16 Ways HRMS Optimizes Employee Engagement and Productivity

Employee engagement is a major factor behind the long-term success of a company. Engaged employees are highly motivated, productive and are committed to their day-to-day work. This helps them to perform to their potential. They also have a high level of job satisfaction.

However, according to a  State of the Global Workplace Report shared by Gallup in 2023, 85% of employees worldwide do not feel engaged at work. Disengaged employees can also have an impact on a company’s work culture. As per  a study by Harvard Business Review, companies with low employee engagement scores have 18% lower productivity and 16% lower profitability in comparison to those with higher engagement levels.

Making good use of Human Resource Management System (HRMS) can help you to solve the problem. This blog highlights the HRMS impact on production and efficiency. As per studies by MarketsandMarkets, global market size of HRMS software is projected to grow to $30.5 billion by 2025, with a CGR of 10% during the forecast period of 2020-2025. Cloud-based HRMS solutions offer scalability. This scalability is ideal for businesses which have fluctuating workforce sizes.

Such software can help you simplify HR processes, engage employees, and ensure long-term business growth. The major advantages of using HR software are process optimization and automation.

16 Major HRMS Impact Benefits That Ensure Long Term Retention and Boost Employee Engagement

Source: TestGorilla

1. Streamline The Recruitment Process

Potential employees form an impression in their minds about a company during the recruitment process.

Optimization of HRMS will help you to automate repetitive tasks related to recruitment and enable you to use collaborative tools for recruitment.

A high level of efficiency helps to improve the efficiency of the new employees and helps you to create long-lasting relationships with them.

Automation of time-consuming tasks helps companies to shorten their time-to-hire, ensuring that they secure the best talent.

2. Performance Management

HRMS impact software can help you to measure employee performance metrics in a better way.

Such software offers a comprehensive people management module, enabling you to set goals, track their progress, and offer real-time feedback.

Therefore, the staff of your organization can have a clear understanding of how they are performing and their key areas of improvement.

This software enables the staff of a company to understand their roles and responsibilities as it implements an effective performance management process.

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3. Create Group Chat and Discussion Forums

You can utilize this method to communicate at the workplace and minimize time for communication.

It will help you to build a transparent culture via social intranet. It minimizes the chances of anyone missing an important update as they will receive instant notifications of the chat or message once they get tagged.

This platform enables employees to share their honest opinions openly and helps in building employee engagement.

These discussion forums offer a centralized platform for staff to communicate with each other, ensuring better collaboration, knowledge sharing. Transparency within an organization also increases.

4. Offering Real-Time Reviews and Feedback

A new joinee isn’t aware of your company’s work culture or expectations from his manager. As the HR manager, you can use the HRMS software to share reviews and feedback in real-time with the new employees.

You can also use it to gain insights from surveys and performance reviews about what employees feel about the company’s work culture. It helps to build strong professional relationships between employees and staff.

Rather than traditional bi-annual or annual reviews, HRMS enables performance management to be done continuously. Managers and staff can share their feedback and review progress periodically, thereby ensuring timely, relevant insights.

HRMS can provide 360-degree feedback processes in which the staff will receive feedback from different sources like managers, peers, subordinates. This feedback can be shared in real-time through an HRMS platform.

5. Reimbursement Management

Today, real-time reporting and approvals ensure accurate, timely payment of reimbursements. So, staff no longer have to maintain copies of receipts of each expense and manually add the details in a report.

Employees often spend their own money on performing company-related tasks. Complex administrative processes to reclaim the money can often make your staff feel dissatisfied. Few of them devote their time and effort to learning about the existing cost processes to manage these expenses.

An efficient reimbursement management process can be possible using employee expenditure reimbursement software, using which you can customize rules, set the limits related to spending, and define the approval process.

The approval process must be made smooth and quick so that your staff does not have to spend a lot of time to get their reimbursements.

6. Creating An Inclusive Work Culture

HRMS platforms are equipped with features that help to boost collaboration and inclusivity. These tools can be used for communication, collaboration and knowledge sharing.

HRMS impact will also help you to monitor diversity and inclusion metrics within your organization and track the areas of improvement.

7. Staff Self-Service

Self-service of employees is one of the vital aspects of reliable HRMS software. It offers a user-friendly self-service portal that employees can use to view their details, including pay slips, time-table balances, etc. at one location.

This feature helps in HR optimization as it minimizes the administrative burden of the HR department and offers employees more control over specific responsibilities. For example, requesting time off, updating personal information, and accessing HR policies can be performed online using the HRMS software.

The HRMS helps employees stay connected with the company and have hassle-free information from the HR department. Their commitment to their organization will therefore rise because of greater transparency and clear communication.

