An HR management system (HRMS), is a collection of software programs used to manage HR services and related operations during an employee’s career. An HRMS solution allows a company to have a complete understanding of its workers while remaining compliant with changing tax and labor rules. Because they administer day-to-day workforce operations and are responsible for compliance and performance reporting, HR leaders and staff are the major users. HR isn’t the only department that benefits, though. Self-service for typical activities can empower managers and staff, which is a key selling point for younger hires. HRMS systems can be used by executives to generate data on worker trends and their consequences for the business.

HRMS Functions:

  • Candidate Management

It refers to how you market your company to the outside world as well as present workers who may want to apply for internal positions or provide referrals. From applying to resume management to interview scheduling to making offers, all the way through onboarding, for firms where the candidate experience is a top priority.

  • Employee Engagement

More engaged people are more likely to deliver higher-quality work, completely embrace the company’s values, and carry out its vision, therefore how an employee interacts with leadership and coworkers is critical. The HRMS is frequently used to finish training courses, learn new skills, advance in a job, achieve recognition, or become a mentor.

  • Employee Management

It is often referred to as “core HR” for a reason. Provides a central interface to assist with analysis, reporting, and compliance. It’s where you organize your personnel into organizational units like departments or locations, define manager-employee reporting connections, and link payroll to accounting cost centers. This function is the cornerstone of initiatives to give employee self-service, maximize reporting, and improve HR service delivery because it is where personal information is recorded and preserved.

  • Payroll

The main purpose of HR Services is to calculate earnings from gross to net, withhold specific deductions, and issue payments. Tax filing and deposits are also automated with full-service payroll solutions.

Employees can make changes to their elective deductions, direct deposit accounts, and tax withholdings, as well as get copies of their earnings statements, using self-service functions.

How will HR Management System lead the HR Transformation?

The most basic benefit of HRMS systems is having all of your personnel information in one place. This reduces compliance concerns, provides comprehensive data collection to support decision-making, aids employee engagement, and makes HR professionals and procedures more productive.
Let’s look at HRMS solutions that will lead the HR transformation:

  • In-depth Insights

Employees and managers create data in a variety of places, from spreadsheets to expense apps to paper records, making it impossible to acquire a comprehensive view of labor expenditures without an HRMS. All data is in a single bucket with a higher level of integrity with an HRMS.

This allows for better and quicker decision-making.

It’s also critical to a workforce planning and analytics project, in which a corporation evaluates its current staff and compares it to future demands established by corporate objectives. The capacity to identify and fix skill shortages before they hinder productivity, codify succession plans, and keep a check on labor expenses by assessing how overtime or double-time payments affect financial performance are just a few of the important benefits here.

HR staff can also detect early warning signs of problems using an HRMS solution. If high-performing employees in one department quit at a higher-than-normal rate, for example, this could indicate a toxic manager.

  • Improved employee engagement

HR managers are passionate about developing and maintaining talent, and an HRMS can help them do just that. HR Services may develop training curricula, customize learning programs and career trajectories, and establish mentorships using an HRMS. Indeed, the Harvard Business Review proposes that younger employees’ skills development be prioritized and that a mentoring program centred on sharing expertise be implemented.

Workers from Generation Z and Millennials also expect to be asked about their experiences frequently. An HRMS can link senior personnel in one department or geography with those who would benefit from virtual mentoring, as well as distribute and tabulate employee satisfaction and engagement surveys.

  • Lower back-end costs

The centralized structure of an HRMS—especially one provided as a fully cloud-based, software-as-a-service model—requires less hardware, data center space, and IT and development staff resources for maintenance, support, and training from an IT and capital spending standpoint.

This reduces IT spending on HR technology, necessitates fewer help desk workers and improves overall satisfaction among full-time HRMS users, namely the HR team.

  • Faster recruiting

Another area where HR professionals are passionate is attracting top people and establishing your company’s reputation as “the place everyone wants to work.” However, because it’s difficult to acquire insight into the job search process when postings occur outside of the organization, the candidate experience has been largely overlooked.

By electronically connecting recruiters and candidates through job boards and mobile applications, HRMS tackles this challenge, making the process more pleasurable and efficient.

  • Process efficiency and self-service

Responding to queries or administering significant programs, such as benefits enrollment or performance reviews, can require up to 40% of an HR professional’s time each week—and in many circumstances, employees would prefer to handle the work themselves. HR can create a knowledge repository within an HRMS so that employees and managers can discover answers to frequently asked issues, and employees and managers can securely access their information, allowing HR to focus on more value-added services.

Furthermore, HR activities that require many levels of approval, such as processing timecards, job requisitions, and time-off requests, can eat up a significant amount of time. Approval workflows in an HRMS automate these and other processes by notifying approvers when it’s their turn to approve (or reject). This can cut processing time by more than half while also improving accuracy.

Why HR management system can truly lead the effort in an organizational transformation?

  • Employee Development and Training

HR’s job is to figure out what the workforce’s specific learning needs are.

HR ensures that executives acquire the necessary training to be more effective in leading change and that all employees have the opportunity to enhance their abilities in key areas such as teamwork, communication, and customer service, to mention a few.

Employees demand new skills and knowledge to modify their behavior, and HR can find training partners and solutions to meet these needs as the company grows. HR may review and identify an enterprise-wide solution for culture transformation, for example, that includes coaching, targeted skill-building, and training reinforcement to achieve long-term behavior change.

  • Communication in the Office

Effective communication is essential for any effort to succeed inside an organization, and HR plays a key role in ensuring that everyone involved has the information they require. HR also facilitates workplace communication by ensuring that suitable feedback loops are in place so that employees may voice their opinions and ask questions. HR may promote organizational transformation by improving two-way communication in the following ways:

  • Assisting senior executives in the creation of employee communications
  • Attending town hall meetings and team meetings
  • Advising and assisting leaders, from the CEO to the frontline, in delivering consistent messages at all levels of the company
  • Keeping tabs on your progress and soliciting feedback

HR assists in the development, implementation, and monitoring of the change agenda, keeping leaders informed and assisting those who stray off track to get back on track. As organizational change begins, different functions and teams will have varied experiences, and HR is well-positioned to track each team’s progress and ensure that implementation is uniform across departments and functions. HR experts can see each team’s development with clarity and provide comments that will help managers drive their teams more successfully because HR is often at the center of transformation initiatives.

  • Programs for Talent Management are Connected

HR must ensure that each stage of the HR Cycle, including recruitment, incentives and recognition, and performance management, is aligned with the transformation’s goals during an organizational transformation. People have more clarity about performance goals and possibilities for progress when talent management initiatives are connected to the new situation of the business. HR can relate talent management initiatives to organizational transformation activities in a variety of ways, for example:

  • Ensure that the skills and competencies required for success in the new organizational culture are included in recruitment efforts and job advertising.
  • Changing succession planning to guarantee that those who exemplify the new corporate culture are positioned for leadership positions.
  • New organizational ideals are being included in the performance assessment process.

The HRMS industry is extremely fragmented, making it difficult to navigate. Many companies are offering HR management system services but choosing the right one can be a daunting task. Before choosing the HRMS solution you must narrow down and make a list of things you want from the HRMS. If you’re looking for HRMS services, connect with Topsource Worldwide. They offer exceptional and reliable HR services that will help in rapid growth and will also help in better planning of future workforce.

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Published On: February 23rd, 2022Last Updated: March 23rd, 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.