What is HR Management Software?
Human resources management software (HRMS) is a digital solution that combines several processes and systems to manage and optimize daily HR tasks and the overall HR goals of the organization. An HR workflow is a process of moving data between various HR systems and other applications in order to fulfill a specific HR objective. HR management systems computerize and automate several processes related to HR like payroll management, training, recruitment, candidate screening, and employee information management. By automating repetitive and standard HR activities, organizations can reduce the cost and time spent on these activities.
The use of HR management systems improves the productivity of HR departments by saving them from tiresome manual tasks and enabling them to focus on higher-value add tasks. HR software streamlines business operations. From document filing to creating files, and sharing information, HR software makes it easy to handle all critical admin tasks. Depending on the needs of the organization, they can choose from any of the following categories of HR management software.
Employment information systems – these systems track personal information and essential details of employees.
Position control systems – different positions within an organization can be tracked using this tool.
Performance and goal management system – employee performance on individual and team projects are tracked and monitored.
Time tracking and attendance management system – time and attendance tracking to maintain proper workflow.
Recruitment and applicant tracking system – evaluation, monitoring, and background checks on candidates can be done by this system.
Compensation and benefits information system – keeping track of employee payments and additional benefits is done by this system.
Employee training and development – training new recruits and bringing them up to speed with expectations of their new role
Global HR system – businesses that have operations spread across different locations can use global HR systems to track business operations.
HR reporting system – this system provides feedback to the HR department on employee data.
Organizations can choose one or more HR management systems from the above lists as per their business requirements. Businesses can choose an integrated HR module that combines the above systems or separate systems.
Types of HR Management Software
Based on their usage and purpose, HR management software can be classified into the following types.
Applicant tracking systems (ATS) –
applicant tracking software is an HR management software that can be used for the hiring process. Using an ATS greatly simplifies the organization’s hiring process. Hiring tasks like storing applicant data, posting job openings to multiple boards, and screening applicants for potential job positions are some of the features provided by ATS.
Performance management –
performance management software is exclusively for HR professionals, managers, and employees, for evaluating employee skills, setting performance goals, and tracking their improvements.
Human resources information systems (HRIS) –
this HR software can be used for handling multiple HR functions like recruiting, tracking applicants, managing payroll and benefits, storing employee data, and maintaining legal and regulatory requirements.
Employee onboarding software –
onboarding software streamlines the employee onboarding process. Tracking employee onboarding status is simplified by the software. Electronic signatures, training tracking, employee questionnaires, and other automated functions are included in employee onboarding software.
Employee management –
this software can be used to improve employee and team engagement. The software is used for gathering feedback, coaching, analytics, and everyday work priorities on employees.
Need for HR Management Software
From the hiring process to employee onboarding to payroll, HR workflows can work like clockwork with the right human resource management software. The right HR software can help companies reap several benefits. Why is HR software a must for organizations?
Reduces paperwork and protects privacy – the most important advantage of using HR software is that it reduces the need for paperwork in all HR transactions. The HR teams are spared from handling voluminous paperwork that comes with manual processing of profiles, managing employee information, and payroll management. It can get cumbersome and time-consuming to search for a document in a room full of files. Moreover, the chances of documents getting misplaced or damaged are more when there is too much paperwork. Using HR software to manage HR processes digitizes HR data. When data is digitized, searching for relevant documents becomes easier and frees up office space as well. Admin-based controls on sensitive data also provide safety and security of data.
Accelerates your processes – HR in any organization is in charge of addressing the concerns of employees. Addressing all of the employees’ concerns can be cumbersome for HR. Some of the queries could be trivial but take up a lot of time for the HR team. Automating HR processes using chatbots makes it easy to handle trivial queries that do not require the intervention of HR. HR software makes it easy to manage every member of the organization.
Interaction with third-party applications – manual HR processes operate in silos. As a result, the interaction between these processes is limited, which brings down the visibility and transparency of HR processes. The adoption of HR software integrates disparate processes, which paves way for seamless information exchange between these systems. For example, payroll systems can easily collect all the employee-related data needed for calculating their salaries from the HR system, without HR managers having to enter the data manually.
Attendance and time tracking – tracking and maintaining employee attendance and the number of work hours have a direct impact on business revenue. The HR personnel spends a lot of time sorting through spreadsheets, time logs, and other important files. This brings down the productivity of the HR team. Using HR software helps track the number of hours and employee attendance automatically and generates customized real-time reports.
Improves productivity – manual HR software is ridden with repetition and redundancy. The HR team is forced to focus on labor-intensive and mundane tasks rather than productive tasks. Automating HR processes using workflow automation software eliminates redundancies and repetition from the workflow. It also reduces costly errors and everyone in the HR team benefits from user-friendly automation solutions. Using HR software boosts the morale of the HR team by enabling them to focus on strategic activities.
Improves operational efficiency – manual data entry and information management systems prove costly for the HR teams. Most of their productive work hours are spent searching for employee records or screening through prospective profiles or doing background verification of candidates. Automating HR processes ensures that the HR department has all the user data at the tip of its fingers. Employee data is available to HR at any time and HR can also update employee records in just a few clicks. Quick and effective execution of HR processes improves operational efficiency.
Frees HR staff – repetitive and mundane HR activities can tire out the HR and make them feel less valued. When HR personnel spends their work hours on useful and strategic HR activities they get to learn new concepts and grow in their career. When HR personnel is free from mundane activities, they get to focus on the growing complexity of organizational development, employee training, and retention techniques. More focus on such activities also increases engagement of the HR team and their work satisfaction.
Data security – automated HR processes ensure the safe and secure handling of sensitive employee information. HR software enables HR personnel to provide controlled access to data so that not everyone can access sensitive data. Moreover, HR management software stores data on a cloud server for the highest levels of security. Two-way authentication of data also keeps it safe from hackers.