HRMS Management: Your Guide to Streamline HR Processes

Today, the world of human resources is amidst a quiet revolution. HR is progressing rapidly, becoming much more strategic and data-driven, and HRMS is helping drive these changes. Being such a crucial part of workforce management, it is essential to understand, research, analyze and choose the right HRMS Management system for the job.

When it comes to human capital management (HR), we've all been through the same old-school HR processes: creating multiple job listings, manual and paper-based onboarding, limited employee engagement activities, no data to track employee performance, and the list goes on. While these time-consuming and impersonal processes seemed like an optimal plan of action in the past, things have changed now, owing to various reasons.

Changes in traditional HRMS Management

According to 35% of HR managers, not automating manual operations to the full capacity has resulted in higher costs.

Old-school HR processes tend to be burdensome and difficult to navigate. They are also not user-friendly and are a nightmare to manage, making them incredibly time-consuming and expensive. Being restrictive in nature, such outdated practices make it difficult to plan for needs and wants in the future. Disorganization makes it challenging to scale and adapt to changes in the business.

Human resources have come a long way, and it’s time to change the strategy and use HR systems to make the work of HR managers easier. Most businesses now use cutting-edge HRMS management platforms, which are much simpler to use than their predecessors. But, it is essential to know what an HRMS is, the various types available, and which one suits your needs when selecting a new HR software.

Effects of manual or outdated HR Processes

Many companies are still stuck with outdated HR systems, ignorant of their outcomes. According to a Harris Poll and CareerBuilder report, HR managers who do not fully automate claim that manual processes have resulted in:

❎ Lower productivity: 41%
❎ More errors: 40%
❎ Higher costs: 35%
❎ Poor candidate experience: 18%
❎ Poor employee experience: 17%
❎ Less engagement: 17%
❎ Poor hiring manager experience: 11%

The role of HRMS software has evolved to not only manage people and their careers but to help build organizations that are agile, innovative, and responsive to the needs of their people. Considering these transformations, let's understand how companies can adapt to the recent HR technology.

How to streamline HRMS Management process

As the world becomes more digital and technology more advanced, the HR profession will continue to evolve. HR leaders must adapt to meet the needs of today’s dynamic workforce, which includes not only the millennial generation but also a workforce that is more globally diverse, more digitally fluent, and requires a new level of personalization.

One of the best ways to do this is by following a ‘Review, Replace, Integrate, and Track’ process. In simple words, follow these 4 time-saving steps to streamline your HR processes:

• Review your existing HR process and look for possible areas to make improvements. For the best possible insights, run an in-depth quality check.
• Replace manual and paper-based processes with cloud-based HR management tools.
• Integrate technology at every step of workforce management. Starting from the top of the funnel-Recruitment and onboarding to the bottom - Employee and Performance Enablement, and everything in the middle.
• Track metrics that will help you identify the effectiveness brought by an HRMS in streamlining the HR processes.

Applying these steps to streamline your HR processes requires adopting the latest HR technology trends. Choose from an all-in-one HRMS management platform that provides leaders with the data and automation tools they need to make smarter decisions, drive better outcomes, and build a better workforce.

Now that we know HRMS is becoming the backbone of HR departments, let’s understand the benefits to help you make an informed decision.

Benefits of HRMS Software

It's easy to notice just the expenses and hassles of installing a Human Resources Management Softwares (HRMS). However, HRMS management software has significant benefits for your business. So, whether your objective is to boost employee engagement, speed up recruiting, or simplify payroll management, here are 7 HRMS benefits that can help your business thrive.

1. Speed up recruiting

Early adopter organizations who used AI-powered recruiting software saw a 75% reduction in cost per screen, a 4% increase in revenue per employee, and a 35% reduction in turnover.

Gone are the days of paper resumes, endless interviews, and outdated hiring practices. Now, we're in the business of a digital-first hiring process. Old-school, paper-based hiring processes are being replaced by digital techniques that save time and streamline the hiring process.

From sourcing to interviewing to onboarding, modern digital processes save time and money by cutting down on costs associated with paper-based processes and reducing errors associated with traditional methods.

In addition to that, with the latest HRMS management software, recruiters can:

• Build their own custom branded career site in seconds
• Share on social media and automatically receive applicants into your hiring pipeline
• Manage the entire hiring process, including sourcing, screening, and interviewing
• Automatically send offer emails to successful candidates
• Trigger onboarding sequences, engage with new hires
• Publish job openings and manage applicants from one place

In many ways, recruiters have more control and freedom over the process, making it more streamlined and efficient than their paper-based counterparts. Check out our recruitment features that help transform your company into a smooth-running machine.

2. Streamlined employee onboarding

Employees who have gone through a structured onboarding program are 58% more likely to stay with the company.

Employee onboarding can be a complicated process. It can take a lot of time and effort, from helping new hires become familiar with the workspace and colleagues to getting them up to speed on the policies and procedures that make up a company’s culture.

