Marianne David
November 4, 2024
5 min Read

14 essential HR system features to look for and why

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Key HR system features

As companies grow, so do their HR needs – and traditional methods of handling HR tasks simply cannot keep up.

Modern HR systems, on the other hand, offer an extensive host of features that effortlessly meet the diverse needs of businesses, large and small.

So, what does a stellar HR system really do?

By automating complex tasks and integrating essential HR functions, it enables companies to focus on strategic initiatives instead of drowning in administrative burdens, while enabling employers and employees to interact more dynamically.

Let’s explore the essential features to look for and considerations to keep in mind when commencing a digital HR journey, which will empower you to choose the right solution for your business.

Centralised database

A centralised database is a cornerstone of an excellent HR system, acting as a secure and cohesive repository for all employee-related information. Consolidating data – such as personal details, employment history, and performance records – allows HR departments to streamline operations and make informed decisions swiftly.

Employee Self-Service (ESS) portals

Empowering employees with self-service portals can significantly reduce the administrative workload for HR teams. These portals allow employees to manage their own HR tasks – such as updating personal information, submitting leave requests, and accessing payslips.

Cloud-based capability

In the current digital landscape, cloud-based HR systems have emerged as essential tools for modern businesses. Their flexibility allows organisations to access data remotely, enabling real-time decision-making and improved collaboration. The integration of cloud solutions enhances business agility by reducing the need for continuous hardware updates and maintenance. MiHCM, for example, offers advanced features, analytics, and insights through cloud capabilities, showcasing how businesses can harness the power of data without the need for extensive on-site infrastructure.

Integration with payroll systems

Integration with payroll systems ensures timely and accurate compensation management. A well-integrated HR and payroll system streamlines the workflow by linking payroll directly with attendance and benefits data, eliminating manual data entry errors and ensuring compliance with local labour laws.

HR analytics and insights

HR analytics provide insights into workforce trends, supporting strategic planning and enhancing decision-making. By leveraging data from various HR functions, analytics offer AI-powered insights into employee performance, turnover rates, and engagement levels.

Scalability and growth

Selecting an HR system that can expand and evolve alongside your company is crucial. As your business grows, your HR needs will become more complex. Ensure that the system you select can handle an increasing amount of data and users without compromising performance.

User interface and accessibility

A system that is easy to navigate and intuitive will facilitate quicker employee adoption and reduce the need for extensive training. Accessibility is also a key consideration, particularly for companies with a remote workforce. A cloud-based system ensures employees can access necessary HR functions from anywhere.

Integration with business tools

HR systems should integrate effortlessly with a company’s existing suite of business tools, such as project management software. This is crucial for maintaining a consistent flow of data across various departments and ensuring that all tools work harmoniously.

Security and data protection

With sensitive employee data being processed daily, robust security features are non-negotiable. Select an HR system that offers comprehensive security measures, including data encryption, regular security updates, and strong authentication protocols.

Role-based access control

Implementing role-based access controls ensures that information is accessed only by authorised personnel, effectively reducing data breaches and unauthorised access. This is vital for maintaining the integrity of employee data.

Automated compliance tools

Maintaining compliance with ever-evolving legal standards is a daunting task for HR departments. However, automated compliance tools integrated within HR systems simplify this process significantly and provide immediate alerts and updates on changing regulations.

Talent management

Modern HR systems offer a suite of talent management tools that cater to every stage of the employee lifecycle. These tools ensure that organisations attract, retain, and nurture the right talent, providing a competitive edge in an increasingly dynamic work environment.

Onboarding and offboarding

Compensation and benefits administration

Using strategic compensation and benefits tools, HR departments can adjust budgets, establish clear remuneration policies, and align employee compensation with performance metrics, supporting better workforce planning and satisfaction.

Cost vs. capabilities

When choosing an HR system, it’s essential to balance the cost against the capabilities offered.

A modern HR system must also be scalable to grow with your business.

MiHCM Lite, for instance, offers flexibility for small teams, whereas MiHCM Enterprise scales to larger operations with ease.

While a more affordable system may seem appealing, it’s vital to ensure that it offers robust features that cater to your specific HR needs.

On the other hand, a higher-priced system should justify its cost with comprehensive functionalities that align with your business goals.

Consider future expansion plans as well, as spending a little more now might save tremendous costs in the future.

Written By : Marianne David

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