Hrms Software – A Game Changer For Startups And Growing Businesses

HRMS is the backbone of a successful organization, enabling growth, productivity, and employee satisfaction.” – Dave Ulrich, Prof. of Business, University of Michigan …. In today’s fast moving business world, new and growing businesses are often confronted with unique challenges that require innovative solutions. The most difficult task in the scheme of things is to implement an effective HRMS Software. As companies grow, the complexities of their HR activities also increase and require solutions to simplify tasks and increase productivity. Human Resource Management System (HRMS) software comes as a potential game changer for Startups and Growing Businesses, including the MSMEs. This universal HRMS phenomenon has come as a blessing, not just for large companies, but also, in particular, for Growing Businesses, as it highlights their potential avenues for advancement, along with the benefits it offers, in terms of employee management, engagement and overall growth. This article, tries to examine the potential of this dynamic and evolving HRMS software and how it is empowering businesses in shaping up the future of work.

The Role of HRMS in Startups and Growing Businesses

“Technology is nothing. What’s important is that you have a faith in people, that they’re basically good and smart, and if you give them tools, they’ll do wonderful things.” – Steve Jobs …. Business start-ups and growing business organizations work in an environment where resources are limited and every decision influence the consequences. As the business scales up, and workforce grows in the organization, the management of human capital becomes a daunting task. This is a stage when ‘DIY’ style of human resource management is not only time-consuming but is also prone to errors due to the limitations of HRD in terms of size, when compared to the larger corporations. In such a scenario HRMS software assumes the role of a perfect enabler offering start-ups, growing companies including MSMEs a solution that empowers them to manage their human resource functions with precision and dignity. HRMS software automates the core functions of human resource management e.g. Employee Records Management Software, payroll processing, time management, benefits and performance management besides recruitment processes. Not only is this automation efficient, but also accurate, as it ensures compliance, and is easily scalable. After implementing this software, new business ventures can channelize their energies on growth strategies and focus on business activities while the tools provided by the HRMS software take care of essential Human Resource Management functions.

Key Benefits of HRMS Software for Startups and Growing Businesses

“The right HRMS can transform your workforce from mere employees to engaged ambassadors of your brand.” – Gennady Alexandrovich Vaynerchuk, American author, speaker, Internet personality ….

1. Time and Cost Efficiency The benefits of HRMS software solutions include saving on time and money. Most of the times – especially during the initial stages – startups have small teams and often have people, from different departments, involved in multitasking.  Post HRMS software implementation, the entire establishment, including the owners can devote their precious time to strategic business planning and related development activities such as recruitment, performance management, talent development, etc. while full range of administrative functions like record keeping, payroll processing, leave tracking, and benefits administration, etc. are managed efficiently by HRMS software. This, not just increases productivity, but also reduces the number of HR personnel needed for the same job, thus reducing the cost.
2. Accuracy and Compliance HRMS software ensures that all the HR processes are carried out accurately, for example, a mistake in computing the payroll may lead to legal complications and may even result in discontentment among the employees. HRMS software accurately computes salaries, taxes, deductions, and bonuses using automated payroll systems, in accordance with the local rules and regulations. Additionally, HRMS software reduces the risk of penalties for start-ups’ by providing timely updates and notifications about changes in the legislation, thus keeping them always updated with the labour laws, tax requirements, and other industry-specific rules and regulations.
3. Scalability As the startups expand, their HR requirements change with time, the HRMS software solutions are designed to scale up with the business and self-adjust according to the growing workforce, without any extra burden on administrative cost. The HRMS seamlessly adjusts itself to the number of employees – be it ten, or hundred.  The embedded idea in HRMS software is to balance the dynamics of a company, while keeping the HR processes optimized. This enables the organizations to keep their Human Resource Procedures and transactions in sync with the growth of the company – without the need to overhaul the system.
4. Enhanced Employee Experience In today’s world of stiff competition, more often than not, companies struggle hard to attract and secure the best talents in the market. By implementing the HRMS software the user experience of the workforce can be enhanced, as the Built-In Self-Service feature enables the employees to access their Pay Slip, Request Time off, and even update their personnel information without needing to go through HRD. Not only does this feature saves time, but also leads to greater satisfaction among the employees. Additionally, the HRMS platform include Performance, Feedback, and Goal-Setting features to keep its employees to stay adequately engaged and duly aligned with company goals and objectives.
5. Data-Driven Decision-Making HRMS software makes it possible for the startups and growing businesses to access data and analytics of their workforce. Therefore, as a result of having detailed reports on employee performance, attendance, turnover rate, and other important HR parameters, the business owners and HR executives are always in a position to take the right decisions each time, every time. These indicators are particularly useful in preempting the threats of high turnover patterns, and also help in analyzing the success rate of the efforts made by HRD. The application of analytic tools also enables the new businesses to be proactive, rather than just be reactive, hence improve the lot of their human capital and also influence the business outcomes as well.
6. Improved Recruitment and Onboarding Hiring is among the key focal areas when startups decide to expand their businesses and maximize their productivity. Applicant Tracking System (ATS), a functionality of HRMS software, helps to avoid external advertising and automate the process of Posting Jobs, Screening Applicants, Scheduling Interviews, and even manage Letter of Offers. Besides, it also helps in the Onboarding Process where all the formalities of the contracts and related paperwork, training, and other important actions have to be completed. This also ensures that the initial impression which a new candidate gets of an organization is a positive one. A smooth Onboarding Experience improves the retention factor and encourages the new appointees to get into the working mode and start contributing to the organization as soon as possible.

