HR Software in India: Trends

As world economies slowly emerge from the century’s worst financial meltdown, one area of interest that has gained huge ground in the Indian corporate sector is Human Resources. Long seen as the less-important sibling in the field of management, today, companies are willing to invest enormous time and resources in their HR departments. Employee satisfaction, reduction of attrition, adequate rewards and compensation, comfortable exits, retirement and termination, compliance with new government and tax regulations, charting career paths and ensuring that productivity stays on a growth trajectory are some of the goals of an efficient HR policy.

With the boom in technology, the concept of “work” has morphed into something that encompasses global teams, virtual offices, remote working, flexi-time and part-time work forces, contract workers and consultants, 24×7 customer service and almost unlimited access to information. Hence, corporations need to move towards more tech-friendly methods of conducting appraisals. The earlier, cumbersome process of top-down evaluation, huge amount of paper work, delays, miscommunication and misunderstanding, resentments and lack of interaction have been more or less replaced by a more objective, clear and concise process of on-line or web-based appraisal system.

More Investment

This is a big trend that’s sweeping Indian corporations. Companies have realized the value of their human resource capital and are willing to go the extra mile to retain and nurture good workers. Automation of HR processes is also a big trend. Cloud hosting, third-party services and remote working by HR departments are seen as desirable investments. Companies are willing to invest in superior technology that gives superior functionality.

Streamlining Processes

Consolidation of other HR functions in Indian companies, regardless of their size and business, has enabled HR functionality to become more lean and efficient. Time-management, ERP, compensation policy, wages and payroll etc under single window umbrellas is gaining ground. Integrating these with existing software platforms, packages and policies has given Indian companies a more efficient and economical advantage.

Tech Trends

Using the Internet to communicate with remote teams and work-forces is common today, but more sophisticated systems are emerging. These allow users to retain confidentiality while accessing and providing information. More sophisticated employee tracking, time-management and performance appraisal methods are emerging. E-learning, remote coaching and mentoring and virtual training programs will rule the roost, while features like “digital dashboards” will be the future of HR. Cutting edge technology will revolutionize the way companies interact with their workforces through a variety of devices. 

ROI of HRIS Applications: Benefits and Challenges

The critical importance of ROI (return on investment) in HRIS (human resource information systems) marks the advent of the linking of ROI methodology with HR tools and software. Business organizations world-wide, regardless of their size, location and products/services need to calculate the exact cost of using HRIS applications. They need to justify this expense and understand how the automation of many HR functions can enhance efficiency and productivity. Another vital aspect is how much the HR software can increase employee satisfaction and customer delight.

 

ROI studies originated in the 1970s though the concept of calculating investment returns has had a much longer history. Recent innovations in the concept have included calculating the ROI in human capital, intellectual capital and other HR programs. These studies allow HR departments and management to convey the importance of their function to the rest of the organization. Traditionally, the HR function was seen as an off-shoot of management and managerial multi-tasking. However, in the modern corporate environment, with the dynamic nature of human capital, HR needs to be viewed as a crucial chain in the link. Understanding  the kind of returns it provides allows management to make more informed investments.

 

The ROI procedure has to be simple, credible and accurate. It has to be replicable across multiple geographies, types of organizations and departments, etc and the reports have to provide clear evidence of how important it is to make investments in people. The immediate application of the ROI in HRIS reports allows organizations to make the necessary course corrections in a timely fashion.

 

 

Benefits of using ROI in HRIS

 

As mentioned earlier, using ROI applications allows the entire organization to understand and appreciate the role of HRIS. Data and information gathered can be consolidated and integrated into strategic planning, employee satisfaction programs, training and scheduling, compensation and all other aspects of HR. Traditional organizations with senior level management may be able to better understand why HR programs and practices should be adopted. Some clients and customers may also be interested in knowing about your organization’s best practices in HR before they sign up with you – and here the reports and reviews come in handy. Critical and timely changes can be made during training, coaching and mentoring programs.

