Top Reasons Why SMEs Need to Implement HRMS

1. Top Reasons Why SMEs Need to Implement Top Reasons Why SMEs Need to Implement HRMS HRMS https://katalysttech.com/

2. Human Resource Management is evolving. It is no longer a simplified function working standalone, focusing only on employee life cycle management. Considering the volatility of present-day economy with disruptive trends, human resource management has acquired a strategic role in the organizations as companies have started realizing that employees are the only intangible and intellectual assets that can’t be duplicated. Thus, human capital management is one of the core segments where companies should invest and are investing in utilizing the potential of their human resource to its fullest. Moreover, the advanced technology is driving business growth faster than ever. According to Grand View Research, the market for HRMS will reach beyond USD 10 Billion by 2022. The advent of cloud-based technologies like Software as a Service (SaaS) has taken the HR technology to the next level. The companies are all geared up to replace their legacy systems with sophisticated Human Resource Management Platforms to leverage the proliferation of technology. Despite these inspiring statistics, SMEs in different industry verticals are still struggling to adopt the best practices for managing their workforce. Get in Touch - https://katalysttech.com/get-in-touch/

3. Before assessing the need of HRMS in SMEs, it is crucial to understand, What is an HRMS? To put in simple words, HRMS is the intersection of Information Technology with human resource function to solidify the role of human resources as a strategic building platform. HRMS is a software application with a comprehensive focus on automating the various HR function including the management of recruitment, training, development, payroll, compensation, employee engagement, attendance, benefits, career planning, learning and performance analysis, and review. It is a self- contained suite of software that instills agility in the human resource processes when companies are committed to maintain and retain their intellectual assets. HRMS also referred as HRIS (Human Resource Information System) is a data-driven technology that collects, analyzes and disseminates the people related information to the people who are passionate to the keep employee satisfaction scores up for their companies. Connecting the dots, HRMS is a total of processes, systems, methods, and rules that automates the entire human resource activities that strategically aligns the role and contribution of people towards corporate goals. Why should SMEs implement HRMS? HRMS is capable of transforming the human resource landscape by putting all the information at the click of a button, thus helping the organizations to transform from mechanistic to organic structures. Demo Form - https://katalysttech.com/free-demo/

4. Let’s see why SMEs should start revisiting their approach to handling human resource. Organized Data Inventory: Conventionally, the small and medium scale companies have been relying on manual and paper procedures to fill and update the pool of personal and professional information thereby creating information overload at the HR end without a proper data analytics. An HRMS holistically automates the functions while maintaining an updated inventory of skills, abilities, achievements, and profiles of the employees always available at the disposal of managers to aid rational decision related to the efficient allocation of the workforce. Effective Risk Management: It has been observed that SMEs have been the victim of compliance issues because of inadequate and unstructured information. An HRMS electronically gathers and manage the documents and store files with appropriate tags, thus increasing the responsiveness at the times of audits. Moreover, as the workflow is streamlined, it gets easier to gauge the nonconformities from the standard procedures, thereby eliminating the possibilities of legal penalties. Optimal Efficiency: One of the reasons that put the success of SMEs in jeopardy is their inefficiency to handle workforce proactively. In the era of constant changes, employees expect the adoption of preemptive welfare and development practices by the organization. In the lack of mentioned above competence, the companies face higher attrition rates and absenteeism. HRMS works on predictive analytics for the workforce, thus making it easier for organizations to invest in right interventions at the right time. Therefore, the implementation of HRMS leads to cost reduction. Call Us - Evanston +1 847 425 4321 Atlanta +1 678 684 5300

5. Transparent communication: Effective communication is the cornerstone of collaborative work culture. SMEs regularly operate in a complex work environment leading to confusions and redundancies. HRMS promotes superior communication between employees through improved collaboration and open feedback mechanisms. With higher accessibility and share-ability, communication gets streamlined by involving the right accountability centers. Streamlined Recruitment process: SMEs often struggle with the process of manpower planning as they are not able to map the right candidate with right job profile in the correct numbers. An HRMS simplifies the recruitment process as it helps in creating a unified pool of resumes from which hiring managers can draw the candidates that fit in the pre-defined parameters to fill the vacancies. Furthermore, HRMS systematizes manpower planning by ascertaining the demand across the business functions and highlighting the need to supply candidates with relevant skills. Self Service for the employees: The HR managers in SMEs often sweat with the manual or semi-automatic process of data entering, which is typically a costs center as it wastes productive hours of employees. HRMS offers a self-service interface to the employees and managers through which they can update and access the information as per the need, thus reducing the administrative workload for HR specialists. According to Statista, 41% of the enterprises worldwide were benefitted by the increased use of employee self-service in 2016. Improving work culture: In the absence of a comprehensive HRMS, it becomes difficult for small scale companies to implement need-based initiatives to refine the culture. HRMS extends its competence by executing activities like attitude and sentiment surveys, career management plans, potential assessment, learning modules for employees, affirmative action plans, exit interviews, and succession planning thus contributing towards the improvement of the work environment in the companies.

6. Increasing organizational effectiveness: When SMEs lack data-driven planning and foresightedness, HRMS supports decision making and better control through automated reconciliations that are known for their accuracy and timeliness. The overall efficacy of the organization as an employer is instrumentally improved with HRMS. Shift the focus: HRMS supports small and mid-scale companies in adjusting their focus. It re-engineers the entire human resource function, thus shifting the focus of companies from process-oriented HR to strategic HR. Increasing Compliance: Legal compliance is a challenge for SMEs in the absence of a sophisticated solution like HRMS. HRMS monitors, evaluates and controls the deviations experienced in HR functional and tactical processes, thus managing compliance with federal and state laws. Takeaway HRMS is a high-performance software that creates a massive impact on the sustainability of small and medium scale enterprises by making them flexible and responsive to change. It brings transparency in the system while developing a foundation for best human resource practices in the companies. And the silver lining is As opposed to the notion that a sophisticated HRMS can be affordable by large enterprises, there are advanced solutions in the market that cater specifically to the needs of small and medium scale businesses. Katalyst Technologies’ EnSoul is one such SaaS-based solution that streamlines all the human resource processes, including onboarding, benefits, payroll, timesheets, and expenses. EnSoul believes that employees are heart and soul of companies and thus deserve privileged care.

7. Katalyst Technologies is a leading IT services and solutions company servicing clients in the manufacturing, wholesale distribution, life sciences, e-commerce, logistics, and retail sectors. We provide industry – specific IT products, strategies and solutions for companies implementing large-scale and transformational projects. Our business and technology experts are highly-skilled and work seamlessly across multiple geographies, with a global footprint in the U.S, U.K, India, and Germany. We specialize in the areas of Digital & e – Commerce, Enterprise Resource Planning, Supply Chain Management, Engineering and Manufacturing, Professional Services and e – Publishing. USA Evanston +1 847 425 4321 Atlanta +1 678 684 5300 UK INDIA Hadapsar, Pune +91 20 6709 3939 Valasaravakkam, Chennai +91 44 4294 3400 Basavanagudi, Bengaluru +91 80 2677 0101 Teddington +44 208 943 5589 sales@katalysttech.com