There are numerous advantages of using a specifically developed Human Resource Management System (HRMS). However, according to customers, the top 10 benefits of using HRMS are given below:
- Affordable: It is affordable to employ a specialized Human Resource Management System (HRMS) and even startups can buy one without spending excessive amounts of resources. It can also be scaled to smaller or larger size to match the fluctuating needs and requirement of the client company.
- Easy to use: The HRMS and associated tools don't require special training and can be easily used by employees and managers. There are companies who provide free demos for exploring the variety of features offered.
- Simplifies process: Companies and organizations can use HRMS to simplify a large number of manual processes which include managing and approving leave applications, posting updates, monitoring hiring process, checking performance etc. Digitizing various functions helps in performing them without hassles from anywhere at anytime.
- Faster payroll processing: The payroll function usually takes between 7 to 8 days for any organization but automating it with HRMS allows it to be completed in a few hours. The payroll processing also eliminates the need for outsourcing or dedicating workforce and the function is performed under the security of double layer SSL certificate validation.
- Reduced human errors: HRMS helps an organization to automate a large number of functions which reduces human errors during data processing and transfer. This also eliminates the need of physical documents which can easily be damaged or misinterpreted resulting in large errors.
- No infrastructure cost: Any company can flexibly use an HRMS system without incurring any infrastructure costs. This platform can be easily accessed from all the devices anywhere anytime. This eliminates the need for client company to spend money on special devices and infrastructure to mount and house them.
- Improves efficiency: Through digitalization and automation, a large number of functions can be performed in a much better way. They include information sharing, evaluating information, managing leave applications, tracking employees and numerous other features offered by a Human Resource Management System. Overall, the improvement of several functions helps in increasing the working efficiency of the organization.
- Increases communication and collaboration: HRMS helps in increasing the communication between employees as they can message each other instantly and securely through the platform. Employees and managers can also interact with posts and updates to show support, ask for advice etc. The ability to discuss various issues openly and share information directly further promotes collaboration between various teams and departments within the company.
- Quick decision making: With the help of "dashboards" feature available in HRMS platform, managers and executives can stay updated with live and detailed performance of the organization from anywhere allowing them to make decisions quickly. This feature summarizes and filters the information while presenting it visually through charts, tables, graphs etc. This allows the viewer to understand the current performance statistics relating to a specific section and make an informed decision with ease.
- Employee retention: Using the HRMS generates a sense of connection and familiarity among employees making them feel a part of the organization. The employees also feel more satisfied by using the latest technology as the platform is updated regularly. Together, these factors can help any organization to retain employees with increasing efficiency.