 

Challenges and Obstacles

 

Many companies and businesses may see an ROI application to HRIS as unnecessary, wasteful or irrelevant. Some of them may fear the changes that such studies may compel. It also involves additional duties and monitoring which over-worked HR personnel may be reluctant to share. Key stake-holders may not be supportive of the methodology and resources involved. Hence, before any ROI study is implemented, team members and staff of the HR department need to come on board while assigning duties, building skills and using the HRIS tools.  

 

 

 

 

HR Software in India: Features

Today, irrespective of their size and function, most companies in India have begun to acknowledge the importance of HR software. Many of the functions undertaken by the HR department are routine, time-consuming and tedious. They’re also subject to errors and omissions. The fact is that however boring and dreary the function, it is crucial to the health and growth of the organization. Critical areas like recruitment, attendance/leave management, compensation, payroll, performance appraisals and exit management are sensitive and can lead to escalation of disputes within the organization.

 

Another nightmare for HR departments is the dynamic nature of the work-force. Traditional 9-5 jobs have become the dinosaurs of the corporate world. Today, multiple time zones and geographies dominate the business environment. Technology saturation aids the formation of virtual workers and teams, flexi-time and part-time employment, project based work and consultancy, etc. People clock in at different times, from multiple locations and for different types of work. This could lead to huge confusion in terms of calculating compensation and deductions, performance reviews, managing leave and absenteeism, computing taxes, benefits, rewards and costs, compliance with local and international laws and regulations, etc.

 

Thankfully, many or most of these functions can be automated and successfully too. Some must-have features for HR software in India:

 

Customization/Upgrades: The package should be flexible enough to accommodate changing business logic and rules. Sometimes large-scale customization or over-hauling can be expensive and wasteful, hence a more flexible package should be selected, rather than a big-name one. Upgrades and updating of information should be available in real time.

 

Multi-location: HR software for India based companies should allow multi-location and multi-company features to be incorporated. Similarly, single or multi-user capability should also be available.

 

Module based: This allows more efficiency, integration and consolidation of the huge amount of data that comes in. Employee self-service can also be integrated so that privacy and confidentiality are maintained. Integration with payroll, financial department, leave/absence/attendance management enhances the capability.

 

Reporting: Data analytics, metrics and reporting are critical features of HR software. Generating multiple reports based on different aspects and combinations of data, use of reporting tools, etc allow the company and employees to have up-to-date and important information. Report level security and confidentiality, access control etc increase privacy and safety.

 

Auto features: Alerts via e-mail, SMS etc should be automatically available to increase communication and prevent errors and misunderstanding. Reminders and calendar based features like birthday, anniversary and special event messages increase bonding.

 

These and other features allow the HR department to concentrate on more vital aspects like planning, strategy and long-term goals. HR software in India has kept pace with the best practices domestically and internationally. They allow the HR department to work speedily, accurately and effectively while maintaining security, privacy and confidentiality of the information. Employee-management relationships are maintained well, leading to better satisfaction and productivity and ultimately, these translate to revenues, growth and customer satisfaction.

 

 

 

 

 

 

 

 

 

 

 

Skill Development using Mentis

HR Software in India: An Overview

HR Software in India: An Overview

 

Almost every organization today recognizes the critical importance of its human capital. Employees are no longer seen as mere workers or staff. Instead, they are considered to be a valuable human resource, intellectual capital and/or domain experts. This vital resource drives the health, expansion and growth of the company and definitely affects the bottom-line. Hence, companies have begun to pay much more attention to such an investment. Right from the recruitment stage to retention and nurturing employees, the organization needs to consider the needs and aspirations of employees.

 

Human Resources departments were traditionally seen as an off-shoot or product of the industrial era, when labor – management relationships came into dispute, or during recruitment periods. In time, handling salary issues, taxation, leave management, appraisals, performance reviews,  attendance and payroll were included. However, today, skill-enhancement, training, mentoring, coaching, strategic planning, capacity-building, etc have been added to the suite of services that are provided by the HR department.

