In an extremely competitive corporate landscape, an organization rarely stands out with its USP. Most of the time, those unique selling/product propositions become common as their peers adopt them very quickly. In such a competitive environment, enterprises need to fall back on other measures to outshine their competitors. e.g., cost-saving and performance optimization. Companies adopt methods, employ techniques, and bring resources that save them costs and optimize their work. Human resource management software is one such tool that comes in handy in achieving these two things. How HRM software helps with cost-saving and optimizes performance? This post will try to answer this question in detail.
5 Ways HRM Software Helps with Cost-Saving and Performance Optimization
Robust HRM software helps with cost-saving and performance optimization in multiple ways. Here, we will use the example of SimplyHRMS by Microsys – a great HRM solution for SMEs – that can help organizations in cutting costs and optimizing performance in these five ways.
1. HRM Software Saves Stationery and Courier Expenses
A complete HRM suite enables an organization to move its HR operations to a completely paperless environment. Whether it is recruitment and onboarding documentation, payslips, or company notices, HR people can furnish and put across everything in softcopy. Going paperless doesn’t just make an organization a socially responsible and eco-conscious corporate entity. It also helps in saving considerable operating expenses every month.
When every HR activity becomes paperless, the department doesn’t have to spend money on stationery supplies, printers, and papers. Similarly, email becomes the default correspondence option for a paperless HR desk. This also saves the enterprise the money spent on couriering documents to employees, candidates, and other stakeholders.
2. HRM Software Saves You Space
An HR department with a traditional setup (no HRM software deployment) has a pile of physical files and folders to deal with. The volume of this stack only expands as the enterprise grows old. In many cases, companies have to dedicate an entire room for the HR documents and files.
After the deployment of an HRM application like SimplyHRMS, organizations can free up that file and document storeroom. This happens because all the hardcopy documents transform into softcopy and goes to the online storage of the software. In other words, you can carve out a new working space from within the existing square footage without incurring new upfront or operating costs.
This online storage feature of SimplyHRMS and any other HRM helps with cost-saving on another front as well. Many organizations have to subscribe to dedicated cloud storage services when they go paperless with HR affairs. With a robust HRM application like SimplyHRMS, they don’t have to spend on a separate cloud service. The HRM software has enough storage and bandwidth to serve as the central repository of all the organizational documents.
3. HRM Software Takes a Lot of Mundane Work off HR Department’s Plate
HR departments can play an integral role in shaping and promoting the brand of an enterprise. They are also instrumental in establishing a desired organizational environment and improving employee satisfaction. However, HR people can only play those key strategic roles when run-of-the-mill work is not burning them out.
Making manual payslips and delivering them to workers, following up leave applications, reviewing them and sending out to departmental managers and executives, keeping track of training and orientation sessions and material, handling employee benefits – there are many everyday HR tasks that keep HR people occupied all the time.
The deployment of HRM software can streamline all the HR processes mentioned above. For instance, when an HR department starts using SimplyHRMS, it gets to automate and semi-automate payslip, benefits, leave, and training management. In short, HRM software helps with cost-saving as well as with the performance optimization of the HR department.
4. HRM Software Saves a Lot of Accumulative Working Hours of an Enterprise
When employees are not connected to the HR department through an HRM application, they waste a lot of time on things not related to their core tasks and assignments. For instance, they have to write emails or visit the HR desk for leaves. Similarly, they are dependent on the HR people and managers to find out benefits details and retrieve status reports. This again involves formal correspondence that takes off the chunk of employees’ working time.
Organizations can save significant accumulative work hours of the entire floor by deploying an HRM application with a self-service portal. When every employee has their own HR portal, they don’t have to write lengthy emails and visit different desks to submit their applications and obtain the required information. They can do it from their workstations in a couple of clicks.
When there are no pay, benefits, training, and time-off issues to distract employees, they tend to work better and at a higher productivity rate. This collective performance optimization of the entire workforce can go a long way for an organization.
5. HRM Software Saves the Cost of Using Multiple Software and Applications
It is another way Robust HRM software helps with cost-saving for the organization. When an enterprise deploys a robust HRM application like SimplyHRMS, it doesn’t have to set aside outlays for many other software solutions. If we particularly talk about SimplyHRMS, it can save organizations multiple costs in terms of software purchases and subscription charges.
With SimplyHRMS at their disposal, organizations don’t have to:
- Buy a dedicated employee self-service portal
- Invest in a payroll management system
- Use a time-off/leave approval system
- Deploy a benefits management system
- Establish a datacenter for the organizational documents
In short, an organization can save the costs of using five different programs, software, and applications by using one SimplyHRMS.
SimplyHRMS: An Easy-to-Deploy HRM Application
Despite offering all the cost-saving and performance optimization benefits, SimplyHRMS is not an expensive and complex HRM software suite. It is a web-based lightweight application that organizations can easily deploy without needing extensive infrastructure adjustments and organizing training workshops for HR people. Here too, this HRM software helps with cost-saving because you don’t have to spend on new devices and employee training.