Businesses need to implement advanced solutions to stay ahead in this fast-paced and challenging scenario. Here, the role of Human Resource Management System (HRMS) can play a vital role in handling various tasks of the HR department and maintaining employee records. In this post, we will discuss how modern HRMS can address the traditional challenges of businesses. We will understand it with an example of a robust HRMS.

Let’s dive in!

Traditional methods of managing HR functions including monitoring daily activities, payroll management, and compliance with various regulations are challenging and error-prone. When HR executives use traditional, manual ways to handle these functions, it takes more time and effort. Here, modern HRMS lends a helping hand. With advanced technology, HRMS software can offer a comprehensive solution for streamlining and automating HR processes.

Here we give the top ten ways an HRMS can meet the challenges of traditional ways.

Top 10 Ways Modern HRMS Solve Traditional Issues

Advanced HRMS assists companies irrespective of their scales and industry sectors. These solutions are cloud-based and cost-effective for all types of businesses including startups. Here are the top ways they can solve traditional issues of companies effectively-

Offers Solutions for Employees’ Queries

Traditional methods do not enable employees to post their queries to the server and apply for future leaves directly. Moreover, staff members have no access to check their salary structure, leave situation, and even their overtime status.

Here, the HRMS solution can help them by giving reliable solutions to their queries. Employees can ask about salary calculations and the status of their applied leaves to get real-time answers from the system.

Assist Companies to Meet Guidelines

Compliance with existing rules and regulations is critical for any company to survive and thrive. However, traditional methods may find it difficult to keep up with ever-changing regulations. In other words, traditional ways remain inefficient in compliance management.

The HRMS software can meet this challenge with compliance management tools. HR professionals can use these tools to stay updated on various rules and manage requirements related to compliance. Whether they want to track employee certifications or check licenses, the HRMS is always helpful for HR professionals.

Enhances Employee Engagement

Traditional HR practices fall short of increasing employee engagement. Limitations in communication channels and other factors can prevent companies from increasing employee engagement.

Modern HRMS offers various tools including self-service portals to give more access to employees and enable them to update their personal information at any time. It empowers employees to request leaves and get other necessary information improving their satisfaction and engagement. Moreover, HRMS technology can keep track of the employees and bring transparency to the system.

Automates Repetitive Activities

Tasks like tracking the employee’s attendance, updating their records, and payroll management are important yet repetitive administrative tasks. Traditional methods based on pen and paper or even spreadsheets can make these tasks challenging, prone to errors, and time-consuming. These tasks can need a significant amount of time and effort from the HR team.

HRMS software can automate these tasks and reduce the required time. HR teams can reduce their efforts in performing these tasks and focus more on other strategic activities like employee engagement, training, and talent management.

Improves Onboarding Process

Traditional HR practices involve manual steps including job posting, resume management, and initial screening process. All these activities are tedious and time-consuming for the HR department. HRMS technology can handle the entire recruitment and onboarding process by automating workflows and providing HR executives with tools to streamline their tasks.

HR professionals can easily manage job postings and available applications on a single platform using the HRMS solution. Moreover, advanced HRMS has an ATS (Applicant Tracking System) to handle resumes and screening based on preset factors. Some of these factors include qualifications, experience, and the like.

Supports Data-driven Decisions

Modern HRMS are cloud-based solutions and offer advanced reporting tools. Unlike traditional HR practices where companies had to rely on manual reports and primary-level data analysis, today, HRMS can give insights into employee data more effectively. Furthermore, this accurate data analytics can save time and remain error-free.

Be it turnover ratio, demographics of employees, or their performance metrics, the HRMS solution can manage all types of data effectively. It enables HR professionals to make decisions based on insights and assists them in identifying areas for improvement.

Manages Leaves and Payrolls

Traditional methods cannot manage leaves and payroll effectively, especially when the size of your company increases. Gone are the days when companies rely on registers and spreadsheets to manage the employee’s attendance and leaves.

Modern HRMS solution has the web clock-in and clock-out feature to handle these tasks. It can manage payment processes and calculation of bonuses and appraisals efficiently. The HR department can bring accuracy and speed to the payroll process by offering the necessary transparency to employees with the help of an HRMS solution.

Meets Compliance Requirements

Auditing, legal requirements, and other necessities can be time-consuming and challenging for the HR department. Traditional methods may have separate resources or documents that can make the HR professional’s life more difficult. Furthermore, failing to meet compliance requirements may lead to penalties and legal complications.

Modern software for HRM can make the HR department free from any worry. It provides them with simplified and effective solutions like TDS and PF to meet various legal requirements.

Stores Employee Data Securely

Traditional ways of storing employee information include files and papers. This manual method not only needs a lot of space but also remains vulnerable to stealing or loss. Though spreadsheets have successfully replaced this method, even these sheets are prone to human errors like duplicate entries.

Thankfully, the HRMS software can securely store unlimited data of employees by preventing third-party access. Advanced HRMS can bring automation in creating and storing important documents saving a lot of time and space.

Ensures Timely Selection and Budget Maintenance

Employees are the biggest asset of any company. However, it is always expensive, time-consuming, and even complicated to hire the right people for the right job. Many companies spend a lot of money in the process of searching and recruiting the right people. Moreover, they spend around 60 percent amount of a former employee’s annual salary when replacing their old staff with freshers or new staff.

Here, the use of HRMS can assist the HR department in selecting the top talent out of available applications. It can save the company’s time and resources. It also enables companies to store all the applications centrally so that they can refer to them as and when necessary.

Let’s discuss the role of PowerHR360 to understand the scope of modern HRMS in your company.

How PowerHR360 can Help in your Organization

Designed to meet the complex requirements of SMBs and large enterprises globally, PowerHR360 is your one-stop solution for all HR activities. It can streamline core HR processes including onboarding, payroll, and the like efficiency. Be it performance appraisal, training & development, hiring & onboarding, or career growth, PowerHR360 can address all the activities as a modern HRMS for your organization.

As a robust and reliable talent management tool, it assists you in unleashing the full potential of your company by increasing productivity and efficiency. It has built-in features to nurture the skills and potential of your employees and provide your company with many benefits. You can enhance the satisfaction and engagement of your team members and achieve your medium to long-term goals with the help of the PowerHR360 solution. Want to schedule a free demo? Simply drop us a line at info@silvertouch.com.

Conclusion on Modern HRMS Software

HRMS solutions have advanced and powerful features that can handle the challenges of the HR department easily. These solutions can replace traditional ways of HR processes that are prone to errors and time-consuming. All you need to select the right HRMS solution to streamline HR processes, automate administrative activities, get data-driven insights, and improve employee engagement when complying with prevalent regulations.