Employees are the most valuable assets an organization has. So it’s no wonder that effective human resource management is imperative for successful companies. Luckily, HR departments have long moved from manual ad-hoc processes to proactive talent management.
Today, the employee life cycle is managed with robust HRM solutions that ease the strain on your HR managers. In this post, we’ll have a closer look at the development of HRM platforms and why you need one for your organization.
What is HRM software?
Human resource management software refers to a suite of solutions or all-in-one software that companies use to manage internal HR functions. From sick leaves tracking to payroll management to employee attendance, HRM solutions are indispensable in the life cycle of tech-savvy companies. HRM development, in turn, deals with the technological side of these solutions and helps companies build custom human resource management software aligned with the company’s processes.
Why the development of HRM software is a game changer
The last few years took a toll on the calibrated business processes. Lockdowns, remote work, and safety concerns have led to HR refocus and made companies increase their adoption of software to manage business processes. Here are the top benefits of HRM software that amplify business continuity.
Better visibility and business efficiency
The development of HRM platforms bodes well for easier accessibility of employee records. If it’s an all-in-one solution, a platform combines recruitment, payroll, and employee management, making all talent management information accessible across departments from one interface.
Streamlined operations
HRM development also reduces the paperwork associated with employee data. In particular, HRM solutions standardize document processing and come with pre-defined flows, which eliminate manual data input. This way, your talent team can focus on mission-critical tasks, instead of filling the same documents multiple times.
Employee retainment
According to the State of the Workplace study, 78% of organizations struggle with retaining top talent. A centralized HR system can help companies win and hold rock-star talent by assisting in a seamless onboarding process, regular feedback collection, and rich engagement options.
Easier compliance
Human recruitment is an ever-changing landscape of regulations and local laws. An HRM software can also help HR professionals meet stringent regulations through the standardized process of compiling information and reports.
Better vision
Every business has to stay on top of employee performance, turnover rates and hiring trends to successfully navigate resource management. According to Sierra-Cedar research, almost 80% of organizations are leveraging HR software to facilitate information gathering. Moreover, HRM software includes HR metrics tools that allow you to track mission-critical KPIs, compensation rates, and your current pool of talent.
Components of an effective HRM System
The overriding objective of an HRM solution is standardizing the core processes associated with managing your talents. To do that, a HRM platform can include standalone modules – each designed for a specific process.
Onboarding and recruitment management
A feature-rich onboarding module allows recruiters to monitor the lifecycle of new hires and potential candidates. The functionality helps your employees engage applicants across multiple channels, and run interviewing, hiring, and onboarding processes. An onboarding component also allows you to gather e-signatures and send welcome emails.
Employee management
An employee management module stores employee-related data on a centralized database. From employee rosters to performance and KPIs, this component provides a single source of truth that can be leveraged in corporate decision-making.
Benefits administration
Benefits management is among other core components of HRM software that is used to automate the process of managing employee benefits and eligibility. It stores centralized benefits data, including medical insurance, pension, retirement, and others.
Payroll management
The module eliminates the complexities linked with the payroll. It automates accounting, calculates pay stubs, aggregates compensation data and working hours, and offers other built-in tools for compliant payroll management.
Performance management
This building block connects your employee’s performance with specific business goals. It consistently tracks the performance of employees and aligns it with the company’s values to estimate the contribution of each employee and reward them based on the performance reviews.To streamline this process, you can implement Profit.co’s performance management software, which provides advanced tools and features to enhance the performance evaluation and rewards process
Timesheet management
The module aggregates employee timesheets and recorded work hours, as well as estimates the costs incurred. The data is then sent to payroll for calculation.
How to find the right HRM system for your company
HRM software has become indispensable for forward-looking businesses. Performance tracking, employee data, and others are tucked conveniently into one interface and can be accessed by executives and HR managers alike. The landscape of human resource management solutions is packed with canned solutions and ready-made modules. However, commercial tools don’t factor in the unique needs of your business. Custom development of HRM, on the contrary, helps you get a holistic human resource management solution that supports the individual workflows of your company.