Human resource management is the core function of many organisations. It is also important for the efficient utilisation of resources and enhancing employee productivity, which eventually leads to business growth. Automating this function using a Human Resource Management System (HRMS) can benefit organisations in more than one way.
When researching implementing a HRMS for your business, the endless array of features and available software might overwhelm you. To make this process simpler, we have listed some of the key factors that you must consider in selecting the right HRMS for your business.
8 Key Facts You Should Understand Before Buying a HRMS
1. The size of your organisation
One of the fundamental considerations for selecting the right HRMS is the number of your employees. Some HRMS software systems support a small group of employees while some others support only large organisations. Make sure the one you select suits your requirements and has room for future growth.
2. Saves time
The primary requirement behind developing and implementing a HRMS is to reduce the amount of time spent by HR personnel doing tedious tasks. Some of these tasks include employee data entry, managing daily attendance logs, scheduling reminders of upcoming events or tasks etc. A well-planned HRMS provides simple one-step solutions to perform such tasks leaving HR personnel time for more crucial tasks.
3. Promotes transparency
As we know, a HRMS can work as a self-service portal to empower employees with all the information and resources they need. An employee can access employee directories, handbooks, policies and procedures, regulations, etc. based on their job role. This creates a more transparent HR platform compared to the traditional manual HR management. Without a HRMS employees had to request HR personnel for such information whereas a HRMS allows these resources to be just a few clicks away.
4. Enhances business growth
An efficient HRMS empowers your HR department and thus enhances its efficiency. HR personnel can focus more on strategically crucial tasks rather than laborious tasks. Most HRMS can also provide support for an increasing workforce and handle large amounts of data. This is beneficial for organisations that aspire to grow further.
5. Helps your employees
A HRMS platform allows employees to easily access useful information and process tasks online. The flexibility of the HRMS solutions to run on a range of hardware and software platforms also enables employees to access the system remotely.
6. Your business requirements
One of the most important considerations before implementing the right HRMS is to clearly determine the requirements of your business. Involvement from your HR team is critical to understanding their needs.
Some examples of HR requirements include but are not limited to:
- Applicant tracking and recruitment system to hire new candidates.
- Employee database to store and manage employee information.
- Performance management to assess employee performance against set goals.
- Learning and development to empower employees to learn new skills.
7. Integration and customisation
HRMS software systems allows staff to manage multiple functions in one place. To provide this capability, a HRMS might need to integrate with other systems and obtain data from those sources such as a payroll system. Make sure the HRMS you select supports integration with other systems and customisation of functions based on your requirements.
8. Evaluate user experience
End-user experience plays an important role in determining the future of a HRMS in your organisation. If it supports an easy-to-use interface, HR personnel are likely to achieve more from it. You must also consider your employee skill set in regard to operating the HRMS in your organisation. If you promote employee self-service through the HRMS, the interface must be easily understandable by all your employees. Organisations often invest in a HRMS with complex workflows and interface that even HR personnel struggle to understand.