How to Overcome the Common HR Challenges in 2024 with HRMS Software?

From the manufacturing department to finance, multiple departments contribute to the success of the company. One crucial aspect is HR, which handles employee matters and rights. However, like any department, HR encounters challenges, particularly in tasks like payroll management and performance analysis.

In this blog, you'll explore the pivotal role of Human Resources and understand how disruptions in its operations can impact the entire company. Additionally, you'll discover how HRMS software can alleviate common challenges, offering a solution to streamline processes. Let's delve into the details!

Why is the HR Department Important in a Company?

The human resources department in any company plays a vital role in managing everything about the employee’s cycle in the company. It may seem simple, but while managing all this, this department has to comply with labor laws and regulations. Moreover, they are also responsible for advocating for employee benefits and rights within the organization. 

Let's look closely at the primary functions that come under the human resource management system.

Firstly, the HR looks at the candidates to hire them for various organizational roles. Moreover, calculating salaries while keeping taxes, working hours, and bonuses in mind is also done within the Human resource department. Other than that, if any update must be regulated in the organization, they will do it as well.

Simply put, the team manages almost everything about the employees and their rights, from their pay to leaves and many other things. So, if a problem occurs within the unit, will it affect the organization as well, and if yes, how much? Let's understand the same below. 

What Is the Effect on An Organization If Its HR Department Faces An Issue?

Since the Human resource department deals with one of the most essential parts of a company, employees, any problem the team faces can cause a significant loss to the company.

Let's take a scenario to understand it better. One of HR’s many tasks is ensuring the company complies with local labour laws. If, by any chance, the team fails to integrate these laws into the company's policy, it may result in the violation of employees' rights. So, the employees can file a lawsuit against the company, resulting in a financial loss.

Such problems occur in the Human resource department because of the versatility of the labour laws in different parts of India. The leave policy in Karnataka differs from New Delhi and Uttar Pradesh, and the same is the case in many states, which is why sometimes maintaining these policies becomes hard. 

Moreover, it is only the one which you have come through. There are many other problems that the team faces, and the company is affected as well. So, let's look at the common issues an HR in any company mainly faces. 

Five Common Struggles of HR Department in Any Company

1. Hiring Employees

Hiring Employees, which comes under the HR department, is quite a struggle. The reason is that the hired employees should be compatible with the job. So, the team has to go through all the submitted applications and then sort those that are suitable for the role. Then comes the task of going through all the resumes to deeply understand the qualifications and experience of every applicant. The team has to struggle with this task due to a lack of resume parsing, an important process of an applicant tracking system. 

2. Keeping Track of Time and Leaves

Keeping track of the leaves and time an employee has worked for is also a challenge. Firstly, the working hours and the number of leaves should comply with the local labour laws. Moreover, then comes the task of tracking how many leaves every employee has in their account. Also, if there are employees who have worked overtime, they should be credited with the compensation. So, keeping track of it also becomes challenging. 

3. Payroll Management 

Payroll management may seem simple, but there are many things to look at, making it a struggle for the human resource team. They have to update all employees' payroll while considering overtime, leaves, and other factors. So, if the organization doesn't have HR payroll software, it becomes very difficult to track these factors and manage the payroll. 

4. Performance Evaluation

In an organization, promotions, demotions, and firing are some actions that are necessary for maintaining the health of the company. The HR has to deal with it and continuously monitor the employees and their performance. Based on the company's size, struggle also increases and, if not done efficiently, can cause financial loss to the company. 

5. Document Management

From recruitment to onboarding and beyond, there are many documents to collect from an employee, such as resumes, PAN, Account details, and many more. Keeping all these documents safe is essential for the organization, which is a challenge HR deals with when the organization doesn't have good HRMS software. 

These are some of the challenges that a company's HR team faces. However, it's mostly when the organization doesn't have good HR management software. 

How Does HR Management Software Deal with HR Struggles?