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What is HRMS?
HRMS is stands for Human Resource Management System and it is also called HCM (Human Capital Management). HR work is more complex and involved today than it ever has been. There’s so much that goes into the management of employee information, which is used for everything from recruiting and hiring to training, evaluations, and so much more. With the increase in Business complexity and competition, employee management has become increasingly more complicated and difficult. Employees expect more from their companies and companies expect more from employees.
To achieve the maximum in each case, a proper system is required to manage employee expectations as well as their output. An HRMS aims to improve the productivity and efficiency of the business through the automation of manual and repetitive tasks. This, in turn, also frees up the HR team’s time which can then be used to address more strategic, business-critical tasks.
As the number of employees in an organization starts growing, the task of managing them and their data becomes difficult. Sensitive workforce information stays scattered in multiple folders and locations. Integration is much of a manual task. Screening, hiring, on-boarding, payroll management, training, engaging candidates, keeping track of attendance, etc. are just some of the functions that suffer owing to manual management. The efficiency of HR starts dropping down considerably.
A human resource information system enables a company of acquiring, storing, analyzing and distributing information to various stakeholders. HRIS enable improvement in traditional processes and enhance strategic decision-making. The HR technological advancement has revolutionized each and every space of life today in corporate, and HRMS includes HR Functions as well. Earlier the systems were basic and limited in scope, typically focused on a single task, such as improving the payroll process or tracking employees’ work hours and managing the limited resource.
Now days the systems cover the almost area of tasks associated with human resources departments and its functions, including tracking and improving process efficiency, managing organizational hierarchy, tracking absence/present and day to day leave transaction, simplifying payroll & statutory transactions, and providing different level of reports on functions wise data. In short, HR technology systems evolved to fit these needs, as the role of human resources departments expanded in complexity.
Introduction to HR Market in India:-
HR industry can be broadly classified into the human resource administrator segment and talent management segment. Major HR technology industry players are focusing on talent management segment instead of administrating the HR functions. The increasing trend towards category convergence, in inter and intra human resource categories may also increase demand over the foreseeable future. The industry is also characterized by a slow shift from traditional back-end administrative HR to an integrated talent management system coupled with applicant tracking and learning management systems.
Rising demand for performance and succession management to identify and train future leaders is also expected to be a major driver. The availability of several on the internet software is also anticipated to increase competition for incumbents. The development of smartphone applications for human resource management is also anticipated to further increase industry demand. High adoption of different technology and intelligence in the HR department has opened up avenues for industry growth. Cloud proliferation is expected to open a novel market for human resource system consulting.
The way technologies are getting reforms that we have experienced over the years, it is not surprising that low-grade jobs are getting replaced with machine learning and artificial intelligence. The digitization in the country has witnessed a rapid gain in the overall rate of how people generate employment and convert the same into productivity. We have witnessed India being a country with little to no realm of boosting technological reforms to one of the countries with the highest technological development. HRMS has gravely impacted the HR technology and the HR industry on a whole.
If you are still wondering about the grave nuances and setbacks that this niche has experienced, you will be happier to know that the level of upgrade overwhelmed these small setbacks to the core. India and its HR industry, along with the technological reforms, are thriving and flourishing with the days. If the current status of the HR tech is to be considered, the scenario looks pretty decent with further scopes of proliferation and rapid growth. The same is still a work in progress and might take up quite a decent amount of time before we are finally rewarded with the results that the officials and companies are expecting.