Today we’re going back to basics to help you understand what a Human Resource Management System (HRMS) is and does. Because when you understand what HRMS is, you’ll be in a better position to understand whether HR technology holds benefit for your business.
HRMS refers to systems and technology that manage all of the complex processes and functions of the HR department. HR systems and software like Sage HRMS are designed to improve the efficiency of activities like recruitment, training, benefits enrollment, time and attendance tracking, payroll processing, HR compliance and reporting, and much more.
Note: There are several terms and acronyms that refer to HRMS and are often used interchangeably including Human Resource Information System or HRIS.
Benefits of HRMS Software and Technology
Just like any software or technology, the core benefit of HRMS is to improve efficiency and drive costs out of your business. But here are some other important benefits related specifically to the unique challenges of the HR department.
- Eliminate Paper – Because HR compliance and employee management can be highly paper-intensive, one of the most important benefits of HRMS software is the cost-savings and efficiency that come from the elimination of paper.
Forms, approvals, reports, employee administration and updates, applicant tracking, benefits enrollment, payroll processing, and so much more are all handled electronically and in one central HRMS database.
- Reduce Repetitive Administrative Tasks – hand-in-hand with the efficiency that comes from eliminating paper is the ability of HRMS software to reduce tedious administrative tasks and get more production out of limited HR resources. It also prevents HR staff from getting bored and bogged down in routine and repetitive tasks, helping them focus on more strategic HR initiatives and more meaningful contribution to company objectives.
- Simplify Compliance and Reporting – HRMS helps ensure compliance with HR laws and reduce the risk of fines, penalties, missed deadlines and more. HR software like Sage HRMS includes built-in compliance rules and guidance. And since all of your employee activities are tracked and managed in one single system, reports are updated, accurate, and can be run with the click of a button (rather than manually cobbled together from files, notes, spreadsheets, and multiple data sources).
- Allow disparate systems to communicate with each other– HRMS facilitates communication and data sharing between departments. It should be flexible enough so that your recruiting package can share new hire information with your HRIS to bring the employee on board. The HRIS should then talk to Payroll and Accounting to share cost center information and eliminate duplicate data entry. When your HRIS has this flexibility, as with Sage HRMS, you create better efficiency and better record keeping. In addition, reporting is more extensive and you have better access to knowledge and the wealth of your organization; your people.
HR Software: One Size Does NOT Fit All
Because not all companies have the same needs, search for HRMS software – like Sage HRMS – that can be broken into a series of integrated/connected modules which can include the following:
- Employee Benefits Enrollment
- Time and Attendance Tracking
- Performance Appraisals
- Recruitment & Talent Management
- Training and Learning Management
- Planning, Analysis, and Reporting
- Employee Self Service
- Payroll Processing
- Skill management
- Property management
- OSHA tracking
From Cost Center to Cost Saver
While HR is traditionally viewed as a cost center saddled with time-consuming and paper-intensive administrative tasks, it’s a necessary burden in order to comply with a long list of workplace regulations that require specialized reporting.
The question is this … how can you streamline your HR processes to minimize that burden and transform the HR department into a model of efficiency?
For some organizations, the answer is to cut costs and automate repetitive administrative tasks with HRMS.
Is HRMS right for you?
To find out, contact us for a free HR needs assessment and ROI analysis.
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