Know About Some Must-have Features of a HRMS Software

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“HRMS” means Human Resource Management System. Refers to the software packages that organizations use to manage internal HR functions. From employee records management to payroll, hiring, benefits, training, talent management, employee engagement, and employee attendance, HRMS software helps HR professionals manage the modern workforce.

The HRMS systems are also referred to as the Human Resources Information Systems (HRIS). These systems make information about the most valuable asset for a company, the data, available to the decision-makers in the company. There are a lot of technological developments taking place in the sector which is coming along with the increase in the adoption rate of these systems within organisations.

What is the need for an HRMS?

One of the reasons HR functions are now focusing on automation is data analytics. When AI is the buzzword, it’s all backed by the correct information at the right time. This is not limited to large organisations, but startups and startups also face additional challenges that can only be simplified by having suitable systems in place.

Personal data is one of the most sensitive data available in a company. The previous approach to storing and managing this data was on paper, which required a significant investment in the space required, and the time commitment was also a considerable challenge.

Then came the era of spreadsheets, and this method has proven to be error-prone and time-consuming. The answers to all of the above problems come in the form of HRMS, which are primarily paperless and therefore eliminate the problem of erroneous or incomplete spaces, among other things.

HRMS also enables real-time data tracking across various HR functions, such as vacation, attendance, and salary. This has become invaluable when employees are increasingly seen as customers, and employee engagement has become a vital piece of the organizational puzzle.

What HRMS Transformation is taking place:-

Given the importance of human resources in keeping organisations functioning efficiently and effectively in the future – and with the tools and data to make informed decisions and demonstrate value.

HR professionals have become one of the most influential people in the C-suite today. With a deeper understanding of cloud and digital technologies, they can contribute to creating and sustaining a productive workplace with cloud-based human resource management systems (HRMS) in the future.

To adapt to business, HR needs to be modernised and transformed. To be a change agent, HR needs to choose the right HRMS in the cloud to manage the entire employee lifecycle. Local solutions, where essential HR functions such as salary and benefits are handled in a separate HRMS.

These separate functions can be separately used for talent management, resource optimisation, and training. This separation reduces usability, user experience and makes data analysis difficult for valuable information.

What is the need for an HRMS?

One of the reasons HR functions are now focusing on automation is data analytics. When AI is the buzzword, it’s all backed by the correct information at the right time. This is not limited to large organisations, but startups and startups also face additional challenges that can only be simplified by having suitable systems in place.

Personal data is one of the most sensitive data available in a company. The previous approach to storing and managing this data was on paper, which required a significant investment in the space required, and the time commitment was also a considerable challenge.

Then came the era of spreadsheets, and this method has proven to be error-prone and time-consuming. The answers to all of the above problems come in the form of HRMS, which are primarily paperless and therefore eliminate the problem of erroneous or incomplete spaces, among other things.

HRMS also enables real-time data tracking across various HR functions, such as vacation, attendance, and salary. This has become invaluable when employees are increasingly seen as customers, and employee engagement has become a vital piece of the organizational puzzle.

What are the main functions of HRMS:-

Human resource management (HRM or simply HR) is a function in every organisation designed to improve employee performance in line with the employer’s strategic objectives. HR primarily focuses on how people are managed in organisations, emphasising systems and policies. HR includes the following sub-functions:

Workforce Planning

Workforce planning focuses primarily on evaluating the resources required to achieve the desired business results. Staffing plans can be short-term/immediate or long-term/strategic.

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Deployment

Recruiting people with the right combination of skills and competencies at the right time is an important task. This includes filling vacancies through initiatives such as promotions, internal job postings, and employee referrals.

Reception

An applicant who has agreed to join an organization will report for work on a particular day. This day is called the join date. Several activities take place on the employee’s first day in the organization, and this activity is called recruitment.

Confirmation and Appraisal

After joining, an employee usually goes through a probationary period. HRMS allows organisations and employees to review each other and decide whether each wants to continue the relationship with the other. At the end of the probationary period, the employee usually undergoes a confirmation procedure. This is where the role of HRMS comes into play in making data-driven decisions within any organisation.

Information management for employees

One of the essential activities of Human Resources is maintaining accurate information for employees. Important data that needs to be preserved include:

Name, gender, date of birth, date of joining, contact details, phone number, email address, etc.

Information about previous work

Information about departments, locations, titles, reporters, etc. from the current company. Further, an HRMS software holds the functionality storing information like payment and legal information such as PK number, ESI number, PAN for income tax, etc.

