7 HRMS Myths Debunked

Rapid changes in technology have impacted businesses in multiple ways, resulting in globalization and organizational realignment. Today’s workforce has also become more dynamic and mobile. The need to effectively manage such a dexterous and fluid workforce has compelled Human Resources (HR) to go from being a merely compliance regulatory arm of organizations to a critical enabler of growth. And in order to do so, HR must leverage technology. A Human Resource Management Solution (HRMS) is the need of the hour that can help businesses with the digital realignment and cater satisfactorily to the requirements of modern workforce and thereby, secure organizational evolution.

7 HRMS Myths Debunked

However, a large number of organizations are yet to adopt HRMS. There are multiple factors that are keeping them from implementing HRMS in their organizations, such as budget constraints and unreadiness. The most prominent ones are certain widespread myths. Let’s debunk them right away.

Myth 1: It is way too expensive

The thumb rule for every business is to optimize costs wherever possible. One way to do so is to invest in technologies that can streamline processes, reduce manual labor, save time and cut expenses, like HRMS. While it is true that once implementing an HR software used to be a costly and time-consuming affair, consequent technological advancements have introduced affordable and effective solutions in the market that can be swiftly implemented. Moreover, the solutions are scalable, allowing you to upgrade as the company grows. Thus, ‘expensive’ is neither ultimate nor absolute.

Myth 2: HRMS is more trouble than it is worth

Many are of the opinion that adopting HRMS will only complicate an already smooth-running set up. From monetary arrangements to resource allocation and employee training, everything collectively accounts for a substantial investment and supposed complications that many are reluctant about. However, the fact remains that 72% organizations have seen better functionality as the primary benefit of implementing a new HRMS. HRMS actually makes the processes simpler and quicker. Most HRM software are easy to learn and adopt, have simple navigable interfaces and provide actionable insights to support definitive decision-making.

Myth 3: Outsourcing HR tasks will be enough

Outsourcing day-to-day functions to an offsite location can lead to a sense of distance between the employees and the company. Recurrent inaccessibility issues, delayed communication and longer resolution times may leave employees feeling frustrated and unimportant to the company. It is not uncommon for outsourcing HR firm to lack in-depth understanding of a company’s culture, which may result in less-than-suitable recruitment, incorrect approach towards issue resolution, even inadvertent leaks of sensitive company information.

Myth 4: Our team is too small to need HRMS

As your employee count is bound to increase with the gradual growth of the organization, long-term strategic planning is required to manage an expanding workforce. Investing in a robust HRMS in the initial stages will not only make it easier to handle tedious HR tasks as the employee base expands but it would also be more logical to invest now, as it is easier to get fewer employees onboard the system at a time than more. Automating repetitive HR tasks would also enable your in-house HR team to work on business strategies and ideas to develop and grow the company!

Myth 5: HRMS needs an IT staff to function properly

It doesn’t! HRMS solutions offer great flexibility and ease of use to businesses, while eliminating the need of IT staff completely. While the implementation partner can take care of maintenance and upgradation of the solution from time to time, most of the daily tasks can be executed by the in-house HR team and employees due to design and functionality.

Myth 6: Everything will take longer with an HRMS

This belief is fundamentally incorrect as automation directly improves time management, along with accuracy. For instance, the repeated email notifications and auto approvals that an HRMS put in place, help to resolve processes faster. Moreover, an HRMS helps each employee to be aware of and be compliant with business policies and steadily establish organizational culture that empowers both the employees and the organization.

Myth 7: Vendor relationships are troublesome

Business leaders are often apprehensive of working with a vendor as they believe it may limit control and increase dependency on vendor’s response. In reality, the vendor is there to simplify things for you. From understanding your requirement to suggesting the right solution, from implementing it to training your employees, from the maintenance of the solution to upscaling it as required – the vendor will be there with you every step of the way. Just ensure that you are selecting the right one, based on their expertise and experience.

These misconceptions reflect the need to rethink certain assumptions about the way workforce is being managed at many organizations. Stakeholders must understand how human capital can transform into business value and how an HRMS can streamline this transformation. Since learning one thing often requires unlearning another, eliminating the faith around these myths can become the stepping stone towards leveraging a robust Human Resource Management Solution.

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