Designed to cut down on the hassle and complexity of employee onboarding experience, Grove HR delivers a customized onboarding experience. In addition to that, employees and managers can:

• Use customized onboarding templates to run onboarding on autopilot
• Assign tasks to other team members
• Refer to the onboarding checklist for a faster process
• Manage, edit and access employee personal information using self onboarding
• Track the onboarding process dashboard and create reports
• Sent pre-recorded video to all new hires

Using these features, managers can help new hires get up to speed quickly.

4. Improved time tracking & attendance

Did you know that you can save up to $100.000 per year by implementing automated time and attendance tracking solutions?

Keeping a tab on what employees are doing and how they are spending their time is essential for overall productivity and growth. By using an HRMS, companies can enjoy an automated, error-free, centralized, and fast way of time tracking.

One such software is Grove HR, which provides modern time tracking using QR codes clock in/out, geofencing capabilities that ensure employees can only punch inside the predefined boundary, and mobile-enabled clock in/out for flexibility.

It also has a Mobile App that gives managers the ability to approve/reject time off, supervise employees’ attendance, and assign work schedules anywhere.

5. Automated payroll preparation

In the old days, paying employees meant doing it the old-fashioned way: writing a check, counting cash, and investing hours. While many small businesses still use this method, it’s no longer efficient or ideal considering the time and workforce investment.

Fortunately, modern technology has made it easier than ever to automate your payroll process. With a human resource management system HRMS, you can have a fully automated payroll system that reduces errors and saves you time and money. Grove HR uses the most advanced technology to process payroll that including:

• Automatically calculate your employees’ gross pay, including salaries, allowances, unpaid leaves, and actual hours worked (if tracked).
• Quick review, double-check accuracy, and fast edits
• Upload, review, and automatically send the right payslip to the right person - by email and mobile.
• Configurable payroll structure

6. Employee performance enablement tools

One of the greatest challenges companies face today is finding ways to improve employee performance while maintaining an employee-friendly culture. Many companies have found that empowering employees with real-time, transparent, and automated performance reviews has enabled them to identify areas for improvement and drive employee motivation.

Making this shift from performance management to enablement smooth, an automated and modern HRMS Management software helps empower agile teams, enable continuous growth, and serve different business needs. In addition, it also allows companies to:

• Conduct 360 qualitative self, manager, and peer reviews
• Utilize in-built review templates ranging from - Sales review  to Marketing, Engineering, IT, and more
• Empower your cross-functional teams to do their own reviews
• Automate review schedules, send reminders and monitor the review process at a glance
• Recognize achievements

With such a transparent, frequent, and agile performance enablement system, an employee experiences a sense of recognition and motivation that drives productivity and innovation on overall business results.

7. Elevated employee engagement

41% of HR managers say not fully automating manual processes has led to lower productivity.

In today’s fast-paced business world, it’s critical to keep your employees happy. One of the best ways to achieve an engaged workforce is by investing in the right HRMS technology to build an authentic and empowering company culture.

When your employee experiences belongingness at work, they feel motivated to perform their best. Managers can facilitate open communication by leveraging employee engagement tools like company social feeds, interests group, peer recognition, feedback, and surveys.

No matter where you are in the process, HRMS management software can bring many benefits to your organization. So, without further delay, get on this bandwagon and take your company towards the technology wave - HRMS software.

HRMS vs HRIS differences

While the lines between HRIS and HRMS can sometimes be blurry due to varying software offerings, HRMS generally offers a more comprehensive and integrated approach to managing various aspects of human resources compared to HRIS, which primarily focuses on data storage and basic functionalities.

HRIS (Human Resource Information System):

• Focuses primarily on managing and storing employee data and information.
• Common functionalities such as employee records, contact details, job history, and benefits information.
• Provides a database for storing data related to HR processes.
• Offers reporting and analytics tools to generate insights from employee data.
• May have limited features for process automation and workflow management.

HRMS (Human Resource Management System):

• Encompasses broader HR functions beyond data storage, including various management processes.
• Integrates HRIS functionalities but goes further by incorporating modules for recruitment, performance management, payroll, benefits administration, and more.
• Offers process automation and workflow management tools to streamline HR processes.
• Provides end-to-end solutions for various HR tasks and activities.
• Often includes self-service capabilities for employees and managers.
• Supports strategic decision-making through robust reporting, analytics, and insights.
• Ideal for organizations seeking comprehensive HR management capabilities.

Check out this article to have a list of free HRIS/HRMS software that actually works (though they are free).

Get started with leading HRMS Management Software

HRMS software can be complex, but the good ones are worth the investment. They’re not just about tracking time and keeping records; they can also help you build a culture of compliance, manage your recruiting process , and automate workflow so you can spend more time doing what you do best.

One such HRMS management software is Grove HR, which is affordable, modern, and user-friendly. With 5000+ companies around the globe, Grove HR is empowering startups and SMBs to digitize HR processes and create an attractive employee experience.