Software has become the new way to manage HR. But choosing an HR management system that fits the needs of your business is a big decision.
The shift from spreadsheets and locally hosted folders to cloud-based platforms has streamlined and automated many daily administrative tasks. Digitized HR has the opportunity to positively impact the experience your employees and managers have at work.
What is an HR Management System (HRMS) used for?
An HR management system (HRMS) is most commonly an information management system to house all employee records. Employee profiles include personal and secure information such as an employee's job descriptions and history, salary information and changes, bank and tax details, and benefit allowances.
An HRMS helps to streamline HR processes such as on and offboarding and to automate many daily tasks. The onboarding experience is extremely important. A positive onboarding experience can enhance productivity and improve retention rates in the business by up to 82%, while ineffective onboarding can lead to almost 17% of new hires leaving within their 3-month probationary period.
Modern HR software platforms cater to more than the HR department. Entire companies, from executive management to employees can utilize software features to manage their HR tasks. Common features include time and attendance tracking, benefits management, performance management, employee engagement activities, and integrations with other business functions such as finance and payroll.
Determining Organizational Needs
When looking to implement a new HR system into your business, there are many considerations, from feature capabilities and user-interface, to access and support. Ensuring any HRMS you are considering is compatible with the hardware and other software you use within the business is important. (Learn more about Top 5 HR Software Systems in Singapore for 2024)
There are some basic requirements that can be non-negotiables when looking at HR software. Depending on your business policies, there may be a specific need for cloud-based or locally hosted software.
The ability to manage HR together with payroll is also high on the priority list of SMEs, to avoid the need for multiple and often disconnected systems.
How to Choose the Right HR System for My Business?
Below are some of the features that HR software can include. Take time to make a checklist of which are most important to you now, and a further list of features you expect to need once your business grows.
Feature Capabilities
Determining your list of must-haves before you start can ensure no nasty surprises down the line. You’ll avoid onboarding a tool that doesn’t fit all of the needs of your business, or won’t be able to adapt with you as you grow.
- Information and data management
- Employee insurance
- Feedback and peer-recognition
- Reporting capabilities
- Form processing
Payroll
HR and finance often go hand-in-hand. In small businesses, it’s often managed by the same person. In Singapore, it’s common to outsource payroll due to the complications and statutory requirements that can be hard to navigate. Keeping on top of policy and regulation updates is an added burden to administrative and payroll staff. (Learn more about What is Payroll and How to Run Compliant Payroll in Singapore)
Many modern HR platforms integrate with payroll or offer payroll and tax-filing capabilities. The software providers take care of managing updates to legal requirements. Automatic calculations and filing of CPF and other statutory calculations can help you stay compliant with local legislation, and avoid fines for late payment.
If you can find a provider who fits your basic needs and includes payroll, you may be able to save money by managing payroll in-house.
User Interface
Your HRMS should be simple to use and intuitive. This is a big consideration when onboarding software that should simplify the lives of your HR administrator, and be used by the wider business teams. An intuitive interface is easy to learn and onboard across your business. If the tool is widely used it can simplify the tasks of HR administrators and ultimately increase the productivity of your business.
Accessibility
It’s important to look at the ways your team will interact with the software that you implement. Many legacy HR processes are physical and document-based. They are often housed locally which can cause issues of access and security.
Determine who in your business will be using the software. If you are looking for a basic system only for HR administration, local hosting may be suitable. But if you’re looking for a more comprehensive tool that combines people operations with employee engagement and more, cloud-based programmes are more suitable to give wider access and access from anywhere on-demand.
As teams increasingly shift towards remote and flexible location work, access to software is a key consideration. Digitizing workflows and content can improve the transfer of company information, and ensure data is accessible no matter where your teams are.
With employee access to an HRMS via the internet or through mobile applications, individuals have access to their information and documentation on-demand, saving HR resource.
Customization & Scalability
Businesses are as unique as the people that make them. Check that the HRMS you’re looking at allows for modifications or can be customised to suit your specific business needs and that it will be able to grow with your business.
Here are some questions to consider:
- Can the system be set up with naming conventions you use in your business?
- Can features be enabled and disabled by user?
- Is there a limit to the number of employees the software will support?
- How can new employees be added and onboarded?
- Can the software be used across multiple devices?
- What features do you need now, and which do you see your business needing in future?
- How is the software maintained and how often is it updated?
- What features are on the provider's product roadmap?
Integrations
Take a look at the integrations the HR system offers. Being able to connect your people management platform with other business processes can streamline internal workflows. Can expense claims be handled in the same system as payroll? Does your payroll connect to your accounting system?
Integrations may not always be built-in but can be offered bespoke by the software provider. Make sure to ask when weighing up your options.
Customer Support
An HR software that is easy to use and able to be managed alone within your business should be a top requirement. However, if issues do surface, it’s good to have someone on-hand to support you. Check if customer support or account management is provided in the software you choose. This can save a lot of frustration and downtime.
Cost
While cost is sure to play a large role in the decision of acquiring an HRMS, consider the cost in terms of value that the software will bring to your business. A system that allows the management of multiple HR functions can save time and money in the long run. Additional features such as integrated payroll and benefits also allow you to keep their management in-house, rather than outsourcing to corporate secretaries or payroll providers.
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Every company has a way of managing HR administration. For some small businesses, this may still be manually through spreadsheets or paper processes, but it always exists in some form. Digitization has simplified and streamlined HR management, with dedicated HR system saving time and cost within businesses.
There are many software options available that cater to businesses of all sizes and requirements. From standard information management systems to platforms that support onboarding processes, day-to-day people operations, and employee engagement and benefits.
Evaluating the needs of your business and teams is the first step to take when considering implementing new technology. Once you have set your non-negotiables and made a list of the additional features that can support your growing business, it’s easier to find the solution that will best fit your business.
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Are you searching for an HR platform to support your growing business?
Swingvy is an all-in-one cloud-based Human Resource Management System (HRMS). Swingvy’s mission is to create a workplace where work empowers people. By seamlessly connecting all HR information — HR, leave, claims, payroll, and benefits — Swingvy automates all administrative work without hassle.
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