5 Advantages of an HR Management System - Direc Business Technologies, Philippines

5 Advantages of an HR Management System

What are the advantages of an HR management system?

  1. Eliminates paperwork
  2. Allows employee self-service
  3. Consolidate concerns
  4. Offers data security
  5. Easier payroll tracking

When it comes to managing a business, you’re always on the lookout for innovative solutions to improve business processes. While there are many ways to do all of this, one of them is by understanding the advantages of an HR management system and how your company can benefit from it.

Companies are getting more digitized and are moving away from outdated forms of managing employee information. Continue reading to learn more about how your business can take advantage of systems relying on human resource management.

What is an HR management system?

Human resources management systems simply refer to software solutions that streamline data entry, tracking, and storage for everything about HR functions. In particular, an HRMS handles payroll, management, employee processes, and accounting functions as needed. One goal of HRMS is to present more cost-effective solutions for a company so that they wouldn’t have to pour extensive resources into managing this department.

Eliminates paperwork

Eliminates Paperwork

As mentioned before, companies are moving towards more automated and digitized systems. By using an HRMS, they’re also eliminating the need for virtually all kinds of paperwork, which may eventually get lost in the fold of things.

For example, when a company first hires an employee, the latter may ask them to present several documents for the company’s perusal. The most common types of documents HR departments usually ask for, including birth certificates, Certificate of Employment, medical records, and the like.

Through an HRMS, hard copy documents can easily be inputted into the software interface in a highly organized manner. Companies would no longer have to rely on manually storing these documents into disorganized storage areas where they may even become inaccessible. Through digital input, important employee information can easily be accessed with just the click of a button. Furthermore, having all this type of data in place can also assist HR managers in subsequently creating future employee-centric decisions based on the available information.

Allows employee self-service

Employees are the most crucial pool of individuals because of the value and work they bring just to help keep the company afloat. It wouldn’t be difficult to imagine that HR employees would also have to field any questions or inquiries directed to them by the employees. In particular, HR may have to continually answer questions that relate to contract terms and conditions, leave requests, salaries, and others. With an HRMS, resolving these kinds of questions can be achieved in a less time-consuming and more efficient manner.

Through self-service, employees may be able to check information such as their attendance and payroll breakdown, among others. An HRMS software has the capability to provide employees with their own accounts where they can access information and file sick leave, work from home arrangements, and such.

In particular, Direc Business’s People Navee makes all of these HR functions easier to manage. This outstanding HR management solution includes a high level of workforce engagement for only the best employment outcomes.

Consolidate concerns

Consolidate Concerns

Similar to allowing a higher level of employee self-service. HRMS also helps HR Management to accurately collate, collect, and consolidate employee concerns in an easily accessible database. Answering every single employee query is just as time-consuming as it is impractical because many employees tend to ask the same questions anyway.

Through a dedicated HRMS software, management can easily upload a comprehensive master list on the platform, which contains the most frequently asked employment-related questions and answers. The user-friendly interface isn’t also challenging to learn on the side of the employees, as they can simply click on a tab or a folder containing this master list, and most of their concerns would have already been attended to.

Offers data security

Another advantage of investing in HRMS is that it offers employees with reliable data security and data privacy mechanisms. Employees value their privacy to a high-degree. When they provide a business with personal information and data, they’re not only doing this because it is required of them but also putting their trust towards the company.

A fully automated and fully functioning HRMS software ensures that employee data wouldn’t become vulnerable to even the most robust and malicious kinds of attacks on software. Since every employee has their own account, they are able to limit data access to only them and the authorized individuals in the company. Through stringent protocols inherent in password authentication and user-identification, entering sensitive information can be done safely and without difficulty.

Easier payroll tracking

Easier Payroll Tracking

Employees always want to make sure that they’re justly and fairly compensated for their work. They need to know the rationale behind them receiving a particular amount of money. A good HRMS makes this possible, due to the availability of a secure method to track employee payroll on both the side of the employee and HR Management.

Payroll tracking should cover many factors and aspects in terms of coming up with a certain amount of money to be paid by the employer. For example, employees working a night shift should be given a breakdown of the percentage of their night shift differential. They should also be provided with a salary breakdown containing basic salary, holiday pay, double pay, and the like.

By making payroll information readily available to the employee, they can better address their payment dispute concerns to the proper authority with relative ease.

Key Takeaway

The advantages of an HR management system cannot be denied. A reliable software solution can smoothen out the kinks in a business’s operations in no time at all. Using this kind of automated software helps companies better engage with their workforce in a much more efficient manner.

The informational guide above has hopefully offered you an adequate starting point on just why your company should consider investing in an HR management system.