Organizations are looking for more ways to increase productivity
and profitability and human resources departments are being asked to step up
and provide more strategic input than ever before. Additionally, HR must work
to increase employee engagement and retain talent. In order to support
executives and managers, HR needs to have the right tools in place to improve
access to timely, accurate information that helps produce informed business
decisions.
Many organizations are turning to an HRMS solution to help face
the many challenges, economic pressures, and tactical issues that arise every
day. However with multiple HRMS vendors all having advance features and tools,
it becomes difficult to evaluate the right software.
Even
before you explore meeting any HRMS vendor, check out the following
information:
v How long have they been in
business?
v How many installs do they
have?
Typically any good HRMS solution must be
integrated and should have these essential elements:
Enterprise Structure:
This
module forms the foundation
of HRMS application. The hierarchy and positions that make up the organization
and the related attributes, as well as the reporting relationships should define
the framework of the org structure, business units; cost centers, enable
Manpower planning, analysis and requisitions.
It
should also feature comprehensive information about various positions as
mentioned below:
- Company
structure
- Org structure
- Cost centers
- Grade structure
- Job Family
- Job codes
- Job Titles/ Designations,
- Job descriptions
- Employee codes
- Position code
- Vacancy Planning
- Contingency
planning
Workforce
Planning:
Workforce planning module must take into consideration the
movement of workforce within organization resulting from manpower forecasting,
head count budgeting, recruitment, transfers, redeployment, deputation/
secondment, promotions, job rotation, retirement etc.
It should include capabilities such as:
- Define HR plans
based on project expansion and companies growth strategy based on company
wise, location wise, division wise head count addition or deletion etc.
- Budgeting &
Re-budgeting – Annual with variance analysis
- Monthly and
Annual head count requirements
- Assist
downsizing and expansion of head count
- View current
supply of employees including their profiles
- Category wise
recruitment analysis ( FTE, Temp, function, cost centers, entities,
designations, salary grades) requirement analysis
- Automatic link
to recruitment module
Position Management:
Position
Control system addresses many HR needs of your organization.
- A position
should exist in the organization for the incumbent
- The profile of
the position should be well defined
- The position
should be represented by an unique ID
- Information
about the position can be tracked over time
- It provides the
means to transfer benefits and salary projections into the organization's
financial system during budgeting and also facilitates the user to control
the hiring process to board sanctioned positions.
- The navigation
screens of the position control system should display the status of each
and every position from initial setup, to adding incumbents, to tracking
history in a streamlined fashion.
- The unique
position ID must facilitate the system to effortless track the planning,
budgeting, and incumbent's data associated with each position.
- Safeguards
against position over-assignment
- Eliminates
the time-consuming task of getting information about vacant positions
- Saves
approval time for different HR-related activities615.329.4448
Position Impact
A position's impact is determined by actual expenditure from the
beginning of a fiscal year plus amount set aside to cover appointments for the
same, for the remainder of the fiscal year.
Why
Position Control?
- Easy
to budget or to analyze employment levels, regardless of vacancies, part
time or shared positions, etc.
- Position
Control system is better than traditional Employee-based system.
- Employee-based
system is very difficult to budget or to analyze employment levels
regardless of vacancies, part time or shared positions, etc.
Position
data
- To
identify vacancies in the organization,
- To
identify whether the position is over or under the budget, and also
recognize the category the position falls into.
- Position
information also acts as a determinant for vacancy tracking, budgeting,
and history tracking.
Position
Control System should feature:
Multiple
position tracking
The system should track incumbents who hold multiple positions in
an organization. It manages to hold a separate employee record for each
incumbent.
Multiple
positions per incumbent
The system should track positions that are available for each
incumbent at any point of time
Multitudinous
account distributions per position
The system should allow you to create multiple
account distributions per position
Full
position requirements
The system should display complete job description with full
position requirements at the click of a button
Reports
The system should allow you to generate custom reports by
providing various filter drop-down options relevant to position control
Date/Calendar
driven
The system should be calendar driven to track incumbent's hire
date, joining date, termination date, and vacancy statistics like total amount
of time a particular position is vacant, number of times it is vacant, etc
Position
Control System Integrates
- The
system should display automatic and seamless integration with applicant
tracking to show current and historic information of applicant status at
any point of time
- Human
Resource Department for HR information
- Accounts
Department for Budget Development
- Payroll
Department for payroll related data
- Finance
Department for salary and benefit projections
Recruitment &
Selection
The
Recruitment module must be closely integrated with the Organization Structure
module.
