The world of business is eternally dependent upon the business bottom-line. It has been ever so. However, what has changed is the speed and geographies of the businesses today. The advent of Technology has businesses operate at high pace demanding to operate the business at optimal l efficiency.
Human Resource is one significant part of this operational efficiency requirement and in fact at the center of the productivity matrix. Some might see this as a much-skewed argument.
However, let us start with demystifying the notion that Human Resource department is about keeping records and salary disbursement. In today’s fast moving world, the three important factors of any organization’s productivity formula are people, job, & time. All the three elements of productivity need to work in tandem with each other to produce an optimal productivity quotient. As you would notice all the three components are directly connected to the Human Resource space.
The Top 3 essential elements that justify the usage of Integrated HR Systems are:
Job: Rightly skilled employee allocation: Skill intelligence data needs to come from Human Resource department. It’s of absolute importance that operations and delivery department are aware of the skill strength of the organisation to commit and deliver the job on time.
Time: Operational Efficiency: Time Management of the workforce is the role of Human Resources to ensure the skilled employees required are available. Questions such as who is available when? Is there a resource that is spending idle time or has scheduled leave when he is critical for the work delivery?
People: Effective management: Right recruitment, ensuring proper skill is available for the job on hand and that they are motivated enough to deliver the high-quality work.
The point is Human Resource departments need to move to the next level of systemization where they are Integrated enough to play the role of core contributor to the delivery of the products or services.
Many small and big companies yet operate in a very standalone fashion where they either have HR systems only for attendance/time management or they just use one module ( for, e.g., Personal Administration, Payroll module) of an ERP system like SAP or Oracle Applications. Many organisation still continue to maintain skill matrix of the workforce on Microsoft Excel.
The importance of integrated Human Resource systems is critical to running of efficient businesses today. In the Human Resource arena, there are many modules such as Personal Administration (PA), Payroll, Time Management, Talent Management, Leave system, Organisational Development Management, Learning Management, people analytics, etc. Some important aspects of integrated HR systems with below module are as below:
1. Talent Management systems
The objective of talent management systems is to attract, recruit, develop, encourage, and retain productive employees. The talent management systems can address business requirements such as Creative Job advertisement, interviews, creating records of successful employees on current skill level, motivations, what could make him perform better, is he a long-term resource? How to ensure he or she would remain on the job for a long time? The basic goal being reduces company attrition and proportionately reduce recruiting costs of an organization.
2. Learning Management Systems (LMS)
The Learning Management tool of an integrated human resource system is the best tool to upgrade skill level of current employees and prepare them for a higher role in the organisation. The LMS map the skill requirement necessity of an organisation and help create online educational programs that employees can take at a suitable time.
3. People Analytics Systems
If you can’t measure it, then you can’t improve it. Period. Analytics is the core mantra of today’s businesses. The integrated Human Resource systems module on People Analytics helps companies to predict the employee trends. The analytics module can be used to predict attrition trends, skill repository, profiling high performers and better hiring decisions, etc.
In summary, the human resource department is no more standalone function of an organisation. It is in fact at the center of the business activity and directly influence the company’s productivity, efficiency, client satisfaction and the overall revenue.
Integrate or you may regret.