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8. Data-Driven Decision Making Process

HR managers can gain access to insight reports and analytics from HRMS. These reports can help you to track trends and measure the effectiveness of different engagement activities and make data-driven decisions.

Opting for such an approach will enable you to make strategies based on the preferences of your workforce and make your engagement efforts more successful.

9. Planning of Shifts

The work timings of the staff need to be regulated carefully to enhance their productivity. They should be assigned convenient shifts that are customized to their needs.

Using HRMS software, you can make informed decisions related to extra time, on-call hours, work expenses, etc.

A uniform shift policy and weekly holidays will enable all employees of your company to refresh themselves. Working from home is a great option for employees working remotely as they can engage with their co-workers effectively.

Modern HRMS shift management systems offer more flexibility and autonomy to employees to manage their work schedules. They can view their shifts, swap shifts with their coworkers, or request time off from the system. A high level of comfort helps to create employee engagement, since it enables them to plan both their personal and professional lives effectively.

10. Payroll Management

Payroll is one of the most commonly added functions of an HRMS. Time, attendance, workforce scheduling, and absence management are some of the most common HRMS features that offer the information required for calculating payroll. Due to its independence, having an HRMS payroll ensures fewer errors. Therefore, employees spend less time fixing these errors.

A company’s compensation system needs to be fair, timely, and according to existing industry standards. Money is a major motivator and drives employee satisfaction which makes them feel that they are receiving ample compensation, on time and thus they will put in their best efforts at work.

11. Training and Development

Training and development of staff is a major aspect of the engagement and retention process. Your company’s staff will decide to stay for long only if they feel that they are growing in their existing job role. You can rely on HRMS software to manage the training and development programs. It helps to groom their skills and abilities, thereby improving their value within the organization.

This type of software helps to build and offer personalized training content for the staff, measure their progress, and assess the effectiveness of such programs. Companies that invest in employee development are highly committed to their growth. This helps to create long-term retention.

12. Addressing and Overcoming Challenges

Implementing HRMS for improved employee engagement can face resistance from within a company. So, you need to address concerns, communicate the benefits of having such a system, and also offer ample training and support.

By sharing the positive impact of HRMS on recruitment, onboarding, and performance management, apart from employee experience, you can overcome resistance and convince your co-workers to adopt these tools.

13. Recognition and Rewards Programs

Recognition and rewards play a major role in employee engagement and satisfaction. HRMS software can help you to execute the implementation of recognition programs by offering features for tracking and recognizing employee performance.

It enables managers and peers to offer recognition, feedback, rewards, or incentives on time. By creating an atmosphere of appreciation, you can encourage employees to perform to their true potential and boost their engagement.

14. Employee Feedback and Surveys

The latest HRMS software is equipped with features to conduct employee surveys and to collect feedback. Using these tools, you can gather valuable details on employee satisfaction, identify opportunities for improvement and also address prime concerns of employees.

By actively asking for employee feedback, an organization demonstrates its commitment to creating a great work atmosphere and improving employee satisfaction.

15. Transparent KPIs

HRMS offers analytics and dashboards that offer useful insights related to employee performance as well as productivity metrics. These tools offer insights regarding individual and team performance, highlighting their successes and also areas of improvement.

Transparent KPIs encourage staff to be more accountable about their work and offer them a clear understanding about their expectations. It helps to drive engagement by aligning goals of an individual with that of the company.

16. Online Leave Management

The presence of employee self-service dashboards are very useful for the staff. They can request leaves and managers can approve or reject them in the online leave management system itself. HRMS can handle different types of leaves as per configuration.

An effective HRMS can help you deal with multi-location holidays and leave policies also. Employees and managers can apply and approve leaves via individual apps, while working from home or travelling.

8 Ways HRMS Improves The Efficiency of An Organization

1. Productivity Gets Boosted

HRMS impact software can be used to boost productivity in different ways. It can be used by HR teams to track as well as manage overtime hours of staff. The software calculates overtime using predefined rules and creates reports that help the HR team to process payrolls. So, the HR team can instantly generate attendance and absenteeism reports and late arrivals.

You can integrate HRMS within payroll systems, and streamline the attendance data transfer and ensure accurate payroll processing. The software shares automated alerts to managers and employees for different attendance based events such as late arrivals.

2. Streamlining Administrative Tasks

HR administrative tasks are time taking. HRMS integration helps to automate processes like payroll processing. Employees can use self-service portals for simplifying tasks like attendance and time tracking. After all tasks are streamlined, the HR team can channelize their efforts on strategic investments.

Relying on predictive analytics and data-driven insights, HR teams can predict workforce trends, find out areas of improvement, and make informed decisions while working on talent management strategies.

