Human resource management is probably the most dynamic of all the managerial fields that an organization goes through. While others are mostly system-driven and have rather expected outcomes, it’s in the field of human resources that most managements face an uphill task given that human behavior and its outcome are rather difficult to predict and fathom.
That said, human resource management is also the most interesting given its uncertainty, and the fact that it alone has the ability to change the destiny of an organization- with the rightful help of technology in the form of HR software providers.
That brings us to the subject-line of this article. Why is HRM essential for the success of an organization?
Actually, for quite a few reasons, including:
1. Knowing the exact position of human resources in the organization, where you lack and what you need help
Like a dip-stick establishes how much liquids exist in a tank or enclosed space, a HRMS gives the exact position of how much people you have and what exact they do vs what you need. Most cloud-based HRM systems these days come equipped with AI and machine-learning capabilities that can easily decipher trends besides giving accurate predictions about what may be called for in future. With so much in the name of precision, an organization today can be in a position to recruit the absolute necessary while waiting on the rest. It would save resources including money.
2. Benchmark compensation with industry standards
Compensation can sometimes make and break an enterprise. And if the enterprise is fairly small or what you call an MSME, all it could need is a good cloud-based HRMS to know all there is about compensation, and where it stands vis-à-vis others in the industry. In knowing so, organizations can re-calibrate their entire working to reflect contemporary realities. In doing so, there can be amazing amount of savings as also correct redistribution of resources.
3. Arrange for better training and growth prospects resulting in higher enthusiasm.
Those times when staff and employees hardly ever trained beyond the initial years is all but gone. These days everyone has to stay productive and with the right knowledge at all times. That being the case, knowing who needs what and in what depth could be the work of only a good HRMS package. Training by itself can be a tool for better work relations and a sound industrial climate inside an organization. An HRMS can thus be the perfect way to engender the right industrial environment.
4. Arrange for risk-mitigation measures effectively
An accident insurance and a group health insurance aren’t the only things that an organization needs to do when its about reducing risks. Knowing every aspect of every human who occupies every place in an organization is more a necessity than a luxury that can help secure an organization in every way right from succession planning to health measures, medical assistance and the likes which in the long run can help an organization stay on track to be where it plans to. An on-cloud HRM system is thus the right measure to know the in-depth condition of every employee to take pre-emptive steps to mitigate risks to a very large extent.
5. Work-place issues can best be highlighted and tackled
A work-place, be it a software company or something more physical like engineering, manufacturing, production, mining and the likes is an amalgam of humans with varied backgrounds, ideas, ideologies and motivations. The least this can do is bring about divides and the most it can do is bring about industrial strife that can sometimes be extremely violent to both the human element as also the surrounding work and production infrastructure. In such a situation, a detailed understanding of every human, and what makes him or her tick that invariably is the product of a good HRMS structure, could help organizations ward-off eventualities that could otherwise mar the working of an organization besides bringing it unnecessary bad repute.
Non-compliance kills. You could be the best producing organization with the best worker-employer relation and all the possible statistics going in your favour but all it takes to bring you to the docks is a solitary case of non-compliance! Labour laws being what they are, non-compliance is taken to be nothing less than “contempt-of-court”, the highest form of wilful offence against the laws of the land. And for that the penalties can be sever, besides the fall from grace the world brings about.
Such being the range of pluses and minuses that an organization may encounter in the presence/ absence of an HRM system, it makes sense to avail the same and use it to its fullest.