What is HRMS?
HRMS or the Human Resource Management system can be best described as an integrated system providing information used by HR management in decision making. It allows a company to keep track of all of its employees and their information like employee demographics, remuneration & benefits, attendance details, and performance related information. This vital information is secured in a database or in a series of interrelated databases.
Why Use an HRMS?
Now the next question that lingers in our minds is, "Does my organization need this automated system of managing its Human Resources"?. The answer is definitely a Yes, for a Human Resource Management Software (HRMS) is an important tool for any company, irrespective of its size, serving the following crucial functionalities :
Effective Communication Tool - In any organization be it big or small the management needs to be able to communicate effectively and efficiently with its workforce, so that a healthy dialogue with between the management and its workforce exits. An effective HRMS ensures better communication and collaboration as it offers multiple channels of communication between the Management and employee, and also amongst employees. These enable employees to interact across the teams and departments, which boosts employee productivity and company’s growth.
Easy & Effective data management - An HRMS can effectively manage employee data like their demographics and information about their attendance, benefits, allocations and appraisal.
Central Repository of Data - Central storage of data makes reporting easy and efficient. Customized executive and management reporting can be done "on the fly". Also a central location for documents such as employee handbooks, procedures and safety guidelines accessible to the employees provides them the flexibility to access these without being dependent on the HR personnel.
Efficient Recruitment Management - HRMS automates the entire process of Interview scheduling to candidate selection by generating requests for Manpower, Scheduling Interview Rounds with Automatic alerts to Candidates through Emails, updating Interview Results with Automatic alert to the selected Candidates and Generating Offer Letters to them.
Employee development Programs - HRMS systems can be used to implement customized development programs for employees keeping in mind their skillset, training schedule and cost, and it also provides means to track the execution of these development programs.
Attendance & Leave Management - HRMS automates time tracking. The time at punch in and punch out of an employee is recorded, making it easier for managers to monitor attendance and absences. Firms which use biometric devices or smart cards can import data from them and process the attendance for all employees in one go.
Easy Employee Appraisal - Key Result Area (KRA) and Key Performance Area (KPA) are designed and allocated efficiently to the employees with proper workflow between manager and employee. A 360 degree appraisal can be achieved where Managers, Subordinates, Peer group, Customers, Vendors can rate the employee based on these predefined parameters.
Greater employee satisfaction & productivity - Each employee is provided with an online account which he / she can use to Submit Leave Applications, Reimbursement Bills, Income Tax Declarations. This Improves administrative responsiveness & efficiency and also provides greater employee satisfaction and delivers significant cost & time savings for Payroll / HR department.
Easy Payroll processing - HRMS lets you to process your company’s payroll in a press of a button. All attendance data, leave, remuneration and benefits related data is picked up automatically for payroll processing saving the Payroll processing department a huge amount of time and effort.
All of these benefits lead to improved HR functions and provides the HR personnel the time to focus on development strategies rather than be engaged in basic HR activities.
Choice of HRMS, best suited for your organization
HRMS are available both as conventional computer-based applications on local network (i.e. PCs or network servers) or web-based HR software which can be accessed through browser. However Web-Based HR Software offers these Advantages over the conventional one
Benefits from the Organization’s perspective
- After the organization signs up and pays for this service, staff members can begin using the online application immediately. There’s no need to download huge files and run installs.
- Cloud software is accessible from any PCs in any location, the only requirement being an adequate Internet connection. All human resources information is stored on a central server, so data is always available eliminating the need to copy files or applications from one computer to another.
- Most big cloud computing platforms are much more secure than an office server room. You would not experience significant data loss if the provider’s server fails or when your office computer’s hard drive ceases to function. All you have to do is to immediately switch to a different PC and continue working.
- Web-based HRMS eliminates the need to manually download updates or install them, as updates are installed automatically at regular intervals. This enhances reliability as the organization would always stay in sync with latest labor laws and regulations.
- For businesses with locations in multiple countries, Cloud-based human resource applications work best, for it centralizes data, which can be easily accessed from offices around the world.
All these benefits clearly imply that implementing a web based human resources management system (HRMS) can help just about any company to function more efficiently. While the benefits to employers are extensive, there are multiple ways in which a web-based HRMS can make employees’ lives easier.
Benefits from the Employee’s perspective
- Easy access of Information - Employees benefit from having access to information like pay rate, paycheck amount, tax filing status, benefit information, and information about bonuses as soon as it is available, no matter where they are, without having to go through the human resources department or consulting managers. This can help employees to save time and helps them to strike a better work/life balance.
- Sense of Empowerment - Web-based HRMS solutions allow employees to perform functions like submitting time-off requests, changing tax filing status, and e-mailing the human resources department about issues or questions directly, giving them a greater sense of empowerment. It also reduces errors and speeds up the process of making necessary alterations to employee information.
- Greater Accountability - With greater access and empowerment comes greater accountability. This benefits employers as well, because employees who do not account for their schedules and work information can be more easily weeded out.
- Improved Human Resources Service - Since HR department personnel are not bogged down with the task of manually entering payroll and other employee information, their time is freed up to focus on the human side of the organization. This can help organizations to solve employee issues and other problems before employees become dissatisfied. Employees feel valued since their issues are being immediately addressed by the organization.
However Web Based HR Software faces certain disadvantages with respect to security of data, availability of network and integration of system with other business application. However in spite of these loopholes, an efficient web based HR software is advantageous since it offers much greater flexibility and convenience in handling all the human resource related activities and benefits the organization by increasing employee morale, solving employee grievances to reduce attrition, provides for employer brand building, and introduces transparency to fasten business decision making.