The Impact of Online HR Software on Your HRM Function

Online HR Software

Organizations use different business solutions to manage different business functions. Now, there are some solutions that cater to a particular niche and there are some that cater to wider needs, and some of these solutions are really useful and some not so important; however, one business productivity solution organizations can’t do without its online HR software. HR software or human resource software helps organizations efficiently manage the most important assets of the organization – the employees, and takes the strain of paperwork and mundane tasks away from the employees. The impact of the software on the HRM function is such that organizations can now get more done with less. We’ll discuss the impact of HR software on your HRM business function, focusing on automation and analytics.


The biggest impact that the software leaves on your HRM function is automation. Tasks like data entry, importing documents, and creating job descriptions and processes like recruitment, payroll management, and performance management can be automated with the software. For the HR professionals, it is like having a personal assistant that will handle everything they want done. It also helps them carry out functions efficiently and effectively since it comes with best practices that can be implemented in every aspect of HRM.

Let’s see the example of recruitment and how automation can help. Take the stock tasks in recruitment – it begins with a requisition for a resource from a line manager with the job description, which is then approved by a senior manager before it is forwarded to the HR team who then assigns a recruiter to source the resumes and come up with shortlisted profiles. The line manager and/or senior manager check these profiles, and come up with an interview list, and interviews are scheduled accordingly. Once interviews are done, the manager then finalizes on the required personnel, and the HR team releases the offer.

In all of this, there is a lot of paperwork involved, which creates a lot work for everyone involved, not to mention the processing time required. Now, with HRM software, much of this process can be automated so that processing is done faster, and the paperwork can be done easily. Through the software, the manager can raise the requisition, which will automatically be routed to the supervisor, and upon approval, will again automatically be sent to the HR team. The software will also automatically assign the responsibility of filling the position to a recruiter according to the rules defined by the HR team. With the software, recruiters can maintain a database of potential recruits which they can access whenever they need to and come up with the shortlist. This is again sent to the line manager who signs off on them, and interviews are again scheduled automatically since the software will have access to the calendars of managers. Once interviews are done, again, the manager again signs off on the candidates, and successful ones get the offer letter which has already been prepared using a template.

As you can see, the entire recruitment process becomes easier and more efficient due to the automation offered by the software. The same way, all the HRM processes can be improved by using the software.


Talk analytics to HR professionals, and chances are that they are either unaware of how they can help them, or they don’t want to touch them. There are very few organizations which take full advantage of analytics in running their HRM functions. This disinclination might be understood to a certain extent due to the effort and expertise involved, as most organizations do not have effective data collection and management systems. However, by virtue of using an HR system, they have both, and there really is no reason why they cannot benefit from analysis as well.

Data-driven decisions are highly useful – when you want to make an important decision like succession or promotion, it helps to have a complete profile of the employee so that you can make an informed decision. Analytics also ensure transparency and visibility, which are important when you are managing people. If employees challenge a decision, you can always show them the data to prove it. Lacking that, you run the chance of demotivation and dissonance.

The best thing about the analytics offered by the human resource software solution is that it is accessible to everyone. Analytics are not restricted to managers or vice presidents – employees at all levels can benefit from using analytics. The organizational in-house administrators can grant the pertinent privileges to the right people so that they can access and analyze data. This creates a democracy of information, which is always healthy for an organization.

Automation and analytics only scratch the surface of what online HR software can really do for organizations. It has a huge impact on the HRM function, and improves the running of the entire organization.

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