Whether your business has just started, is beginning to grow steadily, or is chugging full steam ahead, HRMS software needs to be a part of the conversation. You already know that spreadsheets, emails, and paper files won’t be enough to support your business long-term.
Good HR software will not only streamline basic functions such as payroll, scheduling, and attendance tracking. It will also help your business develop with applicant tracking, onboarding, and performance management.
Even so, prudent business owners and managers don’t want to invest in software until they know for certain that it’s the right time. Here, we’ll discuss the tell-tale signs that your business is ready to upgrade to HRMS software.
- What is HRMS software?
- Difference between HRMS, HCM, HRIS
- HRMS Software Features
- HRMS software training
- 5 Clues you are ready for an HRMS
- HRMS solutions
- What’s the price of HRMS software?
- The Best HRMS Software
HR work is more complicated than ever. Responsible for overseeing processes for every step of an employee’s life cycle, HR team members are often spread thin. Furthermore, the stakes are high! Incorrect payroll or time-tracking, for example, may lead to legal consequences.
This is why HRMS software has become ubiquitous. HRMS (Human Resource Management System) software integrates, manages, and automates the routine HR processes in an organization.
Automation minimizes opportunities for human error, limiting the company’s liability. It also frees up time for HR teams to shift their focus away from tedious tasks and toward important strategic decisions.
You may have come across other acronyms for human resources technology, such as HRIS or HCM. What’s the difference? These days, it’s pretty subtle. Let’s dig deeper to address what these acronyms stand for and what different systems can do.
HRIS: Human resource information system
HRIS software is often considered the most “basic.” It tracks numerical data and employee information and offers analytics to identify workplace needs.
HCM: Human capital management
This refers to the overall approach that a company takes to managing its most important asset: its people. Human Capital Management or HCM uses human resource data to make better strategic organizational decisions. HCM software may include recruiting, compensation and benefits, talent management, and attendance tracking.
HRMS: Human resource management system
This software is considered to be the most robust. It deals with the same information as HCM or HRIS software, with the addition of non-quantitative information surrounding employees and applicants. HRMS software may include features such as onboarding, employee satisfaction, and more.
It can be complicated to decide which HRMS software is right for you. Before making the call, it is best to think carefully about your company’s needs. Generally speaking, all-in-one human resources management systems should encompass the following:
Talent acquisition platforms are great for companies looking to automate the recruitment and hiring process. With the right recruitment software, you can build custom career pages and templates. Additionally, if the HRMS software includes an applicant tracking system, you can easily keep tabs on candidates’ documents and information, as well as monitor the entire hiring process from start to finish.
Employee self-service portal
With an Employee Self Service Portal or “ESS portal”, you can centralize and easily manage important employee data and information. Additionally, good employee portals allow you to create automated workflows and publish company-wide announcements and upcoming events. This can be especially useful if you are looking to make improvements in internal processes and communications.
One thing that really separates a good HRMS software from the rest is its capacity to track employee PTO, absences, and attendance. Time management platforms, like the one offered by Factorial, allow employees to clock in and out automatically, as well as instantly send time off requests to their respective managers. This means that you can clean out your filing bins and email inboxes from all of the extra timesheets and paper requests. With HRMS software, both you and your employees can take a break from the headache.
Document management system
Working in tandem with the ESS portal, well-functioning HRMS software should include an electronic document management system (EDMS). This system will allow you to automatically and securely store employee files. Not only does an EDMS ensure legal compliance, but cloud-based document management systems also allow administrators to access information from anywhere. If your team has flexible or hybrid working conditions, an EDMS is a must-have HRMS feature.
HRMS payroll software
Payroll can be complicated, especially when you have to keep track of paper payslips and excel sheets. With HRMS payroll software, you are able to easily manage your employee’s contracts, instantly request e-signatures, and generate reports to have an overview of your payroll processes. In a nutshell, you can save yourself from all of the wasted time, energy, and chaos that comes with paying your employees.
