5 Common HR Challenges Solved with Cloud-Based HRMS Software

Today, HR management has become challenging. From managing the debate over remote, hybrid, and in-office work to looking, helping your employees build skills for an AI-enabled world, and leveraging employee efficiency and productivity, HR professionals have to run multiple things in an organization.

But if you are still sticking with traditional HR strategies, witnessing growth is hard. Also, with the unemployment rate going down, businesses must plan better to retain talented employees.

Here, cloud-based HRMS software can help HR professionals streamline all their mundane tasks and handle the challenges. So they can focus on improving the organization and employee growth. It is no wonder why 3.2 million small-to-medium businesses rely on cloud-based HR management systems to manage and administer some hard-core HR functions.

This article walks you through the different problems that cloud-based HRMS software solves.

What are the HR Challenges Solved by Cloud-based HRMS Software?

Cloud-based HRMS software helps solve some of the most common HR challenges, including:

1. Talent Acquisition and Recruitment

HRs struggle to hire the right candidate and the process is quite tedious. Because they lack the right tools to optimize the hiring process. So, it often ends up creating bad experiences for the candidates. 60% of job seekers quit online job applications mid-way if they were long and complex.

Let’s give an example. If your organization receives hundreds of applications for a job posting, your HR team will naturally get overwhelmed. These job applications must be shortlisted and the interviews must be scheduled. But here’s a catch: manually processing the applications will take ages to shortlist the people.

HRMS software can fix this issue by making the process short and efficient.

Here’s how HRMS software handles issues related to talent acquisition and recruitment: 

Once your organization receives a set of applications, the software tool automatically scrapes the resume to collect employee details, schedules interviews for legit candidates, and communicates it clearly to the applicants.

This automation process frees up time for HR so that they can focus on improving the onboarding process, building relationships, and other strategic activities.

Most job seekers have had a bad candidate experience or bad communication. HRMS software solves this issue by communicating with candidates via interview scheduling tools, where they get instant updates on everything related to the interview. This keeps the applicants informed and engaged.

Overall, HRMS software can help HR professionals manage the entire recruitment lifecycle more effectively.

2. Employee onboarding

Employee onboarding processes have always been a headache for both employers and employees. For instance, if a new employee is joining your organization, especially on short notice, they need immediate access to equipment and training materials.

Only 12% of employees vouch that their organization has a good onboarding process, according to Gallup. If the onboarding process is inefficient, it leads to tension and confusion for new employees. In addition, inefficient communication and poor feedback can worsen that situation.

Here’s how HRMS software handles employee onboarding processes better:

HRMS software’s biggest advantage is making the onboarding experience smooth and straightforward for the employees. But how’s it made possible?

This software comes with pre-built onboarding checklists. They also automate paperwork and documentation processes and ensure that new hires have access to necessary resources from day one. This approach reduces manual errors and eases the employee onboarding process.

The benefit?

If your employee experiences a smooth onboarding process, it can improve retention by 82%. On the other hand, if your organization has a better structured onboarding process, it can see up to a 60% boost in revenue. Because when employees are happy and work towards the goal, their engagement and retention increase, and hence the organization grows. Need we say more?

3. Performance management

This is a process where organizations set clear goals and expectations for employees, track and evaluate their performance, and provide robust feedback.

An HR professional might face a couple of challenges.

One is that during a performance review meeting, a manager needs instant access to the employee’s performance metrics and goals to provide constructive feedback and set objectives for the upcoming period. Having every detail ready in a manual processing environment is super challenging.

But the real problem is that some research shows that 51% of employees believe annual reviews are inaccurate, and in most cases, 90% of performance reviews are ineffective and painful.

Meanwhile, only 8% of organizations say that their performance management process is effective in driving business value. 58% say it’s not an effective use of time.

The performance reviews are aimed at helping employees grow and become more productive. But the way these reviews are conducted easily hurts employee sentiments, wasting organizational and company resources.

HR professionals lacking the right tools to track performance are the root cause of this. So, most performance management isn’t efficiently done.

Here’s how HRMS software helps with performance management:

A study done by PwC shows that 60% of employees expect feedback on a daily or weekly basis. This helps them improve their performance then and there.

