How Human resource Management (HRMS) software solutions can help your business

June 2021

What is HRM software?

Know that dream where you keep running to get somewhere, but no matter how hard you run, you’re still in the same spot? Hairy, especially when you are being chased. This is a manifestation of daily anxieties where we feel we’re not getting ahead. Two steps forward, three back. You know that feeling.

A human resource management system (HRMS) is specifically designed to ease some of that pressure so that you’re not running away from your work at night, but sleep soundly because you have HR – your biggest expense – under control. HRMS manages human resources and process employee data for the various HR functions such as payroll, employee onboarding, recruitment, workforce planning and professional development. In short, it is the bee’s knees!

Why use an HRM software system?

At its very core, the HRMS eases the HR department’s workload. Even when your business does not have a dedicated HR, having HR software will save you many fitful dreams. HRMs automate time-consuming manual processes, mitigating costly human error. Software centralises and digitises data, which improves security for more optimal business operations. And because software is malleable,you can laser-cut it to do whatever your company specifically needs it to do.

Why opt for the Cloud

HRMS software can be deployed and managed onsite, or by a third-party software-as-a-service (SaaS) provider.You host an onsite system on your company’s server, andaresolely responsible for safeguarding your employees’ most confidential information. However, if a SaaS hosts the HRMS, your system is in the Cloud. The benefits of using a Cloud-based HRMS is data centralisation, which means you can access your data from anywhere as it is saved in one place, but in the Cloud your company data has additional encryption to ensure its security.

Cost effective

The Cloud saves you money – a lot of it. Hosting your own HRMS means you have the cost of the servers, hosting and maintenance, and that one thing that can haunt your dreams at night: security. In the Cloud, it’s fluffy, dreamy and soft. You’re bouncing on it when you dream at night because all of the aforementioned stresses are taken care of by your software provider.

Ability to improve organisation

If you are in the Cloud, you can improve processes, communication with employees, brand cohesion, training, access to training. Basically, if asked how Cloud-based HR software can improve an organisation, you’ve got to counter with “How long is a piece of string?” It is like standing in front of a locked treasure chest, and then it suddenly springs open so that you discover gems that you never thought existed.

Cloud-based HR software automates a profuse number of data-heavy processes. For example:timesheet submissions; leave applications; performance appraisals; updating employee data; compliance; and security policies. It has a significant impact on attrition, while saving a lot of money. Just with the click of a button you can run a report to call up various kinds of compliance information on your business.

Streamline processes

The Cloud helps to streamline the business by improving processes across the board. Think payroll at the end of every month. It is all there in the system already. Days worked, absences, paid and unpaid leave, commission, overtime, allowances. For every single employee. Software updates happen automatically, which in turn keeps you up to date with compliance. For example, changes in data security management happen almost as regularly as kids’ school holidays. No problem. The HRMS keeps track of it.

Performance appraisals, onboarding, company policies and rules, and recruiting are all accessible and done in real time.

Further support remote/global working environments

With remote work cultures firmly establishing after the Covid-19 Pandemic, employees can access Cloud-based HR software regardless of where they are. Whether they are all in the same building or scattered across the UAE and even further afield, everyone in the company has real-time updates on company policies, andcan access support on training and wellbeing.

The Cloud means we’re all connected to the same hub within the company and stay in tune with the great big engine, called the business. We’re starring in the same story with the same narrative, even if we’re not physically sharing an office space.

Aid decision making

A top trend in HR is the prevalence of people analytics. And one can understand why. It offers businesses great insight in how to optimise operations. It is that magic spell that allows the broom to sweep by itself. With the rise in cloud-based HR systems, we have increased our ability to extract information intelligently and give HR a real opportunity to analyse return on any investment within the organisation.

The ability to calculate the value of employees compared to what they cost you is like hitting the gold vein in a mine. This analytic alone can provide enough information on whether your business is viable.

If ever you needed more compelling reasons to invest in a brilliant HRMS, this is it.

More efficient use of time

Your HR staff are paid to take care of your most expensive commodity: the humans in the company. HR software allows them to focus on this aspect of their jobs because they don’t have to spend hours on collecting pay schedules, attendance records, and dispensing updates on internal policies. The system saves a heap of time for everybody. Even more so if it is Cloud-based because the SaaS takes out that layer of worry and responsibility that can only distract the workforce from what they are supposed to get on with.

The difference between HRMS, HRIS and HCM

Although they are all three basically the same thing, there are subtle differences between HRIS, HCM and HRMS in what they have to offer.

Human Resource Information System

HRIS is the most basic of HR software and acts as a centralised data system. Usually, an HRIS manages people, procedures and policies.

  • Recruiting: Post job descriptions, manage interviews, store resumes, and track applicants’ progress in the recruitment process.
  • Absence Management: Manage unplanned absences like illness, injury, unauthorised leave, and maternity and paternity leave.
  • Workflows: It allows you to increase productivity.
  • Training and Development
  • Benefits Administration: Employees can enrol in health insurance, join wellness programmes, participate in charity days, and more.
  • Self-Service Portal
  • Compensation Management: Handle forms of compensation like salary, paid time off (PTO), overtime pay, bonusses, company-funded activities, and the like.
  • Personnel Tracking: Maintains a record of employee details like contact information and position.

Human Capital Management

This is slightly more comprehensive than HRIS but not as sophisticated as the HRMS, although in practice many people do not make that distinction between HRMS and HCM. An HCM might contain additional features to the HRIS, like: employee performance tracking; onboarding; analytics; HR services; and global multicurrency and multilingual capability.

Human Resource Management System

An HRMS tend to offer the most comprehensive menu of HR solutions, including the features offered in HRIS and HCM, as well as additional solutions, like payroll processing, and time and workforce management capability.

Choosing your HR software partner

Opt for the best provider you can afford. It is well worth it. Start your process of choosing your best HR software partner and ask us for a demo.

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The most established and successful businesses operating in the Middle East use gulfHR. Find out why Startups, Bluechips, and the Fortune 500 trust gulfHR as their HRMS provider.

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