If you’re like a lot of small-to-medium businesses, your back-office data is stored on a myriad assortment of computers and software— even paper. However, with an integrated human resources system, such as a human capital management system, you can get organized, saving you time, money and LOTS of frustration.
So what is human resources software?
Basic systems, called HRIS (Human Resources Information Systems) or HRMS (Human Resources Management Systems) store essential data such as employee, benefits and payroll information.
HCM, or Human Capital Management, is the most complete type of system. An HCM system combines basic HR data with talent management components – such as training and performance reviews – so you can strategically develop your staffers to their full potentials.
Imagine having all this information in one place:
- Hiring data like resumes and applicant info
- New employee enrollment information
- Status changes and company employment history
- Time and attendance tracking
- Schedules and shift assignments
- Pay grades and positions held in the company
- Annual performance reviews
- Development plans and disciplinary actions
- Succession plans
- Benefits management and open enrollment information
- Certifications or renewals needed or earned
- Training information
- Company documents such as employee handbooks, emergency procedures and announcements
With an HCM system, you can access all this and more from one convenient, integrated online location.
HCM organization saves you time
If you don’t have an HCM system, this may sound familiar: Your employees’ data (such as contact information and hire date) are stored on an Excel spreadsheet. Timesheets are pieces of paper that aren’t automated with your payroll system. Performance reviews are nonexistent or inconsistent.
With HCM, all that information is in one place. Employees input their time and attendance information which is connected to their salary information. Payroll is generated without retyping data. If someone leaves or changes jobs, an integrated system updates the information so employee data is always accurate. It also makes for much faster onboarding so it’s easier to grow your workforce.
Consolidation saves you money
By saving time through greater efficiencies, an HCM system is already saving you money. In addition, when you don’t need to retype information from one system to another, there are fewer chances to make costly mistakes.
Need more reasons? How about eliminating paper and a lot of physical storage space? Since employees manage their own personal information, you may also be able to add employees without adding HR staff for administration. And, with an online system, maintenance and upgrades are handled by your HCM provider, not your IT staff.
Convenience saves you frustration
With Web-based systems, not only do you have work-anywhere convenience, but your employees do, too. An HCM system can give all of your employees access to specific pieces of information in the system so they can enroll themselves in benefits programs, make changes to contact information and perform many routine tasks without depending on often-limited HR staff.
And, by alleviating your HR staff’s workloads, you can avoid HR burnout and provide them with more time to handle more important issues, as well as plan and implement strategic talent management.