Why should startups invest in HRMS?
A complete HRIS/HRMS software solution switch can work wonders for a well-settled organization. The switch to the said software is a one-time investment that is bound to produce immediate and effective results. Countless features of HRMS-360-degree PMS, Automation of workflows, Customized Attendance & Leave Management, Work Productivity, Employee Engagement, Advance Analytics, to name a few – revolutionize the way an HR professional works.
No doubt inculcating HRMS into a company is a good choice. But do you need to wait for your company to become a large organization to be able to consider HRMS software? Not at all.
In the given time and age, HRIS software has proven to be a game-changer in managing the workforce effectively. So why not start using it from the beginning?
India had about 50,000 start-ups in 2018; 8,900 – 9,300 of these were technology-led start-ups, 1300 new tech start-ups were born in 2019 alone implying there are 2-3 tech start-ups born every day. Start-ups in the country create 40,000 new jobs over the year, taking the total jobs in the start-up ecosystem to 1.6-1.7 lakh.
With such an overwhelming workload and responsibilities, managing a start-up is no easy task. It takes a lot of commitment, investment and even more hard work to nurture a start-up into a full-fledged business. There are a lot of decisions to make and every each one of them affects your future as an organization. At first, it might seem redundant to choose HR software when there are more pressing matters to attend to cost-wise. However, that is not true at all.
Here is why setting up HR software is imperative for start-ups;
It is very important to have the best employees to help your business take off smoothly. Statistics show that business fails 23% per cent of the time because of wrong people working in the company. Having an HRMS with an onboarding feature can ease the burden of going through multiple candidates, sorting through documents and choosing a select few amongst the initial bulk. The recruitment features have flexible settings which automatically filter all applicants according to your requirements, saving time and labor.
- Rationalize workforce
Running a company is hectic and the workload is overwhelming. When your company is just starting, you need all hands on deck. You cannot spare time looking into every employee’s daily work or their monthly contribution or their paycheck. With an HRMS you won’t have to spare time for simple things. HRMS software and its automation system allow you to customize daily processes. Responsibilities like daily attendance, payroll calculation, employee KRI can all be monitored by HRMS software, saving your time. Promote productivity amongst your employees. It is necessary to keep up their morale even when the work is hard and the hours are long. According to Gallup, 67% of employees worldwide are “not engaged” with their work. If your employees fail to handle the workload efficiently, inevitably the company suffers. However, that can be easily avoided if you use your HRMS software smartly and keep up the good output of your workforce.
Creating a healthy work environment is essential for a growing company. With an HRMS inculcated, all processes become easier and you can focus on your employee mindset more tactfully. Observing the workforce gives you an insight into patterns of your employee’s work. You can mentor your employees and alter their work ethics once you know what change they need. Another important aspect of maintaining a good work culture is listening to employee feedback. Incorporating feedback into your daily work culture to start a healthy workspace where everyone feels valued. An HRMS allows you to have a one-on-one conversation with your employees anytime and resolve every issue with the case management feature. Know what your employees think of your leadership and improve with their feedback.
Having a disciplined office contributes better to success. With an HRIS/HRMS, you can create policies regarding office decorum, holiday leave, employee evaluations, benefits, dress code. Having policies give structure to your organization and leaves little room for queries. Introducing new policies can be beneficial in observing the work culture inside your office. Having a definite set of rules keeps people from descending into chaos by arguing over individual differences. Instead, uniformity brings people together and establishes a harmonious ambience in your workforce. Policies ensure a better working environment and give the office a sense of order. HRMS observes policy execution and maintenance of discipline.
- Employee centricity
Your company depends on you and your employees. Therefore, it is necessary to think of your employees as well and allow them to broaden their horizons. LMS feature in HRIS/HRMS software provides every employee with training programs. The LMS feature allows HR to create batches according to their caliber and provide self-paced courses. According to LinkedIn’s 2018 Workplace Learning Report, 94 per cent of employees choose to stay with their company if their career development was improved.
An HR holds a lot of responsibilities in a start-up. Without strategic plans and execution, the start-up can suffer. Mismanagement leads to a severe workload which makes employees anxious, have low morale, fatigue and promotes negativity inside your office. Therefore, it should be a chief concern of any start-up to maintain the good and smooth functioning of HR responsibilities. Some basic tasks of an HR include ;
- Handling Legal Aspects– Needless to say, every start-up must be completely abiding by all laws. HR must ensure the company is protected by potential lawsuits. Ensure that you stay updated on employment rules (medical leave, parental leave, etc.). Establish clear policies to help employees understand their rights and the organization’s expectations.
- The well-being of People– The life of every employee is yours to take care of when they are working under you. It is your foremost duty to provide them with a safe environment to work in. implement safety measures wherever necessary. The well-being of people also includes their mental health. All employees must feel valued and have a safe space to talk about their issues freely. Their mental health affects their devotion to work.
- Giving Pay and Benefits– Pay your employees timely and accurately, and offer relevant benefits, such as health/vision/dental insurance, paid time off, and life insurance. Having an HRMS/HRIS software enables a self-service portal to give them details and a list of benefits in their profile. Having adequate policies for all the above-mentioned benefits is HR’s task to execute.
- Keeping Records– To have effective analysis of your workforce, it is necessary to safe keep all their related documents, their databases. Information like their business records, resumes performance evaluation, vacation time, and workplace accidents should be kept secure and only available to a select few. In 2016, 50% of the companies reported a ransomware attack. According to Cisco, DDoS attacks increased by 172% in 2016 and is expected to grow by 2.5 times by 2021. Hence, having data security was never more important.