 

Many of the tasks conducted by HR departments include routine data gathering and management. These can easily be automated, leaving the personnel free to concentrate on more complex tasks. Companies have begun to rely on specialized HR software in India to undertake these routine functions.

 

Some of the features that packages providing HR software in India offer are:

 

  • Recruitment management
  • Leave/attendance management
  • Employee Database management
  • Performance and Appraisals
  • Training and Skill-enhancement planning
  • Analytics
  • Payroll
  • Exit management

 

Another issue that confronts Indian companies today is that with increased globalization, the traditional work-place has been completely transformed. Virtual or remote working, global teams, flexi-time, part-time working, consultancy, cross-cultural teams, project or hour-wise work etc have replaced the 9-5 work-place. Hence, HR software in India needs to cater to the needs of a more diverse and scattered work-force.

 

HR software packages for Indian companies need to be:

 

  • Flexible
  • User-friendly
  • Parameter-based
  • Compliant with current regulations vis a vis labor laws, government regulations, tax regulations etc
  • Customizable, upgradable
  • Internet or Intranet based
  • Self-service
  • Links to other management functions
  • Safety, security and privacy assured
  • Support and maintenance available

 

Many packages for HR software in India are module based. This makes them easy to use, upgrade and maintain. Employee self-service allows management to provide access to only the required functions. For instance, employees can input their statutory tax declarations on-line and this data can be captured and stored, thus reducing the drudgery of data entry work for HR department personnel.

 

 

 

About Mentis

Founded in 2007, Mentis is a leading HR and Payroll provider. Mentis has over 10+ years of rich experience providing products and services in HR domain. Following are the main reasons why companies prefer Mentis:

  • Reliability: Mentis is highly reliable as it is a robust system which has gone through years of stabilisation
  • Strong Partner network: With a strong partner network, Mentis is capable of providing additional solutions ranging from Biometric services to Payroll and Compliance outsourcing services.
  •  Cost: Mentis has one of the best cost to feature ratio in the industry
  • Feature Rich: Mentis is feature rich HRMS. It covers all the HR processes from Employee Hiring to Exit. Modules range from attendance, leave, manufacturing, performance, feedback, training, learning, travel, recruitment, payroll, TDS, compliance, surveys, letter generation, promotion, transfers, connect, intranet and mobile apps
  • Flexibility: Mentis is available both on cloud and on-premises. Our on-cloud has the highest level of customization capability in the industry

 

How an Online Employee Performance Appraisal System Benefits a Company

 

Every successful company in the marketplace requires great human resources. High employee performance is the key to a thriving company with a stable market position. More and more companies today are engaging an online employee performance appraisal system to evaluate the performance of every employee in their organization to determine the contribution levels of employees to the market status of the company.

Appraisal tool

No matter how advanced technologies may become, people are the key assets of a successful company. Workers must be rewarded for their effort in building up the company’s market position through branding, marketing and image development activities. Creativity and innovation from respective workers must be recognized and rewarded to encourage continual high performance to boost the company’s bottom line and market position in its industry.

An employee appraisal system is an excellent evaluation tool in identifying the effective contributions of every employee in the company that strengthens the organization. Such an evaluation system allows the company to identify strong and dedicated employees who are loyal and capable of taking the company to the next level.

An online version of an employee appraisal system permits employees to perform a self-evaluation personally prior to an official evaluation which impacts the company’s decision on the reward quantum at the end of its financial year. Such systems also allow an employee to understand his role and impact in his current position in the company as well as identify a better career development path with the organization.

Special features

A well designed online employee performance appraisal system allows the employees to note every strength and weakness identified by the system through its list of questions and responses by the employee. The automated system generates relevant and practical feedback to the employee for improvement and self development.

The online appraisal system comprises features to enhance communication between the employee and employer as well as increase the employee’s commitment towards the company with better dialogue and dissemination of relevant information.

An effective online appraisal process for employees should be fully integrated with easy to navigate features that are also easy to understand. All employees would know how to handle the online appraisal system personally after a short training to appreciate the whole system.

