With the increasing impact of technology and globalization, companies are starting to utilize information systems for different departments and functions. One of them is human resources (HR) which greatly relies its operations on management information systems.
HR work has become more complex than it has ever been. The management of employee information has become critical in all aspects of HR, from recruitment, training, evaluations, etc. The manpower required in these functions makes it crucial for HR practitioners to have dedicated HR management software to ensure efficient management of HR-related activities, processes, and information.
Today, you’ll find a wide range of human resource management systems (HRMS) that support various HR functions. Some examples are employee information systems, performance management information systems, and position control systems. Among the most widely used is the web recruitment software that optimizes and streamlines every aspect of the recruitment process.
Given all the complicated processes involved in HR, it’s important to make the most out of available digital solutions to ensure smooth functioning and easy management of all HR operations. With that in mind, we’ll take a deeper look at the role of management information systems in HR.
Handles routine HR tasks
In most companies, HR teams often face a huge dilemma in terms of routine HR tasks. HR managers want to devote their time to creating initiatives to establishing an ideal work environment. Still, the routine HR tasks are sometimes demanding, keeping them from doing other worthwhile office tasks. Often, HR staff have to deal with tons of paperwork and administrative tasks, such as accommodating employee concerns and processing employee data.
HR management systems solve this problem by handling routine HR tasks. HRMS reduces paperwork by setting standard processes in hiring, salaries, and employee information (e.g., employment history, education, skills, certifications, and compensation, etc.)
HRMS also saves time by speeding up paperwork processing and document creation. It allows HR staff to store employee data in a single platform and create documents related to this information. As a result, HR managers don’t have to sort every document to search for stock plans, employee ratings, and other related files. In other words, HRMS allows HR teams to streamline all HR functions in one place, thus structuring all HR administrative tasks.
KPI stands for key performance indicator, a quantifiable measure of performance that shows how effective the company or employees when achieving a specific objective. Since monitoring KPIs can be complex and time-consuming, HRMS automates this process.
Often, productivity slowly decreases once the employee has been keeping the same position for too long. This is where HRMS will monitor each employee’s duration in the company and remind HR managers about the right time to promote.
HRMS also contributes to handling employee retention. Retention rate refers to the percentage of employees who remained in their position over time. Losing an employee is very costly for companies since they have to devote time, money, and effort to hire a new employee as a replacement. In this case, HRMS will monitor the company’s retention rate and track which retention techniques contribute to overall productivity.
Tracking absences, leaves, and tardiness are also possible through HRMS. HR teams usually devote a lot of time to monitoring attendance, time, and employees’ schedules. HRMS will take out the burden by managing employee attendance efficiently without room for mistakes.
Facilitates employee management
Automating repetitive processes and reducing routine administrative tasks improve the overall productivity and efficiency of the company. Most HRMS have the ability to centralize data collection, automate HR workflows, and improve visibility through graphs and charts.
HRMS has attendance and time management features that monitor work hours while making sure employees receive proper compensation when working overtime. Monitoring work hours through manual processes can be difficult since HR employees are prone to missing important details. With HRMS, HR teams can rely on a single platform when monitoring employee attendance and absences.
Even the tedious process of handling recruitment and onboarding can be much easier through HRMS. It improves the efficiency of the entire hiring process by managing the onboarding process, keeping HR managers up-to-date on the recruitment progress, clarifying every job role, and making new employees feel more connected.
An effective HRMS, both in practice and theory, will ultimately lead to better execution, improved efficiency, and other benefits for the company. As you rely on the most demanding aspects of HR work on HRMS, your HR team can now devote their time to other worthwhile procedures to help the company achieve its goals of expansion and growth.