By Godrume Kriel | 6/7/2016 | General

6 Reasons to Start Using HR Management Systems

6 Reasons to Start Using HR Management Systems

Human Resources Management (HRM) tech is a market currently worth over $15 Bn. I think it’s pretty clear that things are booming, and they show no signs of stopping any time soon. HRM has had a bit of a bad rep; in the words of one writer, “HRM is too important to be left to HRM”. Traditional HRM departments are undergoing a massive transformation towards software and management systems. This change is making HRM into a mean, clean, operating machine! So we’ve come up with 5 reasons why you need to start using HRM systems.


Software Updates

Currently Human Resource management systems (HRMS) are on average between 5-7 years old. Most HRMS need to be changed or updated after 7 years. Switching costs or even updating systems in terms of IT can be a costly issue. This issue can be completely avoided by switching to cloud-based solutions like BambooHR or ADP Workforce. Updating the system would no longer come out of your pocket. The vendors would be responsible for making sure the systems were updated cleanly. Changing to a cloud system also massively decreases your switching costs. These two features of HRMS cloud-based systems has made the market much more cut throat. In order to remain competitive you’ll need to adapt to this new competitive landscape.


A Centralized System

There are too few companies out there that are using one system. According to Forbes “only 13% of companies are using one system and on average companies have 3-4 different HR applications”. This results in a lot of info coming from different places making it hard to draw any insightful conclusions. You’ll end up tearing your hair out! As a result of this, vendors are making more complete platforms with all the functions you might need integrated into one centralized system. One system will streamline all the data, giving you a more precise way to deal with all your HR needs.


*Tip: I’ve struggled to find a system that works for me. Have a sniff around, but some are definitely nicer than others. Here is one that I think might be pretty cozy.


Big Data Analytics

This is a term that has become almost synonymous with cloud computing. It refers to the massive collection of information enabling businesses to make stronger analyses. There is a desire to create better analytics which has completely raised the level of competition. For anyone looking to use HRMS this is good news. It means that there are going to be more solutions with better analytical power. If you stick to the old model of HRM you’re going to be missing out on analytical tools that will help you stay in the game!



The internet is fast becoming mobile. Computer usage has dropped significantly over the years. It has largely been replaced by cell phones, tablets and other smart, internet-enabled devices. This increase in mobility has led to higher productivity. You can go from work to home using multiple devices and accessing the same account. This was not possible with server-based HRMS. Continuing to stay on a server-based HRMS is going to decrease your productivity. You need to be able to respond quickly to anything that requires changing. The corporate environment is dynamic and if your response time is slow you might jeopardize your business.


Your Most Important Resource

It’s easy to look at all the tech improvements and talk about how it’s going to make the business more effective. However, with employees being more connected to work there might be lower morale. It’s important to be able to take care of your employees state of mind. If you have a cutting-edge system you’ll be able to work with the system to prioritize and analyze what’s important for your employees. If you’re able to work with your HRMS like this, not only will it be effective but it will also be wise. Probably the best thing you could do is use this tech to improve your employee relationships.


The Way Forward

HRMS are currently very underused. Forbes estimates that there could be 430 million users whereas currently between 33-40 million are using it. We’re going to see massive growth in this market over the next few years. The three spiciest categories right now are recruiting tools, mobile apps and analytics.

*Tip: Here are a couple apps that I think will help you out on your way forward ;-)


These are the 6 reasons why you should be moving to HRMS if you haven’t done so already in the middle of reading all this. I think it’s pretty clear that HRMS are the new kids on the block and they’re not scared to fight rough!

By Godrume Kriel | 6/7/2016 | General

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