Effective Human Resource Systems

Human resource systems may be defined as the management or integrated use of policies, systems and procedures to attract, select, train, reward and maintain employees in order to meet company goals while maintaining compliance with employment laws.

“A Guide for Strengthening HR Systems” – produced by the Cambridge, Massachusetts-based Management Sciences for Health and published at The Manager’s Electronic Resource Center at erc.msh.org – mentions several benefits of an effective human resource system.

For one, HR systems can increase the capability of a company to reach its goals. Systematic planning, which supports the company’s missions, will also be encouraged. The third benefit mentioned is that an effective HR system delivers a “clear definition of each employee’s responsibilities” and how these responsibilities connect to the company’s goals. An effective human resource system also “encourages greater equity between compensation and level of responsibility.”

The fifth benefit mentioned is that it helps define and clarify levels of supervision and support from the management. The other benefits mentioned include putting the company in a better position to manage change; improves performance levels as well as the efficient use of the skills and knowledge of the workforce; and higher levels of productivity and efficiency which lead to savings on operation costs.

Human resource systems should also take into account several human resources components like HR solutions or strategic HR, HR scorecards, human resource consulting, human resource planning and an overall human resource strategy.

Strategic HR is all about providing HR solutions to various HR processes, including rostering and payroll. HR solutions typically offer services similar to that of a complete in house HR department. HR scorecards are dashboards or scorecards and other similar reporting mechanisms that help further implement the business strategy. HR consulting is about providing the information and guidance on such areas as training, workplace relations, 360 degree feedback, mergers, acquisition, employee engagement and restructures. HR planning involves identifying current human resource issues and assessing how effective the current HR best practices are in addressing these issues. The HR strategy or HR plan refers to an overall HR plan that links the company’s goals to motivation and rewards, training, succession planning and performance management.

The term “HR systems” is also used to refer to software or an integrated system of several programs that typically combine HR functions into one platform. This convergence between HR management and information technology helps significantly reduce staff hours spent on a number of HR functions. It also helps reduce internal paper work and encouraged management and employees towards focusing on other key aspects of the business.

Human resource systems replace manual processes in recruitment, training, payroll, administration of benefits, compliance, appraisal, rostering, performance record, heath and safety issues, employee self service, appraisal, work relations and more with a computerized system that is usually integrated into the software system of the entire enterprise. An HR system simplifies and expedites processes and allows for easier retrieval of information. The payroll software alone can do the job of an entire team: processing payroll, cutting cheks, computing wage rates, taxes, leave entitlements, among others

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Kylie Milan is a HR specialist, who manages human resource systems and provides innovative support and guidance related to hr functions. We also specialize in Australian payroll including outsourced payroll, time and attendance system and comprehensive payroll reporting.