Billion hard earned dollars and how is it that an HRMS software can manage to save it for you, the question while being baffling is something to be thought over on. While it may not be just one simple thing that forms the answer, it is a culmination of all the smaller ones that are collected over time.
One of the biggest problems that HR faces is succession planning. Even high performing companies or MNCs gets derail if the changes are not managed properly. When one important position is vacated, it not only leads to a race to fill the position faster but also the indefinite gestation period that comes with a new person joining the post. Among many mistakes that can happen, this one is will cost you money, simply because you did not have a succession plan in place. There is a huge reliability on offline data and unofficial training for the new person, in hopes that he can start with his responsibilities faster, but that leads to more time in training and no way of measuring the progress.
As an HR, you can not only use the software for recruiting, but also laying the ground for your succession planning. You can design the training for the new person and if by chance the new person is joining much later, you can have the previous person document all his knowledge transfer along with maintaining an online sharing and approval system.
And when the employee joins the company, you can keep a track of all the assets that have been issued to him by the company. HRMS software updates the IT manager, the supervisor and the HR team of the usage and the approvals of all the asset. This prevents a loss of the assets and is in a central repository online helps in referring to it when an employee is leaving the service.
You must have heard this idiom, “Many a little makes a mickle”. Apart from succession planning, handling everything manually and with a huge paper trail, becomes taxing on the HR department and instead of concentrating on adding value to their core tasks, they are bundled up in mundane and trivial tasks that adds no value to the overall organization. Taking everything online not only reduces the burden of the department but also helps to keep a track of everything.
Almost every HRMS software includes management of salary components in payroll. This is the most common integral of any efficient HR system as it includes addition and deductions of important parameters like arrears, loss of pays, deductions to be made after exceeding leave limits, etc. If there is no such software for handling payroll, then there might be chances that there may be errors which can be difficult to track. An automatic HRMS software saves your HR from any heavy work of calculating the deductions and additions to be made in salary, thus automatically handling all these payroll based processes.
Legalities and compliances are an important aspect that the company cannot in any situation ignore. Be it dealing with clients, employees, the working place, there are a lot of nitty-gritty details which if overlooked can cause the company huge loss in fines and penalties. To avoid this, you would want everyone in the company informed about the compliances and legalities. One way to do this is taking separate workshops for everyone but this would be time-consuming. Another better way is to make the policies and the regulation available to everyone. Every reputed HRMS software includes a central repository for policies that can be accessed to by everyone and on a regular basis. Though seeming small, communicating policies and compliances is very important and if ignored by the management or the employee can lead the company in a soup.
Cloud-based HR software has now become a need in the HR domain and with the ability to make things easier for your HR department. Once you remove the manual and the paperwork, things not only become automated but easy to track. One platform to end to end HR operations.