HRMS Online System Vs Manual System: Prefer The Greater One!
Workforce Management Software
10 min read
May 22, 2024
Gone are the days! Where HR or managers are taking loads and loads of paper and doing business operations! With rapid technological advancements, staying updated is crucial for any organization to survive.
But still, people are confused about whether they should invest in HRMS online software or should still stick to their manual processes.
Why it is necessary to clear the doubt about choosing the online HRMS solution or considering manual, here are the reasons:
Firstly, the security of important business information is a top priority for modern businesses. Don’t struggle to cope with the sophisticated nature of fraud and dishonesty. Consider the updated one!
Secondly, the smooth functioning of an organization is crucial for its success. Don’t go for a process that is cumbersome and prone to errors. It is leading to inefficiencies.
Moreover, technology is not only for business solutions but also to make the business scalable, boost productivity, and grow the business. This allows HR professionals to focus on strategic aspects like managing the workplace.
An HRMS (Human Resources Management System) is software that helps businesses handle workplace, employee information, and performance. The online HRMS softwares tracks things like attendance, online leave management system, and skills, and helps create and manage development plans for employees.
HRMS software also identifies training needs, improves communication between managers and employees, and saves time and money by automating HR tasks.
HRMS online portal is used to automate almost all HR tasks in an organization. It supports the HR team, especially when they have a heavy workload, by improving efficiency.
Manual and online payroll & HRMS are 2 different methods that companies mostly use to handle all HR operations at the company. Let’s check both methods and why you should do the HRMS demo online after all!
Manual System
A manual HR system involves managing human resource tasks using physical paperwork and spreadsheets.
In this manual HR system, tasks such as employee data management, payroll processing, attendance tracking, and performance evaluations are performed manually by HR personnel.
This old method is often time-consuming and prone to errors. This manual method relies heavily on human input. It is susceptible to data mismanagement and loss.
Additionally, the manual system lacks real-time data access. It can be inefficient in handling large volumes of data. Despite these challenges, some small businesses still use manual systems due to lower initial costs.
Features:
Paper-Based Records: Maintains employee record on paper. It helps to maintain other documents in physical files.
Manual Data Entry: This requires HR personnel to manually enter and update data.
Basic Tools: Utilizes tools like spreadsheets for tracking and managing HR functions.
Advantages:
Low Cost: Minimal investment is required for setup.
Simplicity: Easy to understand and use without extensive training.
Disadvantages:
Limited Accessibility: Difficult to access information from all locations.
Inefficiency: Time-consuming and prone to errors because of manual data entry.
Storage Issues: Requires significant physical storage space for documents.
Data Security: Higher risk of data loss or theft due to misplacement of documents.
Scalability: Not scalable for growing organizations with increasing needs.
An HRMS (Human Resource Management System) online system is a digital platform that automates and streamlines HR processes.
This system integrates various HR functions such as recruitment, onboarding, payroll, attendance tracking, and many more into a single platform.
HRMS online systems offer real-time data access, improved accuracy, and enhanced efficiency by reducing manual intervention and automating repetitive tasks.
Although the initial setup may be costly, the long-term benefits of reduced administrative workload and improved data management often outweigh the expenses.
Features:
Automation: It automates routine tasks like payroll processing, attendance tracking, and many more.
Accessibility: It provides access from anywhere with an internet connection, enabling remote work.
Data Management: It offers centralized storage of employee data and manages it easily.
Security: Implements robust security measures to protect sensitive employee information. Automation: It automates routine tasks like payroll processing, attendance tracking, and many more.
Accessibility: It provides access from anywhere with an internet connection, enabling remote work.
Data Management: It offers centralized storage of employee data and manages it easily.
Security: Implements robust security measures to protect sensitive employee information.
Advantages:
Efficiency: It saves time and reduces errors by automating repetitive tasks.
Scalability: It easily scales with the growth of the organization.
Real-time Updates: It provides real-time data and analytics.
Cost-Effective: It reduces the need for physical storage and IT infrastructure.
