What is the best cloud based HRMS solution?
You’ll find plenty of companies eager to tell you their solution is the best, but the fact is the best cloud HRMS solution really depends on your business needs. The size of your business, who will be using the solution and what your HR team currently struggles with will all effect which solution works best for you. There are, however, some core HR activities that remain the same across industries and there are even some HRMS solutions that can be customised to suit almost any business.
What is a cloud based HRMS solution?
Today’s complex cloud based HRMS solutions have been born out of the increasing importance of HR as a function in modern businesses. Basic payroll or attendance tracking are no longer enough to build, retain and improve the best workforce. HRMS solutions look to simplify these jobs with automation to free-up precious time for more valuable HR tasks while also offering superior analytics and reporting using data from across all HR activities for better decision making.
Cloud solutions take it a step further by providing a single platform to access all these HR functions from any device and location so that HR teams and employees can all make the most of these services. Because they are hosted on the providers serves and simply require online access, they are much cheaper than the rigid on-premise solutions previously used. This means they’re also much more accessible to small and mid-sized businesses, and can be paid as a monthly subscription,
Key features of a HRMS solution
These are the must-have features that any business should expect from their HRMS solution to complement their existing basic systems such as payroll. Key features should focus on the core “transactional” tasks that many HR teams spend most of their time on such as posting job vacancies and competency training.
According to research, HR managers spend around 41% of their time on these tasks despite that fact that it’s been shown companies who spend less time on these activities and more time on people and work culture are much more successful. Choosing an HRMS solution that can handle and automate these time-consuming tasks will enable HR teams to focus on creating a happy and productive workplace as well as eliminate a lot of human error and deliver a better employee experience.
Don’t forget to make sure that your solution also includes employee self-service. The main benefit of a cloud solution aside from the cost is the ability for anyone to access it from any device and location. Allowing employees to access a single portal to view their own information and access key services will not only save HR teams a lot of time, but it’s also part of delivering a superior experience.
Employee database
The basic function of any cloud HRMS should be to provide a single employee database that stores important information and provides HR teams with a holistic look of the workforce.
Applicant tracking
The hiring process is undoubtedly one of the most time consuming and often leaves HR teams to neglect other activities that are just as important such as developing a proper onboarding process. An HRMS solution with applicant tracking software is vital to saving time and simplifying the hiring process but can still deliver a superior employee experience to help you secure the best talent.
Applicant tracking can automatically post vacancies to free job sites as well as premium websites for a small fee, plus create and link to your own careers page to feed candidate data directly into the AT software. Empower your HR team with comprehensive applicant management including interview scheduling and online offer letter management.
Performance management
Tracking performance is vital to ensuring your workforce is successfully working towards common overarching business goals as well as highlighting your top talent, so you can reward and retain them. The best performance management software should enable you to set detailed SMART goals for individual employees, teams, departments and should also include a formal review process. Look for writing tools that can help ensure feedback is consistent and complaint across the company and helps managers write detailed feedback with actionable outcomes for the employee.
Online learning
This is especially important for regulated industries that have compulsory certificates and compliancy training, but online learning should be a key HRMS feature for all businesses. A good LMS should provide a single platform for employees to access study materials uploaded by HR teams and managers as well as quizzes and tests for employees to complete their training. HR teams can manage courses from assigning a learning path to specific employees to creating reports on attendance and success rates to improve online learning strategies.
Reporting and analytics
Pay close attention to the depth of analytics and reporting available as your data will ultimately drive the HR decisions that lead to business success. The best analytics will cover a wide range of metrics from the basics such as employee turnover to metrics that are specific to the industry or business. As well as the data itself, look out for presentation. Simple, clear reporting is key if entire HR teams are going to make the most out of analytics and present to other business functions to keep everyone on the same page.
Bonus features
Most businesses will already have some basic but essential HR systems in place such as payroll or attendance tracking, but it’s always worth reviewing whether these solutions are still up to the job and if an all-in-one HRMS could better serve your needs.
