We are currently residing in an era dominated by advanced technology, where Artificial Intelligence is making its presence felt across all sectors of the industry. Among these sectors, Human Resources stands out as the most crucial one. In order to ensure the smooth functioning of an organization, the constant efforts of HR managers are of the greatest importance.
Whether it involves hiring for vacant positions, calculating salaries, keeping the workforce engaged or addressing their demands to retain top talent, HR managers play a vital role. At times, it becomes challenging for managers to handle all these functions single-handedly, resulting in an overload of work responsibilities.
Through the utilization of various HR software, businesses are undergoing digital transformation, replacing the manual recording and management of HR data with these powerful tools. The digitization of the administrative aspect of HR is of utmost significance for all types of businesses, as it greatly simplifies tasks such as payroll and bonus calculations, as well as the allocation of sick leave and vacation days.
A well-implemented HR software plays a vital role in Human Capital Management, contributing to the retention and recruitment of employees. Software is necessary to increase process accuracy and reduce workload. Therefore, by adopting HRMS companies that have already embraced technology tools have witnessed a very positive transformation in their work culture.
How HRMS assists HR Managers
When employees are content with the management, a positive change in work culture occurs. Enthusiasm and productivity of employees are essential for achieving the company’s goals. And what is the role of HRMS in this process? By exploring HRMS further, we can better understand their role in the business world.
Hiring, recruitment and onboarding new employees
When a company expands, hiring new employees becomes crucial. These have to be hand-picked individuals with the best qualities for a certain job. HR is responsible for finding the right individuals for the right job at the right moment. They need to work hard to fill vacant positions, review numerous resumes, shortlist candidates and coordinate team meetings and interviews.
A good HRM software can make things a lot easier. The software enables the promotion of vacant positions across various social media platforms, attracting a large pool of applicants. It automates the initial scanning of online resumes, so that the managers don’t have to review each application.
After the software is done with scanning and filtering applications according to the specific, pre-set criteria, managers can focus only on the most relevant resumes. The software can then quickly and efficiently schedule the interviews for selected candidates and invite them via automated emails.
The onboarding process can be navigated easily and new employees can quickly complete all required formalities. HR managers can optimize the hiring, recruitment and onboarding processes by leveraging the capabilities of the HRMS.
Managing payrolls and statutory compliance
Processing payrolls of individual employees is the primary responsibility of HR managers. Mistakes and errors that might occur when calculating salaries can have a very negative impact on the employees and their overall satisfaction.
Calculating the salary involves various factors such as attendance, leaves, tax deductions and reimbursements. It is essential to complete this process in time and correctly, so that employees receive their salaries as they expect.
Furthermore, it is important for the payroll process to be compliant with employment and remuneration laws. In facilitating this process, software plays a significant role: it simplifies the calculation of salary for each employee by automating the consideration of factors like leaves, time and taxes. Most software programs ensure compliance with laws with regular updates that account for any changes in regulations. It is important to integrate the payment system with employees’ bank accounts to enhance security. This way employees can access their pay slips without having to involve managers.
Managing attendance, leave and performance with HRMS
For ensuring accurate payment it is very important to monitor employees’ attendance, leave and performance. This part of the HR job is virtually impossible to do manually. Not only is it time-consuming, but it is extremely vulnerable to errors.
It is necessary to maintain a record of employees’ ins and outs both for the discipline and payrolls. It is also very important for companies to be able to evaluate employees’ performance and recognize the achievements, in order to additionally reward those whose performance was higher than the average.
HRMS solutions can be easily integrated with time and attendance modules that allow HR managers to stay on top of the records.
Managing remotely-operating businesses
The significance of new technology for businesses operating remotely cannot be overstated. Without the aid of advanced HRM software, proper management would simply not be possible.
Employers have the responsibility to ensure that their remote workers are equipped with the necessary tools and equipment, so that they can do their job. Establishing an efficient onboarding system for new workers is crucial. This is where the HRMS takes a very important part cutting the time and effort of the HR managers.
In a fully remote business, communication must be prioritized. Employers should actively encourage feedback and conduct meetings with their staff, which is also where a good HRMS plays a pivotal role. Providing online activities for team building purposes is crucial for fostering a sense of unity and collaboration among employees and HRMS is there to fulfill its duty.
Enhancing current human resources
A contemporary workforce is not merely a group of individuals, even if it comprises long-term employees. It also represents the abilities and expertise possessed by these individuals and groups. For HR managers, it is imperative to promote continuous professional growth.
By effectively utilizing HR software, such as learning and talent management modules, it becomes possible to monitor and direct the development of skills. If HR departments integrate their recruitment records with qualifications, it becomes easy to link training information with specific personnel as employees seek further education. Additionally, they can establish a connection between various skills initiatives and changes in productivity to enhance the return on investment in workforce development.