The relationship between human resource (HR) and organizational performance has massively intertwined in the last few decades. A vigorous work environment, progressive high-tech workforce that constantly demands more from an organization are just a few signs of the changing role of HR.

Decades-old tradition of an HR to mechanically recruit and maintain employee records has now transitioned to strategic recruiting, molding organization culture, maximizing the return on employee investment, and contributing towards the organization goal.

Achieving this is challenging for HR Mangers regardless of their organizational structure.

Unlike before, organizations now need to adopt and rely on a HRMS or human resource management system solution to be on top of their new redefined role. They need to build capacity by moving onto a comprehensive and well-integrated solution to generate better HR analytics, which helps them to take evidence-based decisions to increase business and engage employees systematically.

Key benefits of using an HRMS

Handle routine HR tasks with ease

HR department main function is to emphasis on tasks such as HR process improvement, corporate training, enhancing employee efficiency, building organization culture, etc, but most of the time they are stuck with paperwork and routine administrative chores like processing employee information, generation of certificates, documents, etc. and updating employee’s personal files. With an HRMS, an organization can reduce 30% of man-hours and related HR administrative costs i.e. reduce paperwork, speed up a creation of documents, and save time by having all information in a centralized location.

Provide remote access & Employee Self Service (ESS)

The HR of an organization often over extends itself by providing basic, mundane support to employees, such as process clarifications, generation of certificates and documents, etc. This is highly burdensome and time consuming, resulting in loss of productivity of the concerned HR executive and related department.

One of the most popular feature of an HRMS is to provide remote access to employees and enables employee self-service, which means employees can themselves generate these documents from any location by simply logging into the portal designed for them with their credentials, in addition to other features. This saves time for both the employee and the HR department.

Effectively manage and comply with regulations

Today we are living in era where most of the organizations are working within complex legal environments and are expected to follow certain regulations, especially those set up by the government, taxation and legal departments. By using HRMS, an organization can create mandatory compliance checks and necessary alerts as required to ensure that the company is always following regulation requirements, because not following the same can prove extremely costly in terms of non-compliance fines and penalties.

Eliminate human error and business loss

Sometimes businesses face severe loss due to a human error, which could have been avoided in the first place. Automating HR tasks reduces the possibility of typical mistakes like incorrect salary calculations, double credits, missed deductions and the like. One of the biggest benefits that an HRMS brings to the table is process automation which not only saves time, but also helps eliminate these errors.

Offer privacy and data security

Having a good HRMS system for your organization ensures protection of employee data such as their salary, benefits, personal information and undertakings, etc. An employer is responsible for preventing personal employee data from being misused and protecting this data against outside threats. An HR management system helps protect personal information both from hackers and unauthorized users by encrypting it.