The system reports on every employee should form a clear and fair basis of discussion between employee and employer to improve work relations and company bottom lines. The employee would have no doubt about the system’s fairness in capturing their personal data for an accurate report.

 

About Mentis

Founded in 2007, Mentis is a leading HR and Payroll provider. Mentis has over 10+ years of rich experience providing products and services in HR domain. Following are the main reasons why companies prefer Mentis:

  • Reliability: Mentis is highly reliable as it is a robust system which has gone through years of stabilisation
  • Strong Partner network: With a strong partner network, Mentis is capable of providing additional solutions ranging from Biometric services to Payroll and Compliance outsourcing services.
  •  Cost: Mentis has one of the best cost to feature ratio in the industry
  • Feature Rich: Mentis is feature rich HRMS. It covers all the HR processes from Employee Hiring to Exit. Modules range from attendance, leave, manufacturing, performance, feedback, training, learning, travel, recruitment, payroll, TDS, compliance, surveys, letter generation, promotion, transfers, connect, intranet and mobile apps
  • Flexibility: Mentis is available both on cloud and on-premises. Our on-cloud has the highest level of customization capability in the industry

HR Automation – Is It Really Needed?

Do I need to Automate? Is this the right time to Automate? Is it really worth it? What type of Solution do I need? Should I outsource instead?

These are some of the common questions that come up for companies who are either running their HR and Payroll through Excel or some basic legacy systems. These are all valid questions and their answers also vary from company to company. We did a thorough research and surveyed several organizations across different locations and business segments to come up with some industry pattern.

Following are the key factors that indicate whether it is appropriate for companies to automate their HR process or continue using manual/basic systems

Employee Count: Companies with up to 50 employees typically find it easy to manage manually. Post employee count of 250 automation starts becoming a necessity and managing employees over 500 manually or through a basic system becomes unmanageable and going for a reliable and robust solution offers an instant ROI

Location Spread: Next major concern for companies is managing multiple locations. Companies having multiple branches (typically in excess of 5 locations) find it difficult to manage without a web or mobile enabled system. Main concern for such companies is attendance automation. Companies with locations across multiple states typically prefer outsourcing their payroll while keeping their remaining HR process automated.

Age: Startups prefer to keep their processes flexible and find it easier to manage their process manually. If their employee count increase quickly they prefer outsourcing their payroll and compliance and keep managing the remaining processes either manually or through some sort of basic/in house system. Once the companies stabilise and have set HR processes (typically post 4-5 years of operations) do the companies start evaluating systems for HR automation. Managing companies after a 10 years of operations manually is not recommended and often has a high risk of non-compliance if using manual or basic system.

Profitability: The sooner the companies become profitable they start working on stabilising their process and start looking to automate.

Industry: Companies in Service Industry typically prefer to outsource their payroll while focus on automating rest of their HR functions. Manufacturing sector by large prefer to keep their payroll in house and attendance automation is their key focus after compliance.  Real estate, ecommerce or sales driven companies typically want their Core HR and attendance automated at the earliest.

Management Experience: Second generation or young entrepreneurs prefer to automate over first generation experienced counterparts.

 

Factors that matter while selecting HR partner

Cost: This is one of biggest factor while selecting HR solution. Most companies have accepted that they end up going for the lowest cost option though regretted it later but found it easier to switch from manual to low cost basic solutions

Experience: Another factor that matters is the experience of the HR partner. Companies prefer to stay with the experienced service providers over startups.

