Aug. 08, 2023

Importance of Technology in HRMS

HRM solution and technology
Importance of Technology in HRMS

Why “Tech” Takes Center Stage in HRM

The efficient and effective management of people in an organization is commonly referred to as Human Resource Management (HRM). It involves a strategic approach to enhance employee performance, implement policies and systems, and also engage in recruitment, training, performance appraisal, and a variety of other functions that are necessary to keep employees working satisfactorily – and happy.

As this involves a number of dedicated processes, most HRM functions are automated with the help of a software tool called Human Resource Management Solution (HRMS) or Enterprise Resource Planning (ERP). But it’s the technology behind these systems that’s vitally important in tracking both the micro and macro processes to keep employees working in a positive, results-driven environment.

Let’s take a closer look at what makes technology ‘tick’ and why it’s an essential component of every HRM solution. Here are 6 benefits of having a technology-driven HRMS:

Automate manual and repetitive tasks.

Human Resource departments are inundated with repetitive and often mundane manual tasks. These include basic recruitment processes, such as screening, interviewing, and hiring. In addition, it also includes employee onboarding, payroll management, and employee grievance resolution, just to name a few. With the help of a robust and responsive HRMS, these and other tasks can be automated, so that HR managers can focus on their core initiative – building and maintaining a long-lasting bond between the employee and the company, relationships between employees, peers and managers, enhancing overall employee satisfaction in the workplace, and ensuring that attrition levels are low.

Enable employee self-service.

There are several tasks that employees can efficiently handle on their own, right on their mobile devices. These include managing their time and attendance, vacation requests, sick leave, registering complaints and other requests, seeking approvals, and managing their user profiles. For example, if an employee changes their home address or their surname, they can conveniently use an employee self-service module within an HRMS or ERP application. This helps employees quickly arrive at solutions themselves, without having to fill in a barrage of forms to change personal details or get issues resolved.

Streamline communication between employees, managers, and other entities.

More often than not, organizations suffer because employees don’t read or respond to emails, or disregard verbal communication. To enhance communication between various entities within an organization, an HRMS tool can easily integrate with a third-party app, such as Slack, or even create an internal messaging app. These solutions help organizations to ensure streamlined, always available and accessible communication between employees, their managers, teams and departments, and others inside the company.

Track attendance and performance.

It’s vitally important to track and monitor employee attendance and performance. Reliable and real-time monitoring helps to conduct accurate appraisals based on actual performance. In other words, technologies such as HRMS eliminate prejudice and bias from the employee performance evaluation process. In addition, with fully automated attendance tracking, there can be no misrepresentation or employee time off that has not been either approved or utilized as agreed upon. This is a win-win situation for both employees and their managers, as accurate attendance tracking ensures error-free salary disbursement from the get-go, saving valuable time and resources to correct manual mistakes.

Train employees and promote new skills.

Training and educating employees are the necessary building blocks of any successful organization. Training modules help employees to gain important skills that enable them to perform better. However, employee training can be a costly process that demands high HR department budgets. eLearning technologies, supported by advanced HRMS or ERP software, can be used to enhance employee training, and ensure that staff are being properly trained online in the skills and expertise required to best do their jobs. More important, when backed by technology, their progress and skills can be monitored along the way to ensure employees are truly benefiting from the various training modules.

Store data and generate valuable insights.

Technology is not only necessary, it’s a must-have when it comes to storing, accessing and sharing real-time data in a compatible and error-free format. HRMS tools ensure that sensitive employee data is stored correctly and securely. In addition, many ERP systems are available with integrated HRM modules, making technology and automated, always accurate data indispensable to an organization’s HR department. Employee data is a valuable resource in generating vitally important insights that may help improve employee performance, and in turn, company profitability.

Technology is an integral part of HRMS

HRMS and ERP are both highly-valuable tools that help Human Resource managers to automate and optimize their organization’s employee-driven processes and procedures. Technology can help HRM professionals to automate both manual and repetitive tasks, and power employee self-service apps. What’s more, technology is the driving force behind enhancing multi-directional communication between employees, managers, teams, and departments, where employees benefit from more accurate performance evaluations, and time and attendance tracking.

Thanks to innovation and technological advances in today’s HRMS and ERP software systems, employees have the opportunity to build their required skillsets. With self-learning methods via robust eLearning modules integrated into HRMS, they can get the training they need when they need it most, saving valuable time and costly resources. Last but not least, technology is necessary for HRM professionals to store sensitive employee data, and generate valuable insights and analytics to make better informed business decisions.

It’s technology that makes every HR department – tick, and work better and smarter, to help achieve more efficient, more productive, and more satisfied employees.