5 Reasons Your Business Needs HRMS in 2014
Is your company experiencing cutbacks, freezes and spending restrictions? It seems that most of us are being expected to do more with less these days as the economy continues to struggle against strong headwinds. It is in these moments, however, that having an effective HRMS in place for 2014 becomes essential; a well-implemented system will pay dividends in the long run and here’s why.
HRMS Allows You to Reward and Retain Your Employees
Employee costs are a large part of any operational budget; implementing HRMS in 2014 will allow you to know and understand where the budget is spent in salaries and bonuses. If you enable performance management in your HRMS it will become even easier to report on employee data and reward and retain top talent.
HRMS Powers Predictive Analytics
How many employees will be retiring in the next five years? How well is the talent pipeline managed to ensure that effective succession planning is in place? Utilizing HRMS in 2014 will allow you to monitor the current employee landscape and to predict the future picture, which in turn will enable wise employee development planning and spending decisions.
HRMS Allows for Effective Costing of Mergers and Acquisitions
It is estimated that Google has averaged one acquisition per week since 2010. While other companies may not be as prolific, employee costs are a major part of negotiations when in strategic talks. If you cannot easily and quickly get to total employee costs such as salary plus benefits, severance, etc., the value of your HR record keeping may be called into question.
HRMS Drives Efficient HR Processes
While there are many different ways to accomplish any HR process, when you have an HRMS as the backbone, that forces process standardization, it is easier to ensure that your processes are followed. For example, if you have an online tool for requisition approval and a new hire may not be hired without a system approved req, compliance will be higher when this process is inside of a rules-based HRMS rather than via email or paper.
HRMS Improves Access to Data
Employees and managers expect access to data 24/7. If you have not implemented an HRMS for 2014 that is ready to accommodate these demands and cannot offer basic employee functionality such as updating a home address or manager functionality such as initiating a salary increase, HR productivity will drop.
An HRMS is a large investment; however, it is an essential system in today’s economy and a driver of HR, employee and manager productivity. If your HRMS is struggling to keep up with 2013 trends, urgent work is required before the year is out.
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