Why You Shouldn’t Sign a 3-Year Contract For an HR System

Source: timebusinessnews.com

What is an HR system, HR or you may call it the human resource management system (HRMS)? it is a digital solution or a tool that allows the human resource manager/head of the HR department to store the information about employees, their shifts, pay time and payment,  and the overtime work as well. it is way better than manual and messy electronic counterparts.

Then all of this data is processed and a report is created for further protocols and working. It varies from the non-automated style spreadsheets and databases to the automated and digital systems that are fully dedicated to the human resource software (HR Software) for digital processing of the data through HRMS software Bayzat. the human resource management system helps the company is managing the workforce smoothly. There is no extra burden to maintain proper paper/physical documents.

The functions of the Human Resource system are:

Source: hrmasia.com
  • Storing and managing as well as utilizing the workers’ record and organizing and storing their complete profile.
  • storing the organized employee data securely for administration benefit and management.
  • monitoring data changes to produce custom reports for strategic insight purposes.
  • Showing data and compiling the final result in a presentable form of graphs and charts to display final values.
  • reporting on employee satisfaction for compliance and development of employees through training.
  • Enabling the workers to request and ask for their own holidays and off days through this system.
  • enabling automated boarding and third-party integrations.
  • Organizing and maintain the shift details and making a shift plan that suits the organizations and the employees as well.

Reasons behind using HRMS (human resource management software)

Source: humanresourcesonline.net

The reason we use the automated system is that not many people can access and use it only one person can view and use the non-automated report at a time. But the automated system can be accessed by multiple workers simultaneously meaning that a lot of time will be saved thus proving it is way more efficient.

the biggest advantage of using HRMS is the reduction in errors or repetitive activities, whether administrative task or operational. this allows the HR professionals to focus more on productive tasks.  use of this software will also give you more accurate analytics and streamlined processes.

The other problem is that the data stored in non-automated form has no privacy and every sensitive info is available to the person using it. But in automated form, you can choose and select what you want others to see thus keeping privacy.

The difference between HRIS and HRMS

Sources: techfunnel.com

These both terms are used in the managing department and are often considered the same but they are very different as

  • HRIS stands for the Human Resource Information Systems that includes a worker’s database which is used for record-keeping. it can also be used as standalone software and become the core data management player. you can integrate it with other HR applications as well.
  • HRMS stands for the Human Resource Management System (all-in-one HR software) that includes features like employee information management, recruitment, and allocation of shifts between employees, accounting, learning and professional development, benefits and financial management, etc.

Reasons behind not signing a 3-year contract for the HR system

Source: techgenies.com

The reasons behind not signing the 3-year contract for implementing the HR system are that you are not going to get what you expected and the results are often really disappointing. well, if you can, you should first check-out its demo right! Directly implementing software that would store core information of the business for a long period is definitely not a wise idea without proper check.

  • You will not be provided with the solution that you demand

You don’t really know that the system that you have brought for your business is even working or not before the two-three months of working on it with real data and the real-world human resource processes. you should know if it is the most suitable one for your business.

What are you going to do if after working for half a year you just discover that this software is not what you had in mind and is a complete bust and a wastage of time? Suppose what will you do then when you know that you have signed up for this for the next 3 years and it’s a complete failure in the end.

That isn’t the worst-case scenario because it can get much worse if you have to pay more for that system that is completely useless for you if by any chance company changes its term and conditions.

  • You and your business modify and expands but the system remains the same

let’s suppose that you have a big success in the local market in the first year and with all the profit and market demand you decide that I should move overseas and expand my business but the contract and its nature is still the same meaning that it will not work properly for the new business model.

Meaning that it will be a waste again in the end. If you make a decision about changing your organization’s structure the inflexible HR system is going to give you a big load of headache as it will not be compatible with the new business model structure and is compatible with only previous one.

  • The rates and market charges no longer prove competitive

The economy nowadays changes rapidly and the prices that were very good tomorrow can be very less competitive the next day. The economy and the Human resource software market change very rapidly indicating a chance that Human resource software prices might become more competitive in the near future.

Meaning that your Budget for HR will also need modification. We know that all the companies are searching for ways to save cost the decision of locking yourself in a deal with a fixed price for 3 years will not be a good decision.

If the market becomes more competitive and a better price option is available in the market then your decision will be wrong as you will be paying more then market price.

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