8 Ways Human Resource Management System can Revolutionize Your HR Department

 

Cloud technology has forced companies to look for software to boost efficiency and improve the accuracy of human resources operations.

The technology has made it possible to automate a company’s HR operations.

The advantages of a Human Resource Management System have led to improved performance across several areas, including hiring, interviews, paperwork, onboarding, payroll, attendance control, learning and development, compliance, workflow streaming, and relieving tasks.

Many free HR software programs are available, and the help of analytics and cloud-based HR software has raised staff performance transparency and boosted employee happiness.

Let’s examine how human resource management has changed because of HR software.

1. Hiring

The first step in the HR process is to decide how to hire the ideal candidate who fits the culture and environment of the company.

According to a report, online recruiting may shorten the hiring process by 25%. Consequently, 95% of the costs are saved. (1)

The efficient tracking of each candidate’s development has been made possible via cloud-based HR management software.

2. Process For Onboarding And Documenting

Many businesses have adopted cloud-based HR software to collect and retain data while onboarding personnel methodically and securely.

In addition to lowering the danger of information loss, this has enabled businesses to accumulate vital data that will help them learn and develop and offer information on their employees’ progress.

Although they now spend less time manually entering data, HR managers still devote up to 50% of their time to these responsibilities.

By accurately calculating salaries and PF amounts against employee designations, new HR systems can consolidate and automate the payroll system through e-payroll.

To avoid fines and maintain the efficient operation of the company, the payroll team can update HR systems with new policies, tax regulations, and deadlines regularly.

3. Management Of Attendance And Leaves

Thanks to a cloud-based e-attendance system, HR can compute employees’ overtime, additional days, and required working hours. It also helps in maintaining a record of employees’ attendance.

Employees who are paid by the hour or frequently put in extra work for the company outside of regular business hours may benefit from these solutions.

4. Data Management For Employees

Additionally, many web-based Human Resource Management System have brought together HR operations in one location to see personnel information, top skills, employee assessments and successes, and comments from peers.

5. Performance Monitoring

Replacing the outdated practice of assigning generic key performance indicators (KPIs) to everyone in a similar job. The performance appraisal team now has all records data linked into one location and machine learning at their disposal, making their work easier.

6. Reporting And Analysis

Companies can obtain real-time updates and analyses of employees’ performance, all thanks to HR software. When an organization’s culture changes, this would be incredibly beneficial for businesses to adapt accordingly.

Real-time updates will enable the HR manager to monitor the effect on people and notify the board of any benefits, difficulties, and the degree of success of new approaches.

7. Forming A Team

The HR division can plan and create exercises to strengthen teams using the available data. Additionally, it can identify the underlying causes of poor performance and improve teamwork abilities or employee morale.

Predictive analysis is one way that artificial intelligence will likely be used effectively. 32% of businesses claim to be prepared to start employing predictive analytics.

Regarding team development, AI may assess data from most people, teams, or organizations to forecast performance and suggest ways to improve individual contributors’ abilities.

8. Managing the Workforce

Integrating HR with the business’s goal will enable managers to enhance their planning and adopt a strategic approach to the organization’s future requirements.

Additionally, it would enable companies to spend money on staff training and development to build stronger teams and future leaders.

Consequently, decisions connected to human capital management should be strengthened. HR software assists in matching the right team with the appropriate project that fits their skill sets.

Furthermore, the program aids in streamlining all of their activities so that they may concentrate on essential jobs, boosting productivity.

Without an effective HRMS, no organization’s human resource management can compete in today’s market.

All You Need to Know About TDS Calculation

 

Businesses are working hard to complete their income tax filing as the fiscal year ends.

At the beginning of each fiscal year, most firms request investment declarations from their salaried personnel. These investment statements are necessary so that tax deductions can be applied appropriately. The employer will estimate the taxable income based on the investment declaration statement and begin withholding tax in the form of tax deducted at source (TDS) before paying the employee’s monthly salary using TDS management software.

What Exactly is TDS?

