How MSMEs Can Benefit from an HRMS?
MSMEs (Micro, Small, and Medium Enterprises) are essential to the economy. They make up 90% of businesses worldwide, provide 60-70% of jobs, and contribute around 50% of global GDP. In India, there are about 63 million MSMEs, employing over 110 million people. By 2024, the MSME sector in India is expected to add $2 trillion to the economy and create 50 million new jobs.
Even though MSMEs are crucial, they face many challenges, especially when it comes to managing human resources (HR). These businesses often don’t have the same resources or technology as larger companies, making HR management more difficult. Many MSMEs still rely on outdated processes, which leads to inefficiencies, delays, and unhappy employees.
But there’s a solution: MSMEs can improve their HR processes by using an HRMS (Human Resource Management System). An HRMS helps automate and simplify HR tasks, saving time and money while improving efficiency. Here are five key benefits of using an HRMS for MSMEs.
1. Faster HR Processes, Better Results
Many MSMEs still use manual methods or basic software for HR tasks like payroll, attendance, and leave management. These processes can be slow and full of mistakes. An HRMS automates these tasks, speeding things up and making operations more efficient. This gives HR teams more time to focus on important tasks that help the business grow.
2. Easier Document Handling
HR departments deal with a lot of paperwork, from employee records to payroll and compliance forms. Managing these manually can take a lot of time and effort. An HRMS stores all these documents digitally, so they are easy to find and manage. This makes the whole process faster and ensures that data is accurate and up-to-date.
3. Happier Employees with Online Access
When employees have to deal with delays and mistakes in HR processes, it can be frustrating. An HRMS gives employees easy access to important information like their payslips, leave balances, and benefits through an online platform. This makes it easier for employees to get what they need, leading to a better overall experience.
4. Simple Compliance Management
Following legal rules and regulations is important for any business, but it can be especially tough for MSMEs. Different laws apply to hiring, payroll, safety, and more, and it’s easy to make mistakes. An HRMS helps MSMEs by automatically handling compliance tasks, ensuring everything is done correctly and on time. This reduces the risk of fines and legal problems.
5. Safe and Secure Data
Keeping employee data safe is a top priority, but storing information in different places or formats can lead to data loss or misuse. An HRMS stores all employee data securely in the cloud and allows only authorized people to access it. Many HRMS platforms also offer automatic backups to prevent data loss and meet data protection standards.
By using an HRMS, MSMEs can manage their HR tasks more efficiently, reduce costs, and improve employee satisfaction. It’s an essential tool that helps small and medium-sized businesses operate like larger companies, giving them the competitive edge they need to succeed.
At Humanec, we believe that people are at the heart of every organization.