Human resource management software (HRMS) (also known as human resource information system) is a computer software that automates the management of human resources functions and activities of an organization.
The HR Management software has the ability to keep your employee’s employment records; it also helps employers to gather metrics about recruitment, performance management, benefits and compensation activities etc. The need for human resources management software for your small business cannot be overemphasized because of its enormous advantages.
The focus of human resource information systems is gradually moving towards the next logical stage, which is employee self-service (ESS). The Employee self-service interfaces help in collecting and disseminating HR data, which reduces the administrative workload in HR departments since it allows employees to have access to their updated records.
This is done by moving HR information systems from client server architecture to a Web-based environment, which enables registered employees to access the interface at convenient locations over the internet.
Employees can perform such common tasks as updating address information, planning for retirement, updating health-plan information, reporting on life events such as the birth of a child, changing beneficiaries on life insurance etc. This will save a huge cost for your small business as workforce needed in the HR department will be reduced.
Simplification of Recruitment Process
Regardless of the size of your business, a recruitment process without the use of the HR information systems could be cumbersome. Many HR information systems provide a sophisticated interface, which allows job seekers access to open positions and enable them to submit their resumes and contact information to a potential employer over the internet.
The system then creates a database of the applicants, which is easily accessible by the business owner or the HR department. This will save your small business the stress of vacancy announcements and the associated costs as the hiring manager is able to perform detailed searches of resumes in the database, using a variety of queries, including location, level of education, years of professional experience and technical skill set to fill vacancies when the need arises.
The HR information systems allow you to organize the recruitment process in a way that is beneficial to you and the candidates you intend to hire.
Though your business may be small with a small workforce, effective communication among your workforce is however critical to its success. The HR information systems is instrumental in promoting better communication in the workplace as it enables staff and managers of an organization to communicate and coordinate using their own devices from wherever is convenient.
With employee-access portals, they can update their contact info, see schedules and communicate with other employees. Shared documents can be posted in the portal, such as time off sheets. The ability to request changes to personal information are simplified means of communication that can cut out more involved communications that may not be necessary. Also, responding to these changes by the managers and HR professionals using the HR system is simplified saving time and unnecessary stress.
Risk Management and Improved Security
Your small business needs HR information systems to save you from avoidable risks and liabilities. This is because the system keeps electronic records of such items as employee discipline notices, employees’ safety trainings, accident logs, workers’ compensation claims etc which minimize risks and potential liabilities.
Due to the security risks associated with keeping manual records of human resources information, the HR software also helps in improving your business’ security by reducing the amount of paperwork and related security risks.
Ease of Data Retrieval for Informed Decisions
The HR information system keeps data that cut across all departments of your business. Therefore, retrieving data is made easy using simple queries, which helps you to make informed decisions. For instance, if high employee turnover rate is discovered in a department you might want to know why it is so and who the manager is. Another instance may be that you want to assess your employees’ individual performance and their characteristics to know the top performer, whether they work for the same line manager and if all attended a particular training course. The data so collected can be analyzed to help you in critical decision-making. When you know the human efforts needed in getting the same data manually analyzed using a paper-based system, it helps you to understand better why HR information systems is needed in your small business.
Above all, all departments of your business need to be productive; this can only be achieved by maximizing the time and energy of your employees. Paperwork HR operations is very time consuming because all related records have to be updated by hand, sometimes wasting employees productive time in long queues.
However, as discussed earlier, a HR information system eliminates this thereby saving useful time and consequentially leading to higher productivity.