Determining the Need for an HRMS Solution

Tim Padva
April 2, 2012 — 2,612 views  
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Researching business technology can be a daunting task and finding a Human Resources Management System (HRMS) that meets the unique needs of your business, and offers ease of acceptance by your employees, can present a challenge. To begin this process, I suggest exploring a Web-based HRMS solution, which avoids the pitfalls of a costly software purchase, internal IT involvement or a lengthy implementation process.

Prior to selecting an HRMS solution, you must identify your business needs, processes and short and long-term goals. Including HR professionals, who manage your current HR operations, in the process is also critical, as it will impact embracement versus abandonment.

Regardless of the size of your organization, the daily management of payroll, benefits administration, training and other continuously changing HR needs can be challenging as well. Web-based HRMS platforms offer attractive options for many organizations, especially small and medium-sized businesses (SMBs) looking for a centralized, integrated and cost effective solution.

Empowering employees to self-serve offers significant time-savings for the administrator or department. Using a Web-based HRMS, employees can easily access the system to print a pay stub, W-2’s, enroll in employee benefits, view their paid time off, and update personal information. Providing real-time access to vital information equips employees and HR managers with tools to eliminate unnecessary HR workflow.

Security and the HRMS Solution

Of critical concern when embracing Web-based HRMS systems is security, especially with respect to safeguarding company data and employee privacy. When selecting an HRMS solution, be sure that it utilizes a secure transmission method such as Secured Sockets Layer (SSL) for encrypting data as it flows over the public Internet.

Next, make sure that the password policy for the application adheres to your own internal procedures. You wouldn’t want your HR Administrator to use a password that can be easily guessed. This can be easily overlooked but would enable a security breach that would jeopardize the privacy of your company’s data. Make sure the application includes rules to prevent any unauthorized access.

Finally, you really should have buy in from your own IT leadership team by integrating them into the evaluation process with potential vendors in terms of security policies, data access, and backup and recovery procedures.

To balance security with accessibility and scalability, you should discuss your integration needs with potential solutions providers as well. Skew toward vendors with open database platforms (ODBC compliant), such as Oracle or Microsoft SQL Server, as opposed to proprietary or mainframe systems.

This will offer the most flexibility particularly when you require integration with other applications as an immediate need or in the future as your company grows.

Look for other features including XML (Extensible Markup Language) support and robust reporting capabilities to ensure that you can easily pass information from one application to another. This is critical with a payroll application as you’ll likely require feeds to accounting packages and third parties including retirement plans and benefit providers.

Track and Manage Your Most Valuable Asset - Your Employees.

Utilizing a Web-based platform allows you to streamline the entire HR lifecycle from recruitment and training to payroll and benefits administration. Consolidating these processes into once system allows small and medium sized businesses to proactively manage HR operations and improve efficiency.

Most Web-based HRMS platforms offer much more than HR and employee benefits services. Look for a solution that offers a wide range of service offerings including payroll, talent management, applicant tracking, recruiting tools, pre-employment testing, background checks, labor law resources and skills training. Robust and user-friendly reporting tools are also critical.

While employee access to a wide range of HR lifecycle services is helpful in streamlining HR processes, it is extremely important to choose a Web-based HRMS platform that is easy to use. Employees are less likely to embrace these services if they are too complex. Keep it simple.

Regardless of industry or size, an HRMS platform can help small and medium sized businesses achieve unprecedented levels of efficiency and productivity and can offer your organization the tools and services to stay competitive. This provides you an edge by enabling you to focus on your core business.

The key to finding the right HRMS system is selecting an HR business solution that is secure, well-supported, and equipped to help you reach your goals. With a centralized Web-based HRMS platform to support your HR department, you have the ability to successfully track, manage, and control your most valuable asset, your employees. 

Tim Padva

CheckPoint HR

Tim Padva is President, CEO and Co-founder of CheckPoint HR. The company's complete portfolio combines payroll, benefits and HR management services with a web-based Human Resource Management System (HRMS) technology platform.