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ERP, HRM/Payroll

Advantages of Human Resource Management Software System

Advantages of Human Resource Management Software System
Posted: March 7, 2016 at 5:07 pm   /   by   /   comments (1)

Humans are the most precious resources of all organizations. When it comes to the IT, Banking, Retail and Insurance sectors, the human resources are most important resources in terms of the numbers and working process of the organization. Though computers have simplified the working process of most of the sectors, human supervision is required even in machine oriented industries like manufacturing and production. Human Resources software solutions can help the HRM to manage and utilize the precious human resources effectively in an organization. Internet has provided a platform for skilled candidates to find the right opportunity. Hence, it is important for the organization to keep their experienced and precious employees happy so that they are motivated to work towards personal and organizational growth. The HR department tries to achieve this with periodic performance appraisals and imparting training to keep the employees upgraded to the new technology relevant to the organization. This creates value for performing employees in terms of their perks and skill.

Using Payroll system, company can keep track of the salary details of the employees, salary disbursement on-time, the taxes to be deducted and remitted to government periodically. If this system is integrated into the Accounting System, the process would be simplified. The HR software, on the other hand, deals with the responsibilities of the HRD which includes recruitment, induction, training, periodic performance appraisals, promotions, transfers and retaining the existing employees. The conventional Payroll system never addressed these issues of the HR department. The HR Information System (HRIS) or HR Management System (HRMS) is a boon to the HRD since it handles all these responsibilities of the HR manager.

How is the HRMS / HRIS software helpful to the HR department?

The HRMS software maintains the employee data including the employee skills, appraisal details, additional skills or experience of the employees, training imparted within the organization etc which comes handy to the HR manager during recruitment, transfers and appraisals. When there would be a vacancy in the organization, the HR manager can first check in the existing employee data if anyone from within the organization fits the job. This way, it can save the cost of the recruitment process and at the same time, the employees will also feel appreciated and recognized by the organization which motivates them further. An efficient HR software system will prompt the concerned people regarding any appraisals that are due so that the HRM can initiate the process. Apart from this, the system will have the date of birth of each employee, which will prompt the HRM for celebrating their birthdays in a week, and hence, the department can make arrangements for the same. All the documents related to the employees will be available on a click to the HRM. If the HRMS is connected to the daily attendance and work log of the employees, the HR manager or the supervisor can easily check who is working on which project at any given point of time and accordingly assign work to those who are available. The same data can be later consolidated and checked against the planned work. This makes it easier to track each employee against the work assigned and completion time so that corrective actions are taken as and when required.

Modules required in the HRMS

A competent HR software system should ideally have the employee details, job descriptions, skills database, attendance, planning, daily work log, payroll and it has to be linked to the Accounting and operations modules of the organization. The details of every employee; whether permanent or temporary, should be recorded under this software and thus, the organization can track each and every employee. The HRM can appraise them, provide required training or take actions against them depending upon their performance. The analytics of planned vs actual work can be very useful for the supervisors to keep track of the work getting done by their team and to reschedule incomplete work against the completed work as the case may be. The employee details in the HR software should be accessible to all the other integrated modules like accounting, warehousing, POS, operations etc. since their worklog has to be connected to the respective departments. Secured or authorized access to the relevant modules needs to be provided based on the role of the employees. For instance, the accounting employee would be able to access only accounting module since other modules will be irrelevant. Similarly, an IT programmer shall have access to view the planned work for self and for entering the daily work log. The supervisor shall have the access to the planning module where he or she would enter the work to be completed for each team member whereas the team lead can access only the allotted members. The employee details of a sales staff should be available at the POS where the targets are set and the actual sales are entered against their record. This automates their daily work log. The marketing people can enter their daily  details like the clients they met and the minutes of their meeting and expected result of the meeting. The supervisor or marketing manager can access this data to keep track of the team.

Who can benefit from the HRMS and who cannot?

The HRMS is beneficial to those organizations with minimum 100 employees. Time taken for data entry has to be considered as a part of their job and hence it can amount to a considerable number of hours spent on a non-productive work over a period of time in the case of smaller organizations. The HRM can periodically review the data and make required arrangements for improving the working conditions of the employees and the overall progress of the organization.

How can the SMBs benefit from HRMS?

As far as the SMBs are concerned, implementing an HRMS in their organization will be highly unlikely. It would be expensive to implement HR software solutions to maintain the human resource. But with the cloud ERPs emerging as a successful and reasonable option for the SMBs, they can now benefit from a shared software (SaaS), infrastructure (IaaS) or platform (PaaS) for the cloud-based HR software solution. Cloud implementation of ERPs are the best solution for SMBs as they do not have to invest in the infrastructure, software implementation or the platform, they just need to subscribe for the same from a shared solution provider.

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