Human Resource Management System is a single, integrated system that functions across the entire employee lifecycle. It includes elements like recruitment, performance management, onboarding, training and development, upskilling, compensation (payroll), compliance management, and benefits administration.
What’s more, with HR management software, both employers and employees can manage the activities in their workday more efficiently and effectively.
It’s a solution that automates core HR processes, such as payroll, attendance, employee verification and employee background screening. The software also helps you manage requests for leaves, and track absenteeism.
These days, small businesses are overwhelmed by the number of tasks they have to accomplish in a short timeframe. With time-consuming and complex HR processes taken care of by the HRMS software, your business can focus on its core competencies instead of being bogged down by administrative tasks.
Let’s deep dive into some of the core functions of HRMS which will illustrate its need.
One Database, One-Click
A centralised database of all staff information allows you to access any detail you need to at just a click of a button. You can access the information from anywhere, at any time, and even on your mobile device.
It’s much easier to find the data you want when it is stored in one place and accessible through one interface. This also reduces errors during data entry as there are no duplicate records for different roles or locations.
Self-service for Your Workforce
Self-service is also a great way to save money and time. For example, you can use an HRMS to enable your employees to update their profile details or submit leave requests on their own with ease. This not only increases efficiency but also reduces errors and saves time for both the employee and the company.
In addition to this, a good HRMS enables the communication between managers, employees and other stakeholders via email or phone calls when needed without any hassle whatsoever.
Attendance and Time
With a time and attendance system, employees can clock in and out of work and clock with any device. The system allows employees to authenticate themselves with biometrics such as fingerprint scanning or facial recognition before accessing the app.
This eliminates the need for additional hardware. With this method, employees can manage their attendance without having access to an old-fashioned punch card machine at work. They also no longer have to worry about losing their physical badge or forgetting it at home on weekends when they don’t come into the office.
Employee Engagement is Key
One of the biggest benefits of using HRMS software is that it helps you automate a variety of processes.
A good HRMS software will have features that help you set up employee engagement initiatives from within the same platform. For instance, it allows you to create different types of performance appraisals and use them to track employee progress on key goals.
Automate Payroll for Convenience
An HRMS can also help you automate payroll processes, such as salary disbursement and reimbursements. For example, if your company uses a timesheet system to track hours worked, an HRMS can automatically calculate rates of pay based on that data.
This is another step in the process that allows you to make sure that employees are paid correctly and on time without making mistakes or overlooking any details.
Automating these tasks is important because it makes everything easier for you and your employees.
Not only this, but it helps notify you when your employees are near their pay review date so that can take action on time if necessary, or follow up with them if there are any issues with their performance appraisal reports.
Employee Sourcing and So Much More
Hiring the right employees is a key aspect of every business. However, it can be difficult to find the perfect person for your team. An HRMS employee sourcing tool helps you find the right talent for your team without spending too much money on recruiting agencies.
Besides the functionalities mentioned above, a full-fledged, tech-enabled, integrated and comprehensive HRMS software can do so much more. For instance, HRMS tools today run state-of-the-art employee background checks for criminal history, educational background, drug use etc.
Some HRMS software has capabilities to upskill and reskill employees, manage employee benefits, digitally onboard candidates, and help manage compliances.
The workforce is constantly evolving. Naturally, companies and the HRMS tools they utilise have to be a step ahead. If you haven’t invested in one that has a slew of features to make your HR processes more streamlined, then it’s high time that you do.