Major problems that human resource management is facing

The past decade was packed with issues pertaining to Industrial growth and organisations success, this affected organizations, managers, and Human Resource (HR) management professionals. Particularly the HR department as executives in this department had to take harsh actions such as Cutting employees pay, increasing work hours, not providing benefits and incentive etc.
These issues have lead to executives changing business strategies, altering the functioning of HR departments in multiple Corporations.
Due to this change the employee flow into such companies are reducing and employee retainment  has become a pain.
Here are the major problems the Human resource management is facing:
1. Attracting and retaining key employees
2. Planning for replacement of “baby boomers” when they retire
3. Using talent management to train and develop capabilities of employees for future job needs
4. Dealing with the expanded personal and organizational use of HR technology through blogs, wikis, twitters, text-messaging, and other formats
5. Complying with revised and changing federal, state, and local legal requirements affecting discrimination, treatment errors, unionization, and other issues
6. Adjusting benefits programs due to increasing costs
Need a software to help manage your companies human resource? Contact us at

What are the major reasons employee leave startups to join big corporates

If observed carefully, It is quite noticeable that there is a shift of employees from the start ups ito larger corporate companies although many startups have a higher pay. Here are a few reasons that we observe this trend.



  1. Family pressure for acclaim from relatives. As being a part of some big organization is some how considered prestigious.
  2. High Salary.
  3. Work Pressure and other family responsibilities (related kids and wife/husband) which also take time and it gets difficult to strike a balance.
  4. ‘Crappy’ founders, too much influence of the founder’s personality in daily running of the company, and many mentally or emotionally unhealthy people being attracted to the myth of the start up.
  5. Security, as established companies have established work models and are most likely to keep on succeeding. On the other hand, start ups do not have any proven model.
  6. High expectations going down the road when things get real. Most CEO’s of start up companies put forward high growth dreams in front of employees and when things go south people tend to lose faith.
  7. Large companies being able to offer better mentorship opportunities. Even someone who likes to learn by doing can grow faster in an environment with experienced peers.
  8. Having no stake in the ownership. Many startups, especially in the subcontinent, do not provide equity to employees.

Need to keep your employees retained in your organisation? We can help :


Why is Human resource not enough

Human Resource management is the study and techniques to manage and facilitate proper workflow and manage human capital. Without HRM ( Human resource management) THe Human resource would be on no benefit. Here is a glance of the importance of Human resource management.

Image source: (


  • Corporate Level

    For an enterprise effective HRM leads to attainment of its goal efficiently and effectively. HRM helps enterprise in the following ways.

    a. Hiring required skill set and retaining them through effective human resource planning, recruitment, selection, placement, orientation and promotion policies.

    b. Development of employees by enhancing necessary skills and right attitude among employees through training, development, performance appraisals etc.

    c. HRM also takes care of optimum utilization of available human resource.

    d. HRM also ensures that organization has a competent team and dedicated employees in future.

  • Significance at Professional Level

    a. HRM also leads to improved quality of work life, it enables effective team work among employees by providing healthy working environment. It also contributes to professional growth in various ways such as

    b. By providing opportunities for personal development of an employee
    Enabling healthy relationships among teams and allocating work properly to employees as well as teams.

  • Significance at Social Level

    a. HRM plays important role in the society, it helps labour to live with pride and dignity by providing employment which in turn gives them social and psychological satisfaction.

    b. HRM also maintains balance between open jobs and job seekers.

  • Significance at National Level

    HRM plays a very significant role in the development of nation. Efficient and committed human resource leads to effective exploitation and utilization of a nations natural, physical and financial resources. Skilled and developed human resource ensures the development of that country. If people are underdeveloped then that country will be underdeveloped. Effective HRM enhances economic growth which in turn leads to higher standard of living and maximum employment.

Need help in managing the human resource at your company? contact us at

Why employee retention is much more effective that replacement

(image source:

Employee Retention

The debate between talent retention and talent replacement has been going on forever. Let’s explore this a little further by breaking it down into benefits and try to explain why TALENT RETENTION is always a better option.

