Human resource information systems are a vital part of HR works as they help carry out various tasks. These software go by various names such as Human Resource Management System (HRMS), Human Resource Management Software (HR software) and Human Capital Management (HCM). Irrespective of what a company calls it, the role of all these software are same i.e. to help companies streamline their operations and organize their employees.
For the organizations operating from multiple locations, having unconventional or rotational work schedules and contractual or freelance employees, it’s even more difficult to manage their workforce without any HRMS in place. Using an effective HR management software makes handling the various aspects of workforce much simpler and less time consuming.
Human resource software are capable of performing almost any organizational task. But most of them are designed to perform some of the following described functions:
This module is very helpful in managing vital employee records such as personal details, education, previous employer details, contact information etc. It maintains all the profile related information and can be accessed by the authorities whenever required.
This module is used by the companies to manage the employee remuneration records. It is highly useful in analysis of employee’s total working hour, and managing salary and deductions. It further helps the organization derive the man hours put into various processes and functions thus deriving the return on time invested.
Labor Resource Management
This module is specially designed to keep a tab on an employee’s time management schedule. Its several features allows an organization to analyze how its employees are spending their time. The retrieved data then can be used to chart out strategies for better labor management.
Recruiting/Hiring: Almost all HRMS systems have a dedicated module to manage candidate selection and recruitment process. HRs can fetch resumes from their databases, shortlist resumes and schedule interviews using the recruitment module.
Employee Benefits Administration
Most of the companies have some sort of employee benefit program in place such as insurance and maternity leaves. The employee benefit administration module of an HRMS system lets companies keep an eye on all the employee benefit programs and enables them track all the registered employees under each programs. It also saves a ton of valuable HR time by providing the answers to the frequently asked questions and processing related forms.
Employee Self Service Feature
Employee self-service feature is one of the ways by which a human resource management system simplifies task for HR’s. Each employee is provided limited access to the company’s database so that they themselves can login and update their information, check various company benefit programs and enroll themselves and perform other such tasks. Some of the companies also let their ex-employees access their system for post resignation formalities and exchanging other related information.
Training and Development
Many companies have dedicated training and development cells to provide required training to new and old employees based on the requirement and organizational changes. Some of these training programs revolve around providing training around communication, business and managerial practices. The training and development module of a human resource software is dedicated to take care of such activities involving the betterment of the employees. Various training and development programs can be designed to suit the requirements of different departments and work groups. However, the sole purpose of any of such training programs is to enhance organizational effectiveness.
Currently, most of the companies are using human resource management software for recruitment and payroll functions only. But it is proved that by using a fully-fledged HRIS solution, HRs will be able to save around 70-80% of their time, which can then be put to better usage.