There also some HRMS features that answer some of the “soft” activities that many HR teams are trying to spend more of their time on. These actions focus more on the employee experience and can be the difference between functional and successful.
Payroll management
The right cloud HRMS solution should integrate seamlessly with any existing payroll solution but many of the market leaders now offer their own payroll solution that is designed to work directly with their own HRMS features. As well as guaranteed integration, payroll management can streamline lengthy payroll activities and help companies stay compliant in their industry and country.
Attendance tracking
Just like payroll management, many HRMS solutions offer attendance tracking to accurately track employee attendance including absences, authorised sickness and much more. Not only is this much more accurate, it also provides metrics to help you spot problems within your workforce and improve attendance. With self-service attendance tracking it’s also possible to streamline attendance activities by allowing employees quickly and easily schedule their own holiday.
eLearning authority
When it comes to creating learning opportunities within the company outside of compliance many either avoid the task altogether or spend time and money using a third-party course provider. Choosing an HRMS solution with eLearning authority allows managers and HR teams to create and manager internal learning opportunities such as leadership courses to encourage and drive employee development.
Benefits and compensation
Complement performance management with benefits and compensation software to significantly improve employee retention and create a true pay-for-performance work culture. As well as creating and delivering personalised benefits packages, an HRMS with good compensation software can help HR teams deliver vouchers, annual leave, bonuses and much more to reward top talent at important milestones and achievements.
Succession and development
Career development is key to employee happiness and a lack of development opportunities is the number one reason people look to leave their jobs. Succession software can help HR teams to identify current and potential gaps, search and nominate candidates, create talent pools for succession and help write development plans with employees.
Employee communications
Internal social networks and collaboration tools are a big plus for companies looking to improve their work culture as well as productivity. Social tools including forums and instant messengers can be used to help employees build both their work-based and informal networks to inspire collaboration within teams and even across departments as well as to inspire a healthy work-life balance.
Choosing the best software for your business
The best cloud based HRMS solution for you will depend significantly on the size of your business. Fortunately, cloud-based solutions are often designed for scalability so many can be adapted for smaller businesses or scaled up to meet enterprise level requirements. Here’s a few things to keep in mind when choosing the best HRMS system for your business.
Ease of use
Consider who will be using the solution and look for an HRMS that is intuitive and easy to use and will require less training. If you opt for a solution that is more complex because it offers all the features, you need then just be prepared to spend more time setting it up and training the relevant people.
Integration
Cloud software is typically much more flexible when it comes to integration and should seamlessly connect to your existing software but make sure this is the case before you sign on the dotted line. Otherwise, you might want to look at an all-in-one HRMS to simplify things.
Customisation
Most HRMS solutions have some degree of customisation but the amount that is required or even possible can vary greatly. Chances are you will want to customise forms and other small changes, so make sure your solution can be adapted to suit your needs without requiring mandatory customisation that result in lengthy and complex set-ups.
Support
Check with your provider or vendor what support they offer. Some providers will offer email, phone or live chat support along with a hub of videos, webinars, white papers and other additional training material depending on the size of your business and the solution you purchase. You may be better off with a third-party vendor that can help you set up and make the most of your HRMS as well as provide ongoing support and training.
Scalability
It’s vital that your solution can scale up or even down especially if you’re a smaller business. While your solution may be perfect for mid-sized companies, chances are you won’t be a mid-sized company forever. You’ll want a solution that can scale to suit the demands of your workforce.
The best cloud HRMS solution
The best solution will have all the core features plus some bonus features to suit your business needs. The fact is the more you can simplify and automate HR processes the more time you can spend on developing your strategy and building a better workforce. An all-in-one solution that SAP SuccessFactors offers specific modules to meet the needs of each step of the employee experience. Choose only the modules you need right now and grow your HR activities with your business or get an all-in-one solution right from the outset. To find out more contact us today.