Key Features of HRMS Software for Start-ups and  Growing Businesses

“In HRMS, technology transcends tools, becoming a canvas of human potential.” ….

1. Payroll Management Every company has to calculate the wages of their employees, which certainly is an intimidating task and it gets even more overpowering as the firm grows. HRMS software fully automates the computation of salaries, and also enables the compliance of different tax policies, plus there is also a feature to generate Salary Slips, Employee Benefits, Tax Computations and Direct Credit, making the process of payroll smooth and efficient.
2. Time and Attendance Tracking Manual method of tracking the attendance of employees can expose the company to several risks, which can result in discrepancies and possible disputes. The HRMS application comes with a built-in feature for tracking attendance, leave and other requests, and also keep log of the working hours, overtime and so on. This, not only ensures transparency, but also helps the startup organizations to manage the salaries and performance – efficiently.
3. Performance Management It is important for startups and growing businesses to make sure that the employees remain productive and deliver peak level performance that translates into company’s development. HRMS software solutions have integrated performance management module that enable employees, supervisors and managers to set goals, provide&receive feedback and appraisals. Some of these features even assist the managers to review the performance of each employee and give their feedback for regular improvement.
4. Employee Self-Service Portal Empowering the employees to handle their own HR related tasks has proved to be a positive feature for the startups. Embedded in the HRMS software is the employee Self-Service portal that enables employee to access information, such as their Pay Slips, Benefits and Leave balance etc. without having to visit the HRD. While it lessens the burden of HR teams, it also makes the employees feel actively involved in the company and experience a sense of belonging.
5. Recruitment and Applicant Tracking Optimal recruitment is of prime importance for startups, and rightly so, the HRMS software can augment this procedure, and help the companies to automate the recruitment process, right from Job Posting, Applicant Tracking, Candidate Screening to Interview Scheduling, Assessment Integration, Automated Notification SMS to candidate, and picking up the final candidate for the job. This accelerates the hiring process and is the key for startups to acquire the best talent early enough, before they are lifted by the rival companies.
6. Compliance Management HRMS software comes as a boon for startups; as it automatically handles the compliance work e.g. employment and taxation laws, industry standards and labor laws. It also keeps a track of the changes as they occur, and helps in minimizing the possibility of getting caught on the wrong side of law, and suffer financial consequences arising from penalties or fines when they could have been avoided.

Future Trends in HRMS for Startups

“HRMS software beckons us toward a horizon of potential, where technology and humanity converge. As we harness its capabilities, we must remember that our ultimate goal is not efficiency, but elevation – of individuals, organizations, and society”. Anonymous ….