Here are the key reasons talent retaining is better than replacement:


One of the most obvious considerations to consider when deciding whether to keep an employee or to replace her is expense. When employees stay with you for many years, they expect annual raises and benefits that can eventually exceed the value of their positions. A new hire with more recent education and training might provide more productivity at a lower price. To replace an existing employee, you incur the cost of a job search, background checks, interviews, severance for the departing employee, training for the new hire and lost productivity during the transition. The Center for American Progress estimates the average cost of replacing an employee is approximately 21 percent of his salary.

Employee grooming:

When you hire a new employee, if she’s younger, she might have more relevant college coursework than an older worker, needing less training regarding computers, software, social media and the latest methods and procedures of a particular profession or industry. New employees might need on-the-job or seminar training to get up to speed with their predecessors. Calculate the cost of training an existing worker vs. hiring a new worker to determine the cost/benefit ratio for each.

Increased Productivity:

When you hire a new employee, you might experience a temporary lag in performance if a position sits empty for several weeks and while a new hire gets up to speed. In key positions, such as sales, this can lead to a permanent loss of business. A new employee might bring new skills and more experience, bringing more productivity not only to his position, but also to his staff as he improves his team’s workflow. Departing employees cost you institutional memory that can be hard or impossible to replace, especially if the employee has been with you for many years. Departing employees can also sever important relationships with customers, vendors and the media.


Keeping unpopular managers or unproductive staff workers on your payroll out of loyalty or to save money by avoiding a new hire can damage the morale of your remaining employees. This can lead to decreased productivity, less loyalty and higher staff turnover. When assessing employees, if you know you wouldn’t hire them again if you had the chance to do it over, you might be better off terminating them, no matter the short-term cost.


Need an HRMS to retain your employees? We can help you at HRM Labs



Differenace between an HRMS/ HRIS/ HCM

What is  the difference between an HRMs, HRIS and an HCM for software technologies is something many clients often ask. These acronyms have confused many in the industry as vendors, marketing professionals and analysts seem to interchange the use of these terms when marketing their technology solutions.

In this fast growing market there are lots of other acronyms being used to describe HR software solutions such eg:HRM (Human Resource Management), TMS (Talent Management System), ATS (Applicant Tracking System) and LMS (Learning Management System) but the most common still are :

  • HRIS (Human Resource Information System)
  • HCM (Human Capital Management)
  • HRMS (Human Resource Management System)

So, what’s the difference between these types of HRIS systems: HRIS vs. HCM vs. HRMS?

The major functional differences between the three acronyms and what functionality that should be associated with each are shown below:

img Source : (

Type of HRIS Systems: HRIS vs HRMS vs HCM



HRIS software is designed to manage people, policies and procedures. Unless the employees reside outside the U.S., the majority of vendors pitching HRIS only cater to businesses that employ U.S. citizens.

  1. Recruiting / ATS (Applicant Tracking System)
  2. Core Human Resources
  3. Benefit Administration /Open Enrollment
  4. Absence Management
  5. Compensation Management
  6. Training & Development
  7. Workflow
  8. Self-Service (Candidate / Employee / Manager)
  9. Reporting

HCM software includes every element of an HRIS, but adds Talent Management and global capabilities such as multi-lingual, multi-currency, country-specific formatting and possibly localization.

  1. HRIS
  2. Onboarding
  3. Performance and Goal Management
  4. Position Control / Budgeting
  5. Succession Planning
  6. Salary Planning
  7. Global
  8. Analytics

* Learning Management System (LMS) – This functionality is not typically part of an HCM since the primary purpose is the actual content and delivery of e-learning vs. the technology or the mechanism to track employee development.


