Top 7 Features Every HR Software Management System Should Have

An HR management system offers features for effective planning, control and managing HR costs; improve managerial and employee productivity as well as achieve improved efficiency in HR decision making. The software with its flexible design and integrated databases have brilliant reporting systems that are needed to manage the workforce and save the time of the HR Administrator.

Choosing the right HR Management System is crucial as it offers options to help organisations fully understand and utilise the collective skills, experiences and talents of their workforce. The popular modules include: employee self-service (Recruitment, Onboarding, Attendance and Leave, Payroll, Loan and Advances, Travel and Claim, Performance Management, etc. can be updated and viewed by employees as well as managers), organisation charts (to create the professional organisation hierarchy, track leave) administration (improve data accuracy, reduce time and save paper, etc).

1. Recruitment

Recruitment simplifies the complicated hiring process that HR has to conduct. Conducting this process through HR software solutions, one can find the right candidate for a particular position. HR can create the requirement directly from the software. HR can also generate a report where the track of the particular position regarding the telephonic interview, face-to-face interview, document checking, rejection, etc. can be tracked. With factoHR, HR member can share feedbacks of a particular candidate at every stage of the hiring process, so it becomes easier for the employer to decide.

2. Onboarding

After recruitment, it comes onboarding which means to introduce the newly hired candidates to the organization. With factoHR, you can complete paperwork before a new hire’s start date and get everyone introduced quickly to welcome emails and team introductions. Various reports like Document Details, Asset Stock Register, and Employee wise Asset reports can be downloaded. Customised letters, forms and memos can be generated from this module.

3. Attendance and leave

This module comes after the onboarding of the candidate. By the help of this feature, the HR manager can keep a real-time track of employee hours, including the entry and exit time. At the same time, they can also keep an eye on approved, unapproved and leaves that are pending for approval. Thus, the managers can maintain an automated record of attendance and leave of all the employees. factoHR comes with a new concept of shift roaster where shift management of every employee can be managed efficiently.

4. Payroll Management

Pay is a kind of motivation which helps you in maintaining employee retention. With such software, your employees will also remain satisfied that there is no manual error. In factoHR, the entire payroll process is generated considering the 6 step process:

1. Master (employee enroll, salary master, bank account details, PF details, employee identity)

2. Monthly Input (Stop payment, arrears, attendance sheet, increment, investment, loans)

3. Process (F&F Statement, salary processing)

4. Verification (salary summary, payslip draft, IT statement draft, professional tax draft)

5. Release (Finalising salary and releasing the payments)

6. Statutory (PF challan statement, ESIC statement, income tax reports)

5. Loan and advances

A lot of organizations have a facility where they provide loans to their employees. If your company is providing you are going to need the loan management module on your HRMS. Using this module, employees are granted the facility of applying for a loan online. These applications are sent for approval to the HR department or to the people in charge, where they are reviewed. Since most loans are processed and paid through the payroll of the person requesting them, it integrates the payroll system into the equation as well where the rate of interest and EMI is calculated automatically. This way, the accounts department need not worry about all of the different loan requests and having to manually calculate the payroll for each of the employees.

6. Travel and claim

44% companies agree that HR integrations are a must for expense management tools. An expense management software can not only make reimbursement cycles faster for employees, but also ensure HR and payroll teams are benefited from it and they can use the expense data to make smart and strategic decisions. Payroll software and Expense management software allows companies to submit, process, reimburse and report on employee spending. Automated travel and expense solution can help reduce time and effort associated with managing expenses.

7. Performance management

While working in an enterprise, employees undergo an appraisal procedure, where they are reviewed by their reporting officer and the management. Thus, monitoring and measuring the performance of every employee is a crucial task. So, this module of performance management makes the complex measurement process an easy one by simplifying the tracking of the performance of employee over a certain time period. factoHR can track the performance of an employee through KPI. It links Payroll with KPI to evaluate salary based on the performance. The software can help monitor the progress of each employee against their targets and guides them accordingly. This enhances the employee morale and helps the management to retain their top employees.