Human Resource Management Systems integrates strategic and core functions of HR into one solution to perform functions like performance management, recruitment and on-boarding, time and attendance, benefits and payroll. HRMS can be deployed in three ways, namely, hosted, in the cloud or on-premise. The vendor can either host it or can be hosted by the buyer by an upfront purchase.
When you choose an HRMS software, not only you are purchasing the software but also the services of the vendor. Upon the purchase of the software, managers and employees are commonly known for being caught up in the hype of the system. Important questions are usually missed. The needs of your organization could be overlooked. In this case, the effectiveness of the system could be affected as well. Another important factor to be considered is the security offered by the system so that employee data is not compromised.
Basic Features That the HRMS Vendor Should Provide:
Here is a list of basic features that the HRMS vendor should provide.
- HRMS Training: In case the vendor offers training for the employees on the HRMS software, make sure the details of the training are finalized before the product purchase. Find out who trains the employees. Some vendors take help from third-parties called as ‘learning specialists’ who train the employees rather than utilizing their staff to train the employees. When third-party trainers are used for training, the process is less effective. A vendor who provides training to their employees should always be preferred. Research on the same should be done before the purchase of the product.
- Usability and Current Trends: The vendor should also be well-versed about the current software that the company uses, with which they should be able to prove why their software is better. By pointing out the differences in the software, the employers can also have an idea about whether it is needed and if it is intuitive enough. The vendor should be well read and know ample data on how the software trends in the HRMS world.
- Data Security: The biggest problem that the corporate world faces is data security. HRMS contains crucial information such as the security details of the employee, his government identification, health data, bank account information, background check results. In case there is data breach not only will it be expensive for the organization and its employees, but also causes a loss in the trust that the employees have on the organization and the organization has on the HRMS system. Security features provided by the HRMS should be discussed in detail with the HRMS vendor.
- Employee Exit Management: Another important aspect that should be discussed is the steps taken by the system to make the Employee Exit process smooth. The vendor should be aware of the exit process of the company. Even if he is aware of it, it is common practice to ask the company for details on the same. The protocol for employees who are exiting the organization should also be implemented in the system. Employees could have access to sensitive information from the company and it could be accessed remotely. This makes it crucial to make sure that the employee who is no longer a part of the organization does not have any access to the information, once he quits or is terminated. In case there are no proper procedures or protocols which makes this transition, the employees could steal data even after they leave.
- Support System: HRMS has been advertised and marketed as a SaaS model. SaaS stands for Software as a Service. SaaS is a model for software distribution, where applications are hosted by the third provider and made available to the internet through the internet. Commonly used platforms and Technologies are Cloud Computing. It is based on subscription. Service and support are made available for a monthly charge. It is beneficial as companies no longer have to pay extra for software updates and maintenance as well as support. It also complies with new trends and regulations. The problem occurs when the vendor fails and the company fails as well. In case the company goes under, the vendor needs to have a contingency plan; otherwise, you will have to start the process of looking for new software from the scratch.
- Integrated System: Originally, an organization purchased software performing a single function. With time, the software has become multi-functional. Organizations also use different systems for storing employee details and supporting documentation, payroll information, and other such details. When a new system is introduced, rather than manually feeding all the data, it is more practical to integrate all the data into the system. In the future, perhaps all the systems can further be condensed into a single system. When systems are integrated, companies can understand if it is smoothly integrated with the system in existence to increase the speed of implementation. It also reduces the need to input the data manually into the new system. Not only is this process expensive in terms of time and money, but also affects the company’s operations.
These tips commonly help in making the right decision and knowing what to ask the vendor. HRMS is used typically by all businesses. Based on whether it is a small business with less than 50 employees, medium-sized company with 50 to 200 employees or an enterprise with several locations and more than 200 employees, the system varies. HRMS is a commonly used term in workforce management whereas in HR terms, the use of HRIS, Human Resource Information System, is apter. Apart from these features, you can also ask the HRMS vendor for a list of customers of the vendor to get a more realistic view of the software and its performance. Make sure you ask the vendor’s customers about issues with the vendors and their approachability as well as you can expect to work with them for quite a while. Apart from positive reviews, it is advisable to ask about issues as well.