HRMS software providers typically cover every element of an HRIS and many include the capabilities of an HCM. Because the HRMS business is so massive and covers such a wide range of employee size and functional requirements, not all HRMS providers have a progressive Talent Management component included in their offering. Some of the HRMS vendors look like this [HRIS + (Payroll + TLM) = HRMS] while others have built their offering to look more like this [HCM + (Payroll + TLM)]. Two characteristics of any true HRMS are the following:

  1. Payroll
  2. Time & Labor Management (TLM)

Need an HRMS for your company? Visit us at HRM Labs


How important is Human Resource

( Image source: )


Human resource is one of the the most important divisions in a company. Being able to hone talent and decide workflow is imperative to any company. There are many reasons a human resource division in a company is considered important. Here are a few!



Human resources curbs excessive spending through developing methods for trimming workforce management costs, which includes negotiating better rates for benefits such as health care coverage. In addition, human resources ensures competitive and realistic wage-setting based on studying the labor market, employment trends and salary analysis based on job functions. As some small businesses have budget constraints, this human resources function is especially helpful.


Workplace conflict is inevitable, given the diversity of personalities, work styles, backgrounds and levels of experience among employees. A human resources manager or a staff person specially trained to handle employee relations matters can identify and resolve conflict between two employees or a manager and employee and restore positive working relationships.


Human resources conducts needs assessments for the organization’s current workforce to determine the type of skills training and employee development necessary for improving skills and qualifications. Companies in the beginning or growth phases can benefit from identifying training needs for existing staff. It’s much less expensive than the cost to hire additional staff or more qualified candidates. In addition, it’s a strategy that also can reduce turnover and improve employee retention.


Human resources specialists usually are charged with the responsibility of determining the level of employee satisfaction — often an ambiguous measurement at best. With carefully designed employee surveys, focus groups and an exit interview strategy, human resources determines what underlies employee dissatisfaction and addresses those issues to motivate employees.


The cost to hire new or replacement workers, including training and ramp-up time, can be exorbitant for employers, especially small businesses. With a well-constructed recruitment and selection process, the human resources function can minimize expenses regarding advertising job postings, training new employees and enrolling new employees in benefits plans.

Need an Human resource management system to help your HR department? Visit us at

Benefits of using an HRMS for a small companies

(image source:

im-human-resources-management (1) main

Most customers who are interested in purchasing an HRMS ( Human resource management system) for their small company back away from the deal because they consider it an unnecessary expense while running a business. Mostly saying things like ” I’m running a small business, I can’t afford to waste money on a software! ” Well, that is an absolutely wrong way to look at a  HR software. An HRMS allows your company to increase growth by saving your time and money.


Here are a few benefits of using an HRMS for a small business:

  • Very Convenient Access:

Because many HRIS software solutions are web-based, they allow users to access the system anywhere they can access the internet, whenever they have the opportunity. Managing human resources projects will be incredibly easy.

  • Makes handling human capital easy:

Your HR tasks will all be organized into one simple HRIS software suite, making it incredibly easy to find anything that you are looking for. Cluttered desks will be a thing of the past, making your job and life much easier.

  • Enables Automation:

The automation technology included will allow you to enable custom and preset automation programs. You will be able to automatically check for compliance issues and policy changes, empowering you with the confidence that business is always being handled.

  • Saves Time and Money:

By replacing time consuming data entry tasks with automated technology, you will save your company a great deal of time and money. In 20015 it was estimated than an expense report costs the average company over $35 to process, versus only $6 when it is automated. And also increases your employee  productivity.

  • Automated Report Generation:

Perhaps the most valuable aspect of HR software is its ability to provide data-driven reports. Utilizing the data entered into the system, you will be able to quickly generate reports and predictions that will allow you to compare yourself to the competition and find ways where you can focus on reducing costs.

  • Adds Convenience:

 HRMS software increases convenience for front-line employees as well, allowing them to access and update their information whenever is most convenient for them. It also gives employees an easy way to access payroll information such as tax information, previous checks or direct deposits.

  • Reduces Human Error:

Another leading source of unnecessary business costs is human error. By providing an automated system to process HR tasks you will reduce the likelihood of typical mistakes like double entries and give employees the ability to double check their work for any mistakes that may have been typed incorrectly the first time.

Need an HRMS for your company? Get in touch with us at HRM Labs