Identify The Signals to Upgrade Your HRMS Software

Masha -

As companies grow and evolve, their HR needs also change. In many cases, the human resources management system (HRMS) software that served a company well in the past no longer meets current needs. Using outdated or inadequate HRMS software can hamper HR processes and reduce performance and productivity.

In this blog post, we'll look at five obvious signs that it's time to switch to new HRMS software. Recognizing these signs will help you determine when your company needs to update its HR software and find a solution that is more aligned with your HR needs and contributes to greater efficiency and employee satisfaction.

What is HRMS software?

So what is HRMS software? HRMS is a software system that helps companies manage their human resources processes, records and projects more effectively. HRMS software can help with everything from online recruiting to managing employee data and payroll to benefits administration, performance management and much more.

The software usually includes modules for various HR functions, such as: E.g. employee self-service, time tracking and benefits management. Advanced HR software features include predictive analytics, compliance management, and workforce planning.

HRMS software can help streamline human resources processes, reduce administrative burdens, and improve data accuracy. Additionally, it can give managers greater insight into their workforce, helping them make more informed decisions about hiring, performance management and talent development.


How to use HRMS software?

Most modern HRMS programs are intuitive to use for both employees and HR managers. However, to get the most out of your investment in your HR system, you need to integrate it into your daily organizational processes and use it as a central management tool for all your HR data. This includes:

  • Recording, storing and tracking all relevant HR data - such as attendance, leave and performance - and ensuring this data is up to date
  • Support employees and managers to use the system and ensure that they carry out key processes (such as sick leave recording and appraisals) within your HRMS software as required and do not circumvent your use of the software
  • Ensure your HR super users regularly refresh their knowledge of the system and stay up to date on new product releases. Your HR software provider should offer ongoing training and support.
  • Regular preparation of reports and implementation of the insights gained from them
  • Regularly review your HRMS software to ensure it is fit for purpose and meets the needs of your business

The last bullet point is perhaps the most important - but unfortunately also the one that is most often overlooked. If you already use HRMS software, ask yourself:

  • Does it help or hinder your workflow?
  • Do you find ways around it because it's not practical?
  • Does it help your organization be more productive and make more informed decisions about strategic HR actions?
  • Is it user-friendly or is your HR team wasting time assisting managers and employees with basic self-service tasks?
  • Is it suitable for your company's current size and growth trajectory?

If you can't answer all of these questions with a resounding yes, perhaps it's time to think about implementing a new HR system.

Five signs it’s time to switch HRMS software providers

From a lack of commitment to increasing inefficiency, the following may be signs that you should look for a new HRMS software provider.

1.Commitment to your HRMS software is low

A key sign that your HRMS software isn't working for your business is simply that your employees aren't using it. There can be a number of reasons for this, such as:

  • The system is not user-friendly enough: Does it fit your company visually and in terms of content? Is the functionality too simple or too complex?
  • Processes that are critical to your business, such as: Some tasks, such as performance reviews, cannot be handled through your software: Find an HRIS system that handles all essential HR software processes, such as: E.g. IceHrm HR
  • Managers and senior managers do not use the system: This can mean that employees do not feel obliged to do so either. Ensure that the software is accepted at all levels and consider selecting "system champions" who will first learn the software and then pass it on to others.
  • Employees don't find the software useful: emphasize what they get out of it, e.g. if the HR software helps with career development and learning opportunities.
  • Employees don’t know the software exists: Make sure you communicate the benefits and benefits of your HRMS software internally.

2.The data in your HRMS software is inaccurate

Is the data your HRMS software provides accurate and meaningful? If you find that you need to use multiple systems and spreadsheets to compile the information you need for your weekly, monthly, or quarterly reports, the answer is probably no.

Meaningful data is the information that is relevant to your company's priorities and the strategic decisions it needs to make. You should be sure that your HRMS software gives you all the information you need in one place - whether through configurability and integration options or simply a system that provides all the relevant data capture you need.

3.Your HRMS software creates inefficiencies instead of reducing them

The wrong HRMS software causes more problems than it solves. Any of the following could mean your system is a hindrance to your business:

  • Additional administrative costs
  • Duplicate work and/or data entry
  • Data error
  • Constant and frequent questions and ambiguities from managers and employees
  • Processes that still run outside of your HCM platform, requiring you to switch back and forth between systems on a regular basis
  • Lack of integration between HR and payroll software, leading to errors and delays
  • Difficult access to important data, policies and information

The right HRMS software should streamline your work. IceHrm's platform, for example, is easy to use. From onboarding new employees and using offboarding software to say goodbye to those leaving, to transferring responsibilities and automatic notifications, to digital background checks, payroll and reporting, our HR Software solutions can streamline work.

4.The options for configuring your HRMS software are limited

Are you able to customize and configure your HR software to suit your business? And, not only that, can you also maintain them yourself to a level that is acceptable to you?

If you answered no to either question, you should consider a new system. Modern HRMS software like IceHrm's can be configured to suit your company's needs, whether you want just the basics or something more complex. We offer everything from easy self-service and case management for employee questions to the ability to make major updates as your business evolves.

If you are a parent company that manages multiple brands or companies, you should also consider whether you can manage them all in a single system. You should also ensure that different employees have different user experiences and access options. Consider onboarding processes, access to policies, and different job roles and locations. There probably won't be a one size fits all, so make sure your employees can get the tailored experience they need.

Branding and personalization are also important when considering whether a particular HRMS software is right for you. You want it to feel like “your” system. What we mean by this is that you should be able to customize it to include your company's colors, images, logos, and language. Your HRMS software should look like an extension of your brand and use the terminology you use. This makes the user experience visually seamless for your employees and gives your system appropriate branding.

5.Your HRMS software is not integrated with other business applications

It's important to be able to integrate your HR systems with other applications your company uses for a variety of reasons. This not only increases data accuracy and security, but also improves employee experiences and reduces administration time. For most companies, the most important integrations are:

  • Payroll software
  • Your applicant management system
  • Microsoft Active Directory or other access management system
  • Electronic signatures, e.g. Adobe Sign
  • Your learning management system
  • Your platform for social benefits

However, some organizations also require less common integrations, such as: with:

  • Time and attendance systems
  • An engagement survey platform
  • An expense system
  • A provider of digital right to work and/or background checks
  • Special systems such as a school information management system
  • Microsoft Power BI

If your current HRMS software cannot integrate all the applications you need, it may be time to consider a new system.

Recognizing the signs that it's time to switch to new HRMS software is crucial for maintaining efficiency and employee satisfaction as companies evolve. Solutions like IceHrm, along with platforms like IceHrm, offer customizable and integrated features that address the modern needs of HR management, ensuring accurate data, streamlined processes, and improved overall organizational effectiveness.