Article: HRMS and payroll software increase efficiency


HRMS and payroll software increase efficiency

Such products can help HR do its administrative job effectively and give it time to concentrate on more important tasks
HRMS and payroll software increase efficiency

While larger organizations have started looking towards technology to speed up work and make employee interaction more efficient, often it is smaller organizations or start-ups that are seen to be dilly-dallying its use


In many organizations, 50 per cent of an HR department’s time is spent processing employee information and answering questions. The HR manager faces a dilemma on whether s/he needs to spend more time improving the overall work environment for the employees or help the management find ways to save on workforce-related costs, finding and hiring better talent and improving existing talent through training and development. But most days, they are trapped just doing paperwork.

This is where HRMS and payroll software come into play. The routine administration involved in day-to-day HR operations drains most of the available time and energy. An efficient HRMS and payroll software caters to their needs by automating core HR, benefits, and payroll processes for increased efficiency and productivity.

The payroll software can help an HR manager by managing compliance and risk of litigation, ensuring accurate and timely payroll etc. Payroll software helps you in computing bonus/ ex-gratia, gratuity, provident fund, employee state insurance, professional tax & Labour Welfare Fund (Please check) through some preset formulas and also helps in computation of returns.

Effective use of HRMS and payroll software delivers three pronged results: It improves results, increases efficiency and lowers costs. Demand for such products have increased over time as such software have helped companies to effectively deal with manpower projection to training management, attendance management, leave management to employee exit management and reduce the manual workload of administrative activities.

Companies who want to follow the growth path will have to implement these sooner or later, so the question isn’t whether HR technology will be accepted. The question is why should companies do it sooner rather than later.

Though there is increased awareness about these systems, often the urgency with which they need to be implemented is ignored. Usually this skepticism arises from a belief that such systems are too costly and companies aren’t able to see their RoI before implementing those. Talking of costs, if only the direct costs (namely salaries of employees involved into payroll) are taken into consideration, the HRMS & Payroll software can be apparently seen as expensive, but if the costs are taken cumulatively like direct, indirect (like, server cost, stationery cost, telephone cost, other overheads) and incidental expenses involved into it, then it will be far more cost effective.

Now, comes the necessity part. While larger organizations have started looking towards technology to speed up work and make employee interaction more efficient, often it is smaller organizations or start-ups that are seen to be dilly-dallying its use. The fact is that they need it as much as a large organization does. HRMS or payroll implementation early on can propel a company towards a more systematic work atmosphere and save a great deal of time for its HR to look into things it should. Not only does it help HR save a lot of time, but it is also pretty accurate.

Also, effective implementation of these systems is also essential. There is no ‘set’ way of using these systems to a company’s benefit. These systems should be part of the processes and implemented to suit work requirements. One of the biggest mistakes HR can make is to be unclear about what a company wants out of a software before buying it.

One essential point is to study the module of the HRMS and payroll software one is opting for. The module of the HRMS should ideally cover manpower projection, recruitment process, induction process, performance appraisal, training management, attendance management, leave management, loan and advance management, income tax management, employee exit management etc.

Similarly, payroll software should have this to offer: Integrated biometric attendance, salary computation, compensation management, leave management, management of arrears, loan and advance management, management of disbursements, bonus/ex-gratia, gratuity etc.

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Topics: HRMS, HR Technology, Technology, #HRIndustry, #Trends, #Social Media

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