Advances in technology continue to strengthen the HR department, moving the focus away from operational processes and massive spreadsheets and towards using HR tools to drive business success. These days businesses would like to empower their teams and make HR processes a breeze.
But choosing the right technology and leveraging it effectively requires a well-thought-out effort.
How do organizations, particularly small to mid-sized ones, assess and justify the investment in an automated HR management system? And, once a company has decided on an HRMS, how can it be implemented effectively so that the hoped-for return on investment will be achieved?
What’s new in HRMS technology?
If you looked at an HR management system a few years ago and decided your company could not justify the expense or devote the necessary IT resources, now is the time to investigate again. The latest generation of HRMS programs is not only feasible for small and mid-size organizations but essential to cutting administrative costs and extremely affordable.
HRMS programs typically include three components: Administration, HR Tools and Benefits with optional employee and manager self-service modules. These integrated software solutions improve an HR department’s efficiency by automating the tracking of an employee’s life cycle from hire to retire, with links to benefits carriers and other organizations that the company interacts with. While components such as benefits enrollment and payroll are sold as standalone software, an HRMS bundles these and more into one package.
Many of today’s most effective HR systems are Internet-based and do not require the customer to make a large capital outlay or install and continually update software. Software-as-a-service is an important trend; such offerings cost a customer significantly less upfront than licensing software, and they also relieve the customer of security responsibilities. And web-based means that employees and managers can access the HRMS 24/7, from any location where Internet service is available.
Business impact of an HRMS
An automated HRMS frees up HR and benefits staff to focus on strategic initiatives, and provides tools that allow HR staff to advise senior management on workforce planning issues.
One issue of concern today is the impending labour shortage, which will force all employers to recruit and retain as effectively as possible. Today technology allows organizations to pinpoint critical talent issues in the organization and act proactively.
Technology allows us to identify top performers, reward them and retain them.