Everything Need to Know about HRMS

 

Everything Need to Know about HRMS

 

If you still do not know what an HRMS is, you are missing the possibility of digitizing the HR department and start working more efficiently. This software will help you accomplish many of the tedious and repetitive tasks in the department and spend more time on the strategic part of the profession.

 

What is an HRMS?

HRMS is the acronym in English for Human Resources Management System which means, in Spanish, HRMS. With this name a type of HR management system is known. Which is designed to manage the processes of this department, computerize them and automate them.

We can say that HRMS collect the information of the most valuable assets of the company and put it in the hands of the people who need it. In our article on the main functions of human resources software we tell you more about everything that programs of this type do.

This software, therefore, allows keep track of activity of the company's employees, their needs, automate mechanical tasks, store the information collected, use it for analysis and thus make the relevant decisions.

 

What is the difference between an HRMS, HRIS and HCM?

Among the Human Resources software that we can find in the market there are three types that receive a different name formed by acronyms, which can sometimes generate some confusion between them. We explain what each one means:

 

o HRMS: Human Resources Management System or Human Resources Management System.

o    HRIS: Human Resource Information System or Human Resources Information System.

o    HCM: Human Capital Management or Human Capital Management.

 

 These are the functionalities or services associated with each of them:

 

From this, therefore, the conclusion is drawn that an HRIS is designed to manage people, policies and procedures within the company. The HCM includes certain elements of the HRIS but, in addition, it adds talent management and global features such as the use of different languages, multi-currency, localization, etc.

 

 And finally, HRMS software includes all the elements of an HRIS and many of the capabilities of an HCM. Depending on the provider, the offer may vary but, according to Maorino, for any HRMS it must include, at least, payroll management and time recording.

 

Benefits of implementing an HRMS

The digitization of the HR department through a Human Resources Management System brings great benefits.

 

It allows the optimization of mechanical HR tasks.

Administrative tasks and paperwork are time consuming for HR team members. This represents a great dilemma, especially for managers, since meeting these obligations does not allow them to reach other more strategic tasks that can add more value to the company.

Using a Human Resources Management System and computerizing the internal processes of the department is the solution. With this software the team will be able to streamline and automate the most mechanical tasks. Directly, you will improve their productivity and save up to 80% of the time they can spend on more important issues.

 

Facilitates the monitoring of key KPIs for the company

KPIs are key metrics to evaluate the evolution of the company. You can measure productivity, performance, quality of work, customer service.

 

In short, those aspects those are most important to the business.

It is important to select a few KPIs, create a dashboard and do regular monitoring. An HRMS facilitates this task as it collects much of the key data for the company and, specifically, the HR department

 

For example:

o    Talent retention.

o    Absenteeism.

o    Time to achieve objectives.

o    Permanence in the position.

 

 

It allows a more efficient management of the HR department: 

One of the main advantages of Human Resource Management Systems is that they facilitate data collection, centralize information, automate workflows and offer visibility of what is happening within the company through tables and graphs. This significantly improves the efficiency of the department and the results obtained.

Some of the tasks that can be optimized:

o    Management of absences and vacations.

o    Management of payroll.

o    Performance evaluation.

o    Recruitment processes.

 

Offers a self-management platform for employees

It is very common for employees to have questions for the HR department about conditions, wages, etc. 

 

But, as the company grows, it is increasingly difficult to answer everyone's doubts and respond appropriately. HRMS incorporate portals for employees that allow them to be more autonomous and manage many of their requests by themselves:

o    Request vacation days.

o    Check the days of vacations not taken.

o    Send sick leave documents.

 

The software provides employees with a tool to answer questions and perform many actions that will no longer have to go through an HR person.

 

Protect the personal information of the company and employees

The investment of companies that provide Human Resources Management Systems in security, surely, triples that of any normal company.

 

 And it is that guaranteeing data protection is essential for them. HRMS protect information from cyber attacks and also prevent unauthorized user access through encryption. For example: the employee can access his payroll with private keys and can only access his personal information.

Another advantage is that HRMS have access control, that is, the HR Manager chooses who accesses the tool and what they can see or do.

 

Main functionalities of an HRMS

When choosing an HRMS it is important to analyze each of the functionalities that it incorporates and see if each of them is adapted to the needs of the department:

 

 

Management of payroll:

The incidents in the payroll (salary increases, medical leave ...) is one of the jobs that most worries the HR department.  Using software that collects this information and transmits it to the managers or the corresponding department greatly facilitates the task.

 

Thus, the RR team you will not have to make annotations by hand or from memory, running the risk of making mistakes or losing them.

Adapted software allows:

o    Detect and receive notifications of any change in payroll.

o    Follow up on incidents.

o    Separate the different types of payroll (permanent and temporary employees).

o    Store medical reports.

o    Send the documentation to the advisor or department that performs the payroll.

 

Time record

Another of the features of an HRMS, and that other types of software do not include, is the time control is mandatory, even for those employees who work from home. Although the company can choose the solution that best suits its needs, the easiest thing is to use a time control software in the cloud that allows workers to record their entry and exit time from anywhere.

Employee portal

HRMS, like HRIS, have access for employees. From here, company workers can record the start and end time of the day, request vacation days, upload medical receipts.

In addition, all the information and notifications related to that person are concentrated under this platform. Therefore, if there is any news, the user will be informed through there. Thus, employees have greater autonomy and the HR department lightens your workload.

 

Workflows

Workflows allow you to automate tasks to save management time. This functionality allows, for example, to configure immediate notifications when vacations are approved or to inform candidates of a selection process of all the news.
 

Holidays and absences

The HR departments they receive tons of emails from employees requesting vacations, excusing absences, etc. One way to optimize this work is to centralize it through vacation management software in which permits are managed almost automatically. 

 

This makes it much easier to manage resources, detect possible gaps and find solutions.

Performance evaluation

Increasingly, companies carry out periodic evaluations of their employees to assess their performance within the company. That is, they analyze what the results of their work are and if they meet expectations. The usual thing is to ask colleagues for feedback and analyze the objectives. This work can be tedious but with the help of performance evaluation software it is greatly simplified. These facilitate the collection of information and its sharing with the employee.

 

Recruitment and staff selection: 

There are also functionalities to support the recruitment processes. It is very useful to publish the offer on several platforms at the same time, filter resumes, unify communications and, also, obtain useful statistics on the selection processes. The cost of hours invested in CV review and interviewing is reduced by 60% with the use of specialized recruiting software.

 

Organization chart

What is the structure of the company? Who reports to whom? Answering these questions clearly is important for everything to run smoothly within the company. Organgram software allows you to paint the scales and internal processes of the company and share it with the current and future team.

Work environment surveys

Today we know that the work environment directly influences the motivation and commitment of employees. To ensure that everything flows correctly it is important to take into account the opinion of the employees. A very simple way to obtain information is to launch anonymous surveys periodically so that the teams can express themselves freely. There are work climate survey software with pre-designed questionnaires that greatly facilitate work.

 

Reports and analytics

The strategic weight of within the company it is growing so it is necessary to make decisions based on real and objective data. Having an analytics and reporting tool helps you analyze information in real time and make better decisions.

These are, therefore, the main functionalities of a Human Resources Management System. These programs are a fundamental pillar of an HR department digitized and therefore efficient. They help to optimize internal processes and to be able to dedicate time to strategy and people.