What is HRMS?
An HRMS strives to increase business productivity and efficiency by automating manual and repetitive operations. This frees up time for the HR team, which can then be used to address more strategic, business-critical activities.
An HRMS (Human Resource Management System) is a type of HR software that uses information technology to manage various HR functions. It typically covers every aspect of an HRIS (human resource IT) and includes human capital management system capabilities. Payroll and Time & Labor Management are two popular features of a typical HRMS (TLM).
What is HRIS?
HRIS is an abbreviation for human resource information systems and is synonymous with HRMS. Its use dates back to the 1980s when information technology solutions were often referred to as management information systems (MIS). After HR management systems were improved it is renamed HRIS.
An HRMS makes HR functions more effective and accurate by maintaining secure records and automating fundamental processes.
A well-designed HRMS will assist HR in the following areas:
The finest HRMS system will support employees throughout their job lifecycle, from hiring to continuing training and promotions. Employee management may also entail the gathering, storing, and analyzing of personnel papers and data. PTO monitoring, vacation requests, employee benefits, administration, and certification statuses may also be included.
HRMS can help keep your employees engaged by assisting with the acquisition of new skills, the development of a career path, and the provision of recognition. All employee engagement processes, such as hiring, firing, and retiring should not be the only times you communicate with them, also giving positive feedback cycles, continuing growth, and personal happiness are all facilitated by an HRMS.
Most businesses take care of optimizing their personnel to remain resilient throughout the change in order to retain top talent and boost employee engagement. HRMS solutions can offer the business information that you need to identify what’s working and what needs to be improved in your workforce.
HR management teams evaluate employees, manage their attendance and work hours, take disciplinary actions, and ensure employees work in a healthy and safe environment.
Payroll management has been one of the primary functions of HRMS software. Employees can change their tax withholdings, elective deductions, direct deposit accounts, and retrieve their earnings statements using the self-service functions in the HRMS system.
Maintaining accurate information about employees is one of the most important tasks performed by the HR department.
- Name, Gender, Date of Birth, Joining Date, Contact Information, Telephone numbers, email addresses, and so on are some of the critical pieces of data that must be kept up to date.
- Previous employment history.
- Payment & Statutory information such as PF number, Income Tax, PAN number, and so on for the current company.
Aside from the aforementioned, HR also keeps track of Passport, Visa, Nominations, Company Assets, and so on. One of the most important jobs of the HR Department is to ensure that employees’ correct and up-to-date information is maintained, as a lot of organizational decisions are made by leads, Managers, and Management based on this data.
Cost-effectiveness and efficiency:
Modern cloud HRMS systems are extremely affordable. The cost savings you stand to gain from their use far outweigh the small investment required to obtain them. Payroll management costs, for example, are significantly reduced once compliance is in place and the risk of being slapped with fines and penalties is removed. Furthermore, information duplication is avoided, saving time and improving department efficiency.
100% Statutory Compliance:
Compliance with state, central, and federal laws is critical to any company’s operations. Indeed, if not handled carefully, it can have serious financial consequences in the form of fines and penalties to be paid to government agencies. Most cloud HRMS ensures compliance updates regularly for the statutory changes to the back end of the software.
Need of HRMS in an Organization:
HRMS helps to keep today’s businesses running smoothly.
The following are some of the advantages:
HR professionals no longer have to devote as much time to routine updates such as manual employee deduction computations or attendance register management. HRMS systems are capable of accurately capturing and integrating all data.
Integrating secure self-service features into HRMS systems has increased productivity and consumes less time. Employees, for example, can easily access forms and generate payment statements on their own.
All information is stored in a single location, making it simple to retrieve and share with a few mouse clicks. This improves the security of sensitive information because access to various files and information can be encrypted and hidden behind assigned permissions.
One of the many advantages that modern HRMS systems have provided is the ability to report financial data without errors.
Improved Data Management:
With the assistance of an HRMS solution, HR professionals can navigate and manage massive amounts of data. Data searching, filtering, and reporting become much easier as well.
Rapid Recruiting Processes:
HR professionals can rely on automation solutions to alleviate some of the administrative burdens of onboarding new hires without jeopardizing the recruitment process. Most native applicant tracking systems include additional features, such as AI to sort the right candidates, if needed.
Fewer Systems to Manage:
A good HRMS can serve an entire organization for a variety of critical purposes with just one system. Instead of having separate tools for payroll, hiring, benefits administration, and so on, HR processes can be unified in a single place.
Report sharing with other departments is very simple and there is no need to sort through different reports or sheets, which is a time-consuming task.