What is an HRMS? What is its full form?
An HRMS is ‘Human Resource Management System’, a cloud-based array of softwares to automate your organization’s HR functions end to end and eliminate repetitive tasks, easing the administrative burden of your HR department thereby.
The technological advancement in the HRMS today has offered immense flexibility to the organization of all sizes to streamline HR processes more effectively, manage employees and their data swiftly, saving time and costs for the strategic planning and growth.
With the right HRMS System at your disposal, the HR team can be liberated from hours of manual work, spreadsheet management, documentation troubles; allowing them to concentrate more on the true assets of your company- your people.
On the organizational front, your data, policies, workflows and processes all are standardized and work in tandem leaving no room for ambiguity and helping you deliver the best experience possible to your people.
Why do you need the HRMS System? How does the software help your organization?
The past decade has marked a massive disruption with the introduction of AI, Machine Learning and the world of work has changed drastically. Automations are no longer the luxury but the necessity for the organizations to truly adapt to the dynamic economies.
An HRMS system paves the way for the organizations of the 21st century to conduct their HR functions in a faster, secure and structured manner unlike the traditional HRIS that were just limited to managing employee
Discover in this Human Resource Guide, the Top 5 reasons why your company should go for automation with HRMS:
Centralized & Secure data management
If we go back in time, offices used to have a dedicated room for piles of files carrying sensitive data about employees. Then came the era of machines, where every information was stored in formats in the spreadsheets, requiring good bandwidth servers. Manually upkeep and maintenance of this data in the spreadsheets consumed a significant amount of time and accuracy was still questionable.
An HRMS with a strong workforce management software module on the other hand captures, syncs and integrates the employee data across the entire lifecycle and makes it available in a second in any required format. The software uses 2 way encryption for additional data security and restricts access of data to unwanted people.
Systemized processes
Does disparity in policies, timeline jumps give you constant headaches as the HR head?
A well designed HRMS allows you to quickly configure multiple policies with pre-existing formats and templates to kick start the operations. Set up the workflow engine to trigger tasks to the right people in the order of their
Also, there is no one-size-fits-all answer so the best way to systemize processes with HRMS systems will vary depending on the specific organization and its needs. Defining your business processes and objectives will help you to identify which processes need to be automated and which ones can be handled manually. Once the HRMS system is up and running, managing and monitoring various HR processes becomes easy and smooth.
Employee Self Service
The non existence of the HRMS System in the earlier times saw dependency of employees on the HRs for basic queries like salary slips, tax breakups, submission of attendance sheets via emails etc resulting in unanswered questions and lack of employee satisfaction. HRMS caters to its key stakeholders- the employees with an easy to use Employee Self Service where employees can punch in their attendance, raise leave requests, lodge a query in the helpdesk and perform many other crucial day to day functions.
Mobile Apps
When was the last time you used your desktop to skim through the social media feeds or shop for your favorite product online? As of date, there are over a billion subscribers of mobile in Indian landscape, inspiring disruptions in the B2B enterprise solutions to go mobile first. An evolved mobile first HRMS comes handy with not just Employee Self Service but a fully functional solution for HR and solution for managers to enable ease of access for every stakeholder!
Discover the first ever HRMS Mobile app that comes with ESS + MSS + HSS, explore how it empowers you to be 10X efficient!
Emergence of experience culture
‘It’s imperative for the companies to remodel their traditional HR practices, and choose the HRMS that can help them with a full circle experience management with continuous listening, positive communication and effective Reward and Recognition system to retain the talent and build happier workplaces’ with ‘It’s imperative for the companies to remodel their traditional HR practices, and choose an HRMS with a powerful employee engagement software module. A solution that can help them with a full circle experience management with continuous listening, positive communication and effective Reward and Recognition system to retain the talent and build happier workplaces
People Analytics
How do you ascertain your workforce performance and that your people are performing to the best of their capabilities? Modern HRMS knits every action taken on the Performance Management Software into a data point and collectively represents these data points as insights via a combination of dashboards. As a Ceo, you can now take a quick sneak peek into workforce attrition rate, average workforce costs, your net liabilities, top performers of the organization department wise and much more elusive decision worthy analytics!
What are the key components of the HRMS?
An effective Human Resource Management System not just backs your HR department to execute the core functions effectively within due timelines but also sets the foundation for a culture of engagement and productivity for the employees.
Find out in this Human Resource Management Guide, what are the key components of an HRMS that makes it the ideal software for HR:
An all rounded HRMS consists of the followingtop 14 components
Manpower Planning
Manpower planning involves analysing the current resource requirements of the organization, making future forecasts based on the previous manpower requirement trends, department wise workload, no. of employees required for the existing work responsibilities; all done in alignment with your existing business or services expansion plan.
Talent Acquisition
One of the major challenges for the HRs is to hire qualified workers for the vacant positions for different departments in the organization, it’s a chaotic and labour intensive process when done manually. An HR has to prepare apt job descriptions, post it on relevant job portals, screen resumes and conduct telephonic and face to face interviews. The Recruitment Management Software in the HRM system automates this entire hiring process end to end, making it 10x more efficient.
