What is HRMS

As human resource personnel, it is quite easy to discard the human element of your profession and be caught up in data and record keeping. This is because the management of human resources in an organization can be extremely time consuming with tasks which are repetitive, yet wide and varied.

Research has found out that over half of the time spent in most HR departments is on processing data and answering questions. That is why many modern companies are revolutionizing their workplace with the implementation of the Human Resource Management System (HRMS). This system eliminates much of the routine paperwork HR has long being characterized by.

Simply put, the HRMS is a system or software that combines human resource activities and processes with information technology for easy management of staff and data.

It is an automated comprehensive software or program that covers every range of HR concepts and strategies in all parts of the business, thus freeing up the companies’ employees and allowing them concentrate on other highly productive areas.

It helps in keeping track of crucial data and employee initiatives without shuffling paper or getting staff swamped with manual record keeping.

This system deals with everything that has to do with personnel management. They include the entire range of organizational payroll and salary requirements for faster, accurate and more efficient payroll processing, performance evaluation through tracking key employee performance indicators, streamlined and enhanced recruiting, on boarding and training processes, record keeping, monitoring and tracking hours, and timesheet generation for employees, benefit planning and administration, analytics, and performance statistics, sick and vacation etc.

However, before a company decides to select an HRMS, there are some factors to consider.

Important Aspects Every Company Wanting HRMS Should Thoroughly Consider.

While they’re numerous, these are the most important. Firstly,

  1. Understand Exactly What your Business is All About and what it is trying to achieve.

This will help in understanding the company’s current software needs. It is important that the management identify the company’s needs and processes, as well as its short and long-term goals. The HR department and professionals should create a comprehensive list of requirements, and must be totally involved in the process to ensure the project’s success.

  1. Be Fully Aware of the Software’s Features.

Nothing can be worse than spending precious time and financial resources in purchasing new software, only to later find out that the it is incompatible with your already existing software and is perhaps, missing some critical features.

So before you purchase new software, check that all needed features are properly and efficiently provided. Ensure you properly integrate all current and future systems with the software – including your payroll software, project management software, CRM software, ERP, etc.

  1. Test Sections that have to do with your Critical or highly Customized Needs.

Irrespective of how desperately you need the software, or how convincing the demos might seem, test the product yourself first! This is an extremely crucial aspect when buying the software. When testing generally, test for specificity, functionality, simplicity, flexibility, ease, capabilities etc.

Of course, it goes without saying that cost is a major factor in choosing a HRMS.Which demo gives the best result at the best price? So, what does it cost, and more importantly, what would it cost – long term? Be aware that besides the software and support cost – which are fixed, there are other varied costs associated with the HRMS. These include the cost of implementation, upgrade, maintenance, retraining, extra training etc.

Also, do you pay for what you do not use? Do you pay for every upgrade and update? It is better to ask and be aware of every hidden cost than assume.

Keep in mind that besides purchasing software, you would need adequate service, training and support while using the software. For how long would training and technical support be provided for the running and maintenance of the software? How would it be maintained and managed? Would round-the-clock service be provided?

  1. Do your Product Due Diligence Thoroughly.

Check out the references of your prospective HRMS vendor and find out who their other clients are. Contact the clients (online or physically if convenient) and find out what issues they might be facing with the use of the software. This will help you access the vendor and product’s stability.

  1. Know How the Company Handle Software Bugs.

Every software has bugs, so how would they be fixed? What are the policies in place for the problem to be sorted out? If you want to exit the agreement, or use another vendor, how would you transfer data while maintaining its privacy and confidentiality? Will they help in the transfer of knowledge? How futuristic are they? Can they handle breakthroughs for the future or do they seem stuck in their ways?

  1. Test the Security Strength of the company.

Finally, one factor for great concern in choosing an HRMS is internal and external security. An HRMS will contain highly sensitive company and employee information. It is absolutely important that organizations choose solutions with secure transmission which protect information as it transmits over the internet.

Internally, safeguards should be put in place and information password-guarded, with employees understanding the importance of protecting the integrity and security of the system.