HRMS software can help you improve your organization’s performance management. It helps you understand that this process is not just about evaluating employees. But it means creating a system where employees engage better with your organizational goals.

How does it help?

The HRMS software gives real-time performance tracking and accurate reports. As an HR professional, you can make decisions and help the employee who lacks.

And not to mention, when performance reviews are done transparently, it shows your organization is committed to employee growth and development. Also, it builds trust and increases employee retention.

4.  Employee Engagement and Retention

Did you know that hiring new employees for your organization is pricey than retaining one? On average, it costs somewhere around $1400 to onboard a new employee, and it takes at least 6 months for an organization to break even on a new hire.

Meanwhile, studies show that 30% of new hires leave within 90 days, and nearly 38% of employees quit their work within the first year of employment if they don’t feel fit for the role or have poor work-life balance.

In some cases, if the organization undergoes structural changes or handles a challenging project but doesn’t provide ample employee support, there is a dip in employee engagement. This can easily lead to employee retention and productivity issues.

So, employee engagement and retention fuel an organization’s growth, directly or indirectly, impacting productivity, morale, and, ultimately, the bottom line.

But what causes a low employee engagement rate?

When employees feel like a cog in the machine in their own organization, it causes disengagement, and the desire to seek employment elsewhere peaks. Studies also state that unclear communication within the organization can create confusion among the members.

As mentioned earlier, if employees aren’t provided with constructive feedback, they become unsure of their performance, and this demotivates them. On the other hand, high workload expectations and a lack of flexibility can easily create burnout.

These are some reasons why employee engagement reduces and in most cases, they try to pursue their career elsewhere.

Here’s how HRMS software improves employee engagement and retention:

HRMS software understands that communication is the key and improves employee engagement and retention by communicating better with employees. They help you understand the struggles that employees go through and sort things out. It also helps the HR team to implement retention strategies based on data-driven insights.

For instance, Infinigent HRMS software provides employee and manager self-service features. Here, employees can self-manage their leave and availability, access all their payslips online anytime, and receive other organization-related updates without the need to ping HR every single time. This feature enhances employee engagement and satisfaction.

5. Data security and compliance

Globally, the average cost of a data breach has touched $4.45 million. Here, a traditional HR system or on-premise servers are usually vulnerable to physical breaches and targeted attacks. In some cases, human errors can lead to data leaks.

Plus, these servers require regular backups and disaster recovery plans to ensure the data is stored securely.

Here’s how HRMS software enhances data security and compliance

A recent survey on organizational data security found that 88% of respondents said that incorporating cloud HR systems helped them improve their organizational data security.

It’s no wonder why cloud-based HRMS providers invest heavily in security measures. They ensure their software is compliant with various data privacy regulations. This security feature not only reduces the risk of data breaches but also ensures organizations meet their legal obligations.

Compliance issue

Let’s take this scenario: your organization needs an audit, and your HR is expected to quickly provide accurate records of employee data, training certifications, and details on compliance with the rules and laws.

Organizations must strictly follow the country’s labor laws and other government policies. When your organization fails to comply with these regulations, it can result in significant penalties, including fines, legal action, etc.

Here’s how HRMS software easily handles compliance issues:

HRMS software has built-in compliance checks and alerts to ensure that HR processes and employee data meet legal and regulatory requirements.

For example, if the software spots any differences in employee documentation or work hours that violate labor laws, it can flag them immediately. So you won’t face any compliance issues.

Since HRMS software centralizes employee data, it can also generate accurate reports in seconds and maintain audit trails. Thus, it saves time.

Final Words

We hope you now have a better idea of how cloud-based HRMS software solves HR issues. Since HRMS software is cloud-based, you can access it from anywhere. This means you can manage your team even if you are not in the office.

Also, if you have separate systems to handle payroll, track time, and leave management, it’s a hassle. HRMS software is an all-in-one solution that can address your requirements in one place.

Are you looking for one?

Take a look at Infinigent HRMS software, which can take care of all HR functions and streamline all tasks.

From supporting multi-company setups and defining your compensation matrix based on the organization’s structure and job levels to managing records and employee leaves, our software can handle everything.

But wait! There’s a lot more. Get in touch with us to learn how Infinigent HRMS software can ease your organization’s HR tasks.