Disadvantages:
Implementation Cost: Initial setup and training can be costly for some organizations.
HRMS v/s Manual System: Why Online HRMS Tool Is Better?
1. Employee Handling
HRMS System: The workforce management software automatically manages employees’ attendance, and other tasks like payroll, and benefits.
Most of the HR operations & payroll calculations are done automatically based on predefined rules. It reduces the workload of HR staff.
Manual System: It requires HR staff to handle these tasks by hand. This means counting attendance on paper like school. Also calculating payroll manually each pay period can lead to errors.
Attendance must be tracked with paper timesheets or punch cards, requiring HR staff to manually verify hours worked.
2. Access to Information
HRMS Software: The HRMS is mostly cloud-based and accessible from anywhere via the internet. It allows for remote work and quick access to employee information.
Manual System: Information is stored physically, making it hard to access remotely. Employees need to be physically present in the office to access or update records.
3. Storing Employee Data
HRMS On Cloud: It stores data in the cloud, and ensures all information is centralized and easily accessible. This system reduces the need for physical storage space and provides a secure backup. in case of physical damage to office premises. Cloud storage allows for quick searches and retrievals of employee records.
Manual System: This needs a lot of physical space to store paper records, which can be easily lost, or misplaced. Filing rooms must be organized and maintained, taking up valuable office space.
4. Connecting with Other Systems
HRMS System: The system can connect with other business software ensuring seamless data flow across the organization. For example, payroll data can be automatically synced with HRMS, reducing the need for duplicate attendance data entry and minimizing errors.
Manual System: It requires manual data transfer between different systems. This means HR staff must manually input data into various sheets or software programs, increasing the risk of mistakes and data inconsistencies.
5. Cost Over Time
HRMS Software: It might look expensive to set up initially, including costs for software, training, and possibly hardware upgrades. However, it scales with your business without needing significant additional investment. Automated processes reduce labor costs over time as well!
Manual System: Cheaper to start as it requires basic office supplies and no advanced software. However, as your business grows, it becomes more costly. You will need more physical storage space, and additional HR staff to handle increased paperwork.
6. Data Safety
Online HRMS System: This system uses strong security measures to protect data, such as encryption, multi-factor authentication, and regular backups. This ensures that sensitive employee information is secure from unauthorized access and data breaches.
Manual System: Data can be easily lost, stolen, or damaged because it’s stored physically. Paper records are vulnerable to theft, fire, water damage, and misplacement.
7. Getting Insights from Data
HRMS Software System: It offers instant reports and data analysis tools. That enables managers to make informed decisions quickly.
Manual System: It takes a lot of time to compile and analyze data manually. HR staff must go through physical records to gather information, which can be tedious and error-prone.
8. User Experience
HRMS Online System: Users might need some training initially to understand the system’s features. However, once you understand the software, the user-friendly interface makes the overall experience efficient and pleasant.
Manual System: Simple to understand at first without needing much training, as it involves basic tasks like filling out forms and maintaining files. However, as the business grows, the increasing volume of paperwork and manual processes becomes cumbersome.
Choose The Right With Pro Tip
After checking everything, if you are still confused then check our latest blogs to understand more! HRMS Online System is suitable for businesses looking to save time, handle growth easily, and keep data secure. HRMS Online allows for remote access and smooth integration with other software such as performance management software. Manual Systems may be fine for small businesses with limited needs but become inefficient and costly as the business expands. It lacks the flexibility and security of an online system.
The employee engagement software- Superworks advantages for companies, such as:
Cutting down the time needed to perform HR operations.
Enhancing communication between managers and employees.
Increasing the accuracy of employee data.
Streamlining and automating the HR process.
Written By :
Alpesh Vaghasiya
The founder & CEO of Superworks, I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments.With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally The core mission of Superworks is Connecting people, Optimizing the process, Enhancing performance.
Superworks is providing the best insights, resources, and knowledge regarding HRMS, Payroll, and other relevant topics. You can get the
optimum knowledge to solve your business-related issues by checking our blogs.
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