How a sound HR system can drive engagement

Everything HR

How a sound HR system can drive engagement

28 Oct, 2021

While automating HR business processes is no longer a new trend, it has begun to affect the local operations of HR departments on a massive scale. The magnitude of HR automation disruption depends on the system of choice for personnel management. This system not only determines how HR work is done but defines the extent of overall business optimization. This article examines how the optimal HR system operates and the benefits it stands to deliver. 


HR, HRM, and HRI systems: definitions and differences


Let's begin by defining our terms. Any software that is used in the working processes of HR managers is generally referred to as an HR system. Things get a little more complicated with the HRM and HRIS systems.


HRMS (Human Resource Management System) is sometimes used synonymously with HRIS (Human Resource Information System). In fact, HRI is just a variant of an HRM system. There is no substantial feature difference between the two. 


However, there is a slight difference in design related to the data type used by these two. HRIS focuses on numerical data and processes like compensation management, recruiting expenses, accounting, and so on. In addition to managing numerical data, HRMS powers automation for non-quantifiable processes like performance review, objective tracking, employee satisfaction, and so on. One could say that HRM systems are just a more advanced version of the HRIS.


In short, both systems are a kind of CRM that helps you attract and retain, not customers, but your staff. 


Typically there are a number of workflows handled within an HRM system, these include: 


  • automating recruitment

  • candidate selection

  • providing orientation

  • staff training and development

  • work evaluation

  • determining remuneration

  • providing benefits

  • maintaining work relations


What benefits can HR departments reap from an HRMS? 


With the rise of hybrid offices, upskilling programs, and data-driven analytics for people, HR managers bridge the gap between psychology, business analytics, and people management.


The efficiency of HR processes is highly dependent on providing a great end-user experience, understanding the data, and making well-informed decisions. HRMS helps to improve all three ingredients of this secret sauce.  


HR forms go from paper-based to paperless with HRMS


From recruiting and onboarding to NDAs and offboarding forms, HR managers deal with a variety of documents on a daily basis. With e-signature services like DocuSign or signNow, life is made easier as employees can quickly review and sign documents online. However, e-signature is just the tip of the iceberg. 


Most friction points reside with document management, reminders, and notifications. Most HRMS integrate e-signature workflows and allow for setting automated notifications and reports based on custom conditions. 


Moreover, you can automatically populate documents with employee information to quickly generate a hundred copies of forms filled with employee personal information. 


Devote time to meaningful work rather than a daily routine


According to automation provider Hyland, HR specialists spend 14% of their working time managing employee records and almost an hour a day searching for information in documents, spreadsheets, or emails. This results in more than a month's worth of paperwork every year per single employee! If you have 12 HR managers in your team, this amounts to one of them doing paperwork for an entire year. 


As a system that is easy to deploy and configure, HRMS helps you automate routine work and free up all that time for more exciting higher-level management. Moreover, most HRMSs come packed with templates for the most common workflows and processes that can be up and running in hours. 


HRMS ensures data integrity, prompt updates, and privacy regulation compliance


For companies that do not work with compulsory medical insurance, data is stored in a scattered form wherever it ends up. 


Some of the information is in Excel spreadsheets, some in Google documents, and some on separate computers on a corporate network. It is not very efficient, but it is also very insecure. You may not even know if some of your employees' data is leaked - due to either the presence of an intruder or employees negligence.


HRM systems centralize all data in one place, only providing access to it to authorized agents. Also, thanks to integration with third-party services, data can be imported from cloud systems and archived in HRMS, leaving no footprint in third-party applications.


HRMS makes it easier to manage access privileges, track operations, search your employee database, and ensure GDPR compliance.


It can provide insights into team objectives and reveal opportunities for improvement


At Heartpace, we constantly hear from clients (HR execs and managers) that engagement became a key metric to measure during the pandemic. 


Many people experience burnout and lose their sense of usefulness and involvement without personal contact with a team. HRMS can provide tools to understand and measure what's essential for keeping engagement at a high level. 


With HRMS features like actionable questionnaires, an engagement scoring system, and 1:1 employee journaling, HR managers can be sure no one gets lost when left to themselves.


HRMS makes onboarding, offboarding, and competence management a breeze


This is the most inherent benefit of HRMS implementation. You can upload all the necessary assets to the system and automate the employee experience based on the stages of their employment lifecycle. 


Newcomers can find all the necessary guidelines for navigating the company better and develop a deeper understanding of its culture sooner. Offboarded employees can complete all the paperwork in one place as well as pass IT clearance. 


The same level of user experience applies to competence management. For instance, at Heartpace, we provide tools to evaluate employee performance, set objectives, and receive feedback from teammates. All in one place, with easy to analyze graphs that group data across teams and departments. 


And last but not least. Compensation management and analytics


What if we were to tell you that it's possible to sync a payroll system with an HRM system? And that this goes beyond simply sending invoices to your contractors and employees. Then what? 


This integration ensures that no pay gaps occur across the same positions and company departments. You can be sure that no unfair promotion is made either intentionally or accidentally. 


When compensation is connected to performance data and comprehensive employee information, it's easy to conduct salary reviews. Decisions are made based on better information and are thus better received by your teammates. 



We hope this article gives you a small glimpse as to why HRM systems are the most popular platforms among HR department software. 


If you are looking for a solution that will provide you with the same features and benefits, look no further. Get in touch with us to experience the system for yourself.

Henrik Dannert

Henrik Dannert


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