human resource management system software

human resource management system software

The Evolution and Implementation of Human Resource Management System Software

1. Introduction to HR Management System Software

The use of HR Management System Software will allow a business to systemize all of the various activities and strategies that are vital to the business from an HR viewpoint. It would help companies to deal with the most important assets of a business, that being human capital, and it will take on daily HR measures such as payroll, benefits administration, training, and recruiting, etc., with exceptional quality and satisfactory performance. HR software will differ in performance and complexities. Some may just complete a single, important process that is necessary but mainly basic in nature like time and attendance, while others are significantly more inclusive. Web-stereotype application service providers or popularly known as (ASP) could provide HR software or complete on-premise software in addition to their very own support and care. With the embodiment of best practices with certain web-stereotypes, the businesses can use their HRMS product at a very fast pace, thus enabling the company to immediately benefit from automated best practices.

The human resource department (HR) will usually be the area of a business which may take a back seat until some serious problems begin to occur. When we see gravitating problems throughout the business, this may be a clear indication that it is time for an HR Management System Software implementation.

2. Key Features and Functions of HR Management System Software

The HRMS system offers multiple functionalities and features. It provides numerous utilities that aim to streamline the working environment and make HR and the broader company more efficient and productive. There are not a fixed set of functions that HRMS software offers, and there is a vast product on the market, each with a different set of functions. HRMS can have an on-premise or web-based configuration with multiple pricing models (on-premise pricing linked to a fixed price, and in the case of the cloud forwarding, linked to the number of employees). It can provide many different services if added to the generic HRMS or linked with other third-party applications. Mandatory features should for sure include worker administration, work replacement, handbook/policies management, absence tracking, performance review, and social applications. If HRMS also offers the possibility to integrate with other commonly used software, it can be noted as best meets small businesses’ needs, since integration can reduce routine works and distribute automatically all HR-related information across the organization. Furthermore, if the software is specifically designed to match the organization’s needs in fields such as document management, reporting, and social integration, this would be an added value.

3. Benefits and Challenges of Implementing HR Management System Software

Despite these challenges, there are several ways in which an HRMS can be quite beneficial to a Human Resources department and to the company as a whole. The integration of HRMS software allows a Human Resources department to better understand the characteristics which are needed for maximum job performance and seek out candidates with those same characteristics. By recruiting the best people, it makes labor quality more predictable and productivity more at-risk, translating into higher selling prices (contributing to higher value) and higher return on capital invested. With relevant data at their disposal, workers can spend their limited time implementing successful tactics as opposed to working through techniques which are not successful, which translates into higher performance. This can be especially beneficial if man-hour and other performance data is captured at the detailed level of each operative. Performance against the baseline status of each seller/worker can also shape the type and content of both educational initiatives and other development efforts that require physical presence (e.g., attending a single meeting). Staff development time can be molded around the needs of an entire workforce with HRMS software, allowing for the most effective use of staff enhancement funds.

Another challenge for HRMS vendors and HR leaders is ensuring that the HRMS will be utilized by all members of the workforce. The reality is that many employees don’t understand the utility of HRMS software and they continue to rely on email or paper forms to effect many changes. A recent study concluded that “employers will make a significant investment in a system that may be met with resistance by employees who do not understand or see the value and employees will be left to disrupt their daily routines if they are to be forced to absorb additional supervisory responsibilities, that will require thorough training and will also take valuable time away from daily duties. If they are forced to accomplish more within the same pay in addition to their daily tasks, employees may become overwhelmed and unhappy with their positions and may ultimately leave the company as a result.” A partner at a professional services firm elaborated further, “The HRMS system is tied in with strategic hiring, staff retention, development of training programs, employee morale – basically a lot of potential HR hot spots. If employees resent the HRMS system, HR issues that were manageable without the system may flare up into big problems due to lack of HRMS use and employees could just wonder if you use it you will get on a human resources ‘list.’ Company management should be willing to take any HR related issue, whether related to the system or not and take steps to resolve any issue that an employee may have.”

4. Best Practices for Selecting and Implementing HR Management System Software

The findings reported in the body of this article suggest that there are numerous disconnects between the vendors who sell, promote, and configure HRMS software systems and the HR executives and implementing consultants who conceptualize, communicate, and operationalize HRMS. There are an equivalent number of opportunities for creating higher levels of fit. When action is driven by dialectic learning of aligning the independent with the dependent variable, decision makers may be better able to identify attributes that are easily altered, intertemporal misfits, more complex cross-level misfits, and dialectic costs.

The execution of best practices for HRM system projects described here does not guarantee ideal fits between HRMS and a company’s business goals. Instead, it increases management’s knowledge of issues at different stages of the software selection project, with the potential to take more informed actions to address them and thereby enhance the likelihood for project success.

To help overcome these gaps, we discuss some best practices that decision makers might consider. By explicitly identifying the potential areas where there may be misfits and by involving the users at an early stage in some of the best practices reported, which address issues at the conceptual, value expectations, and needs levels, decision makers may help to avoid intertemporal misfits, cross-level misfits, and unexpected costly dialectic learning in operationalizing HRMS software selection decisions.

Results from studies of HRMS software selection and implementation have generally found that certain best practices are recommended to produce higher rates of success, smoother implementations, and lower costs. However, most of these recommendations are not based on research that explores how such practices address the fit and misfit between the independent and dependent variables. Furthermore, these best practices usually begin after a technology decision has already been made.