It
should include capabilities such as:
- Post vacancies
on the internal job-board and with external consultants / media to invite
applications.
- Track and record
resume, resume data bank
- Track referral
programs, job application online, pre-screening tests by user-defined
search criteria,
- Communicating
with candidates, issuing offer letters to selected candidates,
- Generation of
Employee Ids, automating repetitive tasks, reporting on results and much
more.
- Create templates
for applicant correspondence for acceptance, rejection and status at
various stages
Test Administration
This
must be a comprehensive module that enables quick and efficient administration
of:
- Psychometric Profiling
tests for employees.
- Functional and Aptitude
tests for candidates and employees
- Tests at various
levels depending on the needs of the organisation.
- Test can be
conducted during selection and hiring and also during training programmes
- The Test Results
must reflect in related modules
On-boarding &
Induction
The
best companies know that the first day of work for a new employee should be
memorable. Yet, in most cases, new employees still spend much of their first
day filling out forms.
On-boarding module must links new joinees to forms, company
policies, goals, performance management, talent management guidelines, other
dept policies, communities and other employee onboarding resources.
Employee Information
System
(EIS)
The
Employee Information System (EIS) should be a central repository of
comprehensive information about an employee from his / her joining to his / her
leaving the organization, covering adequate number of data fields with
provisions to easily create or modify information.
The EIS must support and take inputs from all the HR modules and dynamically
track:
- Employment
dates,
- Record basic employee details e.g.
personal, contract, contact, membership, pay and bank details , employee
benefits
- Job position history
- Previous employment history
- Full employee history e.g. of salary,
promotion, contract, location
- Education and academic qualifications
- Employee life
cycle movement,
- Career
progression,
- Performance
records and
- Development
programs of the employee.
- EIS must maintain,
archive and retrieve employee information of all past Employees.
Time
and attendance / Workforce management
Time Management
module must provide a central point for collecting, editing, balancing, and
managing time and attendance data prior to submitting to HRMS for processing. This module must
automatically generate time transactions based on specified criteria. Manage
attendance of employees who are out of office for office work by manual entry
and manage employee tour details. Integrate with
bio-metric system for capturing attendance. It should maintain
detailed employee history and reports must reflect current time and attendance
information for any point in time.
It must essentially
cover the following:
- resource (workforce) planning,
forecasting, scheduling
- work breakdown structures
- schedule variations
- flexible time sheet design
- integration with data capture
equipment
- capturing time data
- configurable data processing
rules
- monitoring and analysis
- working time directive (WTD)
Absence
management
- track employee absences
- absence rules, types, categories,
details, reasons
- holiday / leave entitlement and
amendment
- leave requests, authorisation and
tracking
- maternity / adoption / paternity
leave and tracking
- sickness recording and monitoring
- other authorized and unauthorized
absences
- absence cost calculation
Time Collection
Acquiring time and
attendance information must be the first stage in the Time Management process.
Wherever possible, time Management module must be develop to accept time and
attendance data from access card / and or swipe card system.
Table and Policy
Setup
To edit, balance,
validate and approve time data requires that the tables in HRMS Time Management
module be properly set up to reflect company’s holiday calendars, earning codes
and policies, overtime, compensatory days, shift duty, differential shift policies, work and
rotation plans, eligibility and interaction.
Exception Management
& Variances
If exceptions to
regular work schedules exist, they should be handled through exception data
entry. HRMS must generate exception report.
Time Management
module must allow the setup of ranges in earnings, locations, and
organizations, so that this information can be used to notify users that the
maximum numbers of earning hours have been reached.
Project Accounting
- HRMS module must help Projects to
track hours and prepare reports.
- These reports can be used for
projections and forecasting.
Scheduling (Roster Management)
HRMS Time
& Attendance must provide unlimited user-defined schedules that can be
assigned to groups or to individual employees. This process would enable
companies to effectively manage their workforce.
Scheduling
features must allow companies to:
- Mass assign schedules
- Define alternating schedules
- Ensure adequate schedule coverage at all
times
Leave Management
§
Facilitates the work flow from Leave applications to final
sanctioning or cancellation of leaves.
