Many organizations still manage personnel according to the method manually, leading to errors in timekeeping, and payroll, lack of transparency in welfare policies, especially difficulty in retaining talent. These problems not only increase costs but also directly affect productivity, the cohesion of the staff.
Therefore, the concept of HRM is what are the organizations and enterprises learn interest. This article Lac Viet Computing will help you understand Human Resource Management what is the role, objectives and ways that HRM can become the platform for enterprise hr management in a scientific way, modern attached to strategic long-term development.
1. HRM, what is?
1.1. The concept of HRM
HRM (Human Resource Management) also known as human resource management system is a comprehensive management activities related to people in the business, from recruiting, training, performance reviews, to salary, bonus and benefits.
Speaking in an understandable way, HRM not only, records management staff but also acts as the “brain personnel” to help businesses harness the maximum potential of the team at the same time the construction work environment, efficiency, transparency.
Other with HR (Human Resources) capital refers only to the department or human resources, HRM is an approach system. For example, if HR focus on hiring enough people for a project, the HRM also go further in the analysis of staffing needs to ensure staff were suitable training, performance measurement, planning, career development, long-term.
A practical example: in a retail company, instead of just record the number of hours of employees, sales, HRM will track all sales productivity, the rate of customer satisfaction, combined training skills, customer care and proposed reward those individuals achieve well. Through it, businesses do not only paid fair wages but also motivate staff to work more efficiently.
1.2. The goal of HRM in business
The core objective of HRM is to ensure businesses have a team of personnel in accordance with the development strategy. Specific:
- Ensure human resources in accordance with business objectives: A study by McKinsey in the year 2023, indicating the business has strategic HRM tied to business goals, 22% increase in productivity compared to the business only management personnel in task administration (source: McKinsey & Company).
- Enhance performance, reduce the rate of the holiday: According to the report LinkedIn Global Talent Trends 2024, 81% of employees said that they will stick long, if developed skills through the program HRM post.
- Increased experience of employees: HRM is the focus not only on management but also create a work environment of fairness, transparency, communication, and motivation. This directly affects cohesion, spirit, and performance of daily work.
So, instead of just administrative tools, HRM is “leverage” strategy helps businesses optimize human resources – most important factor for sustainable growth.
2. Role importance of HRM for business
2.1. With regard to personnel management
HRM (Human Resources Management) helps the hr department get rid of how to make the craft capital to errors, time consuming. When applied systems HRM processes such as recruitment, training, assessment, payment of wages are standardized operating in sync. This delivers three outstanding value:
- Increase accuracy, reduce errors: Many businesses encounter problems with errors in payroll when not applied technology HRM. The automation helps to reduce risks, ensure data transparency.
- Save time operation: Personnel no longer take hours to process timesheets or candidate profile, instead have more time to focus on strategy human development.
- Increase transparency consistency: all data is stored on a centralized system, easy lookup when needed for screening or to serve for the audit.
For example: instead of managing employee records on the Excel file discrete HRM integrated whole information from recruitment to contract, which helps the hr department only take a few minutes to search, instead of a few hours as before.
2.2. For employees
HRM is not just for hr, but also brings a positive experience for each employee in business:
- Create fairness, transparency: remuneration policy benefits are managed on the clear system, employees can easily check the information without waiting for hr feedback. This helps to reduce complaints and increase trust.
- Increase motivation work report: Gallup 2024 shows employees feel recognized, there is development roadmap will obviously increase 23% level associated with the organization (source: Gallup). HRM is a tool to help construction business evaluation mechanism, transparent career orientation specific.
- To encourage the initiative: Many systems HRM now allow employees to update personal information, register on vacation or track the progress of the work. This not only convenience but also encourage the spirit of self-management.
For example, when an employee wants to leave, instead of email, awaiting approval, they can apply directly on the system, HRM and get immediate feedback during the day.
2.3. With respect to leadership, management
With respect to leadership, HRM plays a role as a “data center personnel”, to support the decision-making process for fast, accurate:
- Provide hr data in real time: managers can capture rate of absenteeism, labour productivity or the cost of salary, from which to make decisions in a timely manner.
- Support strategic planning, long-term: According to research by Deloitte, 2023, 70% of CEOS said that data analysis personnel from HRM help them build a strategy for sustainable development and forecast resources in the next 3-5 years (source: Deloitte Insights).
- Resource optimization: Instead allocate personnel based on the sensory, the leader can rely on the analysis report from HRM to arrange personnel the right person – right job, ensuring business efficiency.
For example, if sales of a branch declined, data from the HRM can see cause is due to the rate of high absenteeism or lack of skills in team from that leaders come up with appropriate solutions as increased training or transfer of personnel.
Thus, HRM is not only the engine management personnel, but also is the foundation helps the organizations and enterprises are to find out information about HRM what is a comprehensive view of the value that this system brings: reduce administrative burden, improve the experience of staff and support leadership decision making strategies.
3. The main functions of HRM
System HRM hosting focused the entire staff information as background, contract, contact information, history, the process of advancement. Instead hosted scattered on the Excel file or papers easily misplaced, the data is centralized management, security, easy lookup.
