Human Resource Management in These Changing Times
Today, the increasing expectations of employees and organizational leaders have created massive pressure on HRs worldwide. Forbes says, apart from administrative and risk management tasks, HRs also need to focus on positive as well as impactful employee responsiveness. For that, HRs need to handle a vast amount of data, cover vacancies with skill-bearing talents, and manage workforces via digital channels to ensure enhanced productivity (Deloitte’s Human Capital Trends 2020). However, with a lack of proper tools, unclear visibility, and a wide talent gap, recruiters have been struggling to meet organizational expectations. Leveraging technology like AI and Data Science in the form of HRMS can help HRs to virtually manage work, workforce, and workplace for enhanced outcomes.
So what does HRMS stand for? Before getting into that topic it is important to have a basic understanding of Human Resource Management.
What is Human Resource Management?
According to Gartner, Human Resource Management (HRM) refers to the practice of policy and program administration that ensures workforce performance optimization as well as business goal advancement.
In simpler words, HRM or Human Capital Management refers to the overall strategic function that targets to resolve all the issues surrounding the people of an organization. That includes a long list of operations including:
- Performance management
- Compensation management
- Hiring and recruitment
- Organization scalability
- Employee safety and wellness
- Staff benefits
- Employee motivation
- Communication enhancement
- Policy administration and
- Skills acquisition and training
Hence, this management procedure ensures enhanced people, workplace culture, and environment for an effective and productive employee contribution to achieve organizational objectives and goals.
How does Human Resource Management work?
The HRM team has their hands deep in responsibilities to manage both external and internal workplace environments. Some of the major operations that Human Resource Management involves include:
- Ensuring organizational values, mission, and values
- Motivating employees to work towards organizational goals and objectives
- Outreaching employees and communities
- Ensuring employee engagement, contribution, and productivity
- Overtaking the management of the entire recruitment process
- Retention and development of experienced talents
- Ensuring organizational safety from internal conflicts and lawsuits
And there’s a lot more. Furthermore, all these operations include a lot of time-consuming data work, employee tracking, and much more. Hence, Accenture says that HRs usually spend 56 hours every month on average to tackle all these tasks. Hence, major business groups have started using HRMS to streamline these operations. So, what does HRMS stand for? Check out the following section to understand that in detail.
What is HRMS?
HRMS is the acronym for Human Resource Management System. It refers to a solution that automates major HR processes. These include hiring and recruitment, attendance tracking, leave administration, payroll management, career and succession planning, performance reviews, employee data management, employee benefits, taxes, lawsuit management, and much more.
The History of HRMS
The entire HR process automation started in the 1970s with only the payroll management function getting digitized. However, the mainframe technology provided only partial automation. Therefore, it came with just basic features including earnings and deduction evaluation, paper check printing, and liability tracking.
This was followed by the evolution of the same solution with additional feature implementation including direct deposit and employee self-service. At this stage, payroll processes became completely automated and started getting adopted in the late 2000s.
The first pioneer to come up with a holistic HRMS was PeopleSoft. In 1980, PeopleSoft provided employee data management, hiring assistance, attendance tracking, benefits and compensation administration, compliance reporting, and other assistance apart from Payroll automation. Hence, PeopleSoft introduced the concept of automation for better employee cycle management and enhanced decision-making (without the internet of course!).
In the 1990s, the advent of the internet added more HR automated features. Traditional job advertisements were replaced by electronic job boards for enhanced HR-candidate communication. Cloud technology took over the HR space in the 2010s and made data storage and access a much easier process.
The Future of HRMS
The upcoming era is said to reveal a lot more for the HR field. With cognitive technologies like AI and Data Science, interviews will get automated. Hence, AI-enabled HR software will enable HRs future skills needs anticipation, workforce trends detection, and requirement-based talent identification for optimized human capital investments.
How does HRMS differ from HRIS?
People often confuse HRMS (Human Resource Management System) with HRIS (Human Resource Information System). Even though their functions are similar, some of the factors that distinguished them include:
- Purpose: An HRIS is based on the design of numerical data tracking and employee data management. On the other hand, HRMS software is built upon both IT and HR management technologies for a holistic HR automation experience.
- Automation: While HRIS enables partial HR automation, HRMS ensures absolute HR process automation.
- Features: HRIS software enables recruiters to manage recruiting, training, compensation, reporting, along with benefits administration, accounting and workflow automation, and data tracking. However, HRMS software enables recruiters to get real-time insights into onboarding processes, job performance, employee satisfaction and issues, profitability, and much more.
