How Can a Good HRMS Help an Organisation Save Money?

How Can a Good HRMS Help an Organisation Save Money Businesses these days are faced with massive turnovers and remote teams to execute the job (especially after the pandemic). An HRMS or Human Resource and Management System has become a need not just because it eases the HR functions, but it also helps in saving a significant amount of money for the business.

HR performing manual jobs and entries are time-consuming that ultimately results in missed opportunities as the team is engaged in performing manual entries leaving out something that is more productive and beneficial to the business. It also leads to higher costs, most of which are unseen and are related to labour-intensive administration (HR), which tend to cause a myriad of problems and slowly drain the business of resources that go unnoticed for a long time. The application of a good HR and Payroll Management System in India allows business management and operation to be smooth as it makes things efficient, prompt, and accurate. HRMS allows businesses to manage and execute several daily jobs in no time.

It takes a team of dedicated and skilled professionals to manage HR administerial jobs, especially when it is done manually. Powered by technology and information, HRMS mechanizes tedious and manual tasks ensuring profitability in the business.

Selecting a good HRMS allows the company to save an apparent and measurable cost.

What is HRMS (Human Resource Management System)?

HRMS or Human Resource Management System is a software system that allows easy management of HR-related functions using information technology. It improves the efficiency and productivity of a business by automating repetitive and manual tasks. It also relieves HR from time-consuming work and allows them to address critical and strategic tasks of the business.

AI or Artificial Intelligence is taking over things quickly, making it significant to have the right information at the right time. This is not just for big companies or organizations but also for growing companies and startups who are constantly facing several challenges. These challenges can be streamlined if there is a proper HRMS in place.

Functions of a Human Resource Management System TopSource Worldwide offers a strategic HR and Payroll Management System in India known as Portico that can help in streamlining the functions of your HR services and also save your money. HRMS functions as per the strategic objectives of a business, and its functions can be customized to meet the organizational requirements. The software can be employed to take care of key HR administrative tasks. Some key functions of HRMS we offer are as below: 1. On-boarding and e-exit checklist

Both joining and exiting of an employee requires undergoing several steps, including documentation, undergoing training, recording personal details, etc. Leaving out certain steps causes havoc in the process and upsets the system. Having a checklist for both the processes makes it easy for not just the employer but also the employees and the management staff. This HRMS offers a comprehensive checklist for on-boarding and e-exit, making the processes smooth and easy for everyone associated with the processes.

2. Compensation Structure

A compensation structure in any business is a framework that it uses to identify the ways to pay an employee for their work rendered to the business. It is a set of guidelines that allows businesses to offer competitive and equitable wages and pave a path for employees to grow and receive higher salaries in the future. This compensation structure in HRMS usually has flexible and non-flexible components, so businesses can customize it.

3. e-resignation

Employee satisfaction is always a boon for any business, and this policy should be applicable not just when they are working with the business but also when they are leaving. E-resignation simplifies the resignation process. Employees can easily submit their resignation online, the manager responsible can approve it, other departments can give their clearance if required, exit interviews can be performed, and more. Moreover, if an employee changes their mind and wants to stay back in the organization, they can easily withdraw their resignation. HRMS makes it possible to do so without any hassles.

4. HR and Employment Documents

Workspaces are compact, and maintaining employee documents physically is not feasible in terms of time, security and cost. Having cloud-based software allows easy storage of data accurately and safely. Everything is maintained in the HRMS, from their name to their joining date and from their date of birth to their contact details.

This data can also be accessed easily from anywhere and whenever the need arises.

5. Letter Generation

A letter generation module in this HRMS allows easy generation of official letters such as offer letters, salary slips, experience letters, confirmation letters, and more.

It takes just a single click to generate letters in bulk. HR doesn’t have to worry about sitting and typing every letter manually, saving them their precious time and energy.

6. Alerts

Another superb function of the HRMS is that it sends out email alerts for birthdays and work anniversaries of employees. Notifications allow team members and other employees to send across wishes. This is an important part of employee satisfaction that ultimately helps in the overall productivity of any business.

7. Robust reporting

Reports reveal everything happening in a business. They provide details that the employer and the higher management use to make important decisions, develop future plans, create a budget, and set marketing plans. Business reports also help managers track the business’s growth and progress and identify visible trends or indiscretions that may require immediate attention. HRMS offers more than 200 predefined reports which can be generated with ease.

These are some major functions offered by HRMS Portico. There are many smaller functions that HRMS systems offer, allowing the business to improve significantly in many areas.

How Can an HRMS Save Operational Costs?

A good HRMS empowers the HR team of a given business. Its ability to multi-task makes it a genius solution for the HR team for all types of businesses – large, medium, and small. Here are some ways in which HRMS solution can save operational costs significantly for any business: •

Secure Employee Data and Avoid Costly Security Breaches

There are several rules and regulations which a business needs to abide by, and data privacy is one of them. Businesses have oodles of personal data of their employees, and it is vital that this data is kept safe. Breaching data privacy is punishable by law, and business should ensure that their data is protected. An HRMS system ensures that this data is safe and protected so business stays away from costly lawsuits and penalties that they might have to pay for a data breach. HRMS systems encrypt data to keep it safe and use various levels of protection, ensuring that only authorised users get access to the data when required.

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Reduces Cost of Paper

Maintaining employee documents manually in paper form can cost the business a fair amount of money. However, when this record keeping is done electronically, it can help in reducing these costs. Purchasing printing paper, files, cabinets, ink, and similar office files can be avoided if an HRMS is implemented.

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Saves Staffing Cost

A Human Resources department has several tasks to fulfil. From on-boarding the candidates to performing their exit formalities and from recording personal data to employee engagement, there are several tasks to be managed which requires a big team. Hiring skilled employees is a cost for any business, especially they are a new startup or small/medium business. HRMS is a management software that automates tasks and executes most jobs easily. Implementing a good HRMS allows the business to save the cost of hiring too many employees.

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Cloud-Based Solution

Redundant software requires expensive upgrades and maintaining them can be an expensive affair. HRMS is a cloud-based solution which not just allows secure storage of data but also makes it easy to upgrade. Outsourcing HRMS especially ensures that a business has access to the latest features and version of the software they are using without the business having to worry about expensive upgrades.

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Improved Productivity

Although this may not be directly related to reducing costs, it helps in improving the overall productivity of the business and alleviates the growth process of the company. HRMS is automated, and its ability to multi-task enables the HR team to concentrate on other important tasks with better energy and enthusiasm.

Where to Get a Good HRMS?

Working for years as an outsourcing service provider, TopSource Worldwide has offered advanced solutions to several businesses. Portico HR is one of the many solutions we offer. Equipped with advanced features, our HRMS solution can help streamline the HR department of your business. We also offer other solutions such as Leave Management System, Payroll Management, Statutory Compliance Management, and more. Call us today on the below-mentioned details to learn more about HRMS and other solutions offered by us.