Contact us anytime to know more - Abhishek P., Founder & CFO CISIN
HR or human resources is an inseparable part of any business ranging from small to big corporations. Managing and acquiring skilful employees has improved prominently over the years.
Due to this department's complexity, it has been divided into several subcategories too. These mainly include recruitment, onboarding, and employee retention.
Different kinds of people serve each purpose in this department. Some recruiters take out the best employees for several departments.
The primary function of retention managers includes the creation of a healthy working environment in every organization. Other than that, there are training and development managers who help the employees to develop their skills. Additionally, HR generalists help with everything in the HR department.
Several processes are very complex. In this scenario, every organization needs software that can help to simplify HR-related processes.
But for that, there are several things that one needs to know.
Types of HR Software:
Nowadays, many products in the market are made by a CRM development company that can help HR management. The HR software can help enterprises track and report almost all processes, from onboarding to performance control.
There are mainly three categories in which HR software can be categorized. They are ranked based on their functionality. The first one is HRIS (Human Resource Information System), the second one is HCM (Human Capital Management), and the third one is HRMS (Human Resource Management Systems).
All of these have different functions and purposes. CRM software development services have changed the way HR departments work.
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The complex data related to recruitment, performance management, benefits administration and payroll is tracked by HRIS.
Two of the most popular and essential HRIS software solutions are BambooHR and the open-source software OrangeHRM.
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The HR department can use the HCM systems to acquire the employees and then invest in their overall development through the quality onboarding process, performance tracking, and salary planning.
For the evaluation and management of staff performance, there is an application named Zugata that offers advanced solutions.
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The functionality of the HRMS systems is similar to the HCM system. Mainly, the HRMS systems deal with tasks like payroll, time, and labor management.
There are some solutions like Zenefits that provide their users with some advanced features like onboarding and offboarding of employees and also alerts that are automated.
All these three have different types of features, but at their core, they offer the same functionality to their users.
HRIS is the parent type that includes both HCM and HRMS systems. When an enterprise is deciding about the right kind of HR software that has to be used, the software's type and name don't matter; what matters is what features it offers.
The company may hire custom software development services to get the features it wants in its HR application.
Software development services are now advanced enough to cater to enterprises' needs.
Understanding the working of Human Resource Information Systems (HRIS):
It has been stated in the article before that HRIS has the most functionality among all the three categories of HR software because it has the functions and features of both the other two types; now it is time to know about it in detail.
This type of software is sometimes called "talent management" software as it can manage the full circle of the employees, and its steps will be outlined further in the article.
Recruitment:
The recruitment process is complex; many tasks must be managed nicely. Otherwise, there might be issues with the quality.
The functions in the recruitment process are gathering the requirements for a potential candidate for the position, placing a job vacancy on the job boards, conducting the interviews of the shortlisted candidates, and finally, deciding which candidate is the best and should be hired.
To understand how HR software can help HR managers in the recruitment process, here is an example. Within an enterprise named Zenefits, The HR managers can fill in the information for the posts of job and then push these job posts onto some popular employment/job search website.
An application named Workable makes the hiring process very easy by providing the recruiter with an option to track the hiring status, schedule the interviews, evaluate the candidates with their mark sheets and then create reports for future consideration. The software development services have made HR operations very manageable.
Onboarding:
The process of onboarding is very important and delicate, the employees who join a company freshly might need help in adjusting to the work environment.
The onboarding process has a well-defined set of procedures aimed at handling some common issues that may occur when the new employee is adapting to the new environment. Nowadays, this process is not just bound by rules; it has become much more creative than ever. The employees in the HR department have to work hard to make the onboarding process fun and welcoming by organizing informal events like lunches and dinners, first Friday nights with their colleagues, etc.
HR tools like Hibob can realize the onboarding features by creating and developing tasks that are then assigned to the responsible employees.
The employees can confirm or reject these assignments/tasks within their system; they can also mark them as completed and receive notifications about the pending charges and the newly lined-up jobs.
Tracking of the Performance:
Tracking the performance of the employees is very important to modern companies. It is one of the most critical factors that help them in their overall development process.
Every company wants to improve themselves and also their employees. Tracking the performance of every individual employee may help the company figure out a strategy that can help them increase the efficiency of the employees and the organization.
Monitoring or tracking the employees' performance can also help motivate them. The HR department can develop a system in which they appraise the employees who perform well in a specific period.
This system can increase the overall production or services of the organization. There are personal development plans to track the performance of the employees in an organization, this is according to the rules of that organization.
Achievement lists and personal interviews are also used, and the aim of doing all this is to evaluate every employee's development or progress.
Modern organizations have started using new tools to track the performances of their employees. They might implement personal dashboards that will show a visual overview of the progress, notifications about the submission of the reports, and checkboxes.
All this can help in monitoring the progress of an employee. There are applications like Namely that allow employees to set goals for themselves. The employees can later mark them as completed when they finish them.
These modern applications also offer the HR departments access to the dashboards of the employees so they can analyze their performance.
