ll be happy you listened to them.

Faster reimbursement for claims and better payroll systems also play a role. Finally, with your HR team freed up, they can focus on the important things: dealing with employee conflict, working towards employee goals, and hiring the right people for the team.

With the right people on board, you’ll also notice an increase in productivity and creativity that can push you ahead of your competitors.

It’s easy to see how leadership and HR technology go hand in hand. Your team powers your company, so get the insights you need to build the best possible team for a brighter tomorrow.