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5 Critical Components of an Effective HR Management System

William DawseyBy: William Dawsey

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How a Custom HR Management System Will Improve Any Organization

The human resources department is a part of a business that is easy to overlook. Yet, a well-functioning HR system is critical to the health of the whole operation. If no one tracks schedules, maintains employee information, or handles payroll, the workplace will fall into dysfunction. In businesses with a high employee turnover rate, a slow hiring process creates interruptions in service and lost clients.

Software for HR management is a tool that can simplify and centralize many of these tasks. With a custom HR management system, a business will thrive with a more straightforward hiring process and improved employee administration.

How a Custom HR Management System Will Improve Any Organization

HR Management Software

Human resources software is complex. Many aspects of a business rely on the HR department. This is the team tasked with recruitment, onboarding, and orientation of new employees. It is often involved in maintaining salaries and benefits. For organizations with hourly employees, the human resources department is in charge of scheduling shifts, tracking vacation and sick days, and tracking the time spent at work.

The type of HR software required by a business will depend on its employee management philosophy. While most software will cover the same essential HR functions, the management style will determine the need for other components.

Human Resource Management

HRM-focused software treats employees as resources to organize. Businesses that work with this model will need a versatile scheduling component.

Human Capital Management

The HCM model looks at employees as investments. This is a results-oriented business model. The HR software will make employee evaluation a priority.

Human Talent Management

HTM-centered businesses focus on recruiting and developing talent within the workforce. In this model, the company may task human resources with monitoring performance and continuing education plans.

How a Custom HR Management System Will Improve Any Organization

Critical Components to HR Management Software Systems

There are some tasks that every HR department must handle. Well-designed HR management software systems streamline these processes. Through the software, employees can have online access to the HR information they need. A comprehensive software package will include components in several areas.

Core HR Functions

The HR department is a critical piece that connects an organization's various levels. This department must keep important information about employees on file, such as contact information, work history, complaints, and a record of sick and vacation days. Software for HR makes it possible for all employees to update information quickly. An HR employee can retrieve that information as soon as it is available.

Recruitment and Onboarding

In industries such as hospitality, home health care, and cleaning, the business expects a high rate of employee turnover. The HR staff must spend a great deal of time and effort, ensuring that the firm has the workforce it needs. HR software makes this process much faster. Potential employees can submit applications online. HR staff members can filter requests based on background experience, education, and necessary certifications. When new employees start, onboarding will be a simple matter when all the forms they need are available online.

Workforce Management

Businesses that schedule workers in shifts depend on the HR department to ensure no missing pieces. In the home health arena, a scheduling mistake can lead to compromised care for a client. For hospitality-centered organizations, a missed shift can lead to poor service. HR software makes complex scheduling much more accessible. The whole organization has access to the schedule in real-time. Employees can use scheduling tools to request vacation days and notify the business of sick days.

Talent Management

Many businesses use a goal-setting approach to measuring employee performance. At a periodic review, the employee and supervisor will set goals for the next period. These goals might include growth in sales, learning new skills, or taking on new responsibilities. When the business stores this information online, it is much easier to observe the change in the individual's performance over time. Both the employee and manager can follow the progress to stay on task.

Learning Management

Employee training is a regular part of many organizations. Businesses can now host much of this learning online. HR software will keep track of who has received the training and notify workers who still need to take it. Industries with mandated certifications can flag employees who need to retrain. This ability will help the business meet its compliance requirements.

Critical Components to HR Management Software Systems

The Benefits of Custom HRMS Solutions

Many of the functions of the human resources department are familiar to every business. For this reason, there are several general-use HR software packages on the market. Yet, no two companies are exactly alike. Many organizations realize that their HR needs are better served with a custom software solution.

companies are exactly alike. Many organizations realize that their HR needs are better served with a custom software solution. All-purpose HR software has to meet the needs of businesses in several different industries. Professional software developers tailor custom solutions to the needs of a specific business. One of the first steps of HR system development is listening to the client. The development team learns its unique business model and plans a solution.

The needs of a small business are different from a medium-sized business. Some seasonal operations in the hospitality sector operate as small businesses through part of the year and medium enterprises during the busy season. Custom software packages are scalable. As the needs of a business change, the development team will adapt the software to meet them.

Businesses keep a great deal of sensitive information in the HR department. For example, employees must provide their social security numbers for payroll purposes. When many companies use the same software, weak spots in the program's security tempt hackers. Because the code is unique, custom software is less attractive to people trying to steal data.

The Benefits of Custom HRMS Solutions

Professional HR System Development

The HR software development team at Chetu has delivered robust HR management software solutions to many clients. We can provide tools to help any business handle everything from initial recruitment to continuing compliance. We can also develop custom payroll solutions or integrate the HR package with the software currently in use. A custom HR management software solution will help businesses find the employees they need. Then, it will help develop them as the most valuable assets of the enterprise.

Professional HR System Development


Chetu, Inc. does not affect the opinion of this article. Any mention of specific names for software, companies or individuals does not constitute an endorsement from either party unless otherwise specified. All case studies and blogs are written with the full cooperation, knowledge and participation of the individuals mentioned. This blog should not be construed as legal advice.

Chetu was incorporated in 2000 and is headquartered in Florida. We deliver World-Class Software Development Solutions serving entrepreneurs to Fortune 500 clients. Our services include process and systems design, package implementation, custom development, business intelligence and reporting, systems integration, as well as testing, maintenance and support. Chetu's expertise spans across the entire IT spectrum.

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