Human resources are an integral part of any business and their efficient management plays a key role in the success and growth of the organisation. Traditionally HR and payroll services were carried in-house by the company staff, but recent years have seen a shift towards automated software. Businesses have the choice of going for a simple payroll application or a sophisticated suite of technologies that combines the HR and payroll functions.
The use of a Human Resource Information Management System or HRMS software allows a company to efficiently manage employee data, payroll, recruitment, benefits, and even training.
HRMS Aids in Managing Employee Lifecycle
A good human resource management system takes over the management of the entire employee lifecycle including talent management, workforce optimisation, and learning. The use of automated HRMS not only saves a lot of time and effort but also enhances the user experiences while allowing a company to analyse the data and use it for future policymaking.
Cloud-based software results in the elimination of repetitive tasks thereby easing the administrative burden on a company’s HR department. By choosing the right HRMS, a company can reduce the manual work spent on managing the HR functions and instead focus on growing its business.
Here are some important features of an HRMS that a business should know about.
Store Employee Data and Effective Communication
An automated human resource management system can organise and store data related to employees, their positions, date of starting, salaries, and insurance plans. The software also allows authorised people to access their records in real-time. The inclusion of automated chatboxes allow employees to resolve their queries or inquire about their salaries and other allowances.
Multi-Country Payroll Management
An HRMS program can handle all the activities related to global payroll including calculating and paying salaries, deducting appropriate taxes, and executing the payments of employees placed in different parts of the world. Automated payroll services lead to time and cost savings, besides offering easy access to compensation and reward data for the employees. The software can also be scaled up or down in-line with the changes in an organisation’s work.
Time Tracking and Leave Entitlement
The HRMS does away with the need to store employee information in paper form. The inclusion of an applicant tracking system automates the process of searching for candidates, managing attendance, handling tasks like leave entitlement and encashment, and the record of leaves. All this helps an organisation evaluate job satisfaction of an employee and take essential steps to improve the situation. The easy availability of data related to employee attendance and punctuality also allows the organisation to analyse the employee’s satisfaction level.
Identify Employee Skills and Need for Training
The use of automated system for employee information management allows the company management to identify the gap in skills and manage employee training requirements.
Talent Retention
A good human resource information management system helps an organisation to develop employee recruitment as well as retention strategies. The data collected and stored by the system provides management with insights into an employee’s talents, performance, and behavioural pattern. Use of AI allows quick identification of concern areas, enabling timely action to resolve them.
Advanced HRMS systems combine the payroll and HR functions in a structured manner allowing businesses to focus on other aspects.