When building a business, it's important to effectively utilize the resources available to increase profitability. How does one go about increasing profitability? One, to reduce costs, and two, to increase customers/sales.
It's important to effectively utilize the resources available to increase profitability when building a business. How does one go about increasing profitability? One, to reduce costs, and two, to increase customers/sales.
On average, an HR team spends more than 50% of their time processing employee information and attending to employee queries. Providing your HR team with an HRMS can help reduce the overall HR team cost and shift their focus to improving the overall work environment.
HRMS is a desktop/web/cloud-based software that automates various HR functions - managing employee information, tracking attendance, running payroll - resulting in cost and personnel reduction.
With an array of available catering to a variety of HR functions, here are a few ways an HRMS can help you reduce HR team cost.
Cost Saved On Hiring Activities
Your business is never an end product of just your or a specific individual's hard work, it's a collective effort of an entire team. Therefore, making sure you hire the right talent for your company is very important.
An HRMS can help you automate most of the time-consuming processes of recruitment. From posting on multiple job portals to sorting out the best-matched talent for your requirement, an HRMS can ease the entire hiring process, reduce the employees required and make complete data easily accessible for the necessary stakeholders.
Cost Saved On Onboarding New Hires
If even today your HR team struggles with a pages-long application and multiple employee documents for every new hire, only to scan and store it on their desktop, it's time to bring about a change. This is a time-consuming and cumbersome process that effectively reduces the productivity of your HR team.
An HRMS that provides an employee self-service portal can simplify and reduce the manual paperwork by eliminating the initial data entry and allowing the employee to complete his/her details and upload the necessary documents without further external intervention.
Cost Saved On Attendance Tracking
Manual attendance tracking is prone to inaccuracies and human errors. A minute error in marking attendance can lead to overpaying or underpaying your employees. The problem is further amplified if there are multiple offices and no standardized way of tracking attendance.
An HRMS can help remove inefficient attendance tracking, by integrating with biometric attendance machine. Or, using the web clock-in/clock-out feature to mark attendance using the self-service portal.
Cost Saved On Employee Performance Management
As mentioned earlier, HRM over the past few decades has increasingly evolved focusing on improving overall working condition and employee productivity instead of just providing oversight. Thus, tracking and managing employee performance becomes a critical function of today's HR teams.
Even if we consider a case of managing or tracking the performance of mere 50 employees, it's a difficult task to set goals, evaluate and maintain the performance, manually. Improper or inefficient performance management can further lead to loss of employee morale, stagnate growth of the employee and increase employee turnover.
HRMS can help your HR teams to better-set goals and KPIs for every employee and track their performance over time. This provides your HR team with more comprehensive and tangible data to help in making appraisal or promotion decisions.
Cost Saved On Monthly Payroll
Similarly to attendance tracking payroll is a sensitive function which is prone to human and calculation errors. Running the wrong payroll can result in your organization incurring hefty fines. Your organization can also be in danger of fines due to incorrect employee details, late payment of payroll taxes, and improper payroll records.
Furthermore, incorrect payroll can create additional financial concerns later on when audit checks are carried out, and the numbers do not tally.
With an HRMS you can automate your monthly payroll tasks and minimize the possibility of human errors when running payroll. An HRMS also reduces the time required by the HR personnel to run payroll. It further consolidates and stores all your payroll data at one place for easy accessibility.
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