History of HRMS
In the 1970s, larger companies were digitising some of their basic processes, particularly data-heavy and error-prone functions like payroll and accounting, but these early human resources management systems were limited in scope. By the 1990s, more powerful mainframe computing and the rise of the Internet allowed businesses to digitise and automate a wider range of core HR functions like records management, benefits administration, and recruitment workflows.
Today, with the growth of smart technologies and cloud connectivity, HR processes are no longer limited to transactional data. A modern HRMS can gather and integrate data to adjust reporting structures in real-time, based on regional variances in infrastructure, laws, and regulatory compliance. These systems also automate workflow and leverage artificial intelligence (AI) to create smarter and more streamlined processes.
SAP HR is part of a family of enterprise software solutions encompassing systems, applications, and processes (SAP). It is a cousin to SAP enterprise resource planning (ERP), which tracks customer and business interactions. What is SAP HRMS, you may ask? Well, it’s the same thing! SAP HRMS is capable of optimizing the entire employee lifecycle. It turns the paperwork and guesswork of so many traditional HR processes into a unified, cloud-based experience that enables data-driven decision-making tied to measurable business results.
It stands for Human Resources Management System, and in earlier times, it was simply called HR or Human Resources. SAP currently calls it HCM or Human Capital Management. SAP HR (Human Resource Management) also known as “Human Capital Management” (HCM) it is an important module in ERP SAP systems that supports all the processes of human resource management in the enterprise.
HCM is one of the most important processes in organizations across industries. The general idea on HR is related only to recruiting. But HR is much beyond just recruiting. In an organization, HR not just hires employees but segregates employees based on various factors such as department level, payment days, payment details, designations, and more. Besides, various other works such as promotions, employee engagement, and team motivation tasks are taken care of by HR. These works might sound very simple; however, working out all these for people of an entire organization is not easy work at all. To streamline all such HR processes, SAP ERP operations are widely used. SAP HCM ERP is one of the most flexible software for HR processes widely used across industries.
SAP HR records the data from hiring an employee to its final termination in an organization. It stores the employee data such as designation, role, salary details, working shifts, address, and so on.
As the next evolution of HCM, HXM shifts traditional HR processes toward the delivery of experiences that serve employees first and serve the business better. This approach also includes equipping the workforce with software that’s designed around what people need, how they work, and what motivates them.
Leading this transformation, SAP offers SAP SuccessFactors Human Experience Management Suite to build on the best of HCM and extend it to create truly dynamic, engaging, and employee-centered experiences. The suite is designed to support employees throughout their careers and enable HR managers as well as HR leaders to accelerate business growth.
Using these solutions helps us have the right talent in the right positions. It helps us create meaningful employee experiences and build a highly motivated workforce in sync with our corporate objectives. With SAP SuccessFactors software-as-a-service (SaaS) solutions, we put the power of data-based insight into our HR department, our managers, and most importantly, our employees.
Advantages of SAP Implementation
There are many advantages of SAP implementation and SAP ERP operations are no exception. SAP HCM training helps one to gain better hands on using SAP HCM module. SAP HCM ERP allows one to organize a structured HR process system in a workstation. Many tasks can be automated thus reducing manual work and increasing productivity. SAP HCM configuration allows one to maximize the recruitment process such as organizations can hire permanent but also on contractual, part-time workers and also daily wagers.
Also implementing SAP HCM module doesn’t require redesigning the entire process. SAP HCM User is flexible software and allows one to adjust the new SAP developments within the existing process. SAP has various models for different processes in HR management. For example Every employee has a name, employee ID, designation, etc., that needs to be recorded by the HR team of every organization. These data can be created and stored automatically using SAP HCM tools and ways. Similarly, data can be recorded based on time management, payroll details, and work-schedules, and so on.
There are various sub-models in SAP HCM for different processes.
SAP HRMS modules
SAP HR is divided in to various sub modules such as
- Organizational Management
- Personnel Administration
- E-Recruitment
- Time Management
- Payroll
- ESS and MSS
- Reporting
Organizational Management: This process defines an organized way to make different people work under a common platform towards achieving a pre-defined goal. It ensures a smart management of time and resources in the workstation.
Personnel Administration: This process defines the process through which the human resource of an organization is managed. From the stage of recruiting through compensation, benefits, new employee orientation, performance-appraisal and more, everything can be recorded and tracked through this process.
