Steps to build a human resource management system for your business

For businesses, in addition to capital and customer management, human resources are extremely important factors. The human resource management system plays a role in improving the quality of the business’s resources. In this article, let’s learn together about What is a human resource management system? Steps to build a human resource management system for a business.

What is a human resource management system?

A human resource management system is a collection of information related to human resources in an organization. The system has the function of collecting, processing, storing, transmitting, and distributing employee data, thereby supporting the decision-making process on human resources in the organization.

The human resource system provides information related to issues of employee rights and responsibilities. Below are the functions of the human resource management system in the organization:

• Managing human resource information;
• Managing work processes in each department;
• Manage personnel evaluation;
• Manage recruitment process;
• Manage training;
• Administrative management;
• Manage books and documents related to personnel;
• Manage training plans and budgets;

What is an effective human resource management system?

An effective human resource management system is one that helps businesses save time in collecting human resource information, storing and using information accurately. Depending on each person’s working capacity and experience, a human resource management system will divide the work reasonably.

An effective human resource management system helps organizations:

• Quickly recruit the right people and assign them to the right job positions
• Promote and encourage employees to maximize their capacity
• Fairness and transparency in resolving the rights and interests of employees
• Enhance the competitiveness of businesses in the market
• Save on human resource management costs

Steps to build a human resource management system for your business

1. Setting up a human resource management system

To build an effective employee management system, businesses need a good human resource management system. This step will be the premise to help businesses manage human resources effectively. Accordingly, the process of building a human resource management system needs to have the following complete information:

• Basic information of employees: full name, age, hometown, experience, …
• Set up a recruitment process tracking profile to select talented candidates who meet the requirements of the business
• Build a table to track and evaluate employee capacity to develop a suitable training roadmap to improve the qualifications of employees
• Set up a table to track the salary and bonus levels of employees in the department so that managers can grasp and adjust them to suit the capacity and position of each person.

2. Recruiting staff according to the set plan

This is the most important step in the company’s human resource management process to find suitable candidates for each job position. For the recruitment process to be effective, the management system needs a suitable and effective human resource recruitment process. Normally, the recruitment process of a business includes the following steps:

• Planning and recruiting staff
• Choose the right recruitment method and source based on the company’s budget and business characteristics
• Determine the time and location of the interview
• Select the right candidate
• Evaluate the recruitment and training process for new employees.
• Integration guide for new employees
• Notice of corporate culture, rules and regulations applied at the company

3. Human resource development training

Each employee has different abilities and strengths, so businesses need to have training policies suitable for each person. To give employees the opportunity to develop their abilities and strengths at work, businesses need to organize integration training sessions. Training will help employees improve their personal abilities and also stimulate and promote their sense of development and advancement. In addition, through these training sessions, new employees will better understand the culture, business characteristics and improve their individual capacity, in order to promote the development of the company.

4. Establishing policies

Each business has a different policy that is suitable for the culture and nature of the industry. However, the common point is that all these welfare policies are aimed at employees to ensure a full spiritual and material life. Establishing policies for employees will form a good relationship between leaders and employees in the company. This is also an important step for employees to be able to stick with the company for a long time. In addition, this policy also helps the company limit risks that occur to employees. This policy is built on the following criteria:

• Commensurate with work results,
• Contribution to the company,
• Quality of work,
• Fair and transparent.

5. Building a system of documents applied in the enterprise

In order to support the operation and business process, enterprises all build their own regulations and standards. Depending on each enterprise, there will be different appropriate regulations and standards to help coordinate and support people in the enterprise to automatically coordinate and adjust themselves from thinking, behavior, and work process to better suit the enterprise.

6. Building and developing culture in the enterprise

Corporate culture is also considered one of the most important factors of the enterprise. Any business in the process of human resource management must build and develop a corporate culture so that the working spirit is comfortable and happy, helping the company achieve high efficiency in the working process. Corporate culture will create a creative, comfortable, happy and energetic working environment, thereby bringing high efficiency in work.

7. Choosing a suitable human resource management software for the business

An HRM software that can be customized to suit the business form, business items, and scale of the business will help the business optimize costs and operating time. HRM software is one of many links to build an effective human resource management system for businesses with the useful features it brings.

A few words about HRM Plus – The optimal digital HR management solution

HRM Plus is a human resource management solution built in the digital age, when the Internet has developed strongly; the amount of information (data) has become extremely large; machines have become smarter and more human-friendly. Technology coordinates harmoniously with human resources and recruitment activities from internal processes to communication with candidates, forming superior recruitment management systems.

With the application of HRM Plus, it will help businesses change the way they manage human resources in a modern, professional, automatic direction, keeping up with the 4.0 trend, something that old-fashioned HRM software cannot keep up with in an ever-changing digital era.

HRM Plus by ADSMO helps businesses:

• Human resource information management

• Timekeeping and payroll management

• Overtime management

• Social insurance, health insurance, unemployment insurance management

• Recruitment management

• Leave/work leave management and approval

• Seniority Management

• Administrative Management

• Task Management & Suggestion

With the great benefits that HRM Plusbrings, to experience the HRM Plussoftware right now, please contactADSMO via Hotline: 0356.105.388 to receive advice from our team of experts.

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