When it comes to Human Resources Management Software (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.
Accelerate your hiring process
Right now, it is a candidates’ market and hiring for your business can be tough. Not only must HR professionals and hiring managers create job listings, answer inquiries and find relevant candidates to interview; they must then interview the candidates, process their paperwork and oversee the entire onboarding process.
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 paperwork to make onboarding easier for you and your team if that employee is hired. This feature is amplified if 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.
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 help 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.
Automate repetitive HR tasks
If you’re always bogged down handling repetitive tasks and routine admin work, you certainly won’t have much time to focus on more in-depth projects like improvements for your work environment. After all, an improved work environment will likely boost employee morale and performance!
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, vacation time, 401(k)s and FMLA.
- Timekeeping. Monitor employee attendance, track hours and overtime, create timesheets and maintain timeclocks.
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 kinds of tasks will help improve record accuracy, prevent duplicate records and lead to fewer errors overall.
Save time with an employee portal
You may have employees who work from home, work in a different office location or are on an extended holiday. Enabling them to access an employee self-service portal can take care of a lot of the HR-related needs of an off-site worker. Rather than waiting until everyone’s schedules mesh, an employee has access to change their mailing address, print out paystubs, request PTO, see 401(k) rates, and link to any insurances or other benefits right from one dash. This can save 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.
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 data to back up job performance, 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.
Secure employees’ data and maintain compliance
With so many labor laws, regulations and tax codes in play, it’s a struggle just to keep up to date with everything. HRMS automatically keeps an eye on new regulations, changing laws, data privacy and anything else that might affect your company’s compliance.
It is the responsibility of an employer to be sure that employee data is protected and is not misused. Avoid any costly security breach issues or lawsuits and sleep better at night knowing that your HRMS is watching for any sudden law changes that could affect your business. HRMS also helps to protect against outside threats by encrypting the data it houses, making it inaccessible to unauthorized users.
Lots of companies these days are “going green” to help reduce waste, but they’re also likely to be saving money along the way. Reducing the amount of paper your business uses can be a great help in cutting costs on supplies. But how can HRMS help you go paperless?
- Signatures and approvals on contracts can be done right in HRMS.
- Records are safely maintained by the HRMS vendor on their servers.
- Payroll can be sent via direct deposit instead of paper checks.
Going paperless with your HRMS can help reduce clutter in the office and might even help to eliminate bulky storage, leaving more room for staff.
HRMS solutions can help your business grow by attracting and retaining staff, reducing supply costs, freeing up time for more difficult 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.