How an HR Management System Can Improve Company PerformanceApril 09, 2021
Learn how our HR management services give you the HR tools you need to improve recruiting, streamline onboarding, enhance HR and payroll management solutions, and more.
Human resources is a complicated division in your company. Your HR team handles recruiting, hiring, onboarding, and ongoing performance. They are also responsible for other aspects of staff management, as well as HR and payroll management solutions. A human resource management system can help companies of any size organize and efficiently use their data.
HR management systems allow you to automate many manual tasks, streamline communications, and improve processes to maintain compliance.
What is Human Resource Management?
Human resource management systems (HRMS) are comprehensive. Depending on the solution, it might be a platform or software. There are different types of HR software, but an HR management system includes all aspects of human resources, from recruitment and onboarding through payroll and compliance. This solution gives you the ability to bridge communication between management and employees. It offers streamlined workflows to improve efficiency and increases compliance through security features and industry-standard workflows.
What are the Functions and Capabilities of an HRMS?
An HRMS system delivers all the tools and features to streamline the management and processes for your HR team. This includes payroll, recruitment tasks, attendance and time management, scheduling, benefits, taxes, and compliance issues.
A human resources management system allows you to automate many of the processes necessary in your HR department. This includes building templates for necessary documentation and creating workflows so none of your steps are missed. All the facets for your HR can be organized through your HR systems. Because the system is automated, you can standardize processes, keep better track of employee attendance, and otherwise improve efficiency. The system also allows employees better access to their records and the ability to request time off or correspond with management. This means that you'll have better documentation and are less prone to errors that can cost time and money.
What are the Benefits of HR Management Systems
There are many benefits to employing a good HRMS. Here are some of the most impressive:
- Improved Efficiency: Your HRMS allows you to automate tasks that would otherwise need to be handled manually. This creates an efficient process for your HR department, allowing them to move through an automated workflow, and reduces errors.
- Improves Compliance: Compliance needs can be assessed and accounted for in your workflow, so you'll never miss keys steps. Your HRMS also documents all your HR tasks, making it easier to locate data when necessary.
- Increases Productivity: Your software allows employees to manage their time, request time off, and have up-to-date information on their schedules. It also sends alerts and moves staff through the proper workflows, so that tasks need to be accurately completed through the system.
- Overview of Staff: Management can access a real-time overview of staff members by division or project. This gives your management team better tools to assess staffing needs for improved planning and more productive workflow.
- Robust Reporting: Reporting options allow you to assess your teams’ and your recruitment processes.
Is There a Difference Between HRMS and HRIS?
There is a difference between HRMS and HRIS, though you will sometimes hear the terms used interchangeably. They are both HR software solutions, but they include different features.
- HRIS: Is the acronym for human resource information system. This type of software solution is narrow in scope. It does include workflows that help your staff handle recruitment, time management, payment, and benefits. But it's limited in the tools that are available for staff.
- HRMS: Is the acronym for human resource management system. This is the most robust option. Your HRMS includes all the tools you need to handle onboarding, training, and the entire lifecycle of your employees.
How to Choose an HR Management System
Choosing an HR management system is an important decision. Your solution should be one that makes your staff's jobs easier. You also need to consider whether the solution is scalable, so you can continue to grow while using the system. Here are five tips to help you find the best system:
- Get the team on board: Your employees will be using the system. Choose employees to help research and assess.
- Price range matters: Your budget will be important but make sure that the solution also offers value for the cost.
- Real-time use: Any system now should give you real-time data. Time is important with HR – you don't want to find out you were understaffed after the day is half over.
- Employee portal: Make sure your solution gives your employees the ability to check their own information and contact management directly.
- HR management tools fit your industry: Choose a solution that is tailor-made for your industry and the way your company works.
What are Hurdles in Human Resource Management?
Human resource management services, as discussed above, have a lot of moving parts today. It's more than simple hiring responsibilities and keeping track of tax information. There are extensive regulations governing hiring, employment, taxes, and data security. These are some technical aspects of HR, but remember, your soft skills in HR mean the difference between high employee turnover and loyal, productive staff members.
Here are some of the biggest hurdles that face human resource management:
- Retaining your best talent: This is one of the biggest issues for companies. You need to develop a company culture that allows your staff members to grow and flourish. Employee turnover is one of the costliest issues a company can deal with because it means investing in training for new staff. High turnover also indicates a company culture problem, which can diminish productivity and efficiency throughout your organization.
- Ensuring Employee Productivity: HR is your leadership team where employee productivity is concerned. They're tasked with spotting productivity issues and finding ways to assess and repair issues to improve the process overall.
- Maintaining privacy and managing vital business information: Employee information needs to be securely protected, as well as the rest of the sensitive data in your HR department.
- Leadership development and succession planning: Training employees and promoting from within are two features that improve productivity overall. Succession planning is also a key issue for companies because there is a fine balance in choosing the right candidate diplomatically without losing other key personnel.
How Does Paylocity Stand Out Compared to Other Platforms for HR Management?
Paylocity offers a unique solution built for your business. You reap the benefits of a truly customizable solution that allows your employees the real-time access they need to safely and confidently manage their hours. Our workflows make your day-to-day HR management responsibilities easy to manage and intuitive. Paylocity's human resource management services give you all the HR tools you need to improve recruiting, streamline onboarding, upgrade training options, enhance your HR and payroll management solutions, and develop a comprehensive and organized system to guide you through each employee's lifecycle.
Contact us today to schedule your free demo.
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