January 10th, 2019 • HR Process
Smart businesses don’t have time to waste completing basic and repetitive HR tasks manually or following the same lengthy processes time and time again. By investing in a Human Resources Management System (HRMS Software), though, they can quickly and easily automate these time-consuming and tedious activities, allowing HR teams to focus on more value-adding activities.
HRMS software is a platform that integrates, manages, and automates many of the routine HR processes in an organization. It can perform a variety of functions including organizing and managing employee details and organizational information of a business, making it easily accessible.
As popularity for HRMS software has grown, there are many different systems on the market including Human Capital Management (HCM) and Human Resource Information System (HRIS), each offering varying features, and functionalities, at different price points.
All three of these describe systems that use the power of cloud tech and information databases to control workforce management. Vendors, analysts and marketing experts alike seem to use these terms interchangeably, but there’s a subtle difference.
There are always going to be blurred lines between the three, but here’s a simplified distinction. A HRIS has the basic collection of HR functions, designed to manage people, procedures and policies. HCMs are a step up, and include talent management-focused features as well. HRMS softwares are the most comprehensive tool, much bigger in size as they aim to serve all HR functions in a typical organization.
Let’s take a look at the business case for working with HR software in your organization. Since implementing such a system is a big decision, you want to be sure that it will give tangible benefits.
The human resources function of a business is all about its people–recruiting the best, coaching them, supporting them to solve problems, and ultimately achieving wider business performance as a result. HRMS software that frees up the HR team from a monotonous, administration-based workload means they can focus on the people-oriented tasks that make a difference.
HR team members are responsible for carrying out multiple tasks on a daily, weekly, and monthly basis, from recruiting and onboarding new employees to managing the performance appraisal process of the business. An HR system that can seamlessly automate workflows, update changes to employee information, and capture key business data and people-based KPIs at the touch of a button has the potential to save both time and money when compared to manual processes.
Using HRMS software to automate HR processes in your organization is highly likely to save you money on administrative costs in the long run, even taking into account the initial outlay of the system and ongoing running costs. For example, it’s likely that you’ll need to employ fewer HR administrators to perform manual administrative duties.
HRMS software makes it easy to track employee information, such as absence data, turnover figures, and a host of other key HR metrics. Your business will benefit from having access to such data, as well as the ability to analyze it effectively to support critical business decisions and formulate future business strategies.
HRMS software isn’t a one-size-fits-all system, but one that can be easily configured and customized to meet the needs of your business perfectly. Different systems have different functionalities–even within the same system, you can usually choose the features you want to include in your package. Here’s a brief overview of some of the most common and useful functionalities:
HRMS software allows organizations to configure workflows for smoother and more streamlined candidate shortlisting, hiring, production of offer letters and contracts, and creation of employee records and onboarding.
Add automation to the annual appraisal process by creating template forms and workflows to collate employee performance feedback. Run reports to analyze employee performance across the business, and identify training needs or future promotion opportunities.
Line managers can coordinate the working patterns of their team, authorize their time off requests, and ensure sufficient cover for busy periods quickly and easily by using the automated functions available in most HRMS platforms.
Users can run a range of reports to produce meaningful statistics about their workforce and use this information to underpin the people strategy of the organization.
Once you’ve taken stock of your requirements, it’s time to pick the right HRMS. There’s no such thing as the perfect solution for everyone–you should pick according to your organization’s unique needs.
That said, these are 5 popular choices: a good place to start your search.
Designed for small to medium-sized businesses, BambooHR offers a range of HR services, including the likes of Applicant Tracking System (ATS), leave management, timesheets, and onboarding. With this comprehensive tool, HR users won’t have to switch between software solutions for each specific HR function.
Pros: Easy to use, consistent user experience, and advanced reporting
Cons: Lack of support for integrations, simplistic workflow layouts, inflexible workflows
This isn’t a strictly HR-focused tool, but an automation platform that you can use to build your own HRMS tools, without any coding knowledge required. Kissflow is a web-based human resource management tool for organizations of all sizes, and can help you take care of such HR functions as leave management, performance appraisals, onboarding and offboarding, and more.
Pros: No coding knowledge required, simple visual interface, drag-and-drop tools
Cons: Being a versatile platform has its flaws–you need to design your own tools, instead of having them delivered ready to use.
Designed primarily for enterprises, Workday HCM (Human Capital Management) helps users gain insights into global workforces. Designed with an impressive user experience, this tool is designed to drive employee engagement. HR-specific features include Reporting, Analytics, Global Compliance, Audit and Internal Controls, Workforce Planning, Recruiting, Talent Management, Learning, Compensation, Benefits, Payroll Management, Time and Absence, and Expenses.
Pros: Powerful enterprise tool, complete visibility, user experience
Cons: Overkill for SMBs, lack of training, lack of support from Workday team
This is a comprehensive HRIS, or HR Management software. Functions covered include Payroll, Benefits management, Talent management, Time management and ESS. Namely is targeted at growing SMBs.
Pros: Comprehensive solution, cloud-based HR tool, good support
Cons: Occasionally needs workarounds, some modules too simplistic
This hrms software tool is branded as a people-centric solution that puts users at the center of its approach to HR. SuccessFactors includes tools to take care of Core HR and Payroll, Time and Attendance Management, Learning and Development, and more. Some users have expressed concern over it not being comprehensive enough as a HR tool.
Pros: Human-centric tool, ease of use
Cons: Issues with integrations, gaps in functionality, customer service after SAP takeover
With so many providers on the market, choosing the HRMS software that is in tune with your business needs isn’t always as easy as it sounds.
Before you go hunting, take time to consider some key questions about how your organization is likely to use the HRMS software. For example, are you a small business, looking for an easy-to-implement, vanilla system that suits a small budget, with the option to add on extra functionalities in the future? Or would your business benefit from a more comprehensive system, with the full range of features that you can fully customize across all areas of your organization?
Whatever the most important factors for your business are, weigh the options carefully and take advantage of free trials or customized training sessions to ensure that the HRMS software that you choose offers the right solution for your organization.
If you can’t find the perfect HR software, you can always build your own in Kissflow. Take advantage of our adaptive workflows to create the core processes you need to make your HR processes smooth. Try it out today and see what you can build!