In today’s business environment, human resource executives are becoming an increasingly important component of corporate strategy, they are becoming business professionals with expertise in HR. C-suite executives continue to rely on HR input, particularly regarding staffing needs and capabilities, for drafting financial prospects and growth estimates.
However, as this new landscape becomes more and more complex, HR executives need to adopt management systems that can handle a wide range of tasks through a single automated process. That is where Human Resources Management Systems (HRMS) or Human Resources Information Systems (HRIS) come into play.
HR departments are increasingly relying on HRMS to automate, maintain and access company information, including: training, performance evaluation, career development, promotion, retirement, recruiting, onboarding, policy communication, compensation, health and wellness benefits, payroll and leave.
Ultimately, an HRIS helps to streamline business processes and make all matters of human resources more efficient. Executives can accomplish more in less time, since users no longer need to hunt through mountains of documents to find what they’re looking for. Money is also saved by eliminating costly errors, boosting productivity and striking out areas of overspending. Finally, an HRMS can help provide accurate workforce analytics that can be used by C-suite executives to inform growth strategies.
However, one of the greatest strengths of an HRMS system is how data is collected – or rather, how automated data management programs trump traditional spreadsheets in almost every imaginable way. Instead of mindlessly plugging away at an Excel data set for each employee benefit plan, HRMS users can set up and manage unlimited plans – including health, life, AD&D, COBRA and retirement.
An HRIS can also calculate expenses and project HR costs, as opposed to the old method of manually pouring through Excel data to establish a loose projection for future trends.
Finally, with an HRMS, executives can complete their open enrollment online, thereby expediting the process and bypassing the cost of a paper-based enrollment, including all the printing, postage and data entry burdens that go along with it.
By virtue of continuing updates, an HRMS will automatically update all administrative concerns according to new laws, regulations and legislative concerns. This is one of the strongest appeals considering the old method of sifting through new laws that are drowned in oceans of unintelligible bureaucratic jargon and then manually applying them to your Excel spreadsheets. With an HRMS, HR executives can rely on one location for all their records, including preformatted standard reports.
Payroll services can also be streamlined with the help of an HR Management System. For example, alterations made to the HRMS database can be immediately reflected in the payroll system, providing for accurate benefits calculations. This far exceeds the old method of constantly updating spreadsheets and data sets according to each new deduction, benefits change or request for time off and calculating the effects manually.
But those are not the only advantages of an HRMS over burdensome Excel spreadsheets and manual data entry. HR executives will also save time and capital through employee self-service capabilities, finance and payroll reporting, streamlined correlation with other business applications and automated notifications.
For more information about how you can eliminate spreadsheets in your human resources processes, download the planning guide HR Data Management: The Hard Way vs. The Easy Way.