1. AI & Machine Learning Soon, AI powered HRMS recruitment tools will substitute human beings and will be used to analyze résumés and to forecast the suitability of candidates, maybe even conduct initial interviews to further streamline the hiring process, and design customized training programs as well. Machine learning and evolutionary algorithms’ will enable predictive analytics to provide better understanding of employee behavior and performance, plus a plethora of turnover metrics.
2. Employee Experience Platforms (EXP) The Future HRMS software will focus on employee experience and wellbeing by leveraging AI, ML, and Cloud Tech. Dedicated portals will have built in tools that will analyze employee data and offer custom-made solutions. The Future platforms are likely to introduce ‘Employee Well-Being Tools, Learning and Development Modules that will help the Startups to create a conducive work environment. Most likely the emphasis will shift from process automation to employee contentment. Active promotion of the concept of, Diversity, Equity, and Inclusion (DEI) will become a reality in letter & spirit. These portals will ensure superior user experience UX, real time feedback, and instant mobile access. Such features will redefine the new workplace, boosting productivity, engagement, and will clearly have a competitive edge to retain top talent.
3. Employee Well-Being & Mental Health In times to come, overall mental, physical and emotional health of employees at work will become a priority for companies. It will include, job satisfaction, stress management, and work-life balance. Employee’s well-being is gradually getting recognized as vital component of the work place productivity and employee retention. The defining aspects of employee well-being are five, namely; Career Well-being, Social Well-being, Financial Well-being, Physical Well-being and Emotional Well-being. Companies will actively consider investing in all five of them and in the process-by extension – in their own future.
4. Advanced Workforce Analytics HRMS software of future will have the ability to handle huge volumes of data and advance analytic abilities. These features will provide valuable data related to employee performance, engagement and workforce leanings, which will help HR Professionals to optimize talent management and make informed decisions.
5. Cloud-Based HRMS Cloud-based HRMS software solutions are simple and startups can gain access to their HRMS software from anywhere, at any time and without any hassle of the sorts. It offers all the HR features for business needs, regardless of the location of employees. Additionally the cloud-based solutions offer a cost effective scalability so that  the startups can to grow without needing to invest in expensive infrastructure.
6. Mobile HRMS With population of the mobile workforce on the rise, the Mobile HRMS platforms are fast becoming a reality. Mobile HRMS applications enable employees’, managers and HR professionals to login from anywhere, request for time off, view their pay slips, update profile on-the-go. Additionally, they help to reduced dependence on HRD for routine tasks, and get personalized content, real time data and notifications on device.  The benefits of mobile HRMS to organizations will translate into, Increased Efficiency, Reduced Administrative Cost, Improved Data Accuracy, Informed Decision Making, Cost Saving, Scalability, Enhanced Compliance and Risk Management.
7. Gamification Gamification, in HRMS involves introducing game-like elements into the HR processes in order to increase employee engagement, involvement, and productivity; it is a developing trend in HRMS and is catching up fast. Gamification is based on the same idea that attracts people to digital games like e.g. football, cricket, chess, and so forth. In HRMS, gamification is used to improve recruitment procedures, foster creativity, improve the efficacy of training program, teamwork, and the Onboarding Process. Gamification, seeks to encourage staff members to engage in activities and learning at work. The ultimate goal is to establish a work atmosphere that inspires employees to work hard and produce better result.

The Essence of HRMS Software           

HRMS software is the perfect example of how technology and people interact. While keeping in view the complexities of human emotions, it simplifies data-driven judgments. This ballet of logic and perception tells us that organizations are dynamic systems that throb on the energy of the people they serve. Essentially, the HRMS software is an expression of a deep philosophy that goes beyond technological advancements and embraces the psychological, social, and emotional aspects of employees and their interactions with the company. Fundamentally, the nature of HRMS software reflects an inclusive company strategy for managing the human capital and striking a balance between wellbeing of employees and the objectives of the company. Soon new and expanding companies will soon discover that investing in HRMS software will be a game changer for Start-ups and Growing Businesses.