§
Different leave set up for different grades within the
organization.
§
Automatic Leave Balance calculation with carry forward to next
year with prior set up of maximum leaves applicable.
§
Generates Leave History report for all employees.
§
Maintains the Leave records under different leave categories.
Leave Requests & Regularization
Employee
absenteeism can be very costly to a company if not managed properly. HRMS Time
& Attendance must offer unlimited attendance history and online viewing of
real-time transactions such as clocking events and leave requests. In today’s
legal environment, compliance and reporting are critical to an organization’s
success.
HRMS Time
& Attendance leave request must feature:
- Access employees’ leave hours and
attendance history
- Enable employees to view leave balances
and request time off
- View employee leave display by month
- Regularize leave management
Difference in Leave Policy
There may
be differences in policies among various departments and among individual
employees within an organization.
- HRMS Time &
Attendance must allow user-defined business policies at the company,
organization, and/or employee level.
- Configure policies for date/time,
overtime, rounding, and much more based on company, organization, and/or
employee.
- Establish grace periods for each
transaction type to trigger notification of schedule violations
- Determine valid transaction types such as
clocking for meals, breaks, and transfers
Policies
HRMS Time
& Attendance should ideally eliminate paper timesheets and other
error-prone manual processes which increases payroll efficiency and accuracy.
HRMS Time
& Attendance time record feature will allow companies to:
• Approve
time records daily / weekly/fortnightly or at the end of each payroll cycle
• Display
actual and rounded time as well as employees’ scheduled time
• Create
user-defined authorization codes with assigned point values for perfect attendance
and disciplinary tracking
•
Accumulate employee hours by position code/ job number or job class
Roster & Shift
Management
- Create multiple
shifts per branch per day, configure late arrival and overtime
calculations, manage Lunch and Tea breaks timings, system should manage
both day and night shifts in 24 hours rotation and provision of Straight /
Split Shifts.
- Holidays and
Leave Management
- Manage the
information of all allowed HOLIDAYS per year, manage Leave Applications,
their approval or rejection status and assign allowed leaves and unpaid
leaves will be deducted from salary.
Employee Management
Manage
all details of each employee per department along with Photo upload feature,
assign Shifts so created to employees and Departments, manage Employee Transfer
/ Resignation and search Engine for all data of Employees.
Master Reports
Company
/ Branch / Department/ Business Unit/ Shift Master Report, Holiday
and Leave Report.
Daily Analytical
Reports
- Daily Attendance
Report,
- Early Arrival
Report,
- Late Arrival
Report,
- Early Departure
Report,
- Overtime Report
and
- Daily Absence
Report.
Monthly Analytical
Reports
- Monthly
Attendance Summary,
- Employee Summary
Report,
- Individual
Employee Monthly Attendance Report,
- Individual
Department Monthly Attendance Report and
- Detail Present
Report with total overtime calculations.
Payroll Reports
- Salary Package
Report,
- Permanent
Employee Monthly Salary Report,
- Monthly Salary
Report of employees on Contract, Bonus Details Report, Bonus Summary
Report,
- Generation of
Late comers and Absenteeism,
- Generation of
Salary Slip in prescribed format,
- Overtime Report,
- Payable Summary,
- Annual Leave
Dues Per Employee,
Define Elements
- Define Time and Attendance Related
Elements
- Attendance format as per labour
laws
- Format as per payroll report
Define Time
Management Tables
- Plan Table Information
- Define Holiday
Calendars
- Define an Shift
- Define Shifts for process/BU
- Define Work Plans - rosters
- Define Rotation Plans
- Define Project Accounts
- Define Exceptions and Variances
- Define Earning Groups
Define Time
Management Policies
- Plan leave and attendance Policy
Information
- Define leave deduction policies
- Define Hour Deduction Policies
- Define Shift Differential
Policies
- Define Eligibility Policies
- Define Earning Policies
- Define Overtime policies
People and Policy
Assignment
Complete entry of the
Assignment / Project Time Information. It is necessary to design a
form/template to capture this data.
Payroll Configuration
Manage
Allowances and Deductions, Bank Setup for Each Employee/Company/ Department,
Employee Salary Generation and maintain required details of Transaction Year.
