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Why a free Excel is the most expensive HR system for your company

By Anna Nowakowska, Implementation Specialist·September 28, 2024·8 min read

Most small business owners in Krakow and the surrounding area start with Excel. It seems logical because the spreadsheet is at hand and costs nothing at the start. However, after 4 years of running a business, these free tables become a burden that eats real money from your account every time you calculate payroll.

The trap of freeness, or where your money escapes

At Wawel Solutions Group, we often meet owners who are proud of their spreadsheets. Mr. Marek from a transport company near Wieliczka had a table with 83 tabs. He thought he had everything under control until we calculated together how much time data entry takes him. It turned out that his HR person spends 14 hours a month re-typing hours from paper lists to the computer. At a rate of 42 PLN per hour, this free program cost him almost 600 PLN a month just for handling one activity. This is not a saving; it is a slow waste of resources.

Excel won't send you a notification that a driver's medical exam is expiring. It won't tell you that an employee's vacation limit was exceeded by 3 days because someone forgot to subtract time off from May. In a small team of 18 people, such mistakes happen an average of once a quarter. Fixing these errors, searching for lost requests, and straightening out papers in offices takes more time than running the company itself. We count facts, not promises – and the facts are that manual data entry is the simplest path to a mistake that will sooner or later hit your pocket.

A free spreadsheet costs you 14 hours of HR work per month. That's 588 PLN thrown away every month.
The trap of freeness, or where your money escapes

Formula error and the risk of government penalties

I remember a situation from June 2024 at one of our manufacturing clients. Due to one small error in an overtime summation formula, 12 employees received underpaid salaries for four months in a row. No one noticed until one of the machine operators went to the bank for a loan. It ended in a Labor Inspectorate audit and the need to pay interest. The total cost of this one Excel mistake was 4300 PLN, not counting the stress and ruined atmosphere in the team. Excel is a brilliant calculator, but it is not a system that monitors labor law regulations.

At Wawel Solutions Group, we focus on the system working for you, not you for the system. When documents are in the cloud, every change is recorded. You see exactly who edited data and when. In a spreadsheet, it's enough for someone to accidentally press the 'delete' key in the wrong cell and the entire vacation history from last year disappears without a trace. Recovering such data from backups (if they are even made) takes an average of 4 hours of intensive IT work. It simply has to work every day, without fear that one click will destroy months of work.

Data security on a company laptop

Do you know exactly where the file with your employees' data is located? Usually, it sits on the HR person's laptop desktop or is sent via email as an attachment named 'hr_final_v3.xlsx'. This is a nightmare from a personal data protection point of view. In 2023, one of the Krakow companies we now work with had their mailbox hacked. PESEL numbers and addresses of 47 people were leaked. The fine was severe, and they spent a year rebuilding employee trust. The HR systems we implement encrypt data and grant access only to those who actually need to know.

Less clicking, more work – that's our rule. Instead of searching for a file on a disk, you have everything in one place, secured with a password and two-factor login. Excel doesn't allow for easy permission management. Either someone sees everything (including the boss's earnings) or they see nothing. In a small company where everyone knows everyone, such pay transparency resulting from a file permission error can break a team in one day. Without unnecessary binders and without the risk of confidential data leaking to competitors just because someone lost a flash drive.

The file 'hr_v3.xlsx' on the desktop is not secure data storage. It is waiting for trouble.
Data security on a company laptop

How to regain 11 hours a week

Implementing a simple document flow tool at Wawel Solutions Group usually takes us 3 to 5 weeks. That's short, considering you regain about 11 hours a week on communication with employees alone. Imagine that you no longer have to print a vacation request, you don't have to sign it with a pen and take it to HR. The employee clicks on their phone, you approve in 3 seconds, and the system updates the table itself and sends information to accounting. This is the real change we talk about with clients at Grodzka 12.

Our experience shows that after quitting Excel in favor of a dedicated solution, the number of settlement errors drops by 67% in the first quarter alone. These are not magic numbers; they are the result of removing the human factor where a machine handles it better. An HR employee, instead of fighting formulas, can finally focus on finding new people for work or improving internal communication. At Wawel Solutions Group, we believe that technology should make life easier, not add work. That's why our systems are simple – because they are meant to serve people, not IT specialists.

How to regain 11 hours a week