The human resource industry has been on an exciting, but challenging, journey in the past few years. A dynamic work environment, advanced technological ecosystems and a workforce that’s constantly demanding more from an organization and vice versa are just a few signs of its growth. HR’s role of merely recruiting and maintaining employee records has expanded to building an organization culture, strategic recruiting, maximizing the return on employee investment, and contributing towards the organization goal. But how does the HR manager achieve this?
Unlike before, organizations need to adopt and rely on a HRMS or human resource management system solution to be on top of their new redefined role. According to a Forbes study, … only 13% of organizations have a single HR system and on average companies have 3-4 different HR applications (one for HRMS, another for learning, another for recruiting, for example).
Thus, the scope remains for companies to move to a more consolidated and well-integrated solution to create better talent analytics in order to transform their talent strategies and directly improve employee engagement and the ability to perform.
How does an HRMS solution help organizations?
- Automating HR Processes: Typical HR processes such as resource onboarding, recruitment, payroll management, performance management, etc. can be highly time consuming and resource intensive. Payroll Management for a company that has 50+ employees can take over two dedicated days for the entire HR personnel to perform when done manually. But when automated with an HRMS, the process takes just a few hours with no or minimal requirement of human intervention. This allows your HR personnel to focus on other key tasks such as HR process improvement, corporate training, enhancing employee efficiency, building organization culture, etc.
- Providing Remote Access & Employee Self Service: One of the major HR tasks with an organization is employee services, where HR personnel are required to support employees with basic services such as process clarifications, generation of certificates and documents, etc. This is highly cumbersome and time consuming, resulting in loss of productivity of the concerned HR executive. An HRMS provides remote access and enables employee self service, which means employees can themselves generate these documents from any location by simply logging into the system with their credentials. This saves time for both the employee and the HR department.
- Effectively Managing Regulations: Most companies operate within complex legal environments where they must follow certain regulations, such as those set up by the taxation and legal departments. An HRMS allows creation of compliance checks and can schedule 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.
- Eliminating Human Error: One of the biggest benefits that an HRMS brings to the table is process automation. A carefully researched and implemented HRMS can help automate most tasks related to payroll management and filing, which not only saves time, but also helps eliminate common errors such as incorrect salary calculations, double credits, missed deductions, etc. which can cause small companies to lose up to US$ 1,000 in penalties.
- Protecting Against Fraud: As per research, companies can lose up to 5% revenue every year to fraudulent transactions done by employees. But a well-implemented HRMS can help you save this revenue as well as the time required to process these claims as it is an integrated solution that makes it impossible for users to manipulate the system. Processes are marked, formats are defined, and the system is integrated into existing finance, accounting and ERP modules to help make the claims process seamless.
Octane by Embee is the most comprehensive and agile Human Resource Management System for small and medium-sized businesses today in the Indian, African, and Middle Eastern markets. It is a web and SaaS-based automated human resource management system solution designed to give your HR department the intrinsic details of your workforce at every level to help you maximise your return on employee investment and improve business performance.