How a Good HRMS Can Help an Organization to Save Measurable Cost?
Gone are the days when everything was done through the manual procedure, as now the application of the latest tools and technology in the process of business management and operation has made everything easy. Modern businesses seek promptness, accuracy and efficiency in every aspect to keep floating within the competitive environment. HRMS (Human Resource and Management System) helps companies to manage and execute multiple tasks within a fraction.
Managing administrative HR works manually is a tedious and time-consuming affair and it requires experience and expertise of dedicated professionals. HRMS is a tool that uses the power of information and technology to mechanize manual and tedious assignments. One of the key objectives to implement HRMS within the administrative system is to bring proficiency and ensure profitability. This blog will highlight the key importance of the HRMS system and how a good HRMS can help a company to save measurable cost.
What Is HRMS (Human Resource Management System)?
Before we make efforts to understand the importance of HRMS, we should have a few introductory words about HRMS. An HRMS, in one line, is HR software that makes HR administrative works easy and hassle-free for an organization. It helps an organization to become more efficient and productive when it comes to managing tasks like hiring, retaining existing staff, managing payroll, administration, HR planning and more. It covers almost all aspects and elements of tasks and responsibilities taken care by an HR team. Let us talk about the key functions of HRMS in details.
Key Functions of HRMS
An HRMS works according to the strategic objectives of an organization and all its functions can be customized to meet organizational needs. The software can be implemented to take care of some key HR administrative tasks, they are;
Recruitment Management: HRMS plays an important role in the process of recruitment. The system takes care of demand and requirement of recruit within an organization. It also helps the HR team to design job position, filter applications based on credentials and qualification and more.
Onboarding: The joining date of a new employee means a lot to both the employer and the employee. Once a new employee joins a company, the HR team performs a set of activities known as employee onboarding. HRMS helps the HR team managing the tasks that include keeping the record of documents.
Employee Management: The task of employee management includes attendance and timetable management. An efficient HRMS tool features timesheets to keep all the record of attendance and work hours. The system helps the HR team to manage employee engagement efficiently.
Payroll Management: payroll management is one of the key tasks of an HR team in an organization. The task, however, can be hectic and tedious if the number of employees is huge. HRMS makes the process smoother by calculating all important elements like statutory dues, tax deductions, reimbursements, allowances and more.
Employee Self-Service: Advanced HRMS features self-service gateway that allows employees to access their information safely and securely. It also allows employees to see or download the hard or soft copy of their payslips.
Leave Management: Leave management is one of the key job roles of the HR department. The HR department creates, manages and allows leave to employees maintaining organizational rules. HRMS helps the HR team of manage such issues efficiently. It keeps the record of leave of all employees respective the number.
Reporting: Apart from managing employee-related issues, an HR department needs to submit reports to the company’s stakeholders. Reports are needed to be sent periodically through a pre-defined format. It is a part of the organization reporting process and HRMS can make the process hassle-free for the company’s HR team.
Other key job role and responsibilities of an HR department are training and development of the workforce, succession planning, performance appraisal and promotion, human resource development and many more where HRMS can make a great impact.
How an HRMS Can Save Operational Costs
The main objective of HRMS is to empower the HR team of an organization. Its multitasking ability makes it a one-stop solution for the HR team of small, medium and large scale enterprises. Here are some reasons how an HRMS can save operational costs.
It Saves Time and Enhances Efficiency: The implementation of HRMS eliminates the requirement of doing complex HR administrative task manually. It is fast and delivers error-free results. Finding employees’ files and information has become easy now, as a good HRMS can search and bring all the information on board within a fraction.
A Centralized Storage System: HRMS does not only store employees’ information but it also stores company data. Authorized persons can easily access and retrieve important information with a few clicks.
It Reduces the Cost of Maintaining Multiple Systems: Advanced HRMS reduces the need for multiple systems within an organization. Complete integration of HRMS with other software like ERP, company intranets, financial software and others reduces the cost of maintaining multiple systems.
Data Security: An HR team can use HRMS to keep all important data safely. Stored data are only available to authorized persons.
Improve Productivity: The multitasking ability of HRMS enables HR team to concentrate on other important tasks with better energy and enthusiasm. It also reduces the need for increasing the number of employees in the HR department.
Cloud-Based Solution: HRMS can be integrated into a cloud-based system to make the process of up-gradation and customization easy.
Cost-Effective and Easy to Use: A medium or large scale organization may need a bigger HR team to manage and execute HR-related tasks but the implementation of an HRMS can reduce the need or a big HR department. HRMS is just like other management software and there is no need to hire a specialist to run it.
These are some of the key advantages of integrating HRMS into the existing system of an HR department. Such facilities can help you to reduce the workload on your HR department and abolish the need for its further extension.