3.1. Records management personnel
In a business, personnel records, including many types of documents: personal information, contract labor, working process, reward – discipline, degree certificate, results, training, social insurance, and legal papers related. If stored in paper or Excel file room personnel often encounter problems: hard to find, discrete data, errors while updating, risks misplaced.
HRM solved this problem by:
- Digitized archive of focus: all employee data is put into a single system, ease of access.
- Update automatically sync: When the employee information changes (such as address, bank account number, marital status), the system updates instant link with other modules such as payroll, benefits.
- Support legal regulations: storage profile compliance with the provisions of The Labor code, ensuring adequate stock from in the case of labor inspection or audit.
Enterprise value received:
- Save 50-60% of the time handling administrative than how to manage crafts
- Reduce legal risk due to lack of or loss record.
- Leadership can capture fast structure, the number of employees by department, age, seniority, from which hr strategies accurate.
3.2. Recruitment attract talent
Recruitment is always one of the big challenges with the business. If only manage crafts, screening CV, interview schedule, track results usually take a lot of time and easy to miss potential candidates. In addition, after matriculation, if new employees are not support the integration of the rate of the holiday in the first 3-6 months very high.
HRM solution with comprehensive features:
- Manage the recruitment process closed: from posting, receiving resumes, screening CV by AI to manage interview schedule, feedback results.
- Database candidates focus: to help businesses build “Talent Pool” to dig for the recruitments after.
- Track KPI recruitment: recruitment costs, duration, recruitment, candidates effectively.
- Support integration (Onboarding): sign a contract electronically, to declare personal information online, access system, provide training materials for new employees.
Actual value the business receives:
- Lose 40% of the time recruiting thanks to automation, repeat steps (according to research by Glassdoor 2023, Glassdoor for Employers).
- Improve the quality of recruitment thanks to data analysis candidates, reduce the rate of hiring the wrong person.
- Increase the rate of attachment of new employees: according to a survey by SHRM 2023, the business program integration, it fell by 58% risk of employees leave within the first year.
- Create a professional image in the eyes of candidates, from which enhance your employer brand.
3.3. Training workforce development
In the context of labour market change rapidly, businesses not only need to recruit the right people but also to enhance the skills for current employees to meet the new work requirements. However, many businesses have trouble management training plan, track effective course and measure the progress of employees.
HRM bring to solution manager training – developed with comprehensive features:
- The construction plan, flexibility training: business can plan the annual training or according to the actual needs of each department.
- Management of the course, students: track list of employee participation, progress, completion, results of the assessment end of the course.
- E-learning integration: many systems HRM support online training helps employees learn anytime, anywhere.
- Track training budget: the recorded cost of each course, compare investment performance.
- Development roadmap occupation: mount training with competency goal of personal development.
Actual value the business receives:
- Help employees update, new skills, thereby improving work productivity.
- Increase cohesion retain talent: according to the report LinkedIn Learning 2024, 94% of employees said they will stick long term than if the company invests in training (source: LinkedIn Learning Report).
- Optimal cost thanks to closely monitor the effect each course, avoid waste.
- Business proactive, team building, successor to the important position.
3.4. Managing employee performance
Reviews employee performance are important tools to help businesses identify better person, improve the weak and allocate resources appropriately. However, if based only on the feeling of the management, the assessment can lead to lack of fair cause loss motivation for employees.
HRM modern brings the features, performance reviews, transparent science:
- Set goals (OKRs, KPIs): staff and management with unified goals by quarter/year, ensuring mounted with the general strategy of the company.
- Track progress in real-time: the system updates the results of work continuously instead of waiting until the final.
- Multidimensional assessment (360 degree feedback): get feedback from superiors, peers, subordinates, even from customers.
- Analyze performance data: HRM provides charts, reports help leaders clearly see the divide in performance between the individual departments.
- Link with payroll advance: evaluation results be used to reward, wage increases, appointed fair.
Actual value the business receives:
- Increase transparency and fairness in the assessment, thereby improving satisfaction of employees.
- Improve work performance: as reported by Gallup 2023, the business application performance evaluation (continuous performance management) achieve higher productivity by 14% compared with business-only reviews last year (source: Gallup Workplace Report).
- Motivation, personal development, when employees clearly see the relationship between effort – results – benefits.
- Business support identified group of potential employees to build a team of inheritance.
3.5. Management, timekeeping, and payroll
In operations, hr, timekeeping, and payroll is that the process is repeatable, high directly related to employee benefits. If making crafts, enterprises often encounter problems such as errors when summing the delay in paying wages, labor disputes due to lack of transparency.
HRM solve this features:
- Integrated multi-modal form attendance: fingerprint scanner, magnetic card, face recognition, GPS via mobile application for employees to work remotely.
- Automatic synthesis of standardized data: system recorded hours, shifts, holidays, overtime, annual leave... in real time.
- Direct link to the pay table: the attendance data is synced with recipe payroll, personal income tax, insurance, allowances.
- Create table salary quickly: HRM, cumshot, payroll details for each employee and can send through the portal or internal email.
Actual value the business receives:
- Up to 80% of the errors in timekeeping, and payroll (as reported by Deloitte 2023, Deloitte Global Human Capital Trends).
- Improve the trust and satisfaction of employees thanks to transparency in salaries and bonuses.
- Save operating costs: with businesses over 1,000 employees, the automation, timekