A Human Resources Management System or HRMS is a tech tool meant to simplify the job of an HR by digitizing and automating transactional HR chores involved in managing an employee’s lifecycle in an organization. It gives a common platform for the employees, leaders, and HR to view individual and collective data of an organization’s people. The relevance of an HRMS is multifaceted in an organization. It is a tool to manage employee records digitally, setup enforceable policies, process payroll, keep track of applicable compliances, so on and so forth. All the ways in which an HRMS is important for organizations of all sizes are explored in following points:
a) Manage employee records: An HRMS helps you minimize those pile of folders you have tucked away in your desk drawers where you manage your employee records on paper. This is highly cluttered and fetching any data from those folders is highly cumbersome and time-consuming process. With an HRMS, you can not only maintain those records digitally but also let your new joiners add their own data and documents, hence minimizing the HR’s efforts and time. Employee exits can also be managed seamlessly on an HRMS.
b) Process accurate payroll: The biggest worry of HR and payroll team is to process accurate payroll on time for all the employees. An HRMS gives you a tool to set up your own custom salary components, design your own pay structures and policies and process payroll with a single click. It automatically takes care of any dues, claims, LOPs, loans, recoveries, arrears, etc.
c) Manage leaves and attendance: An HRMS gives a platform to employees where they can log in their attendance, request for leaves and check the status of those requests. Managers can easily take an action on those requests.
d) Track employee assets: HRMS enables easy tracking of assets or provisions allocated to the employees. They can also raise requests for new allotment, exchange or return of assets. This also comes in handy when the exit of an employee is to be initiated and managed.
e) Setup employee helpdesk: There are multiple reasons why an employee might have to reach out to HRs- payroll queries, system issues or admin inquiries. An HRMS can help you set up a digital helpdesk where employees can raise tickets for a support that are directly routed to ticket managers for resolution.
f) Recruit new talent: An HRMS’ recruitment platform lets you manage recruitment right from requisition to designing the process to scheduling interviews to extending an offer. Not only this, it also lets you welcome the new hires using the on-boarding feature and deliver a great employer brand image.
g) Track time spent on projects: Timesheets let the employees communicate the time they spent on allocated projects that help the managers track productivity and HRs track billable hours. This comes in handy when you have teams that work on various projects.
h) Set-up performance management practices: Performance Management has evolved from collecting manager reviews to practicing year-round feedback and development processes. Now performance management is more inclusive by giving a say to peers and direct reports too. It has also become more transparent since the advent of HRMS. With the help of online tools, HR managers enforce policies of 360-degree feedbacks, regular updates and open 1-on-1 meetings besides appraisals. HRMS also lets them conduct more frequent and easy appraisals. Hence, performance management is not an annual affair anymore. It is live throughout the year and more transparent and trackable.
These are just a few of the ways in which an HRMS helps organizations manage their teams better. The scope of an HRMS’ functionalities is huge and HRs are still discovering new ways of utilizing this amazing tool better. It has proven to be an indispensable factor in the evolution of HR from functional to strategic. After all, the purpose of an HRMS is to free-up time of the HRs, leaders, and employees of an organization that can be used in more productive pursuits.