E-Recruitment: This process is an automated web-based recruiting process that assists HR professionals in hiring appropriate talent. It opens up innovative ways of recruitment processes in an organization.
Time Management: This process assists one in the processes of planning, recording, and valuation of an employee’s performance for a certain period of time. The impact of employees’ presence and absence in the organization is evaluated in this process. Also, attendance management, calculation of wages, log-in and log-out report, etc., are included in this process.
Payroll: This process as the term defines is all about the pay scale and compensations are given away to employees. From salary to overtime pay, comp-off pay, and compensation program, everything is calculated in this process.
ESS and MSS: Employee Self-Service helps employees to individually track various data of their tenure in an organization. On the other hand Management Self-Service is a vital process for the managers to create and maintain the data of employees.
Reporting: Finally, reporting allows the HR team to deliver comprehensive and up-to-date information of all its employees. The reporting tool also enables one to track the hierarchal structure followed in an organization.
These are the SAP HCM modules that allow the HR team to work efficiently towards managing employee profiles and data within an organization.
Why is HRMS software so important today?
HRMS (Human Resource Management System) software is increasingly important in today’s business landscape due to several reasons. Let’s explore some of the key factors that highlight the significance of HRMS software:
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Streamlining HR Processes: HRMS software automates and streamlines various HR processes, such as recruitment, onboarding, employee data management, time and attendance tracking, leave management, performance evaluations, and more. It reduces manual effort, eliminates paperwork, and ensures accuracy and consistency in HR operations. This efficiency allows HR professionals to focus more on strategic initiatives and employee engagement.
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Centralized Employee Data: HRMS software serves as a centralized repository for employee data. It provides a single source of truth for storing and accessing employee information, including personal details, employment history, benefits, performance records, and training records. Having a consolidated and easily accessible database enables HR personnel to retrieve information quickly, make informed decisions, and respond promptly to employee inquiries.
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Enhanced Employee Self-Service: Many HRMS software solutions include self-service portals that empower employees to access and manage their own HR-related information. Employees can update personal details, submit time-off requests, access pay stubs, view performance feedback, and participate in training programs. Self-service functionality reduces administrative burden on HR staff, improves data accuracy, and increases employee satisfaction by providing easy access to HR services.
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Improved Recruitment and Onboarding: HRMS software streamlines the recruitment and onboarding process by automating job posting, resume screening, applicant tracking, interview scheduling, background checks, and digital onboarding documentation. It simplifies and expedites the hiring process, enabling HR teams to attract top talent, onboard new hires efficiently, and create a positive candidate experience.
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Compliance and Data Security: HRMS software helps organizations maintain compliance with labor laws, industry regulations, and data privacy requirements. It facilitates accurate record-keeping, tracks employee certifications and licenses, generates compliance reports, and ensures data security and confidentiality. With built-in features for data encryption, access controls, and audit trails, HRMS software helps protect sensitive employee information.
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Data-Driven Decision Making: HRMS software provides robust reporting and analytics capabilities, allowing HR professionals and management to gain insights into workforce trends, performance metrics, employee engagement levels, and more. These data-driven insights enable informed decision-making, identify areas for improvement, support strategic workforce planning, and align HR initiatives with organizational goals.
How HRMS System works
From a process standpoint, it must provide support for the complete Hire-to-Retire business process.
To do that, it must provide the following 10 capabilities to be considered a complete, world-class HRMS system:
- An HRMS system must provide the capability for an HR specialists to design and develop an organizational structure for the enterprise.
- It must provide the ability to process payroll for all types of employees, whether salaried, hourly, external or internal and be fully integrated with the financial system.
- It must provide the ability to post job requirements on the internet and other mediums.
- It must be able to interface with web-based HR portals, like dice, LinkedIn, mapertunity, or sap fans.
- It must provide the ability to monitor the recruitment pipeline, (usually by including an ATS or Applicant Tracking System and by integrating with 3rd party ATS and VMS systems) including the ability to track:
Open Positions
Candidates in the pipeline
Candidate status - Be able to monitor and ensure compliance with all legal requirements
- Be integrated into the production management function such that you can not only model process capacity but also the manpower required/consumed by each such process.
- Provide Kiosk self-service capability.
- Offer the possibility of having part or all of the system operated on an outsourced basis.
- Support Mobilization of people for international work.
Obviously, there are many other required functionalities for an HRMS system.
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