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Advantages of HR Software Systems for Business

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. Computers simplified many work but it still require human supervision even in machine oriented businesses like manufacturing and production. HR software systems can help the HR department 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. Organization must keep the experienced employee happy so they stay motivated for both personal and organizational goal. The HR department’s effort is periodic performance appraisal and training to familiarized them with new technology relevant for the company. 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 systems, 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.

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Table of Content

How the HR software systems help to the HR department?

The HR software systems 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. The HR manager can check internally if there is any person who fit for a vacancy position. This way we can reduce recruitment cost and make the employee feel more appreciated.

An efficient HR software system will prompt the concerned of due appraisals so the HRM can initiate the process. The system have the date of birth of employees and prepare to celebrate it in a week encouraging the department to do the same. All the documents related to the employees will be available on a click to the HRM.

When HRMS is connected to the daily attendance and work log of the employees. The HR manager can assign work on who is available and who is working on which project. We can consolidate the same data and check it against the planned work. It is easier to track the employee work and target to take necessary corrective action.

Also read: What is a Human Resource Information System (HRIS)?

Modules required in the HRMS

HR software system is competent when they have the employee details, job descriptions, skills database, attendance, planning, daily work log, payroll and has link to the Accounting and operations modules of the organization. The details of every employee; organization track each and every employee by recording both permanent and temporary with this software. The HRM can appraise them, provide required training or take actions against them depending upon their performance.

The analytics of planned vs actual work is very useful to keep track of completed work and reschedule uncompleted work. Employee detail in HR module must be available in integrated module like accounting, warehousing, POS, operations etc. because of the connected worklog. 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 their work and enter daily log. The system supervisor can access the planning module to assign work and the team lead to access the allotted members.

POS has the employee details of a sales staff where they set the target as well as where we enter the actual sales against their record. This automates their daily work log. The marketing people can enter their daily details like the clients they met, length of meeting and the expected results. 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 for data entry is considered part of their job and also add significant amount of time on non-productive work for smaller organization. The HRM can periodically review the data and make required arrangements to improve the employee working environment and company progress.

How can the SMBs benefit from HR software systems?

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 ERP systems 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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