How HR Software Can Reduce the Manpower and Business Cost

HR Software Can Reduce the Manpower

When big international corporations had just started out, they could store information only on paper. Details had to be manually written down. And then, technology happened; and all the information was being stored electronically. A person was assigned entirely for a job and people called him the HR. When they started keeping electronic records, the only thing they expected out of the HR was to maintain the files.  Nowadays, the barriers to managing human resources have been dealt with and the HR does not have to be using the same computer they always do, thanks to cloud computing. HR Software has come into use and it now plays a larger than life role, in almost every company- irrespective of whether it is a large multi-national corporation or a startup that operates out of a small cubicle.

Benefits of Using HR Software

The benefits of using the HR software are as follows.

  1. Efficient Administration: The size of the organization does not matter. Whether you have 5 people or 500,000 people working under you, managing them becomes a hassle. It becomes a nightmare, when you try to keep track of them all, using pen and paper. When it is all electronic and accessible on your computer, thanks to your Human Resources Software, you will not need an army of colleagues to find data; all it takes is a few clicks of the mouse.
  2. Reduced cost: Statistics show that one HR is required to manage 100 employees. With the help of HR software, the ratio is altered to 1 HR professional for 140 employees. This also means that the cost of operating and maintaining the company and its employees reduce. For a company that has 280 employees, only two Human Resource Professionals who use the software will be adequate, rather than the three that would be required without the software. It saves tens of hundreds of pounds every year.
  3. Communication: HR Software generally has an employee directory, which makes it easy to contact the colleagues, especially for those who are outside the immediate department. The information can be thought of as a filing cabinet, where each employee has his own file. The problem with the older method of actual files in a filing cabinet is the fact that it is time-consuming and labor-consuming, to manually look for an employee’s file.
  4. Data Recovery: In cases where the files are lost or corrupted, it becomes difficult, and sometimes nearly impossible to recover all the data. But with software that is connected to the cloud, it becomes easy to recover data.

The Role Played By HR and HRMS in an Organization:

The integration of Information Technology with Human Resource Management has resulted in the formation of HRMS (Human Resource Management System), which takes care of performing and managing tasks like the employee’s life-cycle, from recruitment to retirement. The productivity of the HR increases and the error probability decreases, with the automation of HR activities. Apart from acquiring new talent, the most important function the Human Resources Personnel are tasked with, is maintaining and retaining talent in the organization. The cost of training a new employee is around five times more expensive than retaining talent. And to retain talent, the human resources should be taken care of and provided with motivation. It is also the role of the HR to take care of employee grievances. The HR cannot perform the task of employee retention, unless he has help and help comes in the form of compact software that not only automates but also simplifies the job.

Use of the Human Resource Management System

In the Global Shared Services Survey conducted in 2015 by Deloitte, the strategic priority that earned a spot as the second most important priority was increasing the level of automation; and automation is at an all new height. HR operations are carried out as an end-to-end process that has no involvement by a human being.  The HR team is being teamed with a robot that not only provides analytics and modeling, but also gives the answer to complex inquiries; predictions of the future trends, cost estimations, and all such questions can be answered by the software.

IT for HR- More Hi-Tech Than Ever

  • In this age of disruption and digital disruption, ‘the future of work is already here’ says Josh Bersin. Rather than being machines, robots continue to remain as software installed on computers and connected to the cloud.
  • Progressive HR teams have already put these robots to work and have used them to run, format and distribute reports, perform spreadsheet-based tasks as well as validate internal data against external databases. They can be used to automate tasks that are fairly repetitive in nature, especially the administrative tasks.
  • To make operational improvements with minimal expenditure of time and capital, yet make a meaningful difference, these robots can come in handy. For organizations that are spread throughout the country or throughout the globe, all the data can be made available, both in the consolidated form as well as the distributed form, thanks to these robots that are connected to cloud.
  • And while there is much debate about the replacement of humans with software, there is no denying that the computer is not as prone to errors the way humans are. This reduces backlogs and processing errors, thereby increasing both customer satisfaction and HR performance.

While HR software has reduced the need for man power in organizations everywhere, it does not seem like HRs will be replaced entirely. Rather than dwell on this, Human Resource Personnel need to be progressive in accepting new technology and incorporating them into their work. It not only gives more structure and form to managing human resources, but also improves the way they get the job done. Software and automation have never been the ultimate end game; they have only been the start of the newer digital wave. And, while HR software is indefinitely better than human beings in handling data and has reduced the manpower required to handle resources, they can never provide the human touch in dealing with a human’s grievances.