Companies and businesses face many problems like Scaling, workflow optimization, and process automation as they grow. Managing a company’s human resources becomes increasingly difficult as the number of employees grows. To decrease the burden of HR, HR management systems that assist with HR activities and cover all day-to-day HR tasks and personnel and payroll demands can help.

HR management systems have the power to drastically improve the atmosphere and productivity of your workplace. The fact that it deals directly with a company’s most valuable asset — its people – emphasizes the need of having an up-to-date HR system.

In this blog, we’ll discuss how the HRMS system help businesses and related aspects.

Traditional ways and Today’s way of HR Management System

  • Traditional HRM System

Human resource management in the traditional sense is mostly reactive. This indicates that the HR department’s actions aren’t entirely connected with the company’s strategic objectives. HR is more of a task-oriented administrative department that simply responds to employees’ needs when they arise.
In a traditional human resource management method, for example, if a department manager advises HR of an open job, HR will recruit and hire personnel. HR will also answer employees who have queries regarding a specific policy. On the other hand, HR is unlikely to publish an employee handbook or provide seminars on new policies that employees must be aware of.

One of the problems with this method is that the HR department becomes overburdened because it is mostly reactive. Traditional human resource management typically lacks strategic planning, so the team isn’t always aware of what they may be doing before the organization or an employee requires support.

  • Modern HRM System

Unlike traditional human resource management, which is reactive, modern human resource management is more proactive. HR aligns with the business’s bigger aims from an executive level with this approach. The company creates a unified HR strategy that aligns with the goals it wishes to achieve. All human resource initiatives, from recruiting and hiring through onboarding and training, are intended to help the company achieve its goals.

Instead of waiting for a department manager to tell HR of an open position, HR will recruit and hire personnel ahead of time, depending on the overall business strategy and in coordination with department managers. The HR department is capable of doing so since it is already aware of the company’s future requirements and can make plans accordingly. Similarly, HR will assess employees’ needs for onboarding, training, performance reviews, and compensation using the strategic approach and plan and implement programs to offer employees the appropriate knowledge and resources.

HR issues and How HR management systems solve them

  • Statutory Compliance

HR has to follow several rules and regulations and must know about them too as they keep on changing. The difficulty arises from the fact that your HR department must guarantee that they are following the standards and track and update all job posts to ensure that they have the proper wording. Compliance can take a long time and result in costly mistakes if done manually.

Many of the hiring compliance requirements that HR managers must follow can be automated with the Leave Management System. Once employed, a leave management system and a time tracking solution will ensure that all of money earned, including overtime, is paid to your staff. Thus, the problem of statutory compliance problem can be solved.

  • Solve the problem of data

HR departments must collect and store a massive amount of data. The number of duties requiring their attention might be huge, ranging from onboarding and enrolling in benefits to approving time off and administering payroll. HR teams can complete duties faster and more precisely with a small organization and a single solution to store all HR-related data.

All workforce management needs, including payroll, benefits, onboarding, and time off monitoring, are categorized by a complete HR platform, allowing HR professionals and employees to access everything from one location. HR staff will be more productive and effective in their work with important HR information organized in a single spot and the opportunity to tailor the solution to meet corporate objectives.

  • Manages productivity

When HR teams spend too much time on administrative activities, it’s tough to keep track of productivity. An easy software solution with a self-service approach can save the time HR experts spend on administrative chores by allowing employees to manage their data.

How do HR management systems help your business?

  • KPIs are tracked

A Key Performance Indicator (KPI) is a quantitative statistic that demonstrates how well employees or an organization as a whole are meeting their goals. Only the most important metrics should be measured, and an HRMS and payroll solution can help with this. The following are the most significant KPIs to track with an HRMS:

  1. Duration in the position
  2. Employee retention
  3. Absenteeism
  4. Time to achieve goals
  • Effectively manages staff

The overall efficiency of a corporation can be improved by reducing repetitive administrative chores and automating some procedures. Most HRMS make it simple to collect data centrally, automate business procedures, and provide visibility through charts and graphs. The following are some of the most important elements that an HRMS and payroll solution can provide to help with personnel management and workflow:

  1. Time & attendance management
  2. Training management
  3. Payroll
  4. Performance management
  5. Hiring and onboarding
  • Removes the possibility of human error

Human mistake is another major source of avoidable corporate costs. Automating HR procedures decreases the possibility of common errors such as double entries and allows employees to double-check their work for typos.

  • Improvement in employee self-service

One of the most in-demand aspects of modern HRMS software is employee self-service. Employees frequently inquire about specific terms, conditions, pay, leave, and other matters. However, answering all of these questions individually for hundreds of employees is incredibly tough for the HR department. Employee self-service and satisfaction are improved with an automated HR management solution. Employees who want to check their available paid time off, paid sick leave, or capacity to work remotely can do so using an HRMS. Employees normally have their accounts in HRMS software, where they may access any information they need.

  • Data security & privacy

Investing in an HRMS and payroll solution is a critical step in ensuring employee data security. An employer is responsible for preventing the misuse of personal employee data as well as securing that data from outside dangers. By encrypting personal information, an HR management system helps safeguard it from hackers and unauthorized users. Furthermore, an Leave Management System includes payroll capability, which allows for a more secure payroll processing by safeguarding sensitive data with password authorization and storing it on internal hardware.

  • Routine HR responsibilities

The HR department in many companies is in a pickle. HR managers want to improve the working environment for their workers, but they are often swamped with paperwork and administrative chores such as collecting personnel information and responding to requests. Companies can utilize a Human Resource Management System to handle these mundane duties.

HRMS boosts productivity by reducing paperwork, speeding up the creation of documents, Statutory Compliance, and saving time.

Benefits of Human Resource Management System

  • HRMS aids in the hiring and training of employees

One of the most critical responsibilities of the HR department is manpower planning. HR managers design hiring strategies to ensure that their company hires the proper personnel. They create Job Descriptions that are best suitable for the company’s job. They also plan for the employee’s induction with well-defined training and development programs when they are hired.

  • Performance Management System is looked after by HRMS

HR is in charge of keeping employees engaged in their work. The task of establishing an individual’s function comes first. As a result, an effective feedback mechanism that is used regularly assists employees in improving their skills. This aids in the synchronization of the organization’s aims with its objectives. A good PMS aids in recognizing and rewarding people’s achievements.

  • HRMS aids in the development of a company’s culture and values

Individual performance is influenced by the work environment or culture that exists in a company. The HR department is supposed to create a pleasant working environment. A safe and clean work environment encourages employees to bring their best selves to work and increases job satisfaction.

How can TopSource Worldwide HRMS systems help?

TopSource Worldwide provides a comprehensive set of HRMS system, Portico HR to help you hire and pay employees in a timely, consistent, and compliant manner – both locally and globally, depending on your business needs. Our operations are supported by decades of experience and a proven track record of success, and our systems and processes are adapted to work with your technology.

Reach out to us for payroll solutions integrated with HRMS solutions.

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Published On: March 10th, 2022Last Updated: June 16th, 2022

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About the Author: Sachin Disa

Sachin heads the India Payroll business unit and is responsible for global sales into India, India domestic sales and delivery, and local finance support in India. Sachin has over 17 years of experience with the company, his previous roles include head of UK payroll operations, head of accounting support services, head of sales in India and VP of finance.