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HRMS: A Digital Assistant for HR Managers in Small Business

Small Businesses in South Africa and around the world need to work smart. There will be a new way of working and many new attitudes to work as the Covid19 Pandemic continues and countries endeavour to find a balance between the economy and the welfare of their citizens. An HR Management System or HRMS plays a vital role in the brave new world ahead of us. But what is an HRMS, is it different from an HR Information system (HRIS) and where does the humble payroll solution fit into it all? This article seeks to explain the differences, avoid confusion and remove the fear of acronyms.

HRMS: A Simple Acronym for a Powerful Business Tool

One of the biggest misconceptions about HRMS and HRIS is that you need to be a large company with very deep pockets. Another fact is that you do not need a large ERP or accounting packaging in the company, a solution such as HRSimplified can equally stand-alone or work with a variety of accounting software solutions. An HRMS is a powerful solution that is very much a combination of tools that manage almost every task in a payroll office or employee-related tasks in a small business. HRMS such as HRSimplififed automates many processes and frees up time for more strategic and income-generating tasks. When it comes to time-consuming and repetitive often thankless tasks an HRMS is a breath of fresh air.

Is an HRMS different to an HRIS?

Today the difference between an HRIS and an HRMS is negligible and both have slowly morphed into one solution as, to be honest, you cannot really have one without the other. HRIS is the component of a full HR Management Solution such as HRSimplified that tracks numerical data about an employee. An HRIS is the tool behind much of the reporting in an overall HR Solution also assisting with training, recruitment, talent management, compensation and the management of policies and procedures inside a company.

What about Payroll?

It is a strange conundrum and perhaps a sign of the times that a payroll system such as HRSimplified is expected to handle all the procedures that an HRMS and HRIS system can. HR management is a complex and often time-consuming aspect of any business and using manual systems such as MS Excel or even paper just doesn’t meet the grade today. Payroll is very much of prime importance but getting the right pay to the right employee and ensuring all the rules and regulations have been met is a complex matter, ask anyone who is doing this manually.

Skills needed to use HRMS, HRIS and Payroll Software

With a solution such as HRSimplifed, you do not need to be an HR or Payroll expert, everything has been simplified. From the outset, HRMS and HRIS may sound daunting but a few minutes in front of the screen with a modern, cloud-based HRMS learning how to use the system is child’s play and logical. HRSimplifed empowers owners of small businesses and HR Managers in their HR-related duties and helping small to medium-sized businesses improve their bottom line.