Key Considerations in Choosing the Right HR System for Your Business
The rise in the popularity of human resources (HR) systems, also known as HRMS systems, has resulted in an unprecedented rise in the volume of such software on the market. This choice is undoubtedly to the benefit of consumers.
However, it can also be confusing and overwhelming to determine what the right system is to meet your organizational goals. This article will explore the purpose of an HR system, as well as key benefits it can offer your organization and some tips in sourcing the right one for your needs.
What is the role of an HR system?
HR systems allow organizations to perform, coordinate, and manage many of the administrative functions of the HR department in a more cohesive and aligned way than using manual processes. HR systems often use automated workflows to carry out set HR processes. One of the key benefits is that the data is stored within one synchronized system and can, therefore, be used and manipulated in a variety of ways.
Key components that make up the perfect HR software suite
With so many different types of HR systems on the market, each offering different combinations of features and functionalities, it can be difficult to know which to choose.
While some HR systems have more advanced features than others, several core areas are vital to the smooth running of HR functions and should be included in an online HR system:
1. Time and attendance
This allows your business to move away from manual timesheets in favor of automatic, online scheduling and overtime calculations. Working out premium or additional payments, calculating annual holiday and sickness leave, and approving time off is widely regarded as an area of frustration for many line managers.
These tasks can be time-consuming and admin heavy, so sophisticated time and attendance reporting within an HR system has the potential to save time, as well as improve error rates and consistency along the way.
2. Recruitment and onboarding
There are lots of opportunities to use an HR system to improve an organization’s recruitment processes. Examples include the automatic creation of job specifications and adverts, smart automatic shortlisting of candidates using keyword criteria, online interview scheduling, and advanced candidate comparison matrices.
3. Performance management
The best human resource management system software incorporates performance management modules so that HR teams, line managers, and employees can manage the process more efficiently and smoothly.
Common features include design and creation of appraisal documents from set templates, automatic performance scoring tools, and online appraisal meeting scheduling for ultimate convenience.
4. Payroll and benefits administration
Using the same HR system to prepare and run your payroll and organize your employee benefits package is a great idea. All of the data stored in the system can be easily integrated and shared.
Employee timesheets, salary changes, or new starter information can be seamlessly transferred across for payment. In addition, managers can utilize a range of reports to analyze and track employee costs.
Great HR systems for small businesses
It is certainly not a case of “one size fits all” in the HR systems market. Many providers offer a wealth of different types of HRMS systems. Choosing one that fits your needs can be a challenge, particularly for smaller organizations.
Here are our picks of the top HR systems for small businesses:
This is a solid choice for smaller businesses because it is an off-the-shelf HR software solution. It has a good range of easy-to-use features to which you can add some customization, but not so much that it over-complicates.
2. Zoho People
This system is the people component of the Zoho range of business applications. It offers a good level of great integration across other business systems that the organization may use. Further, it offers a good choice of customizable forms and workflows.
3. Kissflow HR Cloud
This program is a well-regarded online HR system. It offers users the best features of an off-the-shelf product, combined with a build-your-own system with plenty of customizable features that can be built to suit your existing processes.
Kissflow HR Cloud is easy to set up and implement into your business due to its straightforward and easy-to-use programs and great customer support.
When is the best time to implement an HR system?
There are lots of considerations involved in the decision to invest in an HR system. Many businesses wait until their current manual processes are at a breaking point, such as a gradual increase in the workforce. This means that existing spreadsheets or basic databases become overly complicated and unmanageable. However, leaving it so late is not always the best idea.
As is often the case, it is usually much more prudent to carry out a thorough cost-benefit exercise to analyze the extent to which an HR system could add value to your organization before you desperately need one.
This will give you the time and space to research the best options on the market and then make a considered choice. Doing this will allow you plenty of time to customize the system to suit your needs and then implement it in a structured way.
Top features of the best HR systems
We have already looked at some of the most important components of the perfect HR software system. Now let’s consider some of the other features that you should look for when choosing the right system for your business needs.
Cloud-based technology is being increasingly used in HR systems and has a number of benefits for the users. First, initial set up and implementation costs are generally lower as there is no software installation required. In addition, cloud-based HR systems can offer great flexibility to users, allowing them to access the system remotely while still benefiting from advanced security features.
Another feature to watch out for in the best HR systems is advanced reporting functionalities. A comprehensive suite of different types of reports, as well as the option to design and create reports based on your own business requirements, is vital to enable you to make full use of the valuable data within the HR system.
Having the option to gain greater visibility into overtime spending by department, recruitment lead times, and performance rating comparisons, to name but a few, can give your organization targeted and practical insights and opportunities to improve future performance.
Check out the HR systems best suited to your organization
It can be difficult to know where to start searching for an automated HR software system to suit your needs. For small businesses taking their first step into the HR systems market, it can be even more overwhelming.
Working with a provider that specializes in small business HR systems, such as Kissflow HR Cloud, is a great way to realize some of the great benefits such as seamless integration, customizable workflows, and efficient automation that an HR system can offer you.