68% of recruiting professionals say that the best way to improve recruiting performance over the next 5 years is by investing in new recruiting technology.Source: LinkedIn
Pre Boarding and Onboarding
The moment you hire an employee and he/she accepts the offer letter, the preboarding phase begins where futuristic organizations like Twitter actively prepare for the infrastructure and welcoming of the employee and remain in constant touch with the employee till the D day. Onboarding begins when the new hire reports to work on the first day and a predefined checklist of activities are carried out to make the employee acquainted with the office environment and work.
Make your onboarding process more efficient with this ready-to-use checklist
Confirmation
When an employee begins his term with the company, he isn’t instantly given a permanent position and goes through a probationary period of 3 months to 6 months. During this period, the manager closely observes performance, behaviour and cultural fitment of the employee on a day to day basis. If the employee meets the expectations of the organization, a confirmation letter is rolled out to the employee making his position permanent.
Policy Creation and Management
While setting up your HR functions, the legal compliance with the local and industry laws is to be kept in mind at every stage. Simultaneously for clear communication and legal transparency, an HR creates and shares various work norms related policies that act as a handbook for the employees. Your employee refers to these policies during the entire lifecycle and keeps in check his/her behaviour to not breach any rule. HRM systems today have integrated policy engines to help you define and distribute these policies with ease, without having to consult any external legal parties.
Establishing your HR functions for the first time? Download our ready policy templates to get the job done faster
Employee Information Management
Employee record management is the most crucial function performed by the HR department, if the records are misleading/incomplete or inaccurate, the organization may suffer financial loss as well as legal penalties.
It is imperative for the HR to gather and update the following details of each and every employee working in the organization
Personal details: Name, Age, Gender, Birth Year, Blood Group, Mobile Number, Email id
Family details: Parents and sibling(s) information
Professional Synopsis and Educational Qualification: Past employment experience, Degrees obtained with scores and year of passing, Current department, grade, salary structure
Statutory information: PF account number, Pan Card details, Identity proofs, ESI umber etc.
The HRM system centralizes the above data and makes it easily accessible irrespective of day, place and time.
Leave and Attendance Management
An HRMS equips your company with efficient timesheet management wherein the duration an employee spends at work is logged in and tasks performed in that time is recorded. Every company has a different time tracking system, some utilize the biometric system, while others capture it via geo-tagging with the HRMS mobile apps.
Apart from timesheet management, the HRM system consists of a Leave Management System that automates the leave application requests of employees, let’s you formulate your own leave policies and customize leave types as per the business needs and industry regulations.
Planning to automate your leave and attendance process?
Switch to HROne HCM suite that employs a modern attendance tracking system and comes integrated with the Payroll module.
Payroll Processing and Statutory Compliance
Payroll processing accounts as the most trickiest yet crucial function for your HR department. Preparing monthly paid inputs from timesheet, calculating salaries basis different grades and ctc structures, making necessary tax deductions and rerunning this entire process if any error is reported or miscalculations happen – isn’t it quite cumbersome and complicated?
The Payroll Software module in the HRM system automates the entire salary computation cycle and adjusts tax deductions without any human interventions.
To remain adherent to the state and local statutory compliance laws, all you need to do is choose a trustworthy and right payroll software provider (learn: how?) and it will take care of the tax computations in accordance with the applicable regulations and keep you penalty-free.
Expense Management
Expense Management involves curating expense policies with specified limits for monthly expenditure as per the requirements of different departments and setting reimbursement cycles to repay your employees.
It’s extremely strenuous for your HRs to manually record and upkeep expense information of each and every employee on spreadsheets. The Expense Management Software in the HRM system allows you to digitize the employee expense record and automate disbursements, while verifying the actual bills and proofs of expenditure incurred, saving huge costs by eliminating fraudulent expense logging.
Grievance Handling and Management
Employee grievance handling is one of the most vital functions of the employee engagement process. Your employee may express dissatisfaction/ discontentment related to work environment/ behaviour/ culture/ infrastructure or policy, resolving these issues timely and in a formal manner elevates employee satisfaction and trust in your organization.
The HRMS comes packaged with a grievance or helpdesk management software where in HRs can create multiple categories for different types of grievances and workflows as well as Turnaround time for optimum resolution.
Analytics & MIS Reports
Once the core functions are streamlined, your HR would move to the reporting part, where he/she will conduct an in-depth analysis of workforce performance and cost to the company and prepare bi-weekly, weekly/fortnightly or monthly reports to be presented to the management.
Manual preparation of these reports in various formats is painstaking. Advanced HRMS crunch every transactional data into insights, provide these insights in desired formats as ready MIS reports which can be scheduled and sent automatically to the designated stakeholders.
A recent report from Deloitte found that 71% of companies view people analytics as a high priority at their organization.