Vendor (Contract
staff) Management
- HRMS should
manage data of Contract staff separately
- The screen
should also feature the details of contract signed
- Attendance
system should also manage count of workers coming daily on work.
Performance
Management
PMS
must be on-line and available at a click of button via intranet. PMS must be
efficient and archive old records. It should include the following information:
- Goal setting, KRA
& Competency Review, Balance Score Card templates
- Performance and
Behavioral Rating, Score Calculation, Deviations,
- Training Needs
Identification and Potential Evaluation.
- The PMS must generate
post-event reports related to Increments, Promotions and Company averages,
- Empowering HR
personnel with a spectrum of valuable MIS to make prudent business
decisions.
- Organisational
& individual goals, plans and scores must be archived to tie
compensation and rewards to performance
- Employees can
identify and set goals aligned to corporate strategies
- Goal status and
modifications required by business requirements so as to review
periodically
- Employees must
get a chance for self appraisal and to update accomplishments
- Managers must
get a chance to track milestones and progress
- Necessary update
of self appraisal and review templates/fields
Training &
Employee Development
The
training and employee development module must be linked with PMS and Talent
management module. Skills and Competency development must be an integral part
of the Training module, which gets a feed from the PMS. The Training Calendar,
Training Budget, Online Resource Builder, and Training Feedback are important
aspects of this module.
- Capture
Training needs and budgets
- Create
training courses across locations, functions and seniority; to build an
annual training calendar
- Internal
and External programme training calendar
- Induction
training calendar
- Track
attendance
- Faculty
and participant Training feedback
- Calculate
cost for training
- Communicate
schedule and full course details to employees; and invite nominations from
employees, managers or HR
- Assign
trainers and venues and generate related correspondence
- Conduct
training courses
- Track
courses and view response
- Generate
reports to track effectiveness of training programme and budget spends
Employee Self Service
(ESS)
HRMS
must provide an Employee interface where each employee has access to all the
information that would otherwise have to be sought from HR. It should empower individual
and help him align with the overall objectives of the organisation.
There following modules should be considered in the HRMS:
- Leave Management
- Loan Management
- Payroll
- Benefits
Administration
- Talent
Management
- Succession
Planning
- Travel
Management – optional
- Employee surveys
- HR professional portal /
knowledgebase
- Grievance and discipline
- Employee identity cards
- Employee correspondence
- Exit interview
Manager Self Service
(MSS)
Manager self-service helps in HR devolution to line managers. It
essentially empowers business managers to oversee their employees, manage HR
work flows and authorization process more efficiently. Any MSS should enable
business teams to pull data and perform transactions to make better, smarter
decisions for building and developing your workforce for future success.
Manager
Self-Service puts the information managers need at their fingertips giving them
the ability to more closely monitor and direct their team towards the strategic
goals of the organization. Ideally all workflows of HR function must be part of
MSS
HR MIS
& Analytics
HR analytics plays a vital role in establishing effectiveness and
efficiency of HR Practices and helps HR to act as a strategic business partner.
HRMS must be able to deliver various MIS required by business.
Some common reports that should feature are as follows:
- Comprehensive set of reports for
line managers and HR from each module
- Skill mapping tools
- Attrition
- Joining
- Employee cost
- Training reports
- Creation of customized reports to
suit business requirements
- Availability of interactive graphic
reports that can be exported to PPT/ Microsoft Excel / Adobe PDF /
MSWord/MS Access.
- Full online enquiry and drill
down / around capability
- Multiple search and select
facilities
- Standard reports that can be
tailored to the user requirements, saved and then reused when required
- Reporting across modules
- E-reporting ie reports that can
be prepared, reviewed and sent over the internet
- Easy to use, flexible report
writer either from within the HR software or provided by third party
software
Business intelligence tools e.g.
- advanced analytics
- OLAP
- data
warehouse
- data
mining
Health
and safety records administration
- employee health tests,
assessments, records, programmes
- accident and incident recording,
reporting and follow up
- risk management
Fleet
administration
- vehicle details plus financing,
details for taxation purposes
- vehicle usage and costs
- driver details
Talent Management
System
In
recent years, Talent Management has become critical in organisation. Although
the various HR practices and initiatives conducted under the aegis of Talent
Management are difficult to capture in the system. However HRMS system must be
able to capture employee records and define talent matrix as per business
requirement.