Despite being the predecessor, HRIS has become an umbrella feature of HRMS simply because of technological advancement. Now let’s take an in-depth overview of the functions of an HR management system.
What are the Features of Human Resource Management Software?
Every HR management system has a set of functionalities that can be categorized into certain sections of the HR process. Since, after all, HR software tries to automate each sub-part of the HRM process. Here are all the modules that can help you to understand the features of any Human Resources software comprehensively.
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Staff Engagement and Management
Better engagement and management tend to lead to higher productivity. An HR management software enables recruiters to engage employees with training courses, new skill acquisition, career path development, and gain recognition in terms of position.
On the other hand, Human Resource Management Software provides a smooth path to manage this “core HR” process. Employee management becomes much easier using the centralized portal on the HR software that comes with reporting, analysis, and compliance support. HRs can use an HR management system for:
- Workforce-unit categorization
- Reporting relationships development between seniors and employees
- Payroll-accounting cost center alignment
- Personal record maintenance
- Employee-self service offerings
- Reporting maximization
In short Human Resources software helps HR managers to improve the overall employee engagement, management, and retention process.
Processing payrolls are quite a hectic process that can lead to several human errors if not kept track properly. HR software uses data science to automate this entire process. Gross to net and vice versa earning evaluation, individual deductions tracking, benefit election administration, tax filing and deposit automation, employee deduction and customization, tax withholding insights and salary slip generation includes some of the common payroll processing automation that Human Resources software provides.
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Staff Arrangement and Management
This big section of the HRM process requires the full-time attention of the HRs. HR software helps to create an outline of the workforce costs, and present and future scenarios. Moreover, an HR management system also enables skill gap identification, succession plan creation, and recruitment effort prioritization for accurate workforce planning.
Tracking employee development, manager assessments, and disciplinary actions includes the first set of workforce planning. The second set of actions includes time and attendance recording and a safe work environment assurance. Moreover, HRs also undergo compensation arrangements, performance management, learning, and incident tracking for smooth workforce management. A Human Resource Management system automates all of the above to optimize performance and enhance productivity.
A Human Resource Management system helps HR teams with plan creation, eligibility rules configuration, and automation of payments to benefit holders. Furthermore, HRMS software provides open self-service enrollment and benefits and accounting integration for enhanced benefits tracking and management.
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Decentralized Employee Data Storage
Employee data paperwork becomes quite a challenging and time-consuming task when it comes to maintenance. Moreover, HRs need to spend a lot of time when they want to access certain data in times of emergency. Human Resource Management software uses secure cloud servers for easy and secure employee data storage. Hence, HR software helps recruiters with data upgrading and maintenance, enhanced reporting, cost-effective compliance, and accurate auditing.
Organizations can integrate timecards with HR software for complete automation of the attendance tracking process. Furthermore, an HR management system automates off-time request processing, time-off balance management, employee scheduling, and absenteeism management. Hence, HRs no longer need to keep an eye on when employees enter or leave since a human resource management system does that on their behalf.
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Staff Performance Analysis
HRMS provides an accurate path to track employees’ yearly performance automatically. HRMS software enables HRs with automated reporting, feedback review and management, appraisal history access, self-appraisals, employee recognition, goal setting, and much more. Therefore, HR teams can accurately evaluate performance reports using automation with a Human Resource Management system.
Today, employees want more visibility into their payroll information. HR software provides employees an easy option to change their personal information, check scheduling and payroll information, submit time-off requests, and much more. Hence, HRs need not spend their time manually corresponding with employees since through HR management software employees can do so directly.
Moreover, the HRMS software optimizes the entire recruitment process using cognitive technologies like AI and Computer Vision. Hence, HR software allows recruiters to create attractive job positions, screen bulk resumes, track applicants, automate interview processes, and much more. Hence, recruiters can save ample amounts of time and costs with a Human Resource Management system.
HR software provides an easy path to educate employees to acquire necessary and prime skills without human interference. Using course administration, curriculum development, testing, and certifications, employees can easily gather new skills that can help to achieve organizational objectives and goals. Moreover, using HRMS software HR teams can track training progress to monitor employees’ understanding.
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Analytics-oriented Reporting
Data Science-backed Human Resources software provides complete visibility and automation when it comes to data segmentation and insight generation. A Human Resource Management system provides HRs with the options for operational report runs, HR information tracking, compliance and legal reporting completion, KPI development, HR process, and performance measurement, and much more. Therefore, HRMS software allows HRs a smoother path to organization-wide analysis and planning for advanced decision-making.
