The human resources department is probably the bread and butter of most organizations. Finding and hiring the right people is crucial to an organization’s success. Companies spend millions of dollars hiring, onboarding, and training employees. This requires the HR department to be hyper-organized.

Cue human resources management system (HRMS).

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There is a HR system available to suit every budget and organization capacity, so there is really no excuse for companies to not invest in one. But there are still many companies that hold off on using a HRMS system, because of one reason or another: upfront expense, training to use it, etc.

If you’re still reluctant to invest in a system for HRMS in Hong Kong, here are the reasons you should consider one:

1. Hiring

Everything starts with hiring the right person. A HRMS system allows one central place for job postings, tracking CVs, scheduling interviews, recording interview results, processing new hire paperwork, and every other conceivable task related to hiring resources. This is convenient, saves a lot of time, and makes sure everything is neatly organized in one place.

2. Increased Productivity

HR department is typically more than just the human resources. Sometimes they act as payroll or general record keeping. HRMS systems allow your business to outsource these parts of the HR department so they can focus just on managing people and training employees.

3. Employee Management

Any accolades, praises, and compliments for specific employees can be recorded in a HRMS. This is handy when annual evaluation comes around. If you’re a manager and you want to express your thanks to your star employees, having a copy of your thank-you letter can be placed into an employee’s “file.” In this case, it’s not a physical file but a HRMS.

Laying off or firing someone is never a decision taken lightly, but it’s often necessary to keep a smooth operation. A dark side of employee management is keeping track of who to let go when the time comes. HRMS software lets you document all the grievances, so in case there’s a chance of litigation, you have an electronic “paper trail” to back you up.

4. Reduce Errors

Payroll errors can be costly. A HRMS system can help you dodge those errors. It does a better job of Excel spreadsheet or any accounting book. It can also automate payroll and increase efficiencies.

In the past, companies were reluctant to invest in a HRMS system due to high cost. With improved HRMS technology like cloud HR software, upfront costs are getting lesser and lesser. Cloud technology also makes it easier to replace the HRMS system if you don’t like it, since it’s not as highly customized and proprietary as the traditional option.

Despite all the talks of outsourcing and robots replacing potential jobs, human resources remain the most crucial and central part of any organization. Employees drive companies. To hire the right ones, there needs to be a right system to keep all the info. That’s the purpose of having an HRMS system.