Track Your Human Resource The Right Way

August 25, 2016

Track Your Human Resource The Right Way

Great things happen when an organization does business the smart way. The team remains connected and stays focused on its goals, and there is an overall increase in productivity and team bonding. Sounds like a corporate fairy tale? With human resources going the “Cloud way” and HRMS becoming automated and less time consuming, this is no longer a distant dream.

A survey points out that spending on cloud-based HR software is becoming more common than spending on on-premises HR software, and cloud-based HRMS will be 50% or more of total HR technology spending, by 2017. Around 48% of HR personnel are demanding a change in HRMS with a cloud-based system and about 54% of them feel it would increase their capabilities.

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What is HRMS?

HRMS or Human Resources Management System is a process through which the Human Resources Management (HRM) is connected to the IT (System) with the aid of an HR software. This automation of personnel management helps in simplifying the process of employee tracking and saves a lot of man-hours which would otherwise be wasted on manual processing of data. HRMS encompasses these components of HR tracking:

  • Recruitment and onboarding process
  • Employee data collection and management
  • Attendance and work hours tracking
  • Performance evaluation and L&D management
  • Payroll management
  • Shift and OT management
  • Appraisal and employee self-service
  • Rewards, recognitions, and Benefits
  • Personnel management analytics and trend
  • Budgeting

HRMS makes it easy for an organization to ensure a smooth transition between these processes. This is why HRMS is a boon to small and mid-level organizations which can concentrate on the growing business by automating these processes. For a large organization, this means lesser scope of errors and increased employee loyalty.

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Selecting the right HRMS

This is an important decision for any organization as the process of transition from a manual HRM to HRMS requires calculated planning and meticulous training which will be ineffective if not done properly. The company which decides to automate the HRMS process needs first to understand its business needs and align them with its goals, vision, and organizational values. It needs to analyze the need for automation, its effectiveness in the current scenario and changes required in the management process on account of automating it.

HRMS functions

Initially, this meant selecting the right kind of software based on the employees’ strength and the structure of the company. But increased costs of maintenance and frequent patches and fixes have ensued in the company incurring a lot of expenses just in maintaining the HRMS. Also, the software package had to be bought as a whole with no regard to the company size and proved to be a waste of financial resources for a small and mid-level organization. After the evolution of HRMS on cloud, this has become very cost effective as the organization now has the facility to buy the services based on its usage and employee strength. This saves a lot of money which can be targeted elsewhere.

The scalability and flexibility of the SaaS HRMS ensure that the SME organizations benefit completely from the transition. There is a survey which says that companies which upgraded HR systems to cloud, see cost savings of 22% per employee. The flexibility aspect is essential in case of an SME as businesses are always growing and will need scope for change when the business models develop or grow.

The SaaS HRMS allows saving money on new features by one-click HR self-service solutions. Here, the employees can access add-ons and tools to solve administrative problems faced by them. The company is free to decide who gets the administrative power and can easily enable or disable them.

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Unlike an in-house HR software which is fixed and has no scope for remodeling and flexibility, the cloud-based HRMS tool is customized to suit the individual, organizational needs and is user-friendly. It is also more portable and easily accessible without the necessity of installations and additional software

There is a smooth transition of data between the various departments of an organization with lesser hassle and more convenience. Employee attendance tracking data can be easily viewed and analyzed for payroll processing, the learning and development data of various teams can be processed easily, and performance evaluation of employees can be done effectively with each employee uploading his/her self-appraisal online and tracking from there to see it moving across from peers to managers. The whole process becomes more fluid and transparent thus increasing the trust of employees on the system.

There is a lot of scope for visual analytics in cloud HRMS. The analytics team can process the data and run customized reports to communicate the HR related data in a more appealing and colorful way. The learning management system in the SaaS helps in tracking of learning needs, approving budgets and block calendar against the employee man-hours, alongside the appraisal and performance management data.

SaaS – A Boon For SMEs

For small and mid-level management with a daily growing business and a strict budget, this kind of HRMS tool based on cloud is a boon. It not only provides flexibility to the management but also ensures a lot of monetary savings and saving unnecessary man-hours spent on managing in-house software and installing fixes and up gradations. It ensures a fairer appraisal process as the data is not based on random data collected by the managers but a systematic day-to-day record of activities. The whole system becomes transparent and trustable. There are lesser errors due to humans, and it also eliminates duplication of data.

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This ensures not only a fair performance evaluation but also a healthy competition among the teams, leading to productive growth and greater team bonding. The financial gain through this cloud system can be put to better use in business growth and employee engagement. This system is more reliable and economical in the longer run, due to the low per usage cost incurred by the company, unlike that of in-house software where the company pays for the whole software and its upgrades, fully disregarding the employee strength and usage incurred.

Human resource management –“The Cloud Way” is the new trend with an increasing number of companies realizing its benefits over the traditional approach. Many SMEs have transitioned their HRMS systems to the cloud and are encouraging and training their managers to shift their attitude to the new trend. Less expensive, secure, flexible, reliable and more effective, this tool is sure to provide its clients everything they ask for and more. In addition, they can now save the time spent on pointless upgrades and maintenance and focus more on business growth. What more can an organization wish for? Cloud-based HRMS is the one answer to all personnel management issues and a sure key to business success.

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August 25, 2016

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