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HRMS (Human Resource Management System) has become crucial for global organizations. Whether small, medium, or large enterprises, all require such a solution for managing multiple business aspects, from employee onboarding to relieving.
According to a source, the HRMS market size was estimated to be $13.3 billion in 2021 and valued at approximately $33.40 billion by 2030, with a 12.2% CAGR between 2024 and 2032. The growing demand is attributed to many factors, such as digitizing HR processes, enhancements in modern technologies, and automation.
However, startups need HRMS for many other reasons, such as cost-cutting, enhancing productivity, accurately tracking absenteeism and attendance, etc. Today, we will discuss these in detail in this blog.
3 Important Reasons Why Startups Need an HRMS
Cost Cutting in Business Processes
An HRMS saves employees time and cuts costs during various processes. For example, a self-service HRMS system can streamline employee onboarding. Today, face recognition systems integrated into such solutions make creating a digital profile and streamlining check-in and checkout of employees and visitors easier.
The employee can create their digital profile, link their face biometrics, and update their KYC details without the interference of the HR or admin. The same data would be visible to the administrators to deduce the risk factor and document authenticity.
As a result, the self-service employee onboarding, verification, and attendance process saves labor costs, which otherwise would have been spent on training new employees and giving induction. Moreover, HRMS often includes shift schedules, making it even more convenient for employees and employers to know the working hours of designated employees without waiting for Excel rosters and last-minute changes.
An HRMS with face biometric attendance can also safeguard a startup against proxy, a common malpractice that leads to hefty financial losses, delayed work, lower efficiency, and a loss of chance to take on new projects. Face biometric HRM software requires the registered user to mark their attendance as their biometrics are unique. If assisted with liveness detection, it can significantly eliminate the risk of fake attendance via other methods.
Upgrading Employee & Organizational Security
Startups and other enterprises that have yet to start using HRM software are vulnerable to illegal access and data threats. HRMS puts data security in place and enhances organization security by strengthening the safety of employees’ data.
Moreover, HR management software also prevents instances of identity theft or fraud, especially if it includes face recognition technology. Digital biometric identity prevents unauthorized access and even highlights attempts (if any).
Traditional HRMS using passwords, OTPs, or PINs are still vulnerable to data threats and breaches. New-age face biometric HRM software with multifactor authentication systems can minimize the risk of such solutions.
Integrating and upgrading security measures in the HRM system is necessary to prevent data breaches. According to a recent Cybersecurity Insiders study, 68% of organizations with inadequate HRMS security measures experienced data breaches.
Curating Accurate Data and Reports
Growing startups require accurate data collection of employees, visitors, vendors, partners, etc. Deploying HR management software makes tracking and cultivating the data on a dashboard much easier. It even allows administrators to view the backlogs without any hassle.
Additionally, a face biometric HRMS doesn’t require visitors or employees to carry a physical access pass to enter the access control system. It simply allows seamless access through designated doors through face biometrics.
Also, the accuracy of employee attendance data through the HRMS makes it more convenient to track absenteeism patterns, leaves, working hours, time spent on activities, etc., providing more information about employee productivity.
An HRMS also gives information about frequent visitors or virtual meetings, which can match the employee reports on the calendar and complete activities during the shift. As a result, startups and other enterprises can benefit mainly from data collection and reporting through HRM software without digging through piles of physical logbooks or registers.
Conclusion
Startups need an HRM system more than medium and large organizations for many reasons. It helps them save costs by streamlining processes, optimizing worker productivity, and opening avenues for new work.
Moreover, an HRMS upgrades organizational security by securing the employee’s identity and implementing protocols to prevent breaches. For example, a face biometric attendance system can prevent proxy attendance and identity theft or fraud if integrated with liveness detection.
Besides bringing convenience, security and enhancing productivity, an HRMS with reporting and analytics delivers information about the employee’s working hour patterns, late check-in, early checkout, total visitor counts, types of visitors, employee absenteeism, and other aspects.