If you’re like most small-business owners, you haven’t yet set up an HRMS System for your company because you think it’s going to be too expensive and too complicated to manage. However, if you dig just a little deeper into the nature of these HRMS Systems and the features they offer, you’ll realize that they can actually streamline your business operations in some really helpful ways! Read on to discover more about five of the biggest misconceptions surrounding these HRMS Systems and what the facts really are.
1) It’s Not Like Customer Relationship Management
When selecting an HRMS system, it’s tempting to model your requirements after other key business areas, such as Customer Relationship Management (CRM) systems. But while they may have some similarities, these two functions are actually quite different. Many HR management systems have too many bells and whistles making them difficult to set up and use. That’s why it’s important to understand what an HR software system is designed to do. For example, an HRIS can include customer relationship management features such as workflow automation, task-completion tracking and cross-departmental integration; however, its focus is on managing employees from onboarding through retirement (and any necessary layoffs). Keep that in mind when reviewing potential vendors.
2) You Don’t Need HCM When Business Isn’t Good
It’s all too common to believe that business is bad, and therefore, you don’t need a HCM system. In reality, while it may be true that your HR function isn’t super active during slow periods of business, having a system in place gives employees a place to go to look for jobs. Plus, new hires are often waiting for payroll and other systems to become available before they start working for you. Having a HCM system in place will make it easier on both current and future employees as well as your HR department.
3) HR Will Run the System
Even though a company may implement an HRMS Systems to make its HR department more efficient, it’s important for that organization to understand that it will still have to manage employees manually. An HRMS doesn’t replace human interaction; instead, it helps streamline many of those routine tasks so HR staff can focus on what really matters – like creating a safe and fair working environment for their employees. Because of its ability to free up time in an already busy workday, an automated system is ideal for any company looking for ways to manage and retain top talent. In fact, Gartner has predicted that by 2018, 40 percent of companies will be using cloud-based workforce management software with integrated employee portals and mobile access capabilities.
5) There Is No Such Thing as Customization
One of the main benefits of an HRMS system is that you can customize it for your company’s unique needs. The only problem is, people often don’t know how to use these customization options correctly. For example, many people have trouble integrating their own employee surveys into their HRMS Systems. But with a little help from your vendor, it’s easy to accomplish. Get rid of misconceptions about customizing your HRMS system by asking for advice from professionals—both internal and external to your organization—who understand what you are trying to achieve and how best to accomplish it. They might be able to help you come up with a solution faster than if you were on your own.
4) An ERP is a One-Size-Fits-All Solution
ERP systems are built with large-scale, complex companies in mind. That doesn’t mean that they don’t have a place in smaller organizations, but be careful not to assume an ERP system can solve all of your HR problems by itself. For instance, those older systems aren’t usually designed for mobile use. If you want to track and record data on your smartphone or tablet, you’ll need a mobile app built specifically for that purpose. As with any software package or new technology tool, look before you leap and be sure there’s no good reason why you should avoid an ERP system.
A company isn’t a company without an HRMS system. This statement is completely false and proves how uninformed many managers and owners are regarding HRIS systems. Many of these companies still operate successfully without such a system in place, even though it’s very difficult to do so. The argument that an HRIS system is necessary because it streamlines processes makes better hiring decisions, etc., is also invalid because other methods of streamlining processes, making better hiring decisions, etc., exist they just don’t make use of an expensive dedicated software package.