Determining the Need for an HRMS Solution

By: Tim Padva

Researching business technology can be a daunting task and finding a Human Resources Management
System (HRMS) that meets the unique needs of your business, and offers ease of acceptance by your
employees, can present a challenge. To begin this process, I suggest exploring a Web-based HRMS
solution, which avoids the pitfalls of a costly software purchase, internal IT involvement or a lengthy
implementation process.

Prior to selecting an HRMS solution, you must identify your business needs, processes and short and
long-term goals. Including HR professionals, who manage your current HR operations, in the process is
also critical, as it will impact embracement versus abandonment.

Regardless of the size of your organization, the daily management of payroll, benefits administration,
training and other continuously changing HR needs can be challenging as well. Web-based HRMS
platforms offer attractive options for many organizations, especially small and medium-sized businesses
(SMBs) looking for a centralized, integrated and cost effective solution.

Empowering employees to self-serve offers significant time-savings for the administrator or department.
Using a Web-based HRMS, employees can easily access the system to print a pay stub, W-2’s, enroll in
employee benefits, view their paid time off, and update personal information. Providing real-time access
to vital information equips employees and HR managers with tools to eliminate unnecessary HR
workflow.

Security and the HRMS Solution

Of critical concern when embracing Web-based HRMS systems is security, especially with respect to
safeguarding company data and employee privacy. When selecting an HRMS solution, be sure that it
utilizes a secure transmission method such as Secured Sockets Layer (SSL) for encrypting data as it flows
over the public Internet.

Next, make sure that the password policy for the application adheres to your own internal procedures.
You wouldn’t want your HR Administrator to use a password that can be easily guessed. This can be
easily overlooked but would enable a security breach that would jeopardize the privacy of your
company’s data. Make sure the application includes rules to prevent any unauthorized access.

Finally, you really should have buy in from your own IT leadership team by integrating them into the
evaluation process with potential vendors in terms of security policies, data access, and backup and
recovery procedures.

To balance security with accessibility and scalability, you should discuss your integration needs with
potential solutions providers as well. Skew toward vendors with open database platforms (ODBC
compliant), such as Oracle or Microsoft SQL Server, as opposed to proprietary or mainframe systems.
This will offer the most flexibility particularly when you require integration with other applications as an
immediate need or in the future as your company grows.

Look for other features including XML (Extensible Markup Language) support and robust reporting
capabilities to ensure that you can easily pass information from one application to another. This is critical
with a payroll application as you’ll likely require feeds to accounting packages and third parties including
retirement plans and benefit providers.

Track and Manage Your Most Valuable Asset - Your Employees.

Utilizing a Web-based platform allows you to streamline the entire HR lifecycle from recruitment and
training to payroll and benefits administration. Consolidating these processes into once system allows
small and medium sized businesses to proactively manage HR operations and improve efficiency.

Most Web-based HRMS platforms offer much more than HR and employee benefits services. Look for a
solution that offers a wide range of service offerings including payroll, talent management, applicant
tracking, recruiting tools, pre-employment testing, background checks, labor law resources and skills
training. Robust and user-friendly reporting tools are also critical.

While employee access to a wide range of HR lifecycle services is helpful in streamlining HR processes,
it is extremely important to choose a Web-based HRMS platform that is easy to use. Employees are less
likely to embrace these services if they are too complex. Keep it simple.

Regardless of industry or size, an HRMS platform can help small and medium sized businesses achieve
unprecedented levels of efficiency and productivity and can offer your organization the tools and services
to stay competitive. This provides you an edge by enabling you to focus on your core business.

The key to finding the right HRMS system is selecting an HR business solution that is secure, well-
supported, and equipped to help you reach your goals. With a centralized Web-based HRMS platform to
support your HR department, you have the ability to successfully track, manage, and control your most
valuable asset, your employees.

Tim Padva is President, CEO and co-founder of CheckPoint HR, the trusted ally in web-based Human Resources
management for small to mid-sized companies.