Potential benefits of using HRMS for managing any start-up

The pandemic has impacted businesses across the world. Employers are becoming increasingly aware that standard hiring and retention practices fail to attract the workforce they want. Due to the pandemic, the 'Great Resignation' made many employees realize that they were living to work rather than working to live. Worker retention has thus become an enormous issue for businesses over the past years.

For any start-up, fully utilising its people power is paramount to survival. Easier said than done, difficulty prioritising tasks and limited finances add to the chaos. While it may seem obvious, many start-ups fail to do this; why?

The simple answer is that empowering employees to do their best requires an able HR department, and most start-up companies only have a namesake arm. HR is often an afterthought and not seen as a department worth investing in during the initial phase. To ensure the right people come in, add value and accelerate the start-up to the scale-up journey, you need the support of HR aided with technology.

This is where HRMS comes in. While most organisations know this, the cost and initial hiccups can discourage start-up companies from implementing it. However, using an HRMS can actually save a lot of money and increase the company's productivity when seen from a long-term perspective. And crucially allow owners to focus on the more vital aspects of their company – employees.

An efficient HRMS can help start-ups immensely by doing the following:

• Automate - By automating repetitive operations, HR management professionals can collect, develop, and update data and make available alternative workflows to users based on their positions and jobs. This can make businesses far more efficient, rules-driven, and streamlined. This automation reduces to ‘zero’ human error and, in doing so, frees up time that can be spent on aspects of HR.

• Informed Decision Making - Data now rules the world. An efficient system enables decision-makers with all the data they need to make more informed decisions. Data-backed analytics, well-designed appraisals, and incentives allow firms to operate efficiently and standardise company-related activities.

•  Hassle-Free Payroll - Payroll processing is among the most critical, laborious, and error-prone HR processes. Throughout the process, duties such as gathering attendance and leave data, designing multiple CTC structures, calculating taxes, and maintaining necessary compliance regulations are rife with miscalculations. To solve these issues, payroll management software can fulfill all payroll needs. It is accurate, dependable, quick, and practical, saving HR staff time and preventing all mistakes. Crucially installed software makes it easy for even a non-finance person to do the job without problems.

• Transform the hiring process- Streamlines the process of onboarding new employees. The HRMS tool turns the onboarding process easier with profile mapping and instant verification of e-documents. It is a way to introduce the new hire to the company culture, environment, policies, and team members. Instead of entering the employee data manually, the software maps out the data and keeps the database updated. Posting job vacancies and postings can be posted using HRMS software. In addition, online resumes can be filtered by experience, talents, and desired employee characteristics while also keeping a track of ongoing interviews to categorise selected candidates.

• Better Communication - HRMS practices can create a positive environment and employee benefits. Quick responses over email or live chats reduce the hiring time and improve hiring efficiency. HRMS Software allows the operators to send messages internally without discrepancies; it must also be ensured that the employees are heard.

• Cost Saving - HRMS based on the cloud allows organisations to do away with investing in hardware for setting up equipment and servers. It aids an organisation by systematising payroll entry, curtailing errors, etc. It also permits a business to organise and arrange its HR functions in one system. No software licensing fees are required; pay for data storage in use, which is much cheaper than an on-premise solution. So, there is a marked decline in capital expenses incurred.

• Convenience - As the company grows its workforce, managing it manually becomes a challenging task for the HR team. It isn’t easy to store all employee data in a single place. An HRMS tool helps the organisation manage various HR operations like recruitment, onboarding, attendance, and leave management. Thereby enabling them to focus on strategic and high-value tasks. An efficient HRMS paves way for employee self-service procedures, where workers can fill in their details, apply for leaves, check their leave balances, view and download salary slips, check the org directory, manage income tax, claim expenses and so much more without reaching out to the HR department at all.

In today's world, everyone wants to stand out, but trends come and go at the snap of a finger. Generally, a startup is a business ideology in a person or a small group of people’s minds which can be developed into a successful business. Today numerous start-ups are operating all across, and the operating environment is challenging. Since a company in its beginning stages has limited capital, it becomes essential to restrict the expenses.

Hiring a workforce can be tedious, and reliance on human personnel can consume significant resources of both time and money. HRMS platform can help start-ups proliferate by reducing expenditure and enhancing allocation and management of human resources. It simply is a question of leveraging every tool in one’s arsenal to derive maximum benefit, and the HRMS is one of those crucial tools.

Authored By: Vijay Yalamanchili, Founder & CEO, Keka Technologies