Management of the Benefits:
Benefits are the indirect compensations provided to the employees, and they are different across all companies. Some of the benefits given to the employees are because of the law, like holiday packages, sick leaves, and maternity leave.
Most companies provide benefits to their employees because they want to boost retention. They want to offer competitive packages to the employees they think have the potential they need. If an example of a medical benefits package is to be taken, some benefits include dental and vision care.
Also, insurance for any accidental disability and some fitness-related benefits are included.
HR software companies try to automate the benefits as much as possible. This is done by developing a benefit plan and assigning these plans to the employees.
This is the method used by the HR management software Zenefits to streamline benefits management, eliminating the need for a complex spreadsheet.
Training:
Training and teaching employees new skills are critical in today's time. The trends change very rapidly, and the technologies too.
The employees need to improve themselves and learn about anything new related to their area of work. The organizations provide training to their employees about the things that they feel are important for them. This might improve the efficiency of the individual employee and eventually will improve the efficiency of the organization.
The responsibility of the HR manager here is to organize training events for the employees. Managing the training process can also become challenging sometimes. The companies have specialists and they may need different educational strategies.
This does the job of HR to organize the training event complex.
Just like the Benefits Management with cloud application development services, the HR software streamlines the training processes here.
It makes them automatic processes instead of planning them into a spreadsheet. For example, the HR managers have to develop training events and invite the employees to them. They have to send notifications about upcoming milestones.
They also have to evaluate the employees' progress throughout the training process.
Payroll:
Most people think that the finance department handles payroll-related tasks. There still are some tasks related to the payroll that the HR department takes.
HR managers still have to manage issues like tracking the information about the salaries of the employees, the number of vacations they have gone on, the number of sick leaves, etc.
The payroll features in the HR software store information about all the benefits and compensations. It can also generate a report about an employee's earnings in a specific period.
Some applications like Gusto offer users notifications about their upcoming payroll. It also has a dashboard showing employees their work hours and rates. This allows the HR managers to add bonuses, commissions, and reimbursements to the payroll.
Read More: What are the Common Features of HRMS & HCM Software?
Issues Happening with HR Tools:
The existing tools of HR departments provide a massive amount of valuable features. But still, there are a few drawbacks that need to be discussed
1. Numerous Tools:
HR tools can only do some of the things that need to be done by the HR department. An organization will need many HR tools to make all the processes of the HR department automatic.
For example, the company will need an application for onboarding and offboarding. They will need another app to take care of benefits, payroll, and training. This way, they will need many tools to make the process fully automatic.
Using these many tools simultaneously can increase confusion and may also be frustrating.
There still are some applications that act like a Swiss knife for the HR departments. Some applications can cover the entire talent management cycle, from the recruiting process to onboarding and retention.
These applications are pretty practical for organizations. A custom software development company can make personalized applications for organizations. This way, they won't have to use many tools.
2. All HR tools cannot Engage the Employees with the HR Manager:
This is one of the most significant drawbacks of using HR software. There is some HR software that cannot connect the employees with the HR managers, and that creates a communication gap.
Nowadays, some HR applications can engage not only the specialists in the HR department but also the finance managers and the employees. Why is it essential to engage employees in HR software?
Firstly, the majority of the new employees are millennials, and they demonstrate an advanced approach to the work process.
These new employees are not just interested in getting paid; they also want to learn new skills and be essential to their organizations. Secondly, the internet and social networking sites have made it very easy for people to gain knowledge about anything they want.
This is why the CRM Development Company should focus on developing a product that can engage employees and HR managers.
3. Bad User Interface:
Mostly the User Interface and the user experience of this software could be better designed. The users find it very difficult to use the available features and often need help finding them.
The application's structure is complex, so users cannot only be afraid of the application. This is why most of the users are disappointed by the HR software. Some applications are still donated to be fixed on mobile devices.
Some software doesn't even have a mobile version. In this modern era, companies need an HR application with a mobile version. CRM development services need to stay updated with the latest technologies.
Outdated technologies will not provide any benefits to businesses in today's time.
The Cost Involved in Building an HR Application
There are many factors involved that decide the cost of any application related to the human resource department.
The features that affect the price are:
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Recruitment module: Expected Cost is $25,900-$2900
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Onboarding module: Expected Cost is $22,700-$25,200
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Tracking of performance: Expected Cost is $11,600-$13,000
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Management of benefits: Expected Cost is $11,600-$13,000
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Training module: Expected Cost is $13,000-$14,400
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Payroll module: Expected Cost is $23,300-$25900
Final words
HR software can help organizations to achieve great success. Organizations can also consider SaaS application development for their HR application.
SaaS application development services can help organizations in more ways than a native platform-based application. Cloud Computing Services are improving at a very rapid pace. Small organizations that cannot afford a personalized application can use cloud HR applications for their operations by paying them subscription charges.
HR software takes a lot of time and money to be developed. So, small organizations prefer cloud computing services.
