HRMS Solutions: 7 Ways to Help Your Business Grow

When it comes to Human Resources Management Systems (HRMS), it’s easy to see only the costs and headaches of implementing the system.

But there are distinct benefits HRMS software can bring to your company, notably saving money while tracking performance and eliminating redundant HR tasks.

So, whether you’re looking to implement HRMS in your business – or you’re trying to convince higher-ups to upgrade or consolidate your current system – here are seven ways HRMS will help your business grow.

1. Accelerate Your Hiring Process

In today’s competitive hiring market, attracting top talent requires a streamlined process. This is because HR and hiring managers are juggling multiple tasks: crafting compelling job listings, fielding a high volume of applications, identifying best-fit candidates, and facilitating smooth interviewing and onboarding experiences.

An HRMS can help you create job listings and source top talent by analyzing resumes by keyword, and it can also assist by automating some of the paper-based processes to make onboarding easier for you and your team if that employee is hired. This feature is amplified when you integrate your HRMS with an applicant tracking system, which can really help you dig deep into employee analytics, solve hiring bottlenecks and discover who needs hiring help in your company.

2. Retain Your Best Employees

Retaining employees is often a matter of engaging employees. Engaged employees perform better because they feel like they’re a part of your team, enjoy the work they do and want to learn more about it to improve themselves and their performance. HRMS solutions boost employee engagement by providing a way for employees to continue their education with training and development programs. Many HRMS options have an e-learning feature with courses that employees can complete at their own pace.  

Since training and development opportunities are often ranked higher in employee satisfaction surveys than monetary benefits, allowing your employees to grow and learn with the company is likely to keep them around for much longer. Plus, better training means more skilled employees – so it’s a win-win.

3. Automate Repetitive HR Tasks

If you’re always bogged down handling repetitive tasks and routine administrative work, you certainly won’t have much time to focus on more in-depth projects like improving employee experience and closing skills gaps.

So what tasks can be automated with HRMS?

• Payroll. Track and automate payments, maintain records, calculate taxes and withholdings, and safely manage direct deposit information. Employees can even access their paystubs electronically.
• Benefits. Automatically update and track benefits such as insurance, PTO, 401(k)s and FMLA leave.
• Timekeeping. Monitor employee attendance, track hours and overtime, create timesheets and maintain time clocks.

Each HRMS vendor offers modules such as the above to help automate otherwise repetitive and time-consuming tasks. We all know that the more repetitive a task is, the easier it is to slip up – and sometimes these small mistakes can be costly. Automation of these tasks will help improve record accuracy, prevent duplicate records and lead to fewer errors overall.

4. Save Time With an Employee Portal

You may have employees who work from home or in a different office location. Enabling them to access an employee self-service portal to change their address, request PTO, see 401(k) rates, or link to any insurances or other benefits saves a lot of time for the employee, their manager and the HR department.

It’s not just for offsite employees, either. Many of the questions that employees have can be answered by the ability to access this information. For example, an employee could look up their pay rates, vacation accrual, sick leave balances or pay schedule.

Additionally, if your company uses HRMS to track employee KPIs, employees can monitor performance metrics ahead of any sort of performance review meetings.  

5. Improve Employee Performance

We all know that the mere thought of a performance review is enough to strike dread into the hearts of workers and managers alike. But what if you could alleviate the stress, have accurate job performance data and know that you and your employee (or manager) are on the same page before the meeting even occurs? That’s where HRMS comes in. HRMS allows an employee to track his or her progress right in the employee self-service portal. They can develop their goals and make adjustments and improvements to their work based on this data.

Managers have access to this same information, and with it, they can make suggestions, give more accurate feedback and assist employees with goal planning. Management can even recognize an employee’s achievements before the meeting or in between meetings, enabling them to reward good work – which is essential to better performance and productivity.

6. Secure employees’ data and maintain compliance

Employers are responsible for employee data security and staying in compliance with evolving data privacy regulations can be daunting. HRMS solutions can help by providing features that ensure compliance with regulations like the California Consumer Privacy Act. These features can include tools for managing user access controls, data encryption and streamlining data subject access requests.

Although an HRMS isn’t a substitute for a comprehensive data security strategy, a well-chosen HRMS can significantly reduce the risk of data breaches and empower you to manage employee data responsibly.

7. Go paperless

Here’s how an HRMS can help you go paperless and reduce office clutter:

• Signatures and approvals on contracts can be done within an HRMS
• Digital records are safely maintained by the HRMS vendor on their servers, and
• Payroll can be sent via direct deposit instead of paper checks.

Finding an HRMS for Your Business

HRMS solutions can help your business grow by attracting and retaining staff, freeing up time for strategic tasks and helping to improve employee performance. You may even save money in the purchase of an all-in-one HRMS since you won’t have to worry about the cost and time sink in training for several different programs.

Investing in the right HRMS for your business needs is the most important factor, so make yourself a checklist for what you need and research which vendors offer the types of features that are important to you.

If you’re interested in seeing all that HRMS has to offer, take a peek at our definitive guide to HRMS to learn more.