In India, the Indian Income Tax Act of 1961 specifies TDS as a method of income tax collection. TDS applies to salaries, commissions, royalties, brokerage fees, contract payments, interest received on various financial investments, lotteries, rental income, professional fees, etc. A component of the Department of Revenue, which is run by the Indian Revenue Service, the TDS is overseen by the Central Board for Direct Taxes (CBDT) (I.R.S.). This sum is collected to ensure the government’s consistent annual income stream. Because of this, tax evasion is prevented.

What Factors are Used for TDS Calculation?

If you’ve ever observed, the C.T.C. (cost to the business) estimate given to you at the time of joining includes items like the base salary, travel expenses, medical expenses, housing rent expenses, and other allowances. Additionally, there are two main categories for salary, namely perquisites. Benefits include services that the employer offers to the employee, such as paying for their travel and fuel costs.

Organizations now use the best TDS software to calculate employee TDS and do many other payroll-related tasks.

How is TDS Determined?

Sections 80C and 80D of the Income Tax Act of 1961 permit deductions for government taxes. This enables a person to search for various investments for a specific fiscal year.

By deducting the exemption from the total annual earnings stated by the Income Tax department, one can compute TDS on salary rate. If an employee requests a tax exemption, the employer must get a declaration and supporting documentation before approving the request.

The following are some possible tax exemption categories.

House Rent Allowance: H.R.A. is a benefit that an employee may claim from their employer if they pay rent for housing.

Conveyance or Travel Payment: If your company gives you this type of allowance, they can declare it for tax purposes.

Medical Allowance: If your employer offers you a medical allowance, they may report it and furnish medical records to qualify for a tax exemption.

The amount excused from taxes up to a certain threshold is constrained.

TDS Deduction

A claim for a refund of the excess amount can be made if a person has paid more in taxes than required. Additionally, TDS deductions for people in different income brackets are computed based on various variables.

TDS Deduction Methods

Salary, lotteries, bank interest, rent, commission payments, and payments to independent contractors are examples of income and expenses that fall under the scope of TDS. As a result, the source deducts a portion of the total payment whenever one of these segments receives payment. The “Deductor” is the source, which can be either a person or an organization. The Deductee is the person from whose payment the deduction is made.

Income Tax Deductions List FY 2022-23 (AY 2023-24):

Section 80C Deduction & Section 80CCD:

The following investments and expenses are eligible for deduction under sections 80C, 80CCC, and 80CCD of the income tax act:

Section	Eligible Investments/expenses
80C	Contributions made towards- EPF/VPF, PPF, ELSS mutual funds, Sukanya Samriddhi, senior citizens savings scheme, NSC. A 5-year term deposit, life insurance or ULIP premium, home loan principal repayment, stamp duty paid towards house purchase, children’s school tuition fee (maximum two children).
80CCC	Contributions made to any annuity or pension plan of a life insurance company.
80CCD (1)	Both salaried employees and self-employed can claim this deduction on their contribution towards NPS, not more than- 10% of Basic Salary+DA (in case of an employee), 20% of total gross income (for self-employed).
80CCD(1B)	Additional deduction of Rs. 50,000 for the investment done in NPS. Atal Pension Yojana is also eligible.
80CCD (2)	It is available to employees for the employer’s contribution to NPS. The limit for the deduction is lower than- the amount of contribution or 14% of salary (for central government employees)/10% of salary (for other employees). It is available under both old and new income tax regimes.

The aggregate income tax deduction limit under sections 80C, 80CCC and 80CCD(1) are Rs.1.50 Lakh, and an additional Rs.50,000 is available under section 80CCD(1B).

Why is Filing the Correct Tax Return Necessary?

When calculating your tax liability, you must be truthful about your income and outgoings. When transitioning to a new job, you could overlook some aspects, such as income from the prior position or additional revenue from a contractual opportunity. However, one should refrain because doing so will subject one to severe fines from the relevant tax authorities, who will also take legal action. To prevent issues with the taxman, you must guarantee that your data is accurate and can withstand future cross-verification.