HRMS
must include the following reports:
·
Competency
profiling tool and training systems
·
Job
evaluation, competency and skills management
·
Talent
Matrix
·
Resource
Management, allocation and optimization
·
Career
Management
·
360°
feedback mechanisms to assess behaviour.
If organisations are ready they must include this feedback mechanism in
performance management module.
·
Employee
development - Individual development plan ( IDP)
·
Succession
planning
·
Link
to appraisal / training
Employee Connect
(Helpdesk,
Discussion Forum, HR Policies)
This
module should enable effective employee relationship management and help HR to
connect:
- With the employee
individually, or as a team,
- To keep
employees in touch with the organization by building a virtual close-knit
community.
- To resolve
employee queries and grievances
Workplace
Communication
(News,
Announcements, Events, Documents, Birthday, Anniversary, Chat, Video Message, Blogs,
Polls, FAQ, Calendars, Knowledge portals, Surveys, Greetings)
This
module should establish encourages employees to visit the HRMS site and use it
to create an open, transparent and vibrant organisation. More importantly
communication module helps leadership to reach across all employees.
- By providing a
range of activities such as News, Poll, Employee surveys, feedback forms,
fun time, café, greetings and announcements.
- This should
establish a link with company intranet
HRMS Workflows:
- Recruitment
workflow- Hiring/ Selection – should be part of recruitment workflow
- Induction -
Employee Joining formalities/ On boarding/ announcement
- Employee code
generation
- Time, Leave and
Attendance
- Probation/
Confirmation Process and appraisal including letters
- Transfer – Intra
dept /Inter dept/ Location/ BU wise/ Company wise
- Redeployment/
Secondment/ Resource allocation
- Career
Progression
- Lateral Movement
(Horizontal)
- Vertical
Movement (Promotion)
- Performance
Management, capture appraisal forms, ratings, normalisation, increment
letters, Performance Improvement Plan templates, letters
- Talent
Management
- Training
- Compensation and
benefits,
- Payroll
- Salary – Stop/
Release, salary certificates
- Exit –
Resignation/ Absconding/ Termination/ F&F
- Re-joining/Re-initiation
- HR Analytics /
MIS
Integration and Interface:
These terms are constantly
discussed during any IT software project. Both refer to the interaction of two systems,
but there are differences and it’s important that you understand them.
An interface usually requires work on your
part and data changes do not happen in real time. Integration, however, is
automatic and requires no work on your end. Either provides the capability to
eliminate time consuming, error-prone double entries but because an integration
generally means less work, you should select systems that integrate whenever
possible.
HR Software Solutions Interface
Almost all business software applications on the market today
should be able to create and accept some type of import or export file. This
allows you to transfer data to and from numerous independent solutions.
Interfaces require extra work and will not be real time, but they are an
important means of tying two systems together, eliminating repetitive double
entry, and reducing manual entry errors. While an interface may not be the
perfect solution, it does sometimes offer the easiest method of eliminating
time consuming double entry.
HR Software Solutions Integration
Integration is always the best-case scenario, but it’s rarely
offered. An integrated HRMS requires no work and changes happen in real time;
the two systems share the same database, so you only have to add or update data
once. If you are going to want an integrated HRIS you will probably have
to get all of your HR software products from the same company.
Global HRMS
The
requirement for global HRMS generally constitutes the following:
·
Global
system should be able to share data seamlessly. This is possible with cloud
computing and Saas based HR applications.
·
Multi-lingual
- Ensuring that the system enable managers and employees to work in their
respective languages.
·
Evaluate
if the system can accommodate the Unicode and double-byte character sets that
are required for Russian, Mandarin, Arabic, etc. - The Cyrillic alphabet used in Eastern
European languages like Russian, the Chinese characters of Mandarin, the Arabic
alphabet and more represent significant challenges for many global HR systems
·
Evaluate
if the system meet Safe Harbor laws, data transfer laws and security protocols
from region to region.
·
For
cloud based solutions evaluate if the data on the system is stored in private
or public cloud or on single tenant or multi-tenant systems.
·
Will
the vendor provide 24/7 global support to accommodate your locations around the
globe.
