HRMS and how it can transform your business?

Today, most if not all companies have implemented a HR system. According to our recent HR survey conducted in August 2020, about 71% of businesses have adopted HR software to handle HR-related processes. The survey also revealed that the top 3 most important features HR professionals look for in a HRMS are: Employee Information Management, Time & Attendance Management and Payroll/Benefits Management.

According to greytHR, HR in the modern age is moving towards automation and data analytics. With Artificial Intelligence (AI) becoming the crunch word, everything is powered by having the right information at the right time. So, if you haven’t yet invested in a HR solution, it’s time to check out the technology that can help you streamline your HR function and its practices.

What is HRMS

HRMS stands for human resources management system and is used to manage human resource-related processes throughout the employee lifecycle. It digitizes employee information, digitalises’ various HR processes from recruitment and onboarding to payroll and attendance management. A HRMS can also offer a self-service portal, improve the recruitment process, reduce payroll and compliance error, automate data entry, streamline information and facilitate data-driven strategies. In this digital age, HRMS have become a key component of every modern HR department. In the following sections, we will describe the fundamentals of the HRMS and the most important HRMS features for your HR department.

How is HRMS different to other HR Technologies?

HRMS, HRIS and HCM are among different acronyms used in the field of detailed HR technologies. Here is a breakdown of what they cover:

Human Resources Information System (HRIS)-tracks applicants, employee self-service portal, central database, training, analytics, rewards, and benefits.
Human Capital Management (HCM) – HRIS module with talent management.
Human Resource Management System (HRMS) – tracks salaries, attendance and performance in addition to the HCM component.

Some companies choose to implement the all-in-one HRM system for simplicity and centrality while others choose a simple HRIS for more basic functionality. Meanwhile, HCM is preferred by businesses with more complex human capital management needs. Knowing the ins and outs of these systems provides a solid foundation for you to identify which options are suitable for your organizations’ specific needs.

HRMS Functions & Features

The HR Department monitors employee performance, learning and development, manages employee information, processes salary and wages as well as track any professional achievements. With an effective HRMS, these tasks will be made much simpler. For instance, bulk information gathering will not be strictly performed by the HR Department. Rather, it allows employees to update personal information and perform other tasks on their own – eliminating the need for double handling from the HR department. For example, IFCA HRX is a mobile solution with leave, claims and requisition management functions as well as payroll processing, time attendance and many more. The beauty of HRX is that it empowers employees to self-serve on the go and help HR departments reduce manual processing which enables them to focus on more strategic tasks.

HRX elevates your HR function by centralizing all key information internal communications, digital personnel files, payroll information many more into one easily accessible platform.

Data Security & Confidentiality

When dealing with personal employee information, a high degree of sensitivity and confidentiality is required not only to protect privacy rights, but also to promote a positive culture. For instance, information like what your colleagues in similar roles earn could sow discord between employees. On top of that, HRMS World also revealed that about 41% of companies worldwide have more than 1,000 sensitive files (credit card numbers and health records) left unprotected. Among the security features in most HRMS are:

Role-based access
Data encryption
Password strength & reset policies
System segmentation

So, be sure to keep this in mind when looking for a suitable HRMS for your organisation. Therefore, security features to secure access to confidential employee information must be at the top of your HRMS priority lists.

A Final Verdict

n summary, businesses that want to maximize their human capital will choose a capable HRMS to provide their staff a great employee experience starting from the recruitment to retirement.

HRMS is the path to success for the future as it facilitates the following:

Business growth/productivity
Efficient Human Resource Management
Compliance with workplace laws
Creates satisfied and loyal workforce

The best HRM solution in an organization will ensure the ultimate goal of mobility, better productivity, employee engagement, and cost savings is met on a daily basis.