“HRMS” is actually a very ambiguous term. While some vendors describe it as an employee database with limited scope and functionality; one that can be loaded with modules designed to serve specific HR functions, for some others it is a system with a broader scope, with different modules being packaged together in it.
In whichever way it may be defined, the HRMS must help an HR department operate as a well-oiled machine, which can eliminate all the error-prone manual processes, and add value to the HR function by automating all those processes and tasks.
More than just acting as an information hub or managing capital and finances, the HR software, with the help of its modules, should efficiently deal with every HR-related aspect of the business, empowering HR managers manage people and assets single-handedly.
Modules play a key role
Irrespective of your organization’s size and type, an HRMS software unifies different aspects of your HR function in one place to enhance efficiency, increase usability, bring down the operational costs, and offer scalability to grow as the business grows. This essentially is made possible through its different modules.
However, many organizations find themselves stuck with a software that offers limited functionality and consumes valuable time, simply because they aren’t aware which modules the software they use should have.
But worry not, as this blog will elaborately explain different HRMS Software modules that are in the wish list of every HR manager and constitute an ideal and complete software.
Modules that every HR needs
As per the survey carried out by Skill Road Technology, companies having proper, outlined recruitment and onboarding processes experience 82% higher retention of newly recruited talents. This perfectly states the need of scripting a modern approach towards hiring employees.
Recruitment & Onboarding:
Over the years, a significant rise has been recorded in the hybrid and remote working models. And the need to conduct the operations remotely has forced the companies to digitize the selection process.
However, even before the outbreak of the pandemic, many companies were going remote due to their multi-city or global presence.
Therefore, your HRMS System must digitize all the processes of recruitment, including accepting applications, selecting, screening, shortlisting candidates and scheduling interviews.
Furthermore, onboarding too is a significant process and thus should be useful and a memorable experience for new hires.
In its traditional approach, onboarding involves a lot of paperwork, making it cumbersome and uneventful for both employees and employer.
Thus, an HRMS solution, including a recruitment & onboarding module, is useful as it digitizes the process and enables managers to add new employees in the system, verify background, import documents, etc., in a snap.
Leave Management
Corporate HR managers need to be prompt while managing leaves of employees working remotely or onsite. Thus, a dedicated separate module for leave management is essential for a perfect HRMS.
It helps keep a digital tab of causal, medical, earned, and complementary leaves, and ensures their easy and quick application and approval. Additionally, this module also helps managers keep an account of unpaid leaves and half-days.
In a complete HRMS package, this attendance module is seamlessly integrated with the payroll system that makes the complicated processes like salary deductions and leave encashment a cakewalk for the managers.
Time Management
Recording attendance of employees in present times has become a critical part of HR management.
The modern day HRMS, equipped with such efficient module, comprises of various tools, including both biometric and digital punches that facilitate better timekeeping.
Along with the most obvious service of clocking in and out, following should be the must-have features of your time & attendance module:
- Schedule multiple shifts and manage their changing time slots.
- Compliance to working hours and mandatory breaks in between.
- Robust reporting using recorded data.
A study by Employee Benefits News presented that it costs 33% of the annual salary for losing an employee and replacing with new one.
Performance Appraisal
Employee retention, no wonder, is far better than frequently replacing your talent pool. Thus, regular performance reviews and timely appraisals deliver a more engaged and loyal workforce.
As per the survey carried out by a well-known job site Glassdoor.com, approximately 35% of the total 900 respondents would look for new job if they don’t get a deserved pay hike.
In such scenario, it becomes an absolute need for HR managers to revamp their performance management processes and replace the traditional strategies.
A new-age and digitized solution is required to track performance, give timely feedbacks, and give pay raises.
Expenses and Payroll
One of the essential domains of any business that influences its profitability is payroll and expense management.
Salary bars and monthly calculation for employees is based on the payroll system acquired by the organization.
Mentioned below are the most sought-after combo of features of the payroll module your HRMS software must be incorporated with:
- An established integrated channel with accounts department to minimize calculation errors.
- Mechanism to record and retrieve files and pay slips of employees.
- System to keep a track of organizational expenses for carrying out in-house activities.
- Automated calculation of overtime pays and reimbursements.
- Effortless computation and management of tax deductions.
To Sum Up
The above-mentioned modules, along with a few secondary ones not covered in this blog, collectively build the best-in-class HR Management Software, which is a dream of every HR manager. And to make this dream come true, TecWork HRMS was designed.
It’s a one-stop solution to combat all the organizational challenges and inefficiencies faced while managing people and assets. For a detailed product tour, write to our experts to arrange for a free demo, or for a no-obligation discussion.