Employee TDS software makes it simple to cross-check and verify their tax returns.

A person must be expected to pay taxes if they receive a salary. However, if the employee deposits the tax, the employer will be responsible for paying interest and a penalty for neglecting to withhold the tax.

Pros of Self-Service Portal- The New Age Update

 

It wasn’t long when HRs used to have a miserable work life. Imagine managing all resources at work, all their queries, addressing their issues, and maintaining sanity. However, the modern HR scenario has drastically changed! Let us find out how the self-service feature in employee management software has contributed to the change.

Kudos to HRs for handling everything and beyond that cannot be defined by the KRAs. However, the new-age corporate world has made things convenient for HRs. Businesses now streamline their human resource management approach by leveraging the latest technology.

The self-service feature has been one of the most praise-worthy features of HRMS solutions. It has empowered employees reasonably and added to the agility of business operations. Let us find out more about the pros of self-service portals.

Benefits of Self-Service Portals

Self-service portals are great value adders to internal operations. They save time, increase transparency, and do many good things for the system. Let us dig into the details of the benefits of the feature-

Update Your Info:

H Rs have a tough time updating the information of new joiners in the portal. With the self-service feature, every employee gets the power to upload their personal information.

Apply for Leaves

You can apply for leaves yourself. Hence, you get rid of the hassle of manually typing a leave application, putting the concerned managers and HRs in your CC, and, most importantly, waiting for a response.

Be Updated With the Newsroom Notice Board.

When you have a self-service portal, you are always in the loop with the latest update. Work-related details, disciplinary updates, and other information are always available to you briefly.

Gain All-time Access to Information

The self-service features allow employees to get information through the employee management portal. From the goals and KRAs to the number of leaves in the buckets, information is readily available for HRs.

Remote Work Becomes Easier.

The feature helps both HRs and employees in the case of remote work. Employees can escape the hassle of reaching out to HRs with every drop of a hat for information, whereas the HRs are also relieved from the non-stop pour of questions.

The Way Forward

Self-service Portals can redefine your workplace with a few advantages. Hence, incorporate employee management software with the feature to experience the best results. When you look forward to settling for an HRMS, you must look for a self-service feature to make the best out of every penny you spend.

Let us know your experiences with the self-service portals in the comment section below!

Hiring, Firing, Payroll and Beyond- HR’s Gospel

 

For some correctional personnel, a payroll officer, and some firms a communicator, HRs are perceived as several other resources but HRs. Ask any HR what’s the most challenging part of the job, and the answer will be somewhat around the myths about HR’s contributions!

As we head to the modern corporate landscape, we realize the value of an HR’s contributions. They are the making and breaking factors for an organization. From employee engagement to employee productivity, they optimize businesses in every possible way. Indeed, we do not know much about HRs and what a day in an HR’s life looks like!

However, you have landed at a place that will enlighten you about his role in business transmission.

Do HRs hire and fire?

Well, yes, they do! The crucial duty of an HR is to manage human resources and optimize the business’s productivity. Therefore, it is a part of their job to evaluate employees’ productivity and take measures to optimize them for the best profitability of the organization.

But if you ask me where it is their only job, then the answer will be a NO. They are responsible for several strategic aspects of resource management, like employee engagement, performance evaluation, learning, development, etc.

How can HRs contribute to business transmission?

If you want your human resources to align with your business, you need a responsible HR who knows her job well. Why? Simply because HRs can optimize workforce productivity with a few strategic moves.

From employee upskilling to accurate performance evaluation, they can bring a world of difference to your business process. After all, we always bet on human resources, and human resource managers have a significant role in managing them.

Human Resource Management Challenges

HRs are meant for more strategic functions than being stuck in unproductive piles of paperwork. Most organizations confine their HRs to paperwork, payroll processing, and leave and attendance management, which can be easily automated by leveraging the latest technology.

However, it is ultimately a company’s call to utilize the HR wing for transmission or get the paperwork out of their way!

