The definition of the concept of personnel management systems or HR systems has two meanings:
1. broad meaning - a system in which the functions of the organization's personnel management are implemented;
2. a narrow meaning is software that allows you to make these processes more understandable and efficient.
In this article we will talk about the system as software.
HR management software is a digital solution for managing and optimizing the daily tasks of HR management and the overall goals of the organization in the field of HR management. HR management software allows HR department employees and managers to better allocate their time and resources for more productive and profitable activities.
HR management software technology has come a long way since computers were first used to manage human resource data in the 1970s. HR management systems became more accessible to corporate clients in the 1980s, and the advent of web applications in the 1990s made HR management software even more widespread. Currently, most of the new systems are cloud-based, easily integrated with other data management programs and easily configured according to the needs, goals and budget of an individual organization. In other words, there is currently a software solution for personnel management for organizations of any size and type.
Functions of HR systems
There is no universal software for personnel management. Various industries and enterprises face diverse challenges in their human resources departments.
While some companies want something reliable and stable for payroll and benefits, others are looking for a reliable system for hiring, tracking and adapting thousands of new employees every month.
Nevertheless, certain basic functions are expected from HR management software that can help in choosing the most ideal HR management software for your business.
Here are the main features to help you find the best software that can have a positive impact on your workflow:
Salary and benefits management
Most software solutions for personnel management include payroll (PO) and benefits. They allow you to manage the calculation of the PO directly through the platform.
It is worth noting that due to the fact that HR and salary are often inseparable, most HR managers are looking for a comprehensive solution that includes both.
If the company already has a solution for calculating the PO, you can search for HR management software that can be integrated with an existing system. It will be more convenient for employees and the HR team to have access to everything from a single platform.
Automation
One of the biggest simplifications provided by HR management systems is the automation of repetitive tasks to increase efficiency.
It makes sense to look for software that automates and eliminates manual labor. For example, some HR tools automate tracking of non-working days, taxes, etc. The organization will save a lot of money and time in the long run.
Company size (small/medium/entrepreneur)
Another factor that can help you find the most suitable software for an organization is the size of the business.
HR needs changes depending on the number of employees and the size of the company. For example, a small business with 15 employees will not have the exact staffing needs of an enterprise with 2 thousand employees.
Larger organizations may have more complex HR management needs and require more functions from the HR management system. On the other hand, small businesses often don't need all the features offered by some comprehensive HR management solutions.
In addition, do not forget that many platforms charge a fee every month for each employee.
Self-service
The employee self-service portal is a must in the modern world.
It allows staff to access important information without the need for calls, emails, messages or visits to the HR department. The portal saves a lot of time for both employees and administration.
Finally, it makes sense to make sure that the selected software meets the goals and objectives of the company.
Mobile access
A good HR management software has a free mobile application.
This application can be used on the side to use the self-service tools that were mentioned earlier. In addition, it can be useful from the administrative side.
The mobile application for the HR program makes some responsibilities no longer tied to the physical office. HR managers can view, manage, track and complete tasks in real time from anywhere.
Types of HR programs
There are different types of HR management software that serve organizations to achieve different goals. Some of them are listed below with their main characteristics:
Candidate Tracking System (ATS) is a recruitment software that simplifies the recruitment process in an organization. It usually manages tasks such as storing job candidate data, posting vacancies on multiple bulletin boards, and checking applications for potential matches with vacancies while reducing recruitment costs.
The performance management platform is designed for HR professionals, managers and employees to evaluate employee skills, set performance goals and track their improvements to stimulate employee learning.
Commissioning: the adaptation software allows you to optimize and track the process of introducing new employees to the organization. It usually includes electronic signatures, training tracking, employee surveys and other automated functions to ensure that the HR team provides an effective experience of adapting new employees.
Personnel Management Information System (HRIS) provides several HR management functions, such as recruitment and tracking of candidates, salary and benefits management, storing employee data and profiles, compliance with regulatory and legal requirements, etc.
HRIS can be a separate software that can be integrated with additional HR applications, or a central database in a comprehensive HR software system.
Employee Engagement: a platform that helps to improve individual and team interaction. Employee engagement is achieved through feedback, coaching, analytics and daily work priorities.
Advantages of HR systems
Accurate reporting
A unified online database of personnel, which is easy to update, simplifies the management and use of personnel information. Reports are available in real time, and alerts are triggered automatically based on KPIs or other metrics.
Effective processes
Manual processes, such as confirming a vacation by email, waste time. Email is lost, rights are not updated, and everyone gets upset. Automating the flow of approvals and updating data in real time online saves everyone time.
Compliance with legislation
The best personnel management systems ensure compliance with the law. The functions range from general tools such as document tracking and electronic signatures to specific functions. For example, to register health and safety or complaints and disciplinary violations. HR systems should also ensure that data is deleted or anonymized.
Employee engagement
Modern personnel management systems can become an invaluable tool for employee engagement. The best systems act as communication centers. They keep employees in touch with the company and with each other.
Data security
Data protection legislation requires companies to protect employee data wherever they are located. Spreadsheets, emails, and paper forms are difficult to keep safe. Specialized human resource management systems provide a much safer environment.
Remote and hybrid work
Online HR management systems ensure the smooth operation of important HR processes, wherever employees are located. They can also help organizations better coordinate, manage, and motivate a distributed workforce.
Cost savings
Paper processes take a lot of time and are prone to errors. Even for a relatively small company, this can quickly lead to thousands of pounds of wasted time every year.
Investing in a modern and affordable personnel management system will save time, and time will save money. Better HR systems also have a broader impact on business performance. For example, helping to quickly identify absence or performance issues, improving retention, and helping HR and line managers make informed decisions about resources and development.