Human Resources Management System (HRMS) is a software enabled process which helps organizations manage their transactional HR activities and processes in a more efficient way.
Though Small and Medium Enterprises (SME) are growing at a rapid pace in India along with increasing growth of manpower; the rate of HRMS adoption has not kept pace. This can be attributed to various misconceptions surrounding HRMS, along with the changing HRM dynamics in the market, which is making it trickier for businesses to understand the actual HRMS advantage. Below are some of the common myths about HRMS we need to know for a logical decision to implement the right human resource management practice in our organizations.
- HRMS is too expensive for Small and Medium Businesses
Earlier, HRMS was too complex for rapid implementation and was truly expensive with high licensing fee deterring companies from making the capex outlay. But today, HRMS technology is simplified, making way for easier adoption. Businesses can start with a basic version with complete specifications and scale as it grows, which makes it more appealing and affordable.
- Need to invest or hire in-house IT Specialists
Gone are the days when HRMS was a mystery box and can only be decoded by IT experts. Modern, advanced HRMS are automated, flexible and comes as Software-as-a-Service (SaaS) which does not need specialized in-house technology expertise. The remote IT team of the vendor monitors it 24/7 for any performance glitches, enhancements to functionalities and on-going data backup.
- Do we really need HRMS?
A decade ago, HRMS had a single model which was developed to cater to the needs of large organizations. In the current scenario, HRMS has been evolving rapidly and provides multidimensional facilities and benefits to organizations, both large and small. Today, we have HRMS specifically designed for small and mid-sized businesses. With such advancements, SMEs today can enjoy the benefits of professional Human Resource Management Systems, which enable faster business growth.
- HRMS software requires lengthy and costly training
HRMS software primarily automates the manual human resource management system. Unlike legacy software, the modern HRMS software are automated and need almost zero IT skills. A person qualified in human resource management will be able to follow or run it with very minimal training.
- We do not require a HRMS when we have outsourced HRM
It is always advantageous when we work with experts who are updated in the ever changing HR statutes, tax legislation and other human resource management policies. Besides, whether you choose to manage your HRM in-house or outsource, HRMS works well for you. In fact, if you have outsourced your Payroll and HRM, this can be the perfect solution to keep track of all HR related functions in one platform. This enables internal HR to address people satisfaction, employee engagement, employee issues and other people complexities faster and in an organized way for a sustained long-term business growth.
With growing competition and complexity of market, businesses cannot afford to lose time caused by myths linked to HRMS. PeopleWorks has been in the forefront, providing simple, efficient flexible Human Resource Management System (HRMS) Solutions. Be ahead of the business curve with efficient HRMS solutions by PeopleWorks.