Tuesday, 20 March 2018

What are the Benefits of HRMS ?


“Human Resources Isn’t A Thing We Do. It’s The Thing That Runs Our Business.”                 
                                                     -Steve Wynn, Wynn Las Vegas

Human resources department within any organization is considered as the critical element of the organization. Its many functions serve as a supportive background for the company to run productively and effectively. 

We are living in a century where time equals the value of money and companies seek to reduce cost effectively by increasing their productivity. A Human Resource (HR) software is a software which is designed to help employees and organization to perform at their full potential. It manages employee information as well as organizational data. It also blends a number of HR functions such as automation of  time-consuming manual tasks, storing and accessing  data and information, data processing etc. 

Scope Of HRMS

üPersonal Aspect
üWelfare Aspect
üIndustrial Relations Aspect

Main Benefits Of HRMS

·         Automation of time-consuming tasks
·         Reduce wastage of paper and storage
·         Increased productivity of organization 
·         Helps in performance appraisal
·         Accurate statutory reports
·         Employee welfare management
·         Better grievance management
·         Employee self-service options
·         Reduction of errors in payroll calculation
·         Improved participation even there are multiple  locations
·         Ease in providing updates about policies  &  procedures
·         Improved training capabilities by integrating LMS  

Improving HR Productivity

   Using HR software, the amount of paperwork and time used to create, edit documents by HR people is reduced. This automation of tasks will benefit them to increase HR productivity.

Reducing Errors & Maintaining Compliance

The ability to reduce manual errors and redundant data entry is an important benefit of HRMS. Even a minor error on the part of a HR employee could result in considerable legal issues and even financial loss for the company. A HRMS can provide guidance to avoid these types of issues before they arise.
   Furthermore, HRMS benefits relate to compliance issues. HR software programs are designed to review compliance with specific rules and regulations which makes it easier to ensure that your company is in compliance with these laws and regulations. 

Performing Analyses 

 HR software programs are designed to create professional reports on metrics and analysis that can help HR professionals to spot issues at a glance. These analyses which are related with various aspects of organization will help in important business decision makings. It will also help to develop strategies for moving the organization along a successful path. 

Function Of  HRIS

  To compete in the market place, an effective and successful human resource management is necessary for a business. It is very difficult for HR mangers to coordinate and manage all data and activities of an organization. A human resources information system provides efficient data management with accurate and timely information for better decision makings.  


  A HRIS functions as an efficient tool for HR operational processes. With software, HR transactions can be performed with increased speed and can obtain accurate results. Also routine transactions such as employee headcount, payroll tracking, time and attendance reporting automation are more cost-effective. This helps HR representatives to use their time more productively.



    An HRMS can function as a managerial information system to collect and provide data about staffing, turnover, benefits and regulatory compliance issues. HR personnel can easily give reports on total number of employees, cost to hire, vacant positions, benefits costs, bonuses etc. They can easily present analysis on different datas related with the organization.


  HRIS functions as an executive information system of a company which aggregate high-level data for long-range planning such as succession planning. HRIS system provides executive planning information for strategic needs such as forecasting, staffing needs assessment and employee skills evaluation. These are very helpful for an organization’s growth and development.  

Office Automation

   HRMS helps in the automation of office tasks by managing employee documents such as applications and job requisitions, tracking employee training, leave and attendance tracking etc. HR reports can be generated and distributed right from the system to the respective people in real time. An HRMS helps to reduce manual works which takes more time. This saved time of employees can be used for more productive works.


                                                                                                        Author : Neena Johny

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