Irrespective of the size or type of any company, the target is to achieve productivity and ensure the company’s goals are met. Employee productivity is key for this, especially during the current times.
Using HRMS software can help integrate all your tasks onto one platform and frees up valuable time for key assets. In this blog, we’ll explore how using HRMS software can help to improve the productivity and efficiency of your business.
Benefits of an HRMS to your business
Faster access to HR services – Employee self-service is one of the most in-demand and popular features of a modern HRMS. Employees often have questions and doubts about terms and conditions, payroll, attendance, leave etc. Instead of having a single person answer all these questions, employee self-service functions take managers out of the loop, give employees access to HR services without a gatekeeper. This also frees up managers to focus on their own tasks and priorities.
A more focused HR team – While HR managers truly want to improve the overall work and environment for their employees, most of the time they end up handling routine paperwork and administrative work like processing employee information and answering questions. With an HRMS in place, employee self-service functions are automated. So, HR administrators can spend less time on repetitive, mundane tasks that are better handled by the software. This frees their time up for more strategic work.
Reduced HR costs – Replacing time-consuming data entry tasks with automated technology, companies can save a great deal of money. Additionally, such technological automation also frees a company from using paper and making all processes digital. Alternatively, freed-up HR time can be ‘cashed in’ by reducing the HR team’s headcount over time.
Fewer mistakes – Accuracy is a big efficiency factor in HRM. So long as you put inaccurate data into the HR system, the processes that depend on that data will always be more accurately carried out by your software than by a human. Fewer errors also mean much less time spent rectifying those mistakes.
How can you measure Human Resources’s efficiency?
A better, more efficient HR team sounds great. How do you know when you have an efficient team?
Some of the reasons why you’d want to measure HR costs are – to monitor departmental costs, measure impact and overall success, predict future costs and calculate a Return on Investment (ROI). If the ROI is greater than 1 (100%) then it is positive. If it is less than 1 (50%), it is negative. If only 50% of the costs are recovered, then it is a bad investment.
Some of the HR metrics you can use to address how efficient, effective and impactful an organization’s HR practices are, are given below. The power of data will help you make decisions to ensure a better outcome for your company and employees.
KPIs: These show which employees are underperformers, valued specialists, emerging potentials or top talents.
Self-service transactions should show time saved: It helps in monitoring the number of hours scheduled is in line with the number of hours worked, providing an insight into understaffing or overstaffing.
Turnover: Employee retention should improve, and turnover should decrease. It shows how many workers leave the company in a given year and tracks the company’s attrition rate.
The time it takes to complete an HR transaction should decrease.
The number of sanctions or penalties for legislative non-compliance should fall
Put simply, your HR team’s efficiency should be one of the biggest beneficiaries of your new HR technology. If you’re thinking of investing in a new HRMS, consider putting in place goals around improving existing processes to make sure you obtain the maximum efficiency and benefits from your new software.
How does HRMS help increase HR’s productivity?
Management software is increasingly becoming a must for most businesses. More than ever workforce efficiency, productivity, saving money and attracting or retaining employees is important. In this workforce and marketplace having the right employees by your side is very critical. A good HRMS software is designed to help you do just that: Maximize the potential of your human resources.
There is no point in wasting time doing fillings or photocopying when important work must be done. A good HRMS program will eliminate the tedious tasks so that your staff can focus on more appropriate tasks. There is no reason to waste someone’s time with filing when that employee could be engaging in jobs that benefit the company and help boost productivity.
Again, HR software doesn’t negate the need for professional HR employees. Remember your employees are always your best resources. What an HRMS does is it focuses attention on more important duties, which can save money in the long term. The initial investment in an HRMS provides a healthy return as your process is streamlined, efficient, and convenient.
How do you improve HR productivity?
Here are some tips that can come in handy while improving HR productivity:
Focus on quality of recruiting – For this, you’ll need to check the performance appraisal of many of the new recruits. If a lot of new hires have been promoted, then recruiting is of better quality.
Focus on retention – If the turnover is high, you’ll need to put in measures and processes to ensure people don’t keep leaving the company every year. Check how the performance turnover is when it comes to key positions in the company?
Focus on employee relations – Look at the bottom-rated managers in your company. What’s their turnover percentage like? How is the relation between these bottom-rated managers and the employees they handle? Invest in training them on how to interact with their associates and reach out to them in a human manner.
These are some of the ways in which HRMS software helps improve productivity and efficiency of the workforce within an organisation. It eliminates the need to do repetitive, mundane tasks, expedites processes. It increases efficiency across the organisation, thus making the company reach its goals and productivity.
What’re you waiting for then? Go ahead, and invest in a good HRMS software for your company right away, if you haven’t already!
