HRMS features can vary significantly from one provider to the next. Additionally, multiple products can cause problems. Therefore, all stakeholders, including HR, IT and finance, should evaluate which HRMS features are crucial for their business.
Administration of benefits:
Allows HR professionals to develop plans, create eligibility rules and make deposits to benefit providers. You can also self-service your open enrolment.
Centralized employee records:
As one repository for all employee records. As a result, all forms can be updated and maintained. Allows for better reporting. It also lowers compliance costs.
These features will help employees develop or acquire skills through course administration and course and curriculum design, testing, certifications, and assessment. The system allows companies to track the compliance training they have implemented and can be rolled out.
Analytics and reporting:
Provide operational reporting to track HR information, complete compliance reports, develop key performance indicators (KPIs), assess HR process performance, embed HR metrics within financial dashboards for company-wide planning, analysis, and decision making. Ad-hoc reports may also be required.
Calculate wages, hourly earnings, variable payments, bonuses, overtime commissions, shift differentials or merit increases. While withholding regulatory and option deductions results in an accurate net income to employees at regular intervals. These features can also include benefits such as match retirement fund contributions and mobile phone reimbursements.
Acquisition of talent:
Recruiters can set up career pages on the company’s intranet or website, create job descriptions, manage jobs, and integrate job boards with open positions. They can also manage resumes, track applicants through recruitment, extend job offers, conduct background checks, administer pre-employment screenings, and create job application forms before onboarding new employees to either a generalist or the hiring manager.
HR professionals can develop and evaluate their employees through performance reviews: goal management and competency and skill testing administration.
Time and attendance:
The ability to process time-off requests and manage time-off balances, employee scheduling or absence management. It also allows timecards integration with payroll and projects.
The interface of an HRMS is crucial because all workers can use it. Today’s HRMSs offer mobile apps for employee and manager self-service, personal dashboards, workflow automations, role-based control controls and notifications to keep employees involved and reduce inquiries into the IT and HR departments.
Planning for the workforce:
Allows you to design and budget workforce costs and measure actual outlays for future and current scenarios. This can be used to identify gaps in skills, develop succession plans, and prioritize recruitment efforts.
Many additional features can be found in specialized HRMS. But not every company has to have a fully-loaded solution. If you use multiple vendors to form your HRMS system, ensure they all include open architectures that allow for bidirectional data interchange, needed integrations, and file transfers across the entire system. It is easier to use a single provider for an HRMS than it is to do one-off integrations. However, these can be costly and complex.
Benefits of an HRMS
An HRMS provides a key benefit: all of your workforce information can be stored in one central repository. This will lower compliance risks, provide a rich data set for decision-making, engage employees, and make HR professionals more productive.
Let’s dive into the top five business advantages of an HRMS.
Better, deeper insights:
Without an HRMS, managers and employees create data in different places. They can use expense apps or spreadsheets, but it is impossible to gain a comprehensive view of workforce costs.WithAn HRMS allows you to store all your data in one location with better integrity. That enables better, faster decision-making. It’s also critical to A workforce planning initiative and an analytics initiative. The company will evaluate its current workforce and compare it with the future to determine its business goals. The key benefits of this approach include the ability to identify and address skills shortages before they impact productivity, codify succession plans, and keeping a check on labour costs through analysis of how overtime or double-time payments affect financial results.
Higher employee engagement:
HRMS will help you develop and retain talent. HR leaders care passionately about this. HRMS allow HR to design training curriculums and personalize learning plans. They can also set up mentorships and create career paths.
Harvard Business Review suggests that skills development is of prime importance to younger employees and offers explicitly a mentoring program focused on sharing expertise. Millennial workers, Gen Z, and others expect to be questioned daily about their experiences. An HRMS can match senior staff in one geographic area with people who can benefit from a mentoring relationship. Also, it can deliver employee satisfaction and engagement survey results.
To track all these development activities, the HRMS allows you to recognize achievements. This helps employees remain on track and loyal.
Process efficiency and a culture of self-service:
The time it takes to answer inquiries and manage large programs like performance reviews, or enrolments can easily consume 40% of an HR professional’s workweek. In many instances, the individual would be happy to do this work. In addition, HRMS allows managers and employees to access their records securely. This allows HR to spend more time on value-added services.
Processing timecards and job requisitions can all take time. An HRMS allows you to create approval workflows that automate these and other processes. For example, approvers are notified when their turn is to approve the process.
Data centre space and IT and development staff resources for maintenance, support and training. This makes IT more cost-effective, reduces help desk staff, and generally improves satisfaction for full-time employees of an HRMS or the HR team.
One area where HR pros are passionate about is attracting top talent. Unfortunately, most people don’t pay enough attention to the candidate experience. This is because it can be challenging to track the job search process outside of the company. An HRMS helps solve this problem by connecting potential candidates and recruiters through job boards and mobile applications. This makes the process more enjoyable, efficient and fun.
With cloud computing, many of the HR processes that include a lot of data can be automated. Examples include timesheet submission, performance reviews, and leave requests. Employees can even update their own employee data forms like having a self-portal service. Ultimate Business System (UBS) offers highly scalable cloud HR software solutions that avoid paperwork.