Many companies are following the age-old practice of using spreadsheets, documents and post-it-notes to manage their workforce. They have not yet started using sophisticated HR systems either because their budgets do not permit them to or because their top management is not amenable to using techno-savvy tools. In addition, years ago, HR departments of companies stored their employee records in an HR system. This system was hosted at site and was accessible to a few HR professionals from the organization. Nowadays, employees are using cloud based HR systems, which are accessible to the employees through the internet. Such systems although new are enabling companies to manage their employees well.
Benefits of using HR software
As has been mentioned nowadays companies which are tech-savvy have started using cloud based HR software systems using which they can manage their employees. The following are the benefits of using a people strong hrms:
- Efficiency of administration
If a company has a few dozen employees and if it still follows a paper-based HR system, then it will be a nightmare. Simple questions like “how many holidays have I taken?” or “can I have a copy of the last three pay slips?” will become difficult to answer. However, if you use a sophisticated HR software system, then it will lead to efficiency in administration.
- Reduced cost
Apart from facilitating efficiency and productivity, sophisticated HR systems can save you real money. As per HR best practices, there should be one HR person per 100 employees, if you are using a conventional system. However, with a software based HR system, this ratio reduces to one HR person per 140 employees. This means a company with 280 employees requires one full-time member of staff less. This reduces the salary budget of the company enabling it to save tens of thousands of pounds annually.
- Access to information
If a company is relying on a paper-based system, to keep track of employee data, it results in silos of information. It is true that you have to think about the sensitivity and security of the data that is to be managed, but if an HR system is used and the right people are given access to it, in the company, then you are making good use of the data you have at your disposal.
- Data analysis and improved decision making
If you are using a sophisticated HR system, you will be able to take decisions very easily. For example, if there is employee attrition in your company, you can seek out the reason for the same. It can be due to either stringent company policies or the presence of an unruly line manager. In case a line manager is at fault, he can be reprimanded. Such decisions can only be taken if the company uses a sophisticated HR system. Companies using sophisticated people strong hr solutions software are doing the same.
- Improved communication
Most companies have an employee directory, which stores the official email ids of all their employees. This is used in case any of them have to be contacted. Although, employees who are seated beside each other in an office collect data regarding their neighbors’ email ids and cellphone numbers so that they can improve their communication with them. However, at times, employees who are outside a particular department need to be contacted. In such circumstances, instead of using a filing cabinet to access data, if you are using a sophisticated HR system, then it leads to improved communication.
These are the benefits of using a sophisticated HR software system.