To whom and when it is necessary to implement a HRM system?

The English abbreviation of "HRM" is decrypted as "Human Resource Management" and literally translated into Russian as "management of a human resource". Synonyms of this term in English-speaking literature are also "HCM" ("Human Capital Management", in transfer - "human capital management") and "WFM" ("WorkForce Management", in Russian - "labor control"). In Russian-language texts the term "personnel management" is, as a rule, applied though "human resource management" and "human capital management" also meets.

A HRM system usually is understood as the automated end-to-end system of personnel management. In comparison with traditional automation systems of personnel records and payroll calculation of a HRM system have advanced functionality. Except accounting (personnel records, the staff list, document flow, a time recording and holidays, pension and military accounting and others) and settlement (salary, tax payments, allowances and deductions and so on.) the circuits processing quantitative data, the similar systems also include the HR circuit as such intended for work with qualitative indexes of personnel.

HRM systems consist of the tool kit automating a broad spectrum of business processes of lifecycle of personnel management: hiring of new employees, administration of employees and encouragement, calculation of compensation payments, salary payments, performance management, achievement of goals, development of career.

The main business processes which are automated by HRM

Forrester Research, 2012

Today the HRM systems are used by an absolute majority of the companies around the world in the most different branches of the economy. Need of use of automated control systems for personnel is caused by critical basic business needs:

• Manage staff costs: a salary expenditure makes an essential part of operating costs. In the USA, for example, according to Forrester for the beginning of 2012, 26% of revenue of the companies are the share of them on average. Use of HRM allows to plan the budget for the salary, to set compensations, to control hiring and to manage dismissals.

• Provide efficiency of business processes: HRM supports a set of business processes which traditionally were based on a paper basis. The efficiency is provided with transition to paperless turnover, availability to workers and managers by means of the web interface and also increase in efficiency of transactions.

• Conform to regulatory and statutory requirements: an opportunity to provide compliance of personnel processes to requirements of the law and also risk management using a system is other important reason for investments into HRM.

• Increase the value of a human capital: the organizations where HR processes reached the high level of development, concentrate on efficiency, personnel development for achievement of bigger productivity. It is implemented as directly using HRM systems, and the accompanying solutions for talent management, including separate solutions for automation of learning process and recruiting.

• Manage talents: more and more HRM platforms develop functionality in the field of talent management. According to Forrester for this reason more and more seldom the companies select separate best-of-breed of a system for talent management solving of tasks whereas in the field of training management and recruitment the situation is exactly the opposite so far.

• Provide compliance local with requirements: large HRM platforms support a set of languages and consider features of the legislation in the different countries so they are applicable for conducting multi-national business.

• Analyze: insufficiently developed reporting and analytical means were a problem of HRM platforms some time ago, but at the moment more and more vendors of personnel management systems develop the built-in analytical tools which are present, for example, at new releases of the Oracle Fusion, Workday systems and others.

• Visualize: the majority of HRM platforms have the built-in graphic visualization tools of simple reports, including creation of diagrams which are actively used as well in planning.