3. Simplified Work Processes and Time Savings

One notable benefit of HRMS is that it helps HR teams to streamline their work processes. After time-taking administrative tasks are automated, the need for manual work gets reduced considerably. So, the HR team will get more time to work on high priority tasks.

Companies can improve the accuracy and accessibility of their data by centralizing it on HRMS. Streamlined processes and minimized manual intervention helps to improve an organization’s work culture.

4. Better Communication and Collaboration

To improve productivity, a team needs to collaborate and communicate effectively. HR management tools help companies to utilize digital platforms for communication and collaboration internally.

These tools help to ensureinstant communication, proper tracking of tasks and effortless sharing of knowledge among employees. Using these tools, organizations can enhance teamwork and create a conducive work atmosphere.

5. Factual Reviews

Time tested ways of  performance reviews rely on subjective impressions and memory, which are often inaccurate. Using real-time tracking, managers can do performance reviews utilizing objective data collected during the evaluation period.

Adopting a data-driven approach helps to ensure that all performance reviews are accurate and based on achievements, and create transparency and trust in the performance management practices of a company.

6. Ensuring Cost-Savings With Time Optimization

Automating the HR process helps organizations to reduce operational costs and maintain effectiveness at the same time. After all aspects of the HR process get streamlined through backend optimizations, companies can improve the efficiency of their HR operations. As per projections by PwC, cloud-based HRMS solutions can help companies reduce their HR technology costs up to 30%.

Automating repetitive tasks can help the HR department to save time and reduce the need for more resources. These cost-saving measures offer more flexibility, enabling HR managers to work strategic initiatives like employee engagement without going outside their budget.

7. Better Time Management

Efficient time management by the HR team by reducing administrative tasks helps them to focus on strategic initiatives. By reducing time on mundane tasks, the HR department can focus on areas like employee engagement, create new talent development programs and improve recruitment strategies.

Improvement time management enables the HR department to ensure organizational growth and success while efficiently managing day-to-day operations. It also helps to create a culture of innovation and adaptability within an organization, which is essential for excelling in a dynamic work environment.

8. Efficient Talent Management

Starting from recruiting and onboarding to performance management and succession planning, HRMS enhances the efficiency of talent management. Using its comprehensive features, companies can attract the best talent, nurture skills and retain them for longer periods, thus enhancing the competitiveness of the workforce.

Moreover, HRMS streamlines administrative tasks, enabling HR managers to focus on initiatives related to talent development and management. This helps to enhance employee satisfaction and boosts productivity of an organization.

Conclusion

Though the job market is highly unpredictable, adopting the use of HRMS software can help you detect issues early and resolve them. It is an effective tool for helping companies improve staff engagement and retention. Doing so can boost staff empowerment, streamline HR processes, and maximize financial results. The HRMS impact on staff engagement and productivity is phenomenal.

How Can ROCKEYE Help in Creating Customized HRMS Solutions?

At ROCKEYE, we have expertise in developing HRMS solutions which can help you to streamline all aspects of the HR operations process, be it recruitment or retirement. From ensuring efficient time tracking with employee timesheets to a centralized employee database, our HRMS solutions have it all.

Using our HRMS impact solutions, you can manage daily timesheet updates in one system. The employees of your organization can log in their work hours, track patterns and have a clear view of the way their time is being used. This will ensure efficient collaboration and communication.

Our HRMS impact solutions will also help you manage employee training and conduct surveys on behalf of your organization. The staff can participate in training or respond to surveys through the ESS portal.

FAQs

In this blog, we have explained the various ways through which HRMS optimizes employee engagement and productivity. If you have more queries, you can refer to the FAQs given below.

1. How Does HRMS Boost Employee Engagement?

HRMS offers various tools for effective communication, recognition and feedback to create a great work environment that drives employee engagement.

2. How Can HRMS Help With Performance Management?

HRMS usually includes features to set goals, track progress and to conduct performance reviews. All these factors play a major role in enhancing productivity.

3. Can HRMS Help With Employee Onboarding?

Yes. HRMS can automate the onboarding process, including paperwork, training modules and introductions to the policies and culture of a company, ensuring a smoother transition for new joinees.

4. How Does HRMS Improve Communication Within A Company?

HRMS includes features like company-wide announcements, discussion forums and messaging platforms, enabling clear communication among employees of all departments.

5. How Does HRMS Use Data To Support Employee Well-Being Proactively?

HRMS analyzes different indicators like workload, engagement levels, and patterns of absenteeism to predict when an employee may require a mental health day and suggest it to them, thereby promoting staff well-being and enhancing their productivity.