Lots of businesses benefit from the automation of vacation scheduling, time tracking, payroll summaries, HR reports, and applicant tracking systems. But not all businesses take advantage of HRMS software training or HRIS training and development opportunities.
With performance management and HR reports, top HRMS software allows you to spot and address weaknesses before they become a problem. With additional onboarding tools and workflow organizations, HR software will get new employees up to speed right away.
HR software will make a difference in the day-to-day of the HR team. More importantly, it will make a difference in the culture of the business, and how it sources and develops talent.
Now that you’ve got the lingo down, we can address the five big clues that you and your business are ready for an HRMS revolution.
1. You’re bogged down with administrative tasks
There’s a big difference between being productive and being busy. If your HR team is stuck inputting data into spreadsheets, chasing down employees for a signature, or fielding every single vacation request, it’s time for a change. Automating admin will free up the HR staff to optimize productivity and employee satisfaction.
2. You have to fight multiple systems or sift through files to find important information. If your HR department is stuck in the past using pen and paper or using a unique system for each administrative function, it’s time to give HRMS a try. Get everything in one place in order to save valuable time. This will also ensure important documents don’t get lost in the fray.
*Pro-tip: When you do invest in HR software, don’t forget to throw out those filing cabinets! Paper filing isn’t just inefficient; it’s a fire hazard.
2. Your staff is all over the place – literally
These days, more people are teleworking than ever. Whether you have employees that occasionally work from home or employees that live on the other side of the world, HRSM can keep you centered. With simple documents management and employee files in one central location, everyone will be able to find the information they need when they need it.
3. You’re not making the most out of data
We live in a data-driven world. There is data to be found in all kinds of HR processes and if you are not taking advantage of it, you are missing out on a vital resource. HRMS software companies like Factorial. will give you a glimpse into the inner functions of your workforce. This will help you address issues in the present and plan for the future.
4. You don’t have enough time to focus on strategic thinking
Correctly utilized, HR can be the powerhouse of a company. If your HR team is too busy with spreadsheets to do the heavy-lifting they are capable of, it is time to give them a little help. Let the software do the boring stuff. Meanwhile, let HR drive change, increase efficiency, and improve employee satisfaction.
So maybe it is time for you to try out HRMS system software. What exactly can software do for you? Here we’ll talk about HRMS software development opportunities.
Reduce costs and administrative burdens.
While HR software might mean a new monthly fee, it will probably pay for itself in time saved and liability avoided. HR teams need to carry out various daily, weekly, and monthly functions, in addition to onboarding employees, and managing performance appraisals. By automating these workflows, the software will ensure nothing slips between the cracks.
Simplify and streamline information storage.
An HRMS will keep all of your employee data and important documents in one place. This means you can reach whatever information you need whenever you need it.
Better communication across the organization.
Employees will be able to use their own interface to check the time off manager for their paid time off accrual, vacation requests, and salary. They won’t have to come to HR for every little question. This will surely save time –and frustration– on both sides.
Provide timely data analysis.
People data is a goldmine of information that can offer insights into staff engagement, performance, turnover, costs, absenteeism trends, and more. Use your data to provide HRMS software training in areas where you hope to see improvement. Above all, make data-driven decisions that will benefit your workforce.
The HRMS software price typically falls between $1-$10 per employee per month. While you may be able to find HRMS software free, we’d advise against it. If you’re not paying them, someone probably is. That means you may not have full control over your data.
We do however encourage you to shop around! Do a comprehensive HRMS software comparison to make sure that the software you are investing in has the features that you need. In short, finding the best fit for you will ensure you can reap all the benefits of HRMS.
When you invest in HRMS software free or paid versions, you invest in your business’s future. Businesses without these tools are at risk of getting left behind. Give your company the support that it needs to grow with software that takes care of the little things so that you have time to concentrate on the big picture.
Written by Valerie Slaughter