Human Resources System

Human Resources System

What Are The Components Of A Human Resource System?

Human Resources System

In the past, companies were faced with the complexity of managing human capital using conventional filing systems. With the advent of the internet and web based applications, the centralized integration of a human resource system has now created a bridge between human resources and information technology. What used to require tedious filing systems and paper shuffling to maintain can now be centrally administered through a computer driven hr system.

A human resources system is comprised of four pillars of hr management. These central core aspects are examined further below:

Human Resources System

Hr management: The total human resources system comprises a companies policies and procedures for human capital and labor costs. The centralized management and reporting functionality provided through information technology systems helps to establish consistency and maintain efficiency. It also allows a company to maintain records for statutory, organizational, business practices and exceptions.

Payroll: This important component consists of pay rates and wage conditions for a companies employees. Depending on the size and structure of the company, these details include award wages and conditions, taxation levels, bonus structures, penalty rates, leave loadings and any public holiday statutory wage requirements. It can also include enterprise level agreements that apply and ancillary benefits such as long service and maternity leave.

Labor Management: Companies are regularly faced with the challenge of maintaining staff levels. This consists of the administrative management of candidate selection, skills, experience, qualifications, capabilities and payroll records. For companies that do not outsource to hr companies, this can also include applicant tracking, resume evaluation, training and education details, compensation and position details.

Remuneration and Benefits: This includes the systematic recording and maintenance of health, insurance, medical, 401K plans or superannuation. It also includes the compliance framework that governs a companies policies and procedures. The centralization of these details provides a company with the ability to run reports to determine wage and labor costs. This is essential for controlling resource and labor costs and for forecasting future budget and staff level requirements.

The human resource system is an essential operational requirement for organizations of all sizes. Whether you're a small company at the local level or a large company with geographically dispersed operations, keeping track of the labor force and the associated administrative tasks can be a large and complex undertaking. With the ability to integrate all levels, hr systems permit a company to monitor resource usage and costs. With built in reporting capability, human resource managers can focus of the strategic aspects of a companies labor operations to cut costs and improve a companies bottom line.

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