In addition to the information above, Human Resources also manages information related to passports, visas, candidacy, company assets, and others. Ensuring that accurate and up-to-date employee information is maintained is one of the most critical tasks of Human Resources, as managers and management make many organizational decisions based on this data.

Outgoing and Transaction Management Policy

One of the responsibilities of Human Resources is to formulate or manage the organisation’s vacation policy. In addition to policymaking, Human Resources is also responsible for maintaining all transactions. The legal obligation is to provide employees with organizational vacation time.

Time and attendance tracking

Daily recording of the employee’s working hours, the time he joined, the time he left, etc., is now attracting a lot of attention from organizations and HR departments. In addition to using this information to process salaries, organisations must also produce several official reports based on attendance data.

Changes in wages and calculation of increases

After consulting with managers, the HR department is involved in determining or reviewing employee salaries. A typical salary review is accompanied by a salary review letter. This information is also shared with the payroll team, who will incorporate it into the next payroll.

Payroll and payroll processing

Payroll is a significant activity for organisations and employees, and this is directly related to one of the main reasons individuals work for an organization besides compliance with legal requirements. Payroll processing also includes calculating all legal obligations (employee and employer contributions) and preparing required reports. In addition, employees must be informed of salaries paid, withholding tax calculations, refund balances, etc. This activity will also fall within the scope of payroll processing.

Separation Process

When an employee resigns or leaves their job, this is usually referred to as termination of employment. Human Resources is responsible for ensuring that all work related to this process is carried out. His job is to conduct exit interviews, ensure all approval certificates are issued, make transfers, and submit complete information to payroll.

The payroll team then completes the employee’s total and final payroll and issues their final payment. To carry out all these functions HRMS provides teams and organisations with much-needed technical support for driving decisions better.

Essential communications services for employees

One of the functions of Human Resources is to provide and provide regular channels of communication between the organisation and employees. Employees should be aware of various vacation policies, attendance policies, travel policies, dress codes, etc.
Then there may be other rules and regulations that employees in the organization must follow. Any changes to this policy, significant events, and additional information that may affect employees must also be reported. The HR department has to take care of that. HRMS applications strengthen this function of organisations by enabling transparency and accountability in the systems.

Another important Human Resources function is to ensure that the organisation complies with all relevant laws in the region (state/state). They must ensure that they are aware of these laws and take all necessary steps to implement them.

Various activities that are part of legal compliance are:

  • Ensure that all relevant licenses and permits for employees and related to work are obtained
  • Involvement of all current and new employees in various programs applicable to the organisation
  • Calculation of various deductions related to employee salaries based on applicable laws and regulations.
  • Ensure that reports are promptly submitted to the relevant authorities according to a predetermined schedule. Information can be submitted online or by sending a paper copy.
  • Ensure that when an employee leaves the organization, they are provided with all relevant legal forms and certificates
  • MIS report
  • HR is required to submit several stakeholder reports. Some of these reports are presented regularly (weekly, bi-monthly, monthly, etc.) in a predetermined format. From a stakeholder perspective, this is an essential activity as they will use it in the organisation’s planning and reporting processes.

Training and Development

This function focuses on improving the knowledge and skills of employees. New members are trained in the organisation’s products and processes. Employees are also trained in soft skills such as team building, leadership skills, etc., and behavioural skills such as time management, etiquette, etc. Training modules are designed and delivered based on gaps in required skills and skills possessed by employees.

Performance Evaluation and Promotion

Performance appraisal is a systematic activity that helps organizations determine how healthy employees’ performance matches business results. HR specialists design and implement a performance management system (PMS) and maintain records. This role focuses on setting performance goals as an individual/team and developing methodologies for measuring performance.

Sustainability Planning

Succession planning is when an organisation identifies employees who may move to positions of greater responsibility and continues to prepare them to achieve those positions. The HR department needs to place the candidate, provide them with the necessary data, and monitor and monitor their progress.

Human Resource Development

Therefore, the Human Relations Program aims to increase employee motivation and morale in the workplace through increasing three-way communication and employee participation in the decision-making process. Human resources tend to focus on aspects of an employee’s job rather than technical or commercial aspects.

Final Words

To get your HRMS developed it is essential to find the most suited partner agency and vendor who has the expertise in offering the customised solutions for your organisation. It is where the expertise of Expand My Business lies in offering you the development and white-labelling solutions for your business with service offerings from the best developers across the world. Book a call with us now to get your HRMS delivered by industry experts and seasoned professionals.

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