Updated: Mar 21
Technology has allowed small businesses to accelerate their growth. For example, an HR management system. However, with all the available technology out there, it could be quite difficult to determine whether it’s worth investing in one. That’s why when making a huge tech purchase, it’s vital to weigh its pros and cons, especially when it affects the entire organisation. If you’re in the process of deciding whether to acquire an automated HR system for your business, keep reading. Below, we’ll discuss opportunities and obstacles brought about by HRMS to hopefully help you in your decision-making process.
Pros of HRMS
Simplifies leave approval process
Imagine this: an employee requests for time-off. The HR personnel will then need to check on the employee’s leave balance, get the manager’s approval, and then record the leave for payroll calculation. Each step of this process takes time to load and check. Simply put, a manual leave approval process is long and tedious. Not to mention, it may result in errors in accuracy if done manually. With an HRMS, HR is able to access this information instantly, automate leave calculation, and managers are able to approve in just a few clicks! If you’re interested to hear more about the benefits of having an efficient leave approval process, we have discussed it here.
One of the most beneficial features of an HRMS is its employee self-service (ESS) portal. With an HRMS and its ESS portal, employees can check their leaves, check holiday calendars, and add/edit details about claims and reimbursements -- all on their own. This reduces administrative tasks for HR and enables them to focus on other tasks, such as improving the HR systems and processes.
Simplifies payroll system
Payroll can make or break a company, so it’s important to manage it well. An automated HR system can automatically calculate taxes, generate payslips, and ensure accuracy. Some even provide a cloud-based, all-inclusive payroll solution, like Adaptive Pay. Adaptive Pay’s payroll module is integrated with its leave, attendance, and claims modules. This means all computations and necessary updates are all done by the system, making the process much faster and straightforward for HR.
Reduces employee turnover
With reduced administrative tasks and more productivity, employees and HR can focus more on value-added activities and business objectives. HR can even become a more effective and functioning support for employees. Managers, too, can focus on the employee’s career development using data provided by an HRMS such as trends and information on each employee’s previous and latest performance. All these improve employee engagement, which can increase employee retention.
Access information instantly
Need to access data while you’re out of office? That’s not a problem. HRMS allows you to access data no matter where you are, enabling you to resolve issues and make business-related decisions quickly and easily. You can even look into trends and analytics, such as the turnover rate of a certain position. From this, you can access if they were given enough training, or given fair evaluations to prevent this cycle from repeating itself.
Cons of HRMS
Costly installation, set-up, and training
An HR management system might cost a small business several thousands of dollars to set-up and install. However, you can cut these costs through government grants. Adaptive Pay enables you to save up to 80% through the PSG grant!
Impersonal performance reviews
Appraisal results should always tell the full story, and must be judged both objectively and subjectively. In the long run, when managers depend only on hard and measurable data provided by the system, they may not take the time to get to know employees on a personal level. As a result, this may negatively impact an employee’s performance evaluation results.By relying only on objective data, this may neglect the employee’s efforts on taking the time to learn new work processes, or the positive attitude that an employee has whenever faced with adversity.
Technical difficulties are inevitable when using software. This may affect important business activities if employee data is inaccessible. Just imagine not being able to complete salary computation a day before the deadline!
So, it’s best if you look for a service that offers local tech support daily, like Adaptive Pay. Adaptive Pay has local tech support available from Monday - Friday, 9:30 AM - 6:30 PM. This way, you’re confident that someone can assist you during office hours in case you run into technical problems.
Acquire a HRMS For Your Business Needs
With many HRMS available in the market, it could get quite difficult to decide which one is the best for your company. However, if you’re ready to experience a system that will make you and your employees’ lives easier, consider Adaptive Pay. Adaptive Pay is a cloud-based HR system that lets you manage your employees on one platform easily. All modules are fully-integrated, which enables HR to reduce administrative tasks and focus on more valuable tasks that drives business growth and employee retention. To know more, get in touch with us.