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Reimbursement Management
Similar to benefit administration, HRMS software provides HR teams to easily manage employee compensation and rewards. Since HR software automates processes like salary evaluation based on an hourly wage, sales commissions, overtime, bonuses, merit enhancement, and shift differentials. Moreover, the HRMS software also keeps in mind elective and regulatory deductions for accurate net payments to employees.
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What is Human Resources Software Security?
Security of both employee and employer information holds a great position in Human Resource Management. HRs must safeguard crucial information not only to ensure legal compliance but also to prevent workplace chaos. Disclosure of personal information like earnings and compensation can provoke negative emotions in other employees’ minds, thus resulting in low productivity, increased conflicts, and much more. Hence, the basic list of data security requirements in HR management software must include:
- Data encryption
- Malware protection
- Robust firewalls
- Password management
- Two-factor authentication
- System segmentation
- Secure SQL
- Access control
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What are the Benefits of a Human Resource Management System?
Cognitive technologies have opened up gates to success using measures to stay ahead in the competition. Hence, HR management software enables both SMBs and Fortune 500 companies with organizational growth and productivity by breaking down bureaucracy. Some of the major benefits of a Human Resource Management System that many successful business organizations have voiced include:
- Empowers employees to customize and get complete visibility into their payroll data
- Actionable insights into major HR bottleneck processes for effective management
- HRMS software enhanced employee engagement for better productivity
- Complete automation for optimized management and productivity
- Enables complete customization of organization workflows for an enhanced experience
- Encourages the culture of self-service for time-saving and error-free procedures
- Global diversity hiring for faster and more accurate recruitment
- Easy response tracking using reminders and notifications
- SAAS-based solutions for seamless integration in daily work operations
- Provides complete safety of crucial data
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How should you purchase an HRMS for end-to-end business requirements?
Selecting the right HRMS software is a strategic decision that you need to ponder upon. Moreover, involving HR professionals in this discussion holds great importance for end-to-end business requirements. In the first place, you need to understand your requirements before identifying the apt HR Management system for organizational growth and success. So stay tuned to know the best tricks and tips of selecting the absolute Human Resource Management software.
When to purchase an HR Management Software?
There is no fixed answer to this question. You can opt for Human Resource Management Software if you find raising issues with the manual handling of HRM processes. Usually, companies opt for an HRMS software when they want remote visibility into their expanded branch operations, meet reporting requirements, accurate talent acquisition, enhanced future workforce planning, and others. On the other hand, if companies come across issues like failed auditing, poor candidate engagement, and others they are likely to get an HRMS.
That is why it is essential to analyze the need for Human Resources software before finding HRMS service providers.
How to identify requirements for HR Management Software?
For effective human resource management software selection, you need to analyze your business requirements, organizational procedures, and long and short-term goals. Therefore, involving HR departments is crucial. In that way, you will get a clear picture of the challenges that can get resolved using HRMS software.
To gather information about your organizational requirements, you can go through the following steps for effective results:
- Examine leftover HR processes at the end of a period (month or year)
- Check the additional expenditure behind HR compliance and errors
- Analyze issues with tracking remote operations
- Evaluate the ineffectiveness of controlling unengaged employees
- Check issues with self-service management of performance appraisals
Check out features of selective HRMS SAAS solutions and collaborate with them in the form of a list. Based on the above, HR management system providers are based on your requirements.
How to find the right HR Management Software Service Provider?
There is a wide range of companies providing Human Resources software with a variety of features. Choosing the apt one that meets your needs can be quite challenging. Hence, we have created a list that can help you to identify the best Human Resource Management Software faster.
- Identify service partners based on their market reputation, portfolio, and product reviews.
- Compare different vendors based on their product performance and functionality.
- Analyze the technology requirements that can best serve your business.
- Check the user-friendliness of the HRMS solution’s interface.
- Get complete information about the software’s configuration, training modules, maintenance, and support services.
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Conclusion
To conclude, the large-scale adoption of HRMS started in the pre-pandemic times. Hence, the following graph about the worldwide adoption of HRMS software by various organizations from Statista supports the above statement.
In 2021, due to the digitization of job boards, HRs are bulked with thousands of applications for a single job position. Moreover, keeping in mind the choosiness of employees, retaining them becomes quite difficult in these changing times. Forbes says that, with automation, recruiters can accelerate hiring time as well as optimize hiring effectiveness. The report further states that automation can enable better decision-making when it comes to employee engagement, management, and retention.
Today HRMS is integrated with cognitive technologies like AI, Data Science, and Computer Vision to enable recruiters to remain a step ahead.
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