Can Payroll Software Acts as an Effective HRMS?

Many organizations use payroll software and makeshift with its offerings. Several vendors understand the need for an extended version, and they add certain features to the existing HR payroll software. Well, it could work in the short run, but what about the times when you need to manage employee records of hundreds of employees and bring efficiency into the process.

If you use payroll software, the work could be limited to paper files, spreadsheets, emails, and documents. On the other hand, HRMS offers features that are employee-centric and helps in increasing productivity.

If we talk about the functionalities that come in handy with payroll software, there’s a comfort of calculating and paying wages, alongside compiling statistics and reports. It is used by accounts and HR departments and has minimum to no employee access. How is it solving your problem of keeping employees at the core of things? Your organization needs HRMS that can be useful in the longer run.

HRMS Functionality

A smart HRMS comprises different processes and systems that help in managing employees’ data accurately. It facilitates managing payrolls, recruitment processes, and monitoring attendance. Employees have easy access to it, and they become self-reliant. They are no more obliged to connect with HR every time they’ve got a doubt.

If we try to understand HRMS from the HR’s perspective, you can certainly say that one can carry out the recruitment and onboarding process easily, conduct performance reviews, and develop modules for skills and training management. There is a workflow for approvals, including exit interviews.

if you’ve purchased payroll software from a leading payroll vendor, you would know that they can customize it by building additional functionality. It is no longer a payroll software system but acts as a robust HR management system.

Payroll Software as HRMS

Let’s consider an example where only a limited group needs training on using payroll software. It’s a given that they would want to be aware of compliance rules and the functionality. With minimum-security expectations, they went on to use the software without trouble. However, it’s interesting to note that software testing was not part of the process.

Now, take a large group of people or consider managing a larger workforce through the payroll software. Is it convenient to add additional features and let payroll software offer all the HR software solutions expected from HRMS?

In today’s times, organizations expect a friendly user interface with mobile connectivity. Payroll software does not offer such functionality, and employees look for smart HR software solutions. Even if your payroll software has added features, it’s often noticed that employee engagement remains low.

On the other hand, organizations using the HRMS find it interesting to share its benefits concerning employee engagement and process refinement. They find analytics and reporting easier to maintain using the system rather than maintaining records using manual methods.

With all that said, it’s clear that organizations need better software solutions that make it easy to manage employee data. Here, payroll processing is a small but significant part, but it cannot suffice the requirements and functionality that smart HRMS can offer. That’s why you should choose the right HR software system for your organization.

You can count on Timelabs that offers an employee-centric self-service portal to manage different HR processes and aims at increasing employee engagement.