As organisations grow and evolve, their HR needs change too. In many cases, the human resource management system (HRMS) software that served a business well in the past may no longer meet its current needs. Using outdated or inadequate HRMS software can hinder HR processes, reducing performance and productivity.
In this blog post, we’ll discuss five obvious signs that it’s time to switch to new HRMS software. By recognising them, you can identify when your organisation needs to upgrade its HR software and find a solution that better aligns with your HR needs, helping to improve efficiency and employee satisfaction.
What is HRMS software?
So what is HRMS software? HRMS is a software system that helps organisations manage their human resources (HR) processes, records and projects more effectively. An HRMS software can help with everything from online recruitment, employee data management and payroll to benefits administration, performance management, and more.
The software typically includes modules for different HR functions, such as employee self-service, time and attendance tracking and benefits management. Advanced features of HR software include predictive analytics, compliance management and workforce planning.
HRMS software can help streamline HR processes, reduce administrative workload, and improve data accuracy. It can also provide managers with better insights into their workforce, which can help them make more informed decisions about hiring, performance management, and talent development.
How to use HRMS software
Most modern HRMS software is intuitive to use for employees and HR administrators alike. But to really get the most out of your investment in your HR system, you need to embed it in your daily organisational processes and use it as the central management tool for all your people data. This involves:
- Using it to record, store, and track all relevant people data – such as attendance, leave, and performance – and making sure that data is kept up to date
- Support employees and managers to use the system, and ensure they carry out crucial processes (such as recording sickness absence, and appraisals) within your HRMS software as required, and not circumvent your use of the software
- Ensuring your HR superusers regularly refresh their knowledge of the system, and keep up to date with new product releases. Your HR software vendor should offer ongoing training and support
- Regularly running reports and acting on the insights gleaned
- Periodically reviewing your HRMS software to ensure its fit for purpose and meets your organisation’s needs
The last bullet point is perhaps the most important – but, unfortunately, is also the one that’s most often overlooked. If you already have HRMS software in place, ask yourself:
- Is it helping or hindering your workflows?
- Are you finding ways to circumvent it because it’s not fit for purpose?
- Is it helping your organisation to be more productive and make better-informed decisions about strategic HR interventions?
- Is it user-friendly or does your HR team waste time supporting line managers and employees with basic self-service tasks?
- Is it right for your organisation’s current size and growth trajectory?
If your answer to all of the above questions isn’t a resounding yes, it may be time to consider implementing a new HR system.
Five signs it’s time to switch HRMS software providers
From a lack of engagement to an increase in inefficiencies, the following may be signals you should start looking for a new HRMS software provider.
1. Engagement with your HRMS software is low
One key way to tell that your HRMS software isn’t working for your organisation is, quite simply, if your employees aren’t using it. This could be for a variety of reasons, such as:
- The system isn’t user-friendly enough: does it look and feel part of your organisation? Is functionality too simple or too complex?
- Processes crucial for your business, such as performance reviews, can’t be done through your software: find an HRIS system that performs all the essential HR software processes, such as Ciphr HR
- Leaders and senior management aren’t using it: this may mean that employees don’t feel compelled to either. Make sure there’s buy-in at all levels and consider selecting system ‘champions’ to learn about the software first and teach it to others
- Employees don’t find the software useful: stress what’s in it for them, such as if the HR software helps with career development and learning opportunities
- Employees aren’t aware it exists: make sure you’re communicating the uses and benefits of your HRMS software internally
2. Data in your HRMS software is inaccurate
Is the data that your HRMS software supplies accurate and meaningful? If you’re finding that you need to use multiple systems and spreadsheets to compile the information you need for your weekly, monthly, or quarterly reports, the answer is likely no.
Meaningful data is the information that’s relevant to your organisation’s priorities and the strategic decisions it needs to make. You want to be sure that your HRMS software can give you all the information you need, all in one place – whether that be through configurability and integration capabilities, or by simply having a system that offers all the relevant data capture you need.
3. Your HRMS software is causing inefficiencies, not reducing them
The wrong HRMS software causes more problems than it solves. Any of the following could mean your system is a hindrance to your business:
- Extra admin work
- Duplication of effort and/or data entry
- Data errors
- Consistent and frequent queries and confusion from managers and employees
- Processes still sitting outside your HCM platform, meaning you regularly have to switch back and forth between systems
- Lack of HR and payroll software integration, causing errors and delays
- Difficulty accessing important data, policies and information
The right HRMS software should streamline your work. Ciphr’s platform, for example, is easy to use. From onboarding new employees and using offboarding software to say goodbye to leavers, delegating responsibilities and automatic notifications through to digital background checks, payroll integration and reporting, our HR software solutions can help streamline work.
4. Options to configure your HRMS software are limited
Are you able to customise and configure your HR software in a way that works for your organisation? And, not only that, but can you look after it in house to a degree that’s acceptable to you?
If you answered no to either of the above questions, you may want to consider a new system. Modern HRMS software like Ciphr’s can be configured to your organisation’s needs, whether you only want the basics or something more complex. We offer everything from simple self-service and case management for employee relation issues, through to the ability to make bulk updates as your organisation develops.
If you are a parent organisation managing multiple brands or companies, you should also consider whether you can manage them all within one single system. You’ll also want to make sure that different employees can have different user experiences and access. Consider onboarding journeys, access to policies and different job roles and locations. It likely won’t be one size fits all, so make sure your people can get the bespoke experience they need.
Branding and personalisation are also important when considering if a particular HRMS software is right for you. You want it to feel like ‘your’ system. By this, we mean that you should be able to tailor it so that it includes your organisation’s colours, images, logos and language. Your HRMS software should look like an extension of your brand and use the terminology you do. This will make usability visually seamless for your employees and ensure that your system is properly branded.
5. Your HRMS software isn’t integrated with other business applications
It’s important to be able to integrate your HR systems with other applications your organisation uses for a variety of reasons. Not only does this increase data accuracy and security, it also improves the employee experience and reduces time spent on administration. For most organisations, the integrations that matter most will include:
- Payroll software
- Your applicant tracking system
- Microsoft Active Directory or another access management system
- Electronic signatures, such as Adobe Sign
- Your learning management system
- Your benefits platform
However, some organisations may also need less common integrations, such as with:
- Time and attendance systems
- An engagement survey platform
- An expenses system
- A digital right-to-work and/or background checks provider
- Specialist systems, such as a school information management system
- Microsoft Power BI
If your current HRMS software doesn’t have the capabilities to integrate all the applications you need, it may be time to consider a new system.
Watch our recent webinar (above) for an even more in-depth look into the signs you’ve outgrown your HR system and what to do next.
Transform your organisation with Ciphr’s HRMS software
Keeping up with the latest technology is crucial to stay ahead of the curve and remain competitive in the modern workplace. As your organisation grows and changes, it’s important to assess whether your current HRMS software is still meeting your needs. By recognising the signs of an outdated or inefficient HRMS, you can take proactive steps to improve your HR processes, enhance employee engagement and streamline your operations.