Focus: Companies that focus on only on HR solution is largely preferred over companies that have multiple products as the management bandwidth is typically more focused if a company has one brand/solution rather than doing multiple things

Reliability: A robust, time tested and reliable system is preferred over new and unstable systems

 

About Mentis

Founded in 2007, Mentis is a leading HR and Payroll provider. Mentis has over 10+ years of rich experience providing products and services in HR domain. Following are the main reasons why companies prefer Mentis:

  • Reliability: Mentis is highly reliable as it is a robust system which has gone through years of stabilisation
  • Strong Partner network: With a strong partner network, Mentis is capable of providing additional solutions ranging from Biometric services to Payroll and Compliance outsourcing services.
  •  Cost: Mentis has one of the best cost to feature ratio in the industry
  • Feature Rich: Mentis is feature rich HRMS. It covers all the HR processes from Employee Hiring to Exit. Modules range from attendance, leave, manufacturing, performance, feedback, training, learning, travel, recruitment, payroll, TDS, compliance, surveys, letter generation, promotion, transfers, connect, intranet and mobile apps
  • Flexibility: Mentis is available both on cloud and on-premises. Our on-cloud has the highest level of customization capability in the industry

 

Skill Development using Mentis

Simplify Hiring Though Automation

Hiring is one of the most crucial responsibilities of HR Department. Growth and stability of the business is dependent on the efficiency of the HR to hire resources as per the business needs. While it is crucial to get resource as per the time and budget contraints, it is even more important to make sure you get the right candidate. Candidates that have earlier shown tendencies of pulling out at the last moment, inconsistent or with questionable backgrounds need to be filtered.
With highest attrition in the recruitment department, the previous experience often gets misplaced. Having a system to keep a record of candidates and their feedback is a valuable piece of information for any company.
It is therefore worth investing in a good recruitment solution. Mentis HRMS has a smart yet simple recruitment solution that can help you onboard quickly. You can maintain candidate history, database, schedule and track interviews, roll out offers, and manage replacements easily.
To know how Mentis can help simplify your recruitment, contact us by visiting our website http://www.mentishrms.com or email us at sales@bennett.in

Utilizing HRIS to Impress your CEO

Most of the companies dealing with large manpower have some sort of HR systems in place. From excel based solution to medium to large size solutions like Mentis or Global Enterprise level implementations of PeopleSoft, the HR is managing their transactions in one way or the other. While HRIS records plenty of different types of transactions correlating those in a smart manner can help HR provide useful inputs to their Management.

For example, HR has the transactions of employees’ attendance, leaves, their last few cycles of performance feedback, attrition rate, reasons of exit, their competencies (gaps if any) and their feedback from their managers & peers. These transactions can easily be generated using any decent industry standard HRIS like Mentis. Once you correlate the data you can make interesting interpretations related to:

Financial Loss due to late coming: Use the salaries of the employees and factor in the number of times the employees are late/or on leave in a month to come up with loss of salary per month. Let us call this as Monthly Time Loss (MTL).

Using the data above you can easily compute the following trends for Amount & percentage over the past 12 to 24 months:

  • MTL by Employee
  • Average MTL
  • Grade wise MTL
  • Total MTL

 

Now pick employees that have the highest (above average) MTL in terms of Amount and in terms of Percentage loss and then look at their attrition rate and see if there is any co-relation. Another co-relation could be comparing the performance of employees with high MTL.

All these data points can be combined to create a historic trend that can be further used for predicting future trends.

Demonetization & Donald Trump Election Impact On HR Industry

Demonitization

Look at the current state of demonetization, if there was a way to predict this, wouldn’t it be a great opportunity for many of us. Some might have read the signals, observed government’s actions (arrival of new governor, launch of new currency, upcoming elections, GST) and pressure of taking action against black money, expiry of the latest tax amnesty scheme and the state of banking system. These indicators were sufficient to give a prediction that something of this sort is a concrete possibility.

Donald Trump & the rise of Right Wing

In the time of uncertainty with change of guard at the best democracy of the world and the unpredictable nature of the new leadership, some way to predict how it might impact our industry would be really useful. Mexico is already in panic state, Japan/China are being cautious and Europe wary of what might happen next. Rise of the Right wing across the world might bring additional dynamics (both politically and economically) for companies to handle.

