As the name implies, a Human Resource Management System (HRMS) is a tool that helps firms manage, simplify and automate their HR Operations. It gives HR professionals the freedom (and time) to focus on strategic tasks that can improve the firm’s productivity, engagement and efficiency.
But did you know that an HRMS offers many benefits at the organisational level as well? Here are 5!
- Prevent employee ‘brain drain’ and keep (re)hiring costs down
An HRMS can help balance the employer-employee relationship to improve employees’ performance and ensures alignment with the employer’s strategic objectives. An HRMS system like Spine HR Suite can play a vital role in building this alignment. It can also help HR teams design employee engagement and retention strategies to enhance employee motivation and morale. This prevents employee brain drain so firms don’t need to hire replacements. This then minimizes org-wide hiring, training and on-boarding costs.
- Employee Information Management helps a company know its employee ‘partners’ better
Today’s employees want to be seen as ‘customers’ or ‘partners’ rather than ‘workers’. An HRMS that is easy to use and provides ease of access, not only by managers and HR staff but by employees themselves (especially if this ‘employee self-service’ is tied into ‘mobility’), can help increase transparency and openness within the firm. This can improve employees’ workplace experiences and thus lower attrition rates. In addition, firms that have up-to-date information about their employees will be able to understand them better (for e.g. through 360-degree appraisals reporting or surveys) and design policies and programmes to keep them engaged and motivated.
- Save time and money on payroll processing
An HRMS like Spine HR Suite can simplify the calculation of payroll and other financial records like tax deductions, arrears, overtime, claims, incentives, etc. By automating these time-consuming tasks, an HRMS helps organisations focus on developing their most important asset – their employees.
- Data and information security
An HRMS is a reliable way to secure and protect your critical data. If you implement an on-premise HRMS (i.e. through in-house installation), your data is stored behind your own firewall which provides an assurance of data security and control. With a cloud-based HRMS, you also get secure data storage, albeit from the cloud.
- Learning and development for employees that can propel a firm into the future
Businesses and organisations can benefit from using HRMS with an integrated Learning Management System (LMS). An HRMS with LMS integration can be used to design employee training/learning modules, track their development and identify their future learning needs. These features may be combined with employee performance goals and incorporated into their assessment system. This can help foster a culture of continuous learning and ensure that the organisation does not suffer the effects of under-prepared or under-trained employees.
The right HRMS can make a huge difference to a company’s prospects for future growth and success.