Top 10 Most Used Human Resource Management Software And Their Importance In Employee Lifecycle
As a business expands, workforce increases. For management to effectively implement the organizations strategies, managing the workforce is important. Management of the employees life cycle in the organization is a cumbersome task and can get extremely complicated if done manually. To avoid that, various types of HR management systems are used at different stages of the employee’s lifecycle to ensure a smooth functioning of the Human Resources organization. While there are numerous management systems, here are the 10 most used HR management systems:
Payroll Management System
The objective of a Payroll management system is to deal with the financial aspects of an employee. For example: payroll, salaries, deductions, allowances, etc. Most modern day Payroll management systems are easy to implement, and provide a wide range of features. Features such as managing employee information, report generation, generating employee payroll information, managing leaves, attendance etc.. They also enable management of different processes of employees depending on their grades, hierarchy and salary structures. Due to its ease of implementation and transitioning from one system to another, payroll management systems are widely used even in smaller organizations. Payroll management systems save time, effort and bring efficiency to the organization. Gusto and OnPay are widely used software for payroll management.
Compensation Management System
A robust compensation management system enables an organization to ensure its most efficient and skilled workforce’s compensation is managed. These include rewards, bonuses and benefits among others. It plays a crucial role since it requires a wide set of functionalities in determining the right set of compensation. A good compensation management system ensures that the best workforce is retained and grow in the organization. It also ensures new talent is attracted. The objective of this system is to encourage employees to strive to work in a healthy competitive environment while paying attention to their personal well-being. Workday Compensation and Glocent are two of this year’s most recommended software systems for compensation management.
Onboarding Management System
Onboarding is the process of addition of workforce / new employees to an organization. It is also used when there is a change in role of an employee within an organization. Automation of onboarding ensures that the mistakes committed by keeping manual records especially during recruitment are avoided and the process becomes well organized and efficient. This system is also useful for organizations in determining future leaders.
Performance Management System
The objective of this system is to improve and promote employee effectiveness. Performance management systems analyse and monitor employee’s objectives, goals and his/her contribution to the organization. It also enables managers and employees plan their career goals and identify improvement areas. A good performance management system should take into account the organization’s culture, the needs of the organization, present an accurate analysis of the employee performance, provide solutions and constructive feedback, etc. Synergita and Performly are recommended performance management systems.
Workforce Management System
Workforce management system deals in business metrics- to determine the optimum number of workers it would take to finish a specific task in a given time. Ideal business management software is entitled to perform a few core functions such as labour scheduling, time and work data collection, leave management, task and activity management, time and attendance, etc. Within these core functions, the system collects and reports detailed information on labour use, manages employees’ skills, processes paid time-off requests, receives inputs and reports from related modules and applies rules for efficient time management among others.
Learning Management System
Learning management system takes care of all aspects of the organizations learning. More importantly the administration, documentation, planning, assessing, reporting, and implementation of courses or training programs of an organization. An LMS typically helps its user in monitoring student participation, evaluating student performance, and providing higher learning features such as threaded discussions, distance learning, and discussion forums. Key features of an ideal LMS software include ease of use, flexibility and adaptability, understanding the needs and goals of the user, efficient delivery under technical constraints, etc. LMS software are available across a wide range of pricing models, delivery models and infrastructure. Cornerstone Ondemand, TalentLMS, Adobe Captivate Prime, SumTotal, Docebo and Moodle are popular LMS software.
Succession Planning System
Succession planning is the process of identifying the most suitable candidates within the organization for leadership and other key roles. Succession planning is important because in today’s highly competitive environment, companies cannot afford a dip in performance due to lack of succession planning. Organizations need to identify and prepare potential employees for key positions well in advance. To carry out succession planning efficiently, talent management systems are also used.
Talent Management System
Fundamentally, a talent management system assists an organization in hiring employees, keeping track on their performance and retaining them. At various points in the employee lifecycle, right from onboarding, HR managers can compile important information on each employee in the software and use the data to improve the recruitment process and hire the best talent. A great use of this system is in identifying future leaders through analyzing their performance and skills over time. Due to their functions, talent, performance, and compensation management systems are interdependent in nature.
Employee Self Service System
Employee self-service systems or ESS help in enabling employees to handle tasks such as scheduling, payroll information, changes in personal information, etc. on their own, which are otherwise managed by the human resources departments. ESS allows employees to request time-offs or change/update personal information. These systems have an inbuilt predefined hierarchy for approvals etc.. ESS helps employees in making tasks easy especially those aread which require manual effort such as filling forms etc. Oracle, iClick and PeopleSoft are recommended ESS software.
Course Management System
While course management system is considered similar to an LMS, there’s a difference between the two. A Course management system is narrower in scope than its elder kin and specific in terms of features. A course management system deals in the distribution and management of course content or program. Although course management is a feature provided by most learning management systems; A CMS is not required to be SCORM compliant. For organizations to achieve short term objectives, a CMS is advisable.
Every HR management system has an impact on the various stages of the employee’s lifecycle. Proper implementation of each of these is critical in building a robust system. It is important to remember that although all of these systems serve specific functions, interconnectedness between systems is important.
Top 10 most used HR systems; in the employee lifecycle;
- Payroll Management System
- Compensation Management System
- Onboarding Management System
- Performance Management System
- Workforce Management System
- Learning Management System
- Succession Planning System
- Talent Management System
- Employee Self Service System
- Course Management System