The Past, Present, and Future of HR Management Systems

Human Resource Management is one of the most important business functions in any organization, irrespective of its size. HRM systems, which automate the HRM process, have come a long way from when they were first deployed. Here’s a brief look at the past, present, and future of Human Resource Management Software in an attempt to understand the evolution of the system and know what the future holds for us.

A Glimpse of the Past

HR systems evolved in the 1980s from a simple computer application to virtual vaults of sophisticated human resources information and processes. HRM software has human resources professionals involved in the technology for employment and personnel matters. It has been used for different parts of talent acquisition including application tracking, performance & training management, attendance, rewards & recognition, work force analyses, and much more.

The Present Scenario

Later, human resource management software was integrated with Enterprise Resource Planning (ERP) systems. An ERP includes analysis on profitability, inventory control, and investor relations data. These sophisticated systems were more for large enterprises with complex technology requirements.

The need for this system increased and gradually small and mid-sized enterprises started using this software for the advantages it offers. It was monitored by qualified specialists who know the technology & functionality and those who could manage compliance with law (both state and federal), streamline recruitment process along with selection processes, produce analyses, and make reports using the data for future use. Technology streamlined the entire HR cycle, from recruitment to retirement.

Future with HR management software

Regulations regarding employment and benefits might become more complex due to newer and more complicated rules and competition of businesses in the market. New technologies will come up to meet several demands of employees and businesses. Affording new technologies can be difficult for all; in-house HR management may downsize and outsourcing may increase. Strategic thinking will be HR’s new competence and it cannot be outsourced. It will use analytics and data to augment its value. In the future HR might have to tackle challenges of managing a remote workforce to encourage employees to be productive.

HR Management on cloud

A cloud-based HR Management solution requires no maintenance, infrastructure, or storage space. In the last two decades, HR systems have re-invented themselves to come a long way from the mundane activities of industrial relations and labor to a highly engaging and communicative HR management system.

Some of the the biggest advantages of a cloud computing HR system are that it does not need ultra fast connections and costs are low. A cloud computing HR system allows different people in a company to access different applications like online recruitment system, online project management, and so on from a single interface. HR system on cloud takes over from recruitment, induction, employee database, performance management, appraisals, payroll, and others.

Have a view on the future of HR Software? Let us know!