Current Role of HR Department

In such unpredictable Macro environment, companies need to find a way to prepare how it might impact them. While they cannot control the macro environment, they can certainly become more innovative in the way they handle their resources. Human Resource management has been a traditionally transactional activity as it managing and monitoring the transactions as per the basic framework of the company.  Most companies look towards HR for policy enforcement, discipline, worker relationship, salary cost analysis, performance measurement, compliance & employee engagement etc. While this is how HR department has been tuned into and hence how they perform. Most of the traditional work performed include talent acquisition, competency assessment and development, compensation planning, salary processing, employee engagement, training, performance evaluation, joining & exit paperwork/formalities.

How HR can Help

HR has much more potential than it is currently being given credit for by the companies. HR has the ability, experience, insights & data to give predictive analysis. Using the right tools & with help of proper data HR can help predict a potential problem or an opportunity before it becomes a reality. Once an incident has transpired there is nothing much anyone can do but to react as per their abilities. HR can unleash the power of information related to the company, competitors & the industry and predict a threat or an opportunity.

For instance, a simple comparison of employee salaries in comparison to their counterpart in the industry, combined with the competencies, their recent performance trends & their punctuality it is possible to identify leaders that are flight risks and bad hires that are burden to the balance sheet. One right proactive move to promote a potential leader or fire a bad hire can help a company capitalize on an opportunity, prepare for risk of manpower loss or even help improve the bottom line by weeding out the unwanted team members.

Mentis HRMS is currently working on such an analytical tool that will help companies mine their information warehouse and make predictive analysis based decision making. Mentis has tied up with Complicheck System (Compliance Software to identify and track compliance) to help HR department a single platform for managing transactions and related compliance. CompliCheck has a builtin repository of labour law compliance, TDS, Companies Act & upcoming GST in one single platform.

 

HRIS on Cloud – Fear of Unknown

While procuring HRIS (or any other ERP for that matter), the most critical decision is often taken in the end or in many places completely ignored. The decision related to whether to opt for a Cloud based solution or to go in for an install based solution.  Lack of information, misinformation, fear of unknown and perception of higher costs often clouds the decision making abilities. Let us take a quick peek at the reasons why people opt for on premises solutions

1) Fear of Data Security: This is the biggest concern that most of the customers have when deciding cloud v/s on premises solution. The reality is that most of the cloud vendors have stringent data privacy and secrecy procedures in place and most these are more stringent that the customers can themselves implement. Yet this fear drives the decision to stay on premises.

2) Higher Cost: This again is a myth as there are so many factors that add up to the cost of owning a software on client’s premises that are usually ignored while computing. Typically a software (installed or on cloud) should be considered for a 5 year basis while computing the cost as the infrastructure supporting the on premises application require upgrades, application itself would require major upgrades and hence investment would repeat after 5 years. Companies keep in mind much longer time frame while computing the cost of owning a software hence create an assumption that on premise solutions are cheaper. Hidden/intangible costs related to the maintenance, high availability & business continuity is often under estimated while computing the cost of installation based software. In reality you end up getting a very high quality infrastructure and supported services at a very reasonable cost.

3) Customization and Integration: Customers believe that it is not possible to customize cloud solution beyond a certain point. In reality this depends on what kind of HRIS solution you are looking for. There are different kinds of Cloud solutions (multi tenant, a bit expense but can be highly customizable or single tenant, based on best practices that has some limitations on what can be customized but offers alternative solutions at much lower prices). Integration is never a challenge for a Cloud solution as the SOA (service oriented Architecture) web services are very common making the communication across the various platform very easy.

4) Limited Options: Customers feel that there are very few options when it comes to on premises. While this might be true to a certain extent but would it be wise to opt for a solution that is not ready to scale itself on the next generation platforms. Most of the industry renowned solutions have already switched to Cloud or are in the process of switching to Cloud. Vendors who are unable to move to cloud might not be able to survive in long run or find themselves struggling once the cloud platform picks the pace. So it would be really wise to stick to the vendors that have already adapted to the next generation technologies.

To know more about how Cloud based HRIS like Mentis can help you with your automation, visit us at http://www.mentishrms.com