The Benefits of HR Technology

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It was Richard Branson who said “Success in business is all about people, people, people. Whatever industry a company is in, its employees are its biggest competitive advantage.” Whilst many business leaders believe in those words, just as many shy away from acquiring a Human Resource Management Software to help support that challenging road to success .

There is a lot that a company has to do in order to survive in this difficult and competitive market. To even begin to think about success managers must ensure that there is the building of a strong organizational culture brought about by effective communication.

Labour & Time management need to be done correctly so that your human resource can be maximized. Salaries must be processed accurately and on-time.Benefits must show employees a clear advantage to staying with the company and can attract other talented workers. Reports must be available that can show the impact of each employee on the success of the organization.

If you think this is hard – you are correct. But what is even harder is convincing organizations to accept a solution to their problems. Yet many prefer to solve their problems the hard way because the hard way is what they are used to.

It may have been enough a few years ago for a good employee to perform a manual process, the same is not true now. Now organizations have to be able to streamline their processes and get more done in less time. There has to be 100% accuracy and trust in the information that is presented.

Research shows that fewer than 10% of businesses within the region use any type of automated HR system. From this group, 90% are large organizations with more than 100 employees. The reasons for a lack of investments in Human Resource Management Software (HRMS) are many – at the top of this list is the inability to quantify a return on investment in such software.

A good HRMS provides an all-in-one solution that can have immense time and cost saving benefits to any organization, irrespective of size or industry. In this article we will focus on a few benefits of an effective HRMS:

Doing More with Less
Manual systems require hiring additional staff to deal with the requirements of a dynamic workforce. An HRMS can ensure that proper processes and procedures are adhered at all times and can help reduce the need for additional administrative support. This can save a company an average of $100 per employee per month.

Access to Information
Imagine that board meeting where all the information needed is at your fingertips, allowing decisions to be made almost instantaneously. With an HRMS all information is in a central location. HR staff spend 60%-80% of their time in repetitive administrative tasks. The introduction of an HRMS reduces the time spent on retrieving employee information by 30%.

Reduces Human Error
It is not fun for an error to be discovered with an employee’s salary after a payroll is processed or for employees to be paid late. These situations can cost a business the respect and commitment of staff. A good HRMS automates a lot of the critical HR functions. . A 2% reduction in employee error rate can have a huge impact on a company’s bottom line that can quickly cover the cost of an automated solution.

Reduces the Need for Office Supplies
The electronic storage and retrieval of employee information (payslips, leave balances et.) through employee self-service can reduce the amount of stationery and paper used. This not only reduces this expense by as much as 60%, but also encourages a green culture to help preserve our planet for the generations to follow.

Improves Customer Service & Reduces Turnover
Remember the embarrassment of forgetting an employee’s birthday? Or missing an important deadline? A state-of-the-art HRMS helps keep track of, and provide reminders for important events & occasions. This improved communication can help boost morale and keep our best talent from walking out the door and going to a competitor. Each turnover (advertising, recruiting, training & lost revenue) costs 70% of an employee’s annual salary.

Instead of signing, filing and photocopying, HR can spend more time performing more value-add functions , such as face-to-face interactions with employees to help guide and develop them.

These technological changes are never easy to implement as most persons are stuck in their ways and prefer the status quo, yet the most successful businesses are those who adopt a culture of learning and using cutting edge technology to help grow their business. ¤