TechDogs-"Human Resources Management Software" Explained!

Human Resource Technology

Human Resource Management Software Explained!

By TechDogs

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Homo Sapiens, AKA human beings, are what makes or breaks a business and human beings are not easy to manage (understatement of the decade!). However, they can take a business to new heights if they work together towards the same goal and the onus of managing and inspiring humans (read employees) falls on the Human Resource (HR) Department. They need to find, train and retain employees that are the best fit for the company in terms of culture, work process and values. In addition, HRs are also responsible for executing core HR functions such as recruitment, payroll, employee management, training, etc. Sounds a bit much, doesn't it?

That's why you need Human Resource Management Software (HRMS) which acts as an extended arm of the HR department of your company. In this article, we are going to talk about that extended arm - the HRMS, including its features, benefits, etc. So, read on before the next Fun Friday activity distracts you.
TechDogs-2D Image With A Character On Rocket-The Lift Of Your Business Needs-"Human Resources Management Software"
Not all superheroes wear capes… some sip on coffee and walk the tight line between employees and management. Free lifetime supply of candy for anyone who guesses that we are talking about the Human Resource (HR) Managers! That was an oopsie-daisy on our part! Anyway, now that we are here, this article is for HR, yes, the same folks we all love to hate. Remember Toby, anyone? Ugh! "No God, Please No!"
While many people will not agree but HRs have a tough and stressful job. Handling humans, eh? They are the ones that ensure that the human side of human resources is not forgotten. To build team morale, they somehow indulge us in dressing up for Halloween, decorating our desks, Christmas parties, sports days and the list is endless. Not to forget their role in recruitment, performance appraisal, training plans for employees, policy implementation, workspace well-being, payroll and a zillion other thing. One person can't do it all and that's why we have Human Resource Management Software (HRMS).

HRMS keeps the HR happy, HRs keep your employees happy! So,
HRMS = Happy HR = Happy Employees!
Hence proved and you need to know all there is about this godsend software.

Let’s Start With What Exactly Is HRMS?

As the name suggests, HR Management Software is a tool that helps you manage and optimize the day-to-day tasks of your HR personnel and the overall objective of the HR department for a business. The software allows HR managers to optimize the allocation of time and resources of the company, which improves productivity across the board. HRMS can help businesses stay on track with their yearly goals, increase productivity, reduce time and effort in routine and manual tasks among others.

It will automate time-consuming and repetitive tasks associated with human resources management such as payroll, attendance tracking, leave management, employee data management, etc. As a result, your HR team can focus on other essential tasks such as building a positive company culture, retaining and decoding water cooler gossip for the bosses #TheCoolLife

Humans Are Old. What About The HR Management Software?

Well, we must admit that it took humankind a wee bit of time to wrap their heads around the fact that the workforce is as integral to organizations as buns to burgers. During the 1970s, the work of HR was paper-centric and they used record books to log everything, from new recruits and leaves to payroll and the likes. By the way, this had a high chance of being “misplaced,” which led to a lot of coffee breaks and water cooler gossip. All this changed (No, not the coffee breaks and gossip but the frequency of “misplaced” was minimized) when the modern HRMS came into the picture.
  • In 1979, SAP R/2 - (real-time Enterprise Resource Planning Software - ERP) integrated the HR function, which garnered a lot of attention and realized the scope of this space. 

  • In 1987, PeopleSoft created a stir by creating software that was driven by HR business requirements rather than an add-on to a traditional ERP. 

  • In the 1990s, this market evolved as players like Oracle introduced HR ERPS, which were HR centric and covered functions like recruiting, learning, payroll and reporting.

  • Post-1990s, there were various evolutions in the HRMS space. Many vendors focused on specializing in just one HR function like recruitment or payroll and the software was designed accordingly.

  • The modern HRMS are cloud-based and easily integrate with different database management programs and highly intuitive and customized to individual organization’s needs, goals and budget.

After a brisk walk down the memory lane, let’s learn about the various features and benefits of HRMS.

The Must-Have Features Of HRMS

TechDogs-The Must-Have "Features Of HRMS"-Feature Checklist For HRMS-Application Management-Payroll Management-Employee Management-Training And Development-On-Demand And Easy Reports
Though there are varied HRMS available, there is really not one size that fits all. However, there are a few elements that are a must-have for all HRMS. We've made a list that can be used as a checklist.
  • Application Management

    One of the main functions of HR is the recruitment and seamless onboarding of new candidates. HRMS will provide a unified view of the candidate's recruitment stage right from the application to the hire.

  • Payroll Management

    What's a business without money? Another critical HR function is payroll management, which involves HRs having to calculate work attendance, vacation days and other deductions such as FICA tax before disbursing the monthly salary. Somebody, please tell Rachel who's FICA. Why's he getting all her money? (FICA stands for Federal Insurance Contributions Act). The payroll management feature of the HRMS automates this for you. It will pull out the leaves and other data to give accurate payroll details.

  • Employee Management

    Keeping tabs on employee performance is an enormous task. More so when you are looking after more employees than you can count on your fingers. The employee management feature helps in streamlining this process. Performance review, manager feedback and peer feedback are saved in the system, making it easier to access historical data for an employee. Storing all employee data at a centralized location and making it available to all stakeholders is also a critical HRMS component. This involves timesheet management, leave management, employee lifecycle status. HRMS also helps keep employee training records, milestones and achievements. What better way than to log in into the system to see a pop-up celebrating your latest skills badge. Also, employees can view the HR policies, know about their rights and duties, all within a single platform.

