Discussing why HRMS solutions are indispensable for business success, plus the benefits and process of choosing the right one
As the role and scope of HR undergoes a massive digital transformation, the number and kind of challenges it faces have also evolved. The HR function is no longer just limited to people or talent, but a business-critical role that has a seat at the table. It is expected to bridge the gap between organizational and workforce objectives, and create synergy between the human and the business aspect of the enterprise.
However, with increasing talent shortages and rising attrition rates, it has become even more critical to focus on people management and employee experience. Let us take a closer look at why HR departments across industry and scale are using HRMS systems to manage the modern workforce, what kind of solutions must be chosen, and how to go about selecting the best ones.
Why is HRMS important?
Human Resource Management System, or HRMS, is an automated digital solution that helps organizations and HR teams manage all employee-related processes, like hiring, payroll, leave management, benefits, and performance management, among other things. In addition to creating an exhaustive database of employee information, maintaining a virtual trail of records, saving resources and costs, there are several functional benefits of HRMS solutions that improve the efficiency of existing processes. These include, but are not limited to:
- Speeding up the hiring process by managing applications and scheduling interviews
- Automating payroll and reimbursements
- Simplifying leave requests and approval
- Making the learning experience remotely accessible
- Helping managers measure engagement levels
- Reducing turn-around time with self-service features
In other words, HRMS solutions are indispensable to modern-day organizations, and they become a necessity as the organization workforce grows. With the importance of HRMS solutions in context, let us take a closer look at why simply investing in a popular HR software solution isn’t the best way to go. It is vital to find an integrated solution that meets your requirements and then customize it for the best results.
Five reasons to invest in an integrated HRMS solution
Improved efficiency and optimum resource utilization
A single system saves time and resources by bringing all processes and workflows together; thereby increasing the scope of automation. In addition to lesser paperwork, an integrated HR system also streamlines the entire employee life cycle, right from job opening to off-boarding. A consolidated HR system that ties into each aspect of people processes thus, enhances efficiency and turn-around-time.
Easier data collection, management, and analysis
With a single system comes the benefit of maintaining one comprehensive data set instead of multiple smaller and isolated ones. An integrated approach can source data from multiple points, which makes it easier to collect and store data. Furthermore, a single integrated data set helps provide better HR reporting and analytics since it contains lesser distortions.
Regulation and compliance are dramatically simplified in single HR management systems. This is because they automate processes, maintain meticulous and accessible records, reduce error, and increase standardization. Instead of duplicating or breaking down compliance-related processes over many tools or departments, a consolidated HR system saves time, provides internal checks and balances, and ensures that the business complies with the law.
Enhanced employee experience
A single-window employee dashboard that offers access to payroll, benefits, leaves, learning courses, project management, and business travel-related requests means that employees can smoothly use self-service features. What’s more, it promotes consistency and timeliness, both of which are crucial to cultivating a seamless employee experience.
Easy to scale up and down
Finally, one of the most vital advantages of using an integrated system of different modules is the ease of scaling up or down features, adding new system abilities, and improving the scope of existing ones. Depending on the employee usage patterns and engagement, modules of the system can be configured for maximum impact. Similarly, modules can be entirely dropped or new ones added with ease.
Five advantages of customizing your HRMS solution
Alignment with business goals
Deploying off-the-shelf HR systems without customizing them is akin to wearing a dress a size too big or small; it might be a good dress, but it simply won’t fit. Creating a customized HR solution allows HR teams and leaders to build a system that truly aligns with the organization’s overarching business goals and creates a synergy between different modules of the solution. It also has other crucial benefits, like shorter onboarding time and steeper learning curves.
Reflects existing workflows, processes, and culture
Customizing HR management solutions as per the existing workflows and processes ensures that the company cultures, values, and priorities are adequately reflected in the entire system. Since this is a tool that employees will be using regularly, it must mirror the current organizational structure to ensure smooth automation of processes. Critical processes like performance management, appraisal, rewards, learning and development, and leave management can be designed as per unique company specifications.
Freedom to choose features
A solution tailor-made for your organization provides the freedom to ditch redundant features, add business or industry-specific features, and create custom tools. Customizing the solution as per your needs ensures that it provides a better configuration, reflecting the organization’s unique HR and employee practices. Naturally, the employee experience and journey become a priority with customized solutions.
Reliability and future-proofing
An employee-focused HR system aligned with the business goals, processes, culture, and workflows will provide a greater value for a longer time with lesser maintenance or investment. This increased reliability also lays the foundation for future-proofing the solution as meeting future requirements becomes easier with minor adjustments and configuration. In other words, the HR solution grows with you, and it becomes easier to expand its capabilities.
Better access management
Customizing the HR system as per the organizational needs and processes adds an additional layer of data security as it becomes less susceptible for miscreants to access sensitive information. By creating access and visibility permissions depending on the role and requirement, customized HR solutions also decreased the chances of accidental data leaks or loss of confidentiality.
How to select the best HRMS solution in India?
While there is no particular method to determine the efficiency and success of HRMS solutions, be sure to look for the following while comparing vendors and service providers:
- A unified dashboard that provides an overview
- Easy-to-learn management tools
- Tiered access and security measures
- Data security and confidentiality practices
- High degree of self-service
- Ease of migration, setup, and deployment
- Flexibility to scale up and down services
- Reporting and analytical tools to provide trends based on data
All these features and advantages are offered by Farsight Technologies, the top HR software solution in India. Our comprehensive HR solution has been created entirely in-house and prioritizes ease of use, user experience, and efficiency. What’s more, the entire cloud-based system is fully customizable and can be easily configured as per your organization’s unique needs.
Modules can be added or removed as required, and personalized features can be included. With top-notch data security and customer support, Farsight works as a partner with businesses to streamline their HR operations and simplify people management.
Farsight’s integrated HR system offers the following modules:
- Recruitment Management
- Onboarding and Offboarding Management
- Payroll Management
- Time Management
- Learning and Development Management
- Performance and Appraisal Management
- Leave Management
- Project Management
- Compliance Tracking
- Travel and Expense Management
As one of India’s best HR software solutions, Farsight has several leading businesses across industries as its clients. Please get in touch with us to know more about how Farsight works, how the modules can be personalized, and why we are the first choice for industry leaders.
Customized HRMS solutions in India: The final note
As artificial intelligence and data-based decisions take over HR processes, organizations must expedite the digitalization of their processes in order to make the most of these tools and technologies. These digital management systems become even more critical to ride through the disruptions like the Covid-19 pandemic which have resulted in significant changes in HR trends. As we step into an uncertain future, having a reliable, scalable, integrated, and secure people management solution that reflects the essence of your organizational processes and culture is a must for HR and company leaders.