14 April 2022

How an HRMS can improve your HR team's efficiency

Choosing self-service HR software that integrates with other business systems should significantly improve your organisation’s productivity and performance

Author

Dave Foxall

Dave Foxall

Dave Foxall has worked as an HR manager at the Ministry of Justice for a number of years and is a regular HRMS World contributor. He writes on a broad range of topics including jazz music, and, of course, the HRMS software market.

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HR transformation Technology

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Choosing self-service HR software that integrates with other business systems should significantly improve your organisation’s productivity and performance

There are many reasons why an organisation might choose to invest in a new HRMS or HRIS (HR management system or HR information system), including a better user experience, access to more data, and better data security. But new research from Software Path has found that the most popular reason for implementing a new system is to increase efficiency. So how does a new HR system improve your team’s efficiency? And what improvements should you expect to experience? 

The impact of self-service

One of the biggest efficiency gains from a new HRMS comes from its employee self-service (ESS) features. Even just giving staff the ability to book time off, check payslips online, or find the answers to common HR questions themselves has an impact. Common efficiency benefits include:

  • Faster access to HR services – not only faster but also direct. ESS functions take managers out of the loop, giving employees access to HR services without a gatekeeper. This also frees up managers to focus on their own priorities
  • A more focused HR team – because ESS services are automated, HR administrators can spend less time on repetitive, mundane tasks that are better handled by the software. This frees their time up for more strategic work
  • Reduced HR costs – alternatively, freed-up HR time can be ‘cashed in’ by reducing the HR team’s headcount over time
  • Fewer mistakes – accuracy is a big efficiency factor. So long as you input accurate data into the HR system, the processes that depend on that data will always be more accurately carried out by your software than by a human. Fewer mistakes also means much less time spent rectifying those mistakes 

The benefits of integrated systems

Another benefit comes from having a system that integrates all your HR systems or processes. When your HR system is connected to and uses the same data as your payroll software, for example, there are fewer errors, faster processing and ultimately, greater employee satisfaction.

The benefits of integrated software include a simpler implementation process thanks to using a single system solution with out-of-the-box functioning – making life easier from a technical point of view. There’s less need for user training as employees only need to be fluent in a single system; there’s also a higher chance of users utilising the system and increasing their adoption. From a strategic view, easier production of reports and analytics allows your organisation to gain full visibility of your people information without needing to parse data between multiple systems. All these factors lead to a better user experience overall. Most of this also contributes to a more efficient HR team or, just as importantly, the perception of HR as efficient. 

Measuring HR efficiency

A better, more efficient HR team sounds great. But how do you know when you’ve got one? As part of any post-implementation return-on-investment (ROI) exercise, you can explore data and metrics that reflect efficiency. For example:

  • HR productivity KPIs should improve
  • Self-service transactions should show time savings
  • Employee retention should improve, and turnover should decrease
  • The time-per-transaction for specific HR procedures should decrease
  • The number of sanctions or penalties for legislative non-compliance should fall

Put simply, either directly or by implication, your HR team’s efficiency should be one of the biggest beneficiaries of your new HR technology. If you’re thinking of investing in a new HRMS, consider putting in place goals around improving existing processes, to make sure you gain the maximum efficiency benefits from your new software.

Dave Foxall has worked as an HR manager at the Ministry of Justice for a number of years and is a regular HRMS World contributor. He writes on a broad range of topics including jazz music, and, of course, the HRMS software market.