What is the primary goal of any business? It is to utilize resources optimally and increase it’s profitability. There are two main ways to increase profitability:
- Increase Sales.
- To Reduce Cost.
HRMS is an automated software that helps you manage your human resource cost by cutting your HR department cost and reducing manpower. Let’s explore the reasons which increase the cost and solution how HRMS can reduce the cost of HR department with the advance technological management:
HRMS Software Solutions Reduce Cost Associated with Recruitment
The Recruitment process is the primary activity where HR department is involved and requires notable dedication. When recruitment process is done manually, it is complicated to maintain all the details the of the candidate and set interview. For complete recruitment process, there will be one or two HR person engage in the process. Starting from the requirement of a job to the selection of an appropriate candidate will consume a lot of time which in turn increases the cost of the company.
With HRMS software you can maintain all the data easily and it requires only one-time entry. Just one person will be engaged in the tasks to manage all details of the employees and to schedule further interview process of the candidate. It will reduce the cost of the company and saves manpower.
HRMS Software Solution Reduce Cost in Attendance Management
If you manage attendance manually even for 100 employees, there are chances of initiating errors in leave and attendance process. Especially when you have more than one office at the different location, it will be difficult to control things manually and it will not be error-free. This process ends up in overpaying or underpaying to employees.
Integrated biometric attendance machine will be a perfect solution to manage leave and attendance of employees.
HRMS Software Reduces cost in Performance Management
Performance management is the crucial part of HR activity. When you are managing the performance of employees manually, it will be tough to set goals, evaluate and maintain performance regularly. This process can take the company in downfall graph and also it will have a negative impact on employee’s growth, which in turn leads to high turnover and low morale of employees. It incurs in high replacement cost associated with onboarding and training of employees. Apart from these, the manual appraisal will increase the paperwork, generate errors and leads to bias decision.
Performance management system will help you to set goals for every employee in the form of KPI (Key Performance Indicator). These can automatically determine the appraisal which is the impartial and transparent evaluation. Cost of engaged employees looking after the performance of employees will be reduced and generates unbiased reports.
HRMS Software Reduces Cost in Payroll Management
Same as attendance management, you need the professional team to manage and update the salary, personal details like address and benefits. Also, the financial team will be required to calculate payroll of all the employees and managerial persons to verify all changes. These clearly show that it will take approximately one week time to calculate your payroll.
Instead of this, HRMS software will maintain all necessary details and calculate payroll automatically. All the statutory or non-statutory reports will generate automatically. For performing all these tasks you only need one person to work on this or maybe a part-time person who only manages this software which can reduce manpower as well as business cost. Automated Payroll processing can save the huge cost of the business.
factoHR- Payroll Software from experts..
factoHR is one of the most reputed enterprises that offers a vast range of HRMS solution at an affordable price for all business in India. factoHR empowers HR to manage talent and its module process more effectively which enable HR to focus on enlarging their expertise. With a mission of providing easy HRMS solution, factoHR offers services to their clients that can reduce manpower required for the HR tasks which in turn lowers business costs. Our HRMS solution gives security, easy configuration, easy deployment, advanced customization, easily integrated with other systems within the organization, available 24*7 and user-friendly application.