Cloud HR software

The 5 signs when your business needs an HRMS

By October 3, 2013 No Comments
5 signs when your business needs your HRMS

In nature, you know when it is autumn. With dried leaves strewn across your driveway or porch, you feel the need for a leaf blower. In such a case, technology would solve an age-old problem as you save a sizeable amount of time & effort. However, there are no such common warning signs for your business when it is facing HC issues. But still you have the option of leveraging technology to optimize your Human Capital Management.

With the advent of Cloud technology being delivered upon the model of Software-as-a-Service (SaaS), HRMS are no longer as expensive as they used to be. Nowadays even small and mid-sized business can afford and eventually opt for an HRMS. However, in most cases businesses either have not yet opted for an HRMS or only use the Payroll and Attendance feature of their preferred HRMS. There are innumerous other advantages of using an HRMS which we have earlier discussed in our previous blog posts.

If you are still wondering why and when you should opt for an HRMS/HRIS, today we discuss those 5 tell-tale warning signs.

  1. Overworked HR staff – If your HR department is regularly over clocking their work hours and most of them are busy with non-value adding activities like Employee Data Management, it’s high time you eased their workload with a bit of automation. Instead of working on core HR activities like Talent acquisition & retention, Employee Engagement, etc., they spend most of the time managing leave databases or filling out benefits enrollment forms or addressing redundant issues of employee grievance. An HRMS would not only automate routine HR jobs, but also implement Employee Self Service and help in gathering HR data analytics, which is essential in workforce planning and strategy.
  2. Employee Connect – If the majority of your workforce is mobile and is working from remote locations or your business has more than one office, your employees lack the central platform which unites them as a single workforce. They often lack the motivation to work in the absence of any direct contact with their superior or employer. Posting an HR representative at all such locations is neither possible nor feasible. The only solution is an HRMS which would be the virtual & omni-present equivalent of such HR staff. From Leave management to attendance, employee birthdays to departmental updates – every single organizational details is available to every single employee and the vice-versa.
  3. Performance Tracking & Appraisal – If your employee productivity figures are plummeting in spite of various employee engagement & training measures, an HRMS would be helpful. Instead of your annual/semi-annual Performance appraisal outcomes being criticized for favoritism and lack of transparency, let them accurately measure the resource potential of every employee in your payroll. Give your staff the onus of managing their own Appraisal with the help of Key Performance Indicators which translate into their final appraisal ratings or score. Recognize & reward only performers and do away with mediocrity.
  4. Costly errors & Non-compliance – Manual employee data management leads to many clerical errors which cost your business both valuable time & money in its rectification. For example, in most cases benefits enrollment for resigned employees are not automatically cancelled and you end up paying useless premiums. Or else, your employees or even you as an employer might have to pay hefty fines for legal non-compliance. An HRMS would not only facilitate compulsory compliance for all but also save time & effort for both employer & employee by facilitating electronic/digital submission of taxes and proofs and much more.
  5. Absenteeism & Attrition – If absenteeism & attrition are the two chronic ailments affecting your workforce to the point of loss in productivity and revenue, an HRMS could help. By automating the Leave Management System, setting up fines for habitual late-comers & early-goers and many other control measures to curb unengaged employee behavior, you can implement an effective check on absenteeism. Moreover, with automated exit formalities you source insights into the main reasons of employee turnover and take steps accordingly.

Even if three of the five warning signs mentioned above are proving to be true in your case, it’s time to rethink your HCM Strategy from a technical perspective. An all-inclusive Human Resource Management/Information System would not only solve the above mentioned problems but also a host of other issues like Payroll, Workforce planning, HR metrics, etc.
With it’s role based user access and module wise handling of every aspect of an employee’s lifecycle in an enterprise, PeopleWorks would optimize your Human Capital Management for a higher ROI. For more information on PeopleWorks visit us at or connect through Facebook, Twitter or LinkedIn.

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