  • Training And Development

    Organizations worldwide are investing heavily in upskilling. Training and development are another function that is managed smoothly by HRMS. The HRMS can also integrate with your LMS (Learning Management Software) so that all training plans, initiatives and progress can be tracked in a single system.

  • On-demand And Easy Reports

    In today's world, data is everything. On-demand reports were never so much in demand (pun intended) as they are today. Even more fascinating is being able to pull out those reports in a jiffy. HRMS also generates a lot of statutory reports that are required for compliance and provides actionable dashboards that give you a quick view of all the critical information on a single screen.


Modern Businesses Need HRMS To Be Super-efficient

Efficient management of employees propels organizations to meet their goals successfully and one of the best ways is to invest in a good HRMS. However, before investing, you must establish the need for it.

Some of the questions that you can bring to the discussion table are:
  • Is your HR department overburdened and finds it challenging to perform all the tasks?

  • Is your business getting disrupted due to HR data or compliance errors?

  • You have multiple offices and it's difficult to manage all HR functions in a unified manner?

  • You have a high employee turnover and lengthy hiring cycles and cannot identify the reasons for it?

  • There is no proper set up for learning and development initiatives?

If you were nodding yes to the above questions, that is your cue that you need an efficient HRMS. With every organization embracing digital transformation, HRMS is a must-have irrespective of the size of your business.

HRMS A Critical Tech Tool To Have

TechDogs-"HRMS A Critical Tech Tool" To Have-HRMS As Integral Part Of An Organization
HR is the most underrated job. Techies are behind their keyboards all day converting coffee into code. Marketing and Sales are responsible for whipping up the revenue and Finance, oh, those guys are covered in money. What about HR? They walk around the office speaking to all, trying to make it a fun place to work but that is just one part. HR is involved in a lot of functions such as recruitment, performance appraisals, leave management, employee welfare and benefits and so on. It's absolutely impossible to manually keep a record of all the employees. An HRMS, on the other hand, helps the HRs to oversee all these functions and keep the resource management at the optimum level.

HRMS is integral for an organization as it helps with:
  • Increasing productivity

  • Reducing human errors

  • Adhering to security and compliance rules

  • HR metrics for future planning and goal setting

  • Seamless people management

If you have decided to invest in an HR Management System, you should learn about the future prospect of the solution too.

What Does The Future Hold For HRMS?

Automation and more automation. HRMS leveraging the power of AI (Artificial Intelligence) will be a huge trend.  Right now, HRMS are capable of semi-automating HR processes to a certain level; however, in the future, it will be able to completely automate the process. There is a rapid adaptation of AI and RPA (Robotic Process Automation) to optimize processes like gathering, checking and collating data. This in no way means that HRs will be redundant, no way! HRs will, in fact, use the data analysis to make quick and intelligent decisions and align the employees with the organization's goals.

HR automation is happening and it is here to stay.  While you cannot replace HRs (maybe Toby can be replaced with Holly), you can certainly empower them with the best HR tech solutions out there. Adapting to an HR solution is the need of the hour and over the next few years, it will just get more and more exciting. As the spotlight grows on remote working, HRMS will continue to evolve and it's just a matter of time when businesses, big or small, will jump on the bandwagon and truly empower their employees.

Frequently Asked Questions

What is HR Management Software (HRMS) and how does it benefit businesses?

HR Management Software (HRMS) is a tool designed to streamline and optimize the day-to-day tasks of HR personnel within a business. It facilitates the management of various HR functions such as payroll, attendance tracking, leave management, and employee data management. By automating these time-consuming and repetitive tasks, HRMS allows HR teams to focus on more strategic initiatives like building a positive company culture and enhancing employee satisfaction. Ultimately, HRMS helps businesses improve productivity, reduce manual effort, and stay aligned with their yearly goals.

How has HR Management Software evolved over time?

The evolution of HR Management Software (HRMS) traces back to the 1970s when HR tasks were primarily paper-based and manually managed. However, with the advent of modern technology, HRMS underwent significant advancements. In the late 1970s, SAP R/2 integrated HR functions into Enterprise Resource Planning (ERP) software, marking the beginning of digital HR management. Subsequently, in 1987, PeopleSoft introduced HR software driven by HR business requirements rather than being an add-on to traditional ERP systems. Throughout the 1990s and beyond, the HRMS market continued to evolve with cloud-based solutions and specialized offerings tailored to specific HR functions. Today, modern HRMS solutions are highly intuitive, customizable, and seamlessly integrate with various database management programs.

What are the must-have features of HRMS?

HRMS comes with a range of features tailored to streamline human resources management. Key features include Application Management, which aids in the recruitment and onboarding process by providing a unified view of candidates' progress. Payroll Management is another critical aspect, automating the calculation of work attendance, vacation days, and other deductions to ensure accurate payroll details. Employee Management consolidates performance reviews, manager feedback, and peer feedback, making it easier to access historical data. Additionally, HRMS handles Training and Development by integrating with Learning Management Software (LMS) to track training plans and progress. Lastly, On-demand and Easy Reports feature provides crucial data and actionable dashboards for compliance and decision-making.

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