HRMS stands for Human Resource Management system, which is a software-based solution directed towards managing and automating human resource activities of a company. Human resource management is an important daily activity without which a company might come to a standstill. The HRMS allows companies to manage employee activities and updates throughout their life-cycle, manage payroll, administer benefits and stay compliant with the different laws that they come under.
Consequently, HR isn’t the only department that benefits from an HRMS. Through the software, enterprises can allow managers and employees to do certain tasks on their own while collecting accurate data that can help make better decisions. The technical benefit of an HRMS is that it can be integrated with different corresponding departments like accounts and senior management for quicker processing and ultimately contribute to the efficiency of the organisation.
Why has it emerged?
HRMS is gaining popularity due to a change in work paradigm caused by the Pandemic COVID-19. A sudden shift into the digital office has pushed for aggressive adaptation of HRMS solutions.
Through an HRMS, companies were virtually able to connect with their employees across geographies, aiding better collaboration. With their workforce, distributed organisations are relying on digital means to help manage their employees. Another reason is that HRMS is a cost-effective option compared to manual or conventional human resource management. Companies can save on time spent and up to 30-40% on costs that could have been spent on office space, labour, errors, and more.
What are the advantages?
• Hire and Retain Top Talent Companies can expedite the hiring process and retain their resources by identifying patterns and analysing data to understand where employees need attention. This can help avoid inefficient resource utilization and also boost employee morale.
• Stay Compliant An HRMS platform can automate many of the compliance tasks and government filings for you. Some like Zenetial come with built-in safeguards that prevent accidental mistakes and notify about deadlines.
• Improve Productivity and experience Many features like self-onboarding, selecting benefits, applying for leaves, approvals, and signing documents happen completely online. This avoids unnecessary admin distraction where both HR managers & employees can get back to work sooner.
• Reduce Errors Your organization’s processes get automated which leads to lesser errors. Human resource errors can lead to expensive corrections that also cost time along with multiple other issues. All these can be avoided with an HRMS platform that ensures an error-free experience.
• Get data - HRMS helps with collecting data, automate workflows, create analytics,identify trends, and plan KPIs for the future.