What is an HRM system and how to use it?

Category: Blog, IT solutions

It is sometimes said that HR is the heart of a company. By this logic, Human Resource Management systems would be a healthy lifestyle that makes the heart stronger and healthier. So what are these systems and what do they include? In this article, we will delve into the world of HRM, explaining how it can help your company.

What is Human Resources Management? 

The HR department bears the responsibility for many things: recruiting, administrative matters, motivating employees, organizing training and much more. So it is natural that at some point an approach was developed to optimize and facilitate the daily tasks of this department.

The goal of HRM, as a management approach, is to use the full potential of employees for the success of the company. It therefore focuses on: recruitment, training, employee development, compensation management, as well as monitoring and maintaining good employee-employer relations.

The system plays an important role in ensuring the effective operation of the company and in creating conditions for growth and success for both employees and the organization as a whole.

In today’s era of digitization, the approach to human resource management has undergone a transformation, resulting in the development of modern IT programs to support these processes. Platforms provide opportunities such as efficient employee records, monitoring of competencies, maintenance of job cards and organization of training.

How does a human resources management system work?

It depends on the specific system, of course, but most of them work by integrating various HR and operational processes. They also enable information flow, data analysis and collaboration between employees and the HR department. With an HRM system, organizations can effectively optimize their processes, standardize procedures and provide employees with better working conditions and professional development opportunities.

HRM system functionalities

HRM systems are designed to simplify the day-to-day operations of the HR department, eliminating manual tasks and streamlining HR processes. With systems like NAVIGATOR, it is possible to build a customized system from available components:

  • Organizational structure
  • Employee records
  • Record of competencies
  • Job cards
  • Recruitment
  • Training
  • Evaluations
  • Delegations
  • Job descriptions
  • Goals and objectives
  • Workflow sheets
  • Surveys
  • Contracts
  • Accounts
  • Invoices
  • Notifications and alerts

Advantages of HRM system in the company

The advantages of a company’s HRM system are undeniable and bring numerous benefits to organizations, regardless of their size. Here are some of the key benefits of implementing an HRM system:

  • Streamlining HR processes.

HRM systems automate many standard tasks, such as recruiting, evaluating employees, calculating salaries and handling employee records. This allows HR teams to focus on more strategic aspects of their work.

  • Increased efficiency.

Access to a central database of employees, their employment history and competencies allows faster decision-making. This, in turn, translates into more efficient company operations and time savings.

  • Reduction of errors.

Automation of HR processes reduces the risk of mistakes, especially in areas related to payroll and billing.

  • Increased employee engagement.

Access to the HRM system allows employees to manage their own data, vacation requests or employee evaluations. This, in turn, translates into greater work engagement.

  • Analysis and reporting.

HRM systems allow the creation of advanced analysis and reports on human resources, which enables more informed personnel decisions.

What does HRM implementation look like in an organization?

Implementing an HRM system is a multi-step process, but one that is crucial to improving workforce management. Here is an overview of what the process might look like:

  1. Determination of needs: at the outset, the company must accurately determine its needs and goals for implementing an HRM system. This is the stage where it defines what functions and modules of the system are necessary to meet the company’s requirements.
  2. Choosing the right system: next, the company must choose the right HRM system. This is a decision that requires consideration of many factors, such as the availability of predetermined functionality and cost.
  3. Project team preparation: the implementation of any electronic system requires the involvement of a dedicated project team. It may include HR, IT and end-users. Such a team is responsible for planning, implementation, communication with the vendor and monitoring the process.
  4. System configuration: once the HRM system is selected, it must be customized to meet the needs of the company. This is the configuration stage where organizational structures, employee profiles, compensation rules, as well as processes related to recruitment, employee evaluation and time management are defined.
  5. Staff training: employees who will use the HRM system must be properly trained. This is important to ensure effective and efficient use of the tool. Training can include both end users and system administrators
  6. Testing and evaluation: before fully implementing an HRM system, it’s a good idea to run tests to make sure everything is working as expected. Evaluating the test results allows you to make any adjustments.
  7. Implementation and monitoring: when the system is ready, you can start implementing it in your organization. It is important to carefully monitor the implementation process and respond to any problems or difficulties.
  8. Optimization: once the HRM system has been implemented, the organization should continue to work on optimizing it. This is the stage when the system can be adapted to the changing needs of the company, adding new features and developing existing processes.
  9. Technical support: having technical support is key to resolving any issues and keeping the HRM system up and running.

Implementing an HRM system is a lengthy process, but one that will pay off in the future, which is why companies such as Medicare are increasingly choosing to implement elements of an HRM system.

How to choose a HRM system? 

When beginning the process of selecting an HRM system, the first step is to identify precisely the areas where automation will bring the greatest benefit to the HR department. It is recommended to conduct a thorough pre-implementation analysis, both internally and with the support of experts or external consultants. It is also important to pay attention to the scalability of the system, especially in the context of the planned development and evolution of the tool in the future. But it doesn’t end there.

We have prepared a short checklist of aspects to consider when selecting a system:

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Tourism and Leisure Management graduate at IMC Fachhochschule Krems. After finishing university, she decided that digital marketing was her calling. At Archman she acts as a marketing specialist, where every day she broadens her knowledge about SEO and SEM. Mariia is keen on storytelling, and in her free time most frequently she reaches for Stephen’s King novels.

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