How To Select The Best Hrms: The Ultimate Checklist
The HR department within an organization is often required to do most of the heavy lifting when it comes to ensuring the engagement and well-being of the employees. From recruiting them until their last day at work, HR professionals handle several processes to provide a conducive work environment.
However, it is quite challenging for HR managers to keep track of every single employee all by themselves. Over time, the needs of employees working in every organization have gone through a significant shift. Employees today need personalized support, whether they are working remotely or on-premise. Failing to provide adequate support services to the employees might lead to the employees (especially the new hires).
To improve employee retention, productivity, and engagement, organizations implement HRMS to manage their HR processes.
What Is HRMS?
Human Resources Management System (HRMS) is a set of software applications dedicated to managing HR processes within an organization. It helps HR managers reach out to employees and cater to their needs in the best way possible. Essentially, an HRMS platform is a virtual representation of the HR department of an organization.
These tools allow your employees to seek support from their respective managers and the management to handle employee cases effectively. The use of a software platform for managing HR processes helps you streamline the HR support processes and cater to the employees' specific needs.
The Importance Of HRMS Automation
A single Google search would provide you with a plethora of options for HRMS tools. However, it is crucial to choose the alternative that best suits your organization. In the age of digitization, it is always advisable to go for HRMS automation.
Automated HRMS tools relieve your employees and HR professionals from spending their time and effort doing their work. They help you streamline several HR processes, from onboarding employees to providing them with automated support.
Here are some of the major reasons why HRMS is necessary for an organization:
- Integration With Collaborative Platforms
The modern HRMS platforms can be integrated with collaborative platforms to leverage managers' HR processes. It helps your employees avail themselves of seamless support on the same platform they use for work daily. Also, it helps your HR managers to keep track of all your employees on a single unified platform.
- Automated Employee Onboarding
Especially in the case of remote employees, automated HRMS tools help you in onboarding them effectively. By implementing an automated HR help desk, HR managers can send personalized emails to the new employees as they join the organization and provide them with their credentials. The same platform can also be used for sending details necessary for getting the employees onboarded and tracking the progress of the new employees.
- Solving Issues Through AI Chatbots
HRMS automation allows your employees to get their issues resolved by interacting with AI chatbots. These chatbots understand the context of the questions asked by employees by referring to historical data, scan your knowledge base, and come up with a personalized solution within seconds.
- Getting Your Employees Trained Through Microlearning
Automated HRMS tools allow you to train your employees virtually through microlearning by adding training resources to your knowledge base. By making your employees consume limited content in an engaging format, you can increase their retention capacity and allow them to train themselves.
- Conveying Employee Benefits
HRMS automation relieves your employees from asking their managers regarding the benefits they are entitled to and any change. A modern HR help desk allows them to ask all questions regarding employee benefits made available and obtain relevant answers within seconds. A simple chat would help them get all their doubts cleared.
Checklist For Selecting The Best HRMS Platform
Implementing an HRMS platform is a big deal for the HR department of an organization. It is essential to consider several factors before investing in the same.
Here is an ideal checklist to keep in mind before you go ahead and select an HRMS platform for your organization:
- Gather All Your Requirements
Start by gathering the specific requirements for implementing HRMS in your organization. This helps you set the base for the processes that follow and provides you with a clear sense of direction.
While you are gathering your requirements, assess the current processes carried out by your HR department. This provides you with a starting point and helps you define your objectives. Take note of all the strengths and shortcomings of your existing HR processes to have a clear idea of where you want to go.
It is always important to involve your employees in the decision-making process. The senior management and the HR professionals should never decide upon the objectives to attain and the HRMS platform to implement. It is essential to understand that your employees are the ultimate beneficiaries of your HRMS tools. This will help you get all your requirements together and make a comprehensive assessment of the same.
- Select The Delivery Method
Organizations often go through the dilemma of selecting the delivery method for their HRMS platform. This raises the question of whether you should go with a cloud-based platform or not. As discussed above, irrespective of the scale of your organization, it is always advisable to go with an automated SaaS solution that helps you cater to on-premise and remote employees. Selecting a cloud-based HRMS platform provides increased flexibility and scalability to your HR processes.
Moreover, investing in a cloud-based platform would cost you much less than installing full-fledged hardware for HRMS.
- Prepare A Budget
Once you have decided upon a suitable delivery method, you can prepare a budget for the implementation. Putting together a comprehensive budget allows you to calculate the potential ROI on implementing the HRMS platform.
While preparing the budget, consider all deployment-related costs, including consultancy fees, customization costs, user-training costs, the cost of maintenance, etc. It is always advisable to include a 10% contingency buffer to take care of unexpected expenses in the future.
Moreover, it is essential to include the following hidden costs while preparing your budget:
System Upgrade – The recurring costs involved in upgrading your HRMS platform
Direct Labor – The cost incurred for the staff needed for supporting/operating the system
Direct Non-labor Cost – The cost incurred for consultants, vendor fees, corporate overheads, and other related expenses
System Installation – The cost for acquiring and implementing the HRMS platform
Maintenance – The cost incurred for undertaking HR activities such as collecting staff data, answering staff questions, timesheet approvals, and more
- Approaching The HRMS Vendors
After you have a comprehensive budget in place, you can reach out to your potential HRMS vendors before selecting an ideal alternative. The early communication with the vendors should involve discussion about the critical requirements of the platform.
Always make sure that you discuss the functionalities of the HRMS platform with your vendors before going ahead with the implementation. This helps you ensure that the platform's features are in sync with the requirements you gathered while starting.
Moreover, you may be required to send specific requests to your potential vendor regarding implementing the HRMS platforms. Here are the three major requests that would bring you a step closer to deployment:
Request For Information (RFI) – This is a formal request made to a vendor regarding the application, services, and support. This makes the vendor believe that you are serious about going ahead with the implementation.
Request For Proposal (RFP) – This is a formal request proposing the vendor's HRMS platform deployment. This request is made to the best alternatives picked after a thorough assessment of available options.
Request For Quote (RFQ) – This is a formal request made to obtain details regarding the cost of implementation, payment terms, and Support Level Agreements (SLAs) to the concerned HRMS platform.
- Evaluate The Options/Invite Vendors For Demo
This brings you one step closer to making your choice and getting your HRMS platform implemented. Shortlist the ideal vendors that suit your requirements and call them for a demo. This would give you, your employees, and the management a clear idea about the features and functionality of the shortlisted platforms.
- Make The Final Decision
Once your organization has witnessed all the demos, it is time to make the final choice. It is always advisable to take your time, assess the objectives you want to attain, monitor the features offered by each platform, and discuss with your team members before going ahead with an ideal HRMS platform.
The Final Word
This was a checklist an organization should follow to implement a suitable HRMS platform for its team. Before you go ahead with your search, always make sure you prioritize the needs of your employees and select a platform that is in sync with the latest technological advancements.