Home Business Why HRMS Software Is The Need Of The Hour During This Time Of Crisis

Why HRMS Software Is The Need Of The Hour During This Time Of Crisis

importance of hrms software

It is difficult working on hundreds and thousands of physical documents and managing files for every employee on different computers for HR managers.

This is where organizations need to start using HR management software. But before digging into the benefits of HR management software let’s talk about “What is HR management software?”

So, What is Human Resource Management Software (HRMS)?

It’s software that automates and streamline the entire human resource process. This software includes the core functions as well as the strategy related functions right from hiring the right talent to managing their performance and career aspirations. An HR software offers your organisation employee management capabilities. With this tool, you can manage the performance of employees by looking at precise data of how they have been performing over time, what task are they working on and their daily clock-in and clock out.  If used the right way, this software can help reduce the burden on the Human resource team and lead the organization towards its goals.

There are three main types of HR technology:

  • HRIS – Human Resource Information System is one of the basic out of all three, but very effective in carrying out HR processes such as data tracking, self-service for employees, analyzing data for better understanding and training for employee improvement, and managing benefits and compensations.
  • HCM – Human Capital Management covers every module present inside the human resource information system and also offers some extra features such as onboarding which helps in streamlining the entire process of onboarding employees from clearing their interviews to assigning them to a team and Talent management module.
  • HRMS – An Human Resource Management System is the best one out of the three since it contains all modules or features from both HRIS and HCM and offers some extra features as well like the ability to automate payroll process, leave and attendance management, and tracking the performance of the employees.

Let’s look at how implementing HRMS software can be beneficial for your HR department.

1: Better Hiring Process

With the help of an applicant tracking module, HR managers can easily track all the applications for a job posting. It also automates the process of filtering the candidates based on certain metrics that are set inside the applicant tracking system. The HR team can also track how efficient their hiring team is in selecting and hiring the right candidate. It also allows you to connect the best sources like a job portal to hire the best candidates.

2: Onboarding & Training

After the HR team hires an employee, it’s important that the employee feels more welcomed in the organisation. One way to achieve this is by offering a well-thought onboarding program for your employees that incorporates your company’s culture and prepares them for the future. With the help of HRMS software, the onboarding process can begin even before the first day of the employee joining.

3: Employee Development

Maintaining and focusing on the growth of employees within your organization is a necessity for the success of your organization. While you can increase the talent present in your company simply by recruiting more skilled people. It’s also important that you focus on maintaining the ones that are already present in your company, identify their skill gaps. Developing and honing their skills becomes easy with the help of HR software.

You can track their data and performance and build training courses with inbuilt learning modules that can help improve their performance and acquire new skills. This will not only improve the employee morale within the organization but also improve the overall engagement.

4: Attendance and Leaves

An HR management software can come handy during the times when an employee needs to apply for a leave. It saves your time from back to back email process for approvals through inbuilt approval flow feature and tiresome process of maintaining an excel sheet for every employee.

You can simply automate the process of leave and attendance with HR software with the biometric system or on your phone and the software will manage the rest for you.

The software keeps track of the attendance and the number of leaves an employee has taken. Employees will be able to see the no of leaves they have been allotted and no of leaves left at the end of the year within the software.

5: Detailed Insights

Having the latest data is always beneficial in making a good decision. This is why using HR software is important. It offers up to date data for every process and employee within the company. Managers will be able to access all of the information from any point in time without any issues.

Employees and managers can also find out trends with the help of HR analytics and find the areas where employees need more work. This is one of the best options when one can get while moving out of the messy paper business or file cabinets for all your information and it saves you a lot of time as well.

6: Improve Performance

With the performance management module available in the HRMS software, it becomes easy for employees and managers to monitor their progress. Employees can see how they have been performing and can work on developing their skills based on the data provided in the system. Managers can offer essential feedback in return and recognize achievements as well. With the360 degree feedback feature in the app, anyone can reward and provide valuable feedback to their employees.

7: Painless Payroll

HR software can handle most of the HR processes with ease. HR managers don’t have to go through a long process of calculating payroll for employees since the payroll software covers aspects like tax management, CTC proration, payroll in one module, it is considered to be a one-stop solution for all your employees’ financial accounting needs.

8: Security

With traditional systems, the possibility of interim security used to be minimal. Most of the data were either on physical documents or stored in multiple computers. Getting them out of it was difficult as you had to go through heaps of layers to find one and it’s easy to misplace the hard documents.

But with HR software, all the data are securely saved at a single place and can be accessed online from anywhere anytime, without wasting too much time and resources.

When all of the repetitive work is automated by the software, managers can focus on things that benefit the business and achieve organizational goals with ease and flexibility. Employees don’t have to go to HR managers for every little thing with simplified approval flow, HR software allows the employee to apply and manage most of the things on their own.

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