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Why HRMS is Important for Indian Businesses
Why HRMS is Important for Indian Businesses

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2021: we are now in a new work paradigm. Ever since the nation-wide lockdown was imposed due to COVID-19, we have seen an increased inclination towards a digital workforce and organisations upgrading their technological landscapes. Undoubtedly, technology has emerged as a champion enabling employees to virtually connect across geographies, aiding better collaboration. With a distributed workforce HR organisations/ firms have also started looking at expanding their footprint in the digital space. 

The future of HR technology platforms in Indian businesses is bright with the continuing progress of HR technology which includes AI and ML capabilities for better decision making. HR can make use of the latest technology stacks available to make the right decisions, manage talent better and create happier workplaces.

 

Current challenges and how to address them

1) Hiring - HR is making use of AI/ML to enable better hiring in order to attract and retain the right talent. AI/ML in ATS or Applicant Tracking System can help in candidate profiling, advanced resume parsing, predicting joining probability, etc. Video interviews have also been widely used in recent months to hire talent. Additionally, analytics has now advanced significantly to help with talent acquisition by focusing on sourcing and interview processes.

2) Performance management - With the use of HR technology it has become easier to manage, engage, evaluate and motivate the new workforce structure - millennials and GenZ. HR technology supports the latest methods of performance/feedback management for employees. Additionally, due to COVID-19 performance management has become linked to teams and individuals working remotely needing new modes of communication and better performance management to ensure a connected workforce. 

3) Learning management - Whether it is in a large, mid or small-sized organisation, employees and organisations are both looking for an efficient learning platform. Learning as a culture helps organisations in their growth journey. HRMS platforms with a learning and development module help HR in achieving their goals. Organisations should be able to connect employees with unlimited resources and learning activities, identify training needs, optimise training planning, anticipate and track training trends, understand the talent profile and address succession and merit planning. For instance, when it comes to succession and merit planning, with predictive analytics capabilities, it is easier to predict the best fit for any given position to avoid any gaps in the overall process.

4) Address data analytics needs - Analytics can become useful to the HR function by helping manage remote work better and address organisation and employee needs, helping drive improved profitability and reduced costs. HRMS helps with collecting data, automate workflows, and adding visibility through analytics, identifying trends, and planning KPIs for the future. For example, it can help when it comes to measuring and tracking hiring success by improving recruiting performance by digging deeper into your data with real-time reports and comparing an employees’ performance to peers with the company’s benchmark reports. It can also customise your data and build reports best suited for an organisation. 

 

The modern-day HR technology software in India

Given the need of the hour, organisations are investing in technology stacks chosen with consideration to ensure a well-performing and indispensable application. A lot of variables need to be taken into account when considering an HR technology stack. What’s important is to use a state-of-the-art cloud-based stack with the latest tools and technologies that automate platforms to enhance the employee-company experience. For instance, having a SaaS product with a strong inbuilt analytics engine will help in creating a connected HR function.

So, what are the functionalities that the HR community needs today? How can we introduce applications which are robust and scalable?

Driven by the need to address exhaustive and complex problems, we are seeing HRMS move to cloud & mobile, increased adoption of AI/ ML, an explosion of people analytics, the emergence of behavioural economics and the need to streamline HR functions right from hiring to retiring. Platforms that address and simplify these variables will be indispensable in the near future.

The HR community has also realised the importance of addressing tool-implementation, consulting and process-improvements. People management has a lot of different moving parts, such as performance management, attendance management, staffing, HR helpdesk, recruitment, payroll processing, timesheet management, expense management, etc. A lot of these functions are currently done manually, and most of these processes are time-consuming and bureaucratic - this poses a challenge for the HR function at large. 

 

Reimagining HR for a better workplace of the future

The HR-tech sector has in the last few years seen a huge transformation. Businesses have become aware of the importance of strategic insights to ensure the seamless functioning of HR. A data-driven decision will ensure each stakeholder is happy. People analytics can help provide valuable data and in turn improve spending, productivity and operations benefiting an organisation holistically. Going forward, we will see companies across sectors adopting HRMS into their HR function to ensure a better-managed workforce and workplace of the future. 

 

Author: Avinash Gautam - Chief Architect, Vega HR 


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