By now, if you have realized how imperative HRs’ contributions are to meet organizational goals, you can sign up for a valuable try altogether with ConfluxHR. It is a platform that aims at freeing up HRs from monotonous activities so that they can bring the much-awaited optimizations in the business process.

The Four P’s to Avoid Employee Resignations

 

The youthful generation, now entering the workforce, feels more empowered than ever to find a career they enjoy. Such a scenario implies that they will go from one job to the next until they discover their ideal fit.

Effective human resource management is required to ensure employee happiness and retention. In case of a resignation, employers must also manage the complete exit process of employee to reduce compliance issues and maintain consistent off-boarding of their valued employees.

The Shifting Tide of HR Trends in 2022 and Beyond

Technology has permitted a never-ending employment search for upcoming youthful employees. According to Statista, based on survey data collected in February 2022, the most significant reason for quitting a job in 2021 was insufficient compensation.

Lack of career advancement was also frequently stated as a reason for resignation. As a result, HR professionals constantly seek new ways to optimize human resource management and keep their eyes peeled for better chances in the periphery.

Here are the ‘Four Ps’ you can deploy to avoid the hassle of going through a tedious employee exit process:

Provide Opportunities in Terms of Growth

Check in with employees regularly to learn what aspects of their employment they like the most. Inquire about what else they’d like to know. Allow them to shadow you or others in the firm who can teach them desirable skills.

Opportunities for advancement and leadership responsibilities should be trumpeted into their ears. Make a clear route for them to follow with tactical steps they may take to acquire those responsibilities.

ConfluxHR may assist you in communicating successfully with your resources in this situation by providing enhanced tools for managing, administering and tracking learning and development programs, one-on-one dialogues, and so on.

Going further, according to Statista, as of 2021, 49% of job applicants regarded career growth possibilities, employer ethics, and values as other key factors in assuring job satisfaction.

Pay Your Employees Practically

Overall compensation was the most important criterion for job seekers accepting work in both 2021 and 2022. This percentage climbed dramatically throughout this period, with a 15% increase in respondents claiming this as their primary reason for accepting a job in 2022.

Furthermore, Statista stated that respondents in 2022 were less concerned with corporate location, company values, and job security than they were in 2021.

ConfluxHR’s Performance Management Module can help you manage employee performance and evaluation issues. You may give employees bonuses to encourage hard work. Compensating staff for extra effort done for the organization goes a long way in terms of employee loyalty.

Prioritize Employee Health First Policies

If your employee is happy and healthy, they will work hard for your company. Aside from including therapy and medication coverage in your benefits package, there are various other ways to encourage employees to live healthy lifestyles.

As part of a benefits package, you may include a gym membership. Allow staff to arrive late or depart early once a week to attend a yoga or group exercise class. Work with employees schedules to ensure that personal health initiatives are balanced with office hours.

Praise Employees for Excellent Work

Employees must understand that what they do for your company is important. If you don’t show them how they can make a difference, they’ll move somewhere that does. Make time during the day to congratulate the staff for their efforts. It may even start by saying, “You’re doing great today!”

Such practice reminds them of their fantastic job and explains how they’re an important part of the team. According to a survey done in India between December 2021 and January 2022, 44 per cent of full-time employees were satisfied with their current job.

It will foster empathy and understanding between the two roles.

Conclusion

Employees will become increasingly difficult to keep; since technology allows us access to vast amounts of data regarding employment. Your employer brand is on the front lines versus competing organizations that threaten to take better care of your talent than you.

Keep in mind the ‘Four Ps’ to keep your talent from going elsewhere. ConfluxHR, on the other hand, may also assist you with the employee leave process. Our HRMS Platform offers comprehensive human resource management services, from recruitment to employee exit process management.

Are you interested in learning more about how ConfluxHR can establish a systematic human resource management approach for your team?

Sign Up for the on-demand ConfluxHR live demo.

Also read: 10 Factors for an Employee Resignation