What is HRMS?
HRMS is a suite of software applications that helps manage human resources and employee processes throughout the lifecycle of employee. The work of a Human Resource specialist is more complex today than ever before. The HRMS systems helps company fully understand its workforce, helps keep the company compliant with the tax laws and labor regulations.
There is a lot that goes into the management of employee’s information. Information includes employee’s recruiting, hiring, training, evaluation information and much more. This is why many companies use HRMS software.
HRMS is a combination of human resource management and information technology that helps companies in candidate recruiting, payroll management, leave approval, succession planning, attendance tracking, career progression, performance reviews and overall maintenance of employee’s information within the organization.
The software automates most of the repetitive and time consuming tasks associated with human resource management. This helps freeing up company’s valuable employees, allowing companies to shift the focus to culture, retention and other highly impactful areas.
What is HRIS and how it differs from HRMS?
Sometimes we use HRMS synonymously with HRIS, but HRIS is just a part of HRMS. Companies have rebranded the term HRMS to various other names but essentially there is no difference between HRMS and HRIS. HRIS is an acronym used by HR professionals when human resources record, process and reports became electronic through the use of software.
HRMS is a more complete automated solution to human resource management, than the software labeled HRIS. The differences between the two are:
HRIS is designed to track numerical data and employee information, such as an employee’s SSN. HRIS also helps departments manage their policies, procedures and people in general. Tasks at the heart of HRIS include reporting, training, recruiting, compensation, benefits administration, data tracking as well as workflow automation.
On the other hand HRMS is more robust and it is comprised of IT and HR management technology. HRMS deals with information same as HRIS in addition to non quantitative information surrounding employees and applicants.
The unique HRMS features include candidate on boarding, employee satisfaction, job performance, analytics, profitability and more.
How organizations benefit from HRMS software?
Most of the successful companies have a common factor in them and that is the use of HRMS software to handle HR activities. The accessibility of mobiles has transformed modern HR departments as information and task management are now at the finger tips of employees and managers.
Large organizations have seen rapid growth and productivity by the use of HRMS software. Some of the benefits the company is seeing using the HRMS software.
- HR will have more time as employees manage their tasks on their own.
- The HRMS software comes with built in security that restricts access to authorized users and helps company protect its data.
- Most HRMS software allows users to customize workflows as per their organization’ needs thus getting the best out of the software.
- The organizational heads can schedule automated reminders and emails through the software. This facilitates acknowledgement of messages and helps save manager’s time tracking down responses.
Functions of HRMS software:
The various functions of the HRMS software are:
- Using the HRMS software the companies can track the employee’s histories, skills, abilities, salaries as well as the employee’s achievements.
- Information management responsibilities get distributed at various levels as a result of which information gathering is not strictly delegated to the HR.
- Employees are allowed to update their personal information and perform their own tasks. This helps keep information accurate and makes sure HR professionals are not bogged down.
- Each module within HRMS performs a separate function of information gathering and tracking. Like for example, hiring would be carried out through the recruitment and on boarding module. Employee performance is carried out through performance evaluation and management module and so on.
HR modules can assist with various organization activities like managing payroll, recruiting and on boarding, gathering storing and accessing employee information, keeping and tracking attendance reports, evaluating employee performance, administering benefits, learning management, employee self service, scheduling employee tasks, analytics and informed decision making.
Selecting an HRMS solution:
It is important for the company to identify its needs before acquiring an HRMS solution. The management should identify its processes, its goals for long term and short term.
The organization should definitely involve HR professionals in the HRMS selection process. An organization wide meeting should be conducted depending on the size of the organization. The representatives of each department should be present. This is to have clarity of goals and options.
Points to discuss in meeting to decide if HRMS would benefit the company
- Is the HR department overworked and do they face lack of time to perform their entire task?
- Will the company lose data or business owing to HR Data/Compliance errors?
- Is the office spread over multiple locations and is there no unifying platform to connect them?
- Unable to monitor employee turnover? Does the company lack measures to control unengaged employees?
- Do the employees not have an opportunity to manage their own performance appraisal?
Software Security in HR Management
Security is of utmost concern when going for a Human Resource Management system. This is because the HRMS has highly sensitive data that includes proprietary company data, volumes of personal information about employees.
It is essential for companies to select secure forms of data transmissions that are encrypted such as SSL. Internal security is critical and information should be guarded by passwords.
The system should maintain varying levels of access in relation to what is needed for job position. While employees are allowed to access portions of HRMS, they should ensure that the authenticity of data is maintained and should not share their passwords with others.
There should be safeguards to bar terminated employees access to the systems.
Finding right HRMS for your company
A company’s future growth is decided by its selection of a right HRMS system. An automated system helps elevate productivity levels and changes the way how a company is perceived in modern marketplace.
It is important to remember that these HRMS systems are not one size fits all. Just as each company is different, so are the systems available in the market to choose from.
Identifying the right HRMS for your company
To understand how to select the right HRMS for your company, focus on the following points:
- Understand the basic features of HRMS and how it can address compliance problems. Will it be challenging for your company to manage a growing workforce and evolving organizational structure?
- Identify the different HRMS vendors and compare their performances.
- Research and find out which technology best fits your needs.
- Determine which HRMS system offers the best experience for your employees.
Assess the HRMS company as a whole, identify its customer service, its practices and processes in addition to the company’s product.