·
Since
many global companies have established system which are country specific, while
selecting the HRMS, verify if the system allows to run reports based on your
global organization otherwise you will spend time running individual reports
and then merging them together manually.
·
HRMS
must enable validation tables that translate into different languages to
accommodate users in different parts of the world.
·
HRMS
must manage currencies and compensation plans from different countries or
regions, e.g. expats.
·
Evaluate
if the system allows for different benefit plans in different countries and can
the attendance and electronic calendars be configured to reflect different work
days and holidays.
·
Evaluate if the system can do one global
payroll export or must it export payroll country by country with multiple data
conduits.
HRMS & IT Security
When selecting an HRMS solution, ensure that
the vendor has all the necessary security certifications and adheres to all
compliances. Web based system must utilize a secure transmission method such as
Secured Sockets Layer (SSL) for encrypting data as it flows over the public
Internet. Ensure you have buy in from
your own IT leadership team by integrating them into the evaluation process
with potential vendors in terms of security policies, data access, and backup
and recovery procedures.
To balance security with accessibility and scalability,
you should discuss your integration needs with potential solutions providers as
well. Skew toward vendors with open database platforms (ODBC compliant), such
as Oracle or Microsoft SQL Server, as opposed to proprietary or mainframe
systems. This will offer the most flexibility particularly when you require
integration with other applications as an immediate need or in the future as
your company grows.
Look for other features including XML (Extensible Markup
Language) support and robust reporting capabilities to ensure that you can
easily pass information from one application to another. This is critical with
a payroll application as you’ll likely require feeds to accounting packages and
third parties including retirement plans and benefit providers.
Best Practices in
implementing – HRMS
Before
you start implementation, it is necessary to:
- Identify centralized functions
- Identify decentralized tasks
- Conduct a workflow analysis
- Determine when and what forms and
processes can be automated for efficiency
- Review workflow and work systems
for ways to improve efficiency (decision making, resource allocation, time
assignment, priority alignment, and fiscal accountability)
- Check data that needs to be
integrated.
Conclusion
Effective human resource management (HRM) is a great way to
streamline the human resource functions of any sized business, making overall
operations run more easily and efficiently. This is only possible by using HR
technology solutions. However prior to
selecting an HRMS solution, you must identify your business needs, processes
and short and long-term goals. Including HR professionals, who manage your
current HR operations, in the process are also critical.
To conclude, any HRMS must have the following general features:
General Features of
HRMS:
- Application
must be built on thin and /or thick client architecture.
- Supports
Multi-lingual, multi –currency and Multiple Business Units within an
organization
- Provide
adequate Data and Multi-level Security and compliances
- Company-wise
and Group-wise Reports and Analysis
- Integrates
easily with legacy systems for hand-offs
- Workflow-based,
comprehensive HR system.
- Integrated,
multi-technology sign-in / attendance
- Role-base
Visibility Control / Differential Access for strong security
- Reduce
user-training time and costs due to intuitive workflow content and GUI
design
- Scalable
to suit growing IT and business needs
- Current
mail system as single point of workflow approvals
- Automates critical HR workflow
- Extend IT investments cost effectively
- Integrate seamlessly with most current
IT systems
- Reduce HR and implementation costs
- Ensure low Total Cost of Ownership (TCO)
Tips for
buying software:
The ease of use and functionality
of the HR software you choose are both the most important considerations. These
can be determined by simply effectively reviewing, comparing and testing the
HRMS products you are considering.
While
setting up workflow processes, it is often tempting to add in more approvals,
but you need to think carefully about who needs to approve, and which
transactions need approval.
No HRMS is complete and the
functionality will vary from manual to complete automation. However it is
critical to do proper references to get an idea on support and problems during
setup or potential bugs in the HR product. Ask the reference how often they
call support and how long they are typically on hold. How helpful are the tech
support people? Are they usually able to solve the technical problems?
Before you decide on any buying
any single or multiple modules, check with references if there are any
important problems or software defects of which you should be aware.
Insist on getting the
implementation done from certified and experience professional and ensure your
organisation also has certified professionals working in your team.
The key to finding the right HRMS system is
selecting an HR business solution that is secure, well-supported, and equipped
to help you reach your goals. With a SaaS based HRMS platform you have the
ability to successfully track, manage, and control your most valuable asset,
your employees.