Why organisations need HRMS to safeguard business?

Published : 07 Jun 2021 08:31 PM | Updated : 08 Jun 2021 09:14 PM

From recruitment to retirement Human Resources Manage­ment System (HRMS) is vital for an organization. HRMS help the organizations ease operations, saves time and costs, reduce risks, increase customers satisfaction, and maximize profit. Modern organizations can’t run without having this system. 

Here are some benefits of using HRMS in modern organizations:

Easy way of managing employee data and information

Employee data and information are very important for any organization. Maintaining and keeping employee records are one of the main functions of HR department. Keeping and maintaining these large data and information is not an easy job. Data is called the currency of this information age. Keeping manual data poses a great risks and creates many complexity in the organization. So, organization needs proper data and information management system and HRMS can complete this gigantic task smoothly and ease the HR operations.  

Ease the process of employee recruitment 

Employee recruitment and on boarding are time consuming tasks for HR people. Advertising, resume sorting, issuing interview letter, conducting interview, assessing, measuring, selecting etc. can be smoothly handled through the recruitment module of HRMS system. Modern HR leaders highly recommend this simplified recruitment and on boarding process. This saves time and costs of the organization.   

Leave and attendance management

Many organizations are still using manual system of managing employee attendance and leave. Manual system is not error free and reliable and creates employee dissatisfaction. HRMS is the only solution of this problem.

Reduce employee turn over rate with HRMS

You may ask how HRMS can help reducing employees turnover rate? Modern HRMS is developed in such a way it will analyze certain things of employees like causes of dissatisfaction, reasons of non performance, loosing energy and morale. Employee retention is a troublesome affair for most of the HR managers. Most of the business managers think employee retention is very crucial and businesses need to bear huge losses due to this. Employees can quit organization due to the dissatisfaction of salary and benefits, work environment, work life balance, absence of career growth and development, mismatch of skills and job requirement, unapproachable management etc. Modern HRMS can address all these factors smoothly and reduce the employee retention rate through predictive analysis, and evaluating the cause and effect.

Performance management

Measuring and managing employee performance is vital for sustainable growth of any organization. How Team leaders, managers, supervisors will measure employee performance? Manual intervention is not desirable and should not be followed.    

Training and development management

Most of the organizations are very much reluctant in terms of developing their employees. They think, training and development is a bad investment. But this is not a bad investment at all. Training and development of employees have great impact on their performances and a best HRMS can manage training and development functions effectively and ultimately organizations get benefits in the long run. 

Employee and manager self service

There is a interactive module called manager and employee self service in the HRMS where manager can give necessary instructions and employees can apply for leave and other official items like  visiting cards, stationeries etc. to perform the job. This automation save the time of the employees and they can engage themselves in their core duties.   

Project and task tracking

Assigning new projects and tracking and monitoring the activities can also be possible through the HRMS system. 

Payroll processing and salary administration

This is a major task done by the HR department. This task management is now becoming very easy and smooth with the help of automation (Payroll management module in the HRMS)  

 Loan management

Employee can sometimes apply for loan from the provident fund and it can be managed and processed through HRMS.

 Asset tracking

Organizational assets can be tracked and maintained through the HRMS solutions. This automated services make the life of HR people easier. They can devote on the other functions more than ever before. This is the beauty of the system.  

Regulatory and compliance management

All HR policies and guidelines are properly documented and these policies and guidelines must be followed by the employees. HR people must ensure proper training and discussion sessions on these policies and guidelines so that every employee can follow and aware of these HR policies and guidelines. System generated quiz contest on policies and guidelines is a popular tool to manage employees effectively. 

 Reduction of risks

Following a manual system creates lots of errors and risks. Employees dissatisfaction starts in absence of proper data and records. And a manual system can never manage large number of  employees’ data. Business growth can be stuck without proper data analysis. 

This is a great risk for any business. Employees also leave the organization if they don’t get proper feedback and treatment. But without maintaining proper data it is not possible to treat an employee properly. 

Employee satisfaction

Employees are satisfied when they get proper reward and feedback from their organizations. But unfortunately most of the organizations don’t follow this culture of giving timely feedback and reward. Problems starts here and it goes a long way to demoralize the performing employees. Most of the time managers and supervisors are reluctant in giving right feedback and reward based on proper data analysis. Due to the absence of proper data analysis and monitoring employees don’t get right feedback and reward and ultimately these create  negative impact on employees' performance. Employees’ dissatisfaction can easily be handled and managed through performance management module of HRMS.  But how many of us are using this great tool to manage our assets( employees).    

 Customers satisfaction

We always say a popular quote- “customers are the kings” but rarely think how these kings will be satisfied if the service giving people are not satisfied. Customers will be satisfied if employees are satisfied. We have to maintain proper employee satisfaction index 

Cost savings

How a system like HRMS can save organizational costs? Researchers found that if any organization saves the paper and printing costs in a year, the organization can saves huge amount of money and only half of the amount can ensure the deployment of proper HRMS. So, it is up to you whether you saves the cost or increase the costs. Proper utilization of HRMS system makes employees life easier, it saves the time, energy and money of the organization.      

Productivity Increase

By using HRMS employees productivity will increase as they will get proper treatment from the organization. Organization can ensure employee training and development, proper benefits and promotion to the right candidates, ensure rewards and timely feedback, ensure work life balance and ensure proper work environment and culture. And all of these can only be possible by establishing a proper system and this system is HRMS. Now it’s up to you to choose the proper system or neglect it?  

Maximization of profit

What is the ultimate objective of business organization? Obviously it is maximization of profit. All of the above facts are clearly indicating that if any business organization wants to maximize profit, it has to establish a proper system. The system will ensure employee retention, satisfaction, customer service, manage and reduce risks, saves costs, business growth and ultimately the organization will turn into a profitable organization. 

So, finally are you part of maximizing profit or part of losing the business? We can only conclude that no organization will exist without adapting the right technology and system in right time. 

Sheikh Waliur Rahman is  CEO, Management And IT Consulting Ltd.-MAIT.