What is HRMS? How it helps companies go green & paperless?

Did you know that your business can go paperless with a human resource management system (HRMS)? Not only does HRMS enable you to minimise paper consumption, but it also allows greater work efficiencies at reduced costs.

Fantastic, isn’t it? It means you can bid goodbye to physical storage like filing cabinets, reduce paper piles, not to mention, save some office space and declutter everyone’s workstation. And the best part? Your business contributes to sustainability by cutting energy usage and paper wastage.

Here’s how the HR management system made all those things possible:

What is HRMS?

At its simplest, HRMS is a software solution that helps HR teams manage or automate repetitive tasks, such as posting jobs, updating employee data, collecting and storing resumes, monitoring time and attendance, and more.

Nowadays, businesses use this software to reshape their workplace whilst staying compliant with labour laws and regulations. 

6 Advantages of paperless HR software solutions

1. Costs savings

Implementing HRMS software comes with a crystal-clear benefit: reduced costs. With this technology, you can lower your costs for paper usage, disposal, and storage, minimise energy consumption, and decrease overall upkeep and maintenance costs.

The HR tool keeps and processes data in a central portal, allowing you to eliminate the cost of the paper itself and reduce the expense of printing, delivery, and storage of your HR documents.

Since an HR system stores employee information electronically, anyone can access or update their data when needed. Employees can also complete forms online and request time-offs or leaves via the platform, saving both them and HR professionals time.

2. Increased safety

The problem with paper-based HR systems is that they’re susceptible to security risks. Printed files can get lost, misplaced or stolen. There’s no way to retrieve essential HR records once they’re gone astray, not unless they have duplicate copies.

HR documents contain sensitive, employee-related data—and losing them might result in non-compliance issues. You could end up paying fines or facing lawsuits if you fail to maintain the confidentiality of certain documents.

With cloud-based HR software, you can guarantee that important information is stored and collected through the system. Most HRMS solutions are designed with multi-layered protection that can prevent data breaches and fraud.

Below are some features that take date security a few notches higher:

• Data encryption. Only users with encrypted user credentials can access or log in to the system.
• Security applications. Software vendors installed antivirus software that can protect user data.
• Port-based restrictions. Human resource management systems implement port-based restrictions to ensure advanced security and prevent data threats.

3. Reduced admin burden

Going green also means saving time. Promoting a paperless office makes it easier for human resource staff to execute their tasks with greater efficiency. Not only does it reduce the time associated with administrative tasks, but it also allows HR teams to focus on more core tasks.

Thanks to paperless HR software HR employees can cut some slack and save time on routine processes. For example, they don’t need to scan a paper pile or sort through filing cabinets to search, reproduce, or share necessary documents.

Not only that, but busy human resource professionals can also free themselves from the non-stop manual data entry—all thanks to HRMS software’s automated functionalities. Here are a few things that HR tech can automate:

• payroll processing
• benefits administration
• recruitment and onboarding
• employee records management
• time and attendance management

4. Easier documentation

The human resources departments wear several hats. They bring in new talents to the company, ensure the safekeeping of employee data and timely payroll, provide career assistance, facilitate training, and more. With these many responsibilities, it’s no surprise for them to manage a handful of documents.

If these documents are processed manually, it could create unproductive, exhausted HR staff. Imagine the disparate sheets they need to update, print, and file. Plus, think about the possibilities of your office looking unorganised and cluttered because of the pile-up of printed documents.

You could expect the exact opposite if you invest in a human resource management system. All HR-related information is stored in a single location electronically, meaning HR administrators can easily access data and provide the decision-makers with workforce information in a snap.

Also, HR software’s paperless documentation makes data transport or sharing more efficient. Users can share documents via email securely and without the need for cumbersome fax machines or other document couriers.

5. Digital payroll administration

Human resource management systems streamline and simplify the complicated payroll processing. The digital solution enables finance departments to go fully electronic for both reporting and settling of payments.

By implementing paperless HR and payroll, companies can also increase efficiency, reliability and accessibility for both employees and HR administrators. Here’s how HRMS make these things possible:

• Accessibility. Human resource professionals and employees can access their pay stubs, timesheets, relevant tax slips, and other payroll information from anywhere and at any time.
• Efficient record management. HRMS ensures secured and efficient record management. HR software providers equip their systems with strong security measures to reduce the risk of fraud or loss of vital payroll records.
• Convenience. The online payment process can save hours of work for HR payroll teams. Also, your employees will no longer experience delays on printed payslips sent via mail or risk losing their pay stubs.

6. Environmental sustainability

All the advantages of paperless HR boil down to one main benefit: environmental sustainability. Investing in a good HR system lets your company embrace and achieve corporate sustainability objectives.

HRMS reduces your business’ carbon footprint by eliminating or at least reducing paperwork, improving the paper trail, and resolving printer paper jams, among other things. Through this software, you can go green, create a healthier work environment, and contribute to a more sustainable world. 

How to use paperless HR software to your advantage

HRMS reduces your business’ carbon footprint by eliminating or at least reducing paperwork, improving paper trail, and resolving printer paper jams, among other things. Through this software, you can go green, create  a healthier work environment, and contribute to a more sustainable world. 

1. Store all your HR information in the cloud

Human resource management software works under the cloud. Take advantage of its cloud computing technology and ensure all your HR data, from employee records to company policies, and more is stored on the Internet rather than on your work computers.

2. Convert paper documents to digital records

If you can’t eliminate paper documents, begin by digitising these paper records. The easiest way to digitise documents is to convert them into electronic format. Gather all the files you wish to digitise, scan them with a scanner or your phone, and store them on your computer.  

3. Use digital HR templates and forms

Most HR management systems have customisable templates of forms and documents. Explore these digital templates and amend them to suit your company’s requirements. Doing so will greatly help in making HR administration easier.

4. Use eSignatures 

The best thing about human resource software is that they take away the traditional signing of documents. HRMS integrates with most e-Signature applications; some even have built-in eSignature tools. 

Go paperless with HRMS

While manual or traditional HR management systems get the job done, they lack many things, including time- and cost-saving, higher productivity, better work efficiency, and increased data security. 

If your human resource team deals with the repercussions of paper-bound HR management, it’s about time to make a switch. 

Unit4 Prosoft can help you get started in creating a greener and paperless HR. Our HRMS software is designed with a set of modules that you can integrate with internal and external systems.

Learn more about how Prosoft HRMS can cover the repetitive HR functionalities for you here.