10, Choosing HRMS by understanding the solutions they offer

The newsletter on Human Resource expert opinion, for the Indian context

Which HRMS software to purchase is one of the key questions that gets asked in today's world, and I think it's a very important question that as management one should be able to address.

?

So before you go, and before you start deciding which software is the best solution for you, you need to be very clear about why do you want an HRMS solution?

?you need to be very clear about why do you want an HRMS solution

What is the basic solution that you're looking at or basic problem that you are trying to address?

?

For example, some HRMS solutions are going to focus on predominantly ensuring that the error ratio reduces. Something like having a lot of validations, a lot of checks and balances, whether it's from a process standpoint or whether it is from a standpoint of data entry.

?For example, some HRMS solutions are going to focus on predominantly ensuring that the error ratio reduces. . . . .

So it just makes sure the errors are less.

?

Another system is where the system makes sure that the process enforcement is there. If you don't do step one, two, three, then the fourth step will not happen. So some software’s work on that.

?Another system is where the system makes sure that the process enforcement is there.

There is this whole talk about trying to move decision-making to these software. That is also a journey which is being provided by HRMS, whether that decision-making is a result of certain steps or that decision-making is a result of AI (Artificial Intelligence) can be reviewed later.

?There is this whole talk about trying to move decision-making to these software

The term decision-making a result of certain steps can be explained by an example, an employee wants to apply for leave, the HRMS can itself take a decision whether the leave should be approved or not based on certain principles.

?

No AI is needed in this, it will itself take a decision based on factors like does the employee have a leave balance, do the other employees (of the same team) have working in the same team are on leave or below a certain threshold of headcount so that one group does not have too many employees on leave.

?

These principles are applied by the HRMS, and it approves or rejects it.

?

An AI decision making system would be something which (though in experimentation) would decide whether an employee is actually ready for a promotion, whether the employee is actually ready for taking on the next role and the sorts.

?

An HRMS can provide many solutions apart from the ones mentioned above, and it is important to understand them.

?

In terms of an organization when you're choosing to get into an HRMS, you should be very clear about what amount of management time you want to spend in this exercise, and you should be very clear that HRMS solutions always come step by step. You always move from a process validation, process enforcement, to a decision making and then to an AI driven HRMS.

?you always move from a process validation, process enforcement, to a decision making and then to an AI driven HRMS

You don't straight away get an AI solution and then expect that all those things will happen backwardly integrated.

?

So which HRMS you want to get into is something which is a very big thought process. It's something like trying to get hold of a production software, whether you want to buy an SAP or a a different one, whichever one you want to you need to invest that time to understand it.

?

This is a software for the automation of a key resource, which is your human resources. So you need to make sure you have experts and you need to make sure you've done a lot of due diligence before you get into a software.

India HR Guide is aimed at discussing and shedding light on aspects in a crisp manner that organisations in India follow in the area of Human Resources. It is aimed at CEO's, MD's and line managers to understand how various aspects of Human Resources can help shape their organisations journey in India. Our industry leading expert, Mandeep Singh, offers years of accumulated knowledge from having advised clients across sectors, and spread across the remotest corner of the country. Let's make the workplace, a better place.

To read "India HR Guide" Subscribe on LinkedIn or hear us on YouTube.