Efficiency vs. Efficacy: How will a SaaS-based HR Software bridge this gap for Indian businesses?

The Indian economy is witnessing tremendous growth in the past couple of years and it has affected the business class profoundly in terms of handling manpower. As the number of employees in the organization is increasing, the need for proper utilization of human resources has been a matter of concern which can be addressed by proper use of technology in the HR department. Thus if you’re an aspiring business and you are willing to properly utilize your workforce, this article will introduce you with the benefits of using a cloud-based HR Software in order to bridge the gap between employees’ efficiency and efficacy. Efficiency means the amount of output given by your employee with the resources provided while efficacy means the ability to produce the desired output.

Integration for better management:

Most of the HR professionals struggle with the management of the employees as the amount of data to be handled is enormous for any individual to process manually. The paper-pen-calculator may have been replaced by Spreadsheet tools but they haven’t delivered the desired results for the HR. By using a SaaS-based HR software, one can automate HR functions such as Payroll Processing, Performance Management, Leave and Attendance Management, Travel and Expense Management and Employee Onboarding. But the integration of these automated functions is the core advantage of using a cloud solution for HR. For example, performance management can be directly linked to the Payroll in order to develop a result-oriented work culture. Incentivizing positive traits can help in individual development and competency enhancement for employees who can contribute to the development of your organization. It also helps to reduce the workload of the HR’s shoulder as gathering inputs from various registers and making calculations for each employee separately and filing of statutory compliances. This reduces the risk of non-compliance to a considerable amount and thus increases the productivity of your HR department too.

Proper Reporting to maintain work culture:

For any organization, the common practice for reviewing the employees’ efficiency is oral communications but a software shall enable you to get proper data from timesheet reports, KRA-KPI reports and the manager reviews taken in order to properly evaluate the capability of each employee. This data is collected on a continuous basis and is available for appraisal purpose and also for tracking problems faced by employees. The approving manager or HR can use this information to counsel their staff or to provide necessary training. Keeping a track record of the work helps cultivate a sense of responsibility in both managers and subordinates along with helping the decision-making process. This implicitly tends to strengthen the practice of cherishing hard-work and ethical behavior.

Reducing redundancy and duplication of work:

As any seasoned professional you might share the fact that proper reporting of your work is as necessary as the work itself. Thus reporting of work is mandatory in almost every company and a lot of time is spent by employees to maintain a proper track record of their day to day work. Filling the Daily Service Report (DSR) and analyzing them by reporting managers is pretty redundant and counter-productive. Moreover, from the HR point of view, most of their time is utilized in payroll software related activities due to the tedious collection and compiling of data which is to be processed on a monthly basis. The disbursement and filing of statutory compliances manually cost a lot of time and resources. Thus by integrating various modules of the Human Capital Management System and processing them centrally leads to simplification of the process. The Employee Self Service Portals can be utilized to empower employees to upload, review, manage and update their information in the system by themselves. Also, all the official communications can be made over the ESS Portal such as the change in policies and employees can apply for attendance regularization, leaves and collect their payslips without approaching the HR. The reviewing authority can accept or reject them with subordinate being able to view the status on a real-time basis.

Thus automation and integration offered by cloud-based HR Software can be used to harness the collective potential of your employees and it can be achieved systematically using it. While these systems are being accepted globally, they have a significant potential to leverage the growth of Indian businesses.