Whenever the New Year comes, most people leave some things behind and give new ones a try—and business leaders tend to do the same. Will this be the year that you will invest in HRM software to provide support for your busy HR professionals?
If yes, then you’re off to a great start. The human resource department is the lifeblood of a company. Its scope is not limited to just processing payroll and setting employee health benefits. HR also plays a crucial role in developing, reinforcing, and maintaining the culture of any organization.
For these reasons, it is ideal to switch from a manual or paper-based HR system to an automated one. Not only that it improves the efficiency of your HR team, but it also drives and supports your company’s growth.
What Is Human Resource Management Software
Short for HRMS, human resource management software is a powerful system that simplifies and streamlines a host of HR functions. It encompasses the Human Resources Information System (HRIS) capabilities, including recruitment, employee data management, and benefits administration.
In most cases, this HR solution also covers a variety of Human Capital Management (HCM), such as performance tracking, automated onboarding, deep analytics on employee performance, and so on.
Things to Consider When Purchasing HRM Software
An all-in-one HRMS, covering all the systems mentioned above, allows for more customization and specialization.
To start the new year right and jumpstart your human resources department, pay close attention to the HRM software you intend to buy.
Here are the five critical HRMS functionalities that you should keep in mind:
1. Cloud Deployment
There are two main types of HR software—cloud-based and on-premise. The former is maintained and managed on a remote server, while the latter is installed and implemented on a company’s premises.
Between the two, a human resource management system that operates under the cloud offers more promising benefits. Cloud-hosted HR solutions can bring HR up to speed, not to mention that they provide more value for lower upfront costs.
Because the software stores data digitally, HR staff can perform some administrative tasks in a matter of seconds. The system eliminates the need for large cabinet files, allowing easy access to company documents and employee records.
The single and centralized database also makes reporting faster and the analyses of trends and information easier. As a result, HR leaders can make better recruitment and employee retention decisions.
2. Employee Self-Service
Employee self-service or ESS is a feature that most modern HRM software solutions have. This portal allows employees, not just HR professionals, to view their profiles and documents from anywhere with an Internet connection.
Choosing an HRM platform with such functionality gives employees a sense of exclusivity. It also reduces administrative overhead for the human resources department.
With ESS, employees can handle HR-related tasks themselves. The tool lets them access, upload, and update their employment and personal information, such as contact details, banking information, and emergency contacts.
The web-based portal also enables employees to check their payroll, review their timesheets and track their training activities. Most importantly, this software feature allows employees to submit time-off requests via the HR software, helping them and the HR team save time and be more efficient.
3. Built-in Collaborative Tools
Collaboration is crucial to any business. There is a need for effective communication, especially now that more companies are shifting to a remote-office setup.
Thankfully, all-inclusive human resource management systems come with collaborative tools that can improve the communication between teams across the organization.
Below are some of the integrated solutions that transform how people collaborate:
- Social groups. In-house social networks allow members to share insights, crowd share project questions, manage resources, and view discussion threads.
- Knowledge sharing. HRMS with a collaborative space should be able to share information across departments and silos. It allows team members to share information about sales, clients, company goals, and more.
- 3600 feedback. Some social HRMS packages can facilitate 360-degree feedback. Department managers or even peers and subordinates can provide relevant and constructive feedback through the HR solution
4. Applicant Management
HR recruiting and talent acquisition is vital for business success; it can help an organization achieve its long-term goals and remain competitive in the industry.
Given the meticulous and the long process of these HR functions, business leaders should find a way to simplify it through HRM software. However, it is best to choose an HR solution that integrates applicant management into the system.
Human resource management systems with hiring tools make it easy for recruitment specialists to find new talents, manage the application process and recruit potential candidates.
The single-sign-on job board posting, branded recruitment marketing, pre-screening questionnaires, and job description templates are a few features that can help simplify the hiring process and expand recruitment marketing reach.
5. Workflow Automation
Several tasks keep HR departments busy—from processing leave applications to managing employee time and attendance, ensuring time compliance, and more—everything can take up the team’s time.
Likely, these standard processes only disguise as busy work and keep human resource professionals from doing more important tasks that can drive business growth. And, this why investing in an HR management system is a profitable decision.
Most HR solutions allow automating routine workflows, like hiring and recruitment. For instance, HR staff can send automated emails and auto-reject questions instead of replying to online applications one by one.
Other HRMS can also be integrated with chatbots or conversational AI to automate the complex recruiting, candidate screening, and interview scheduling.
The Bottom Line
Human resource management plays a strategic role in managing people, maintaining workplace culture, and driving business growth.
If your HR team spends time mostly on repetitive work routines and is s still performing tasks manually, that is enough reason to invest in an HRM software solution.
When you invest in a cloud-based HR system, you not only keep them from drowning in manual work but also boost their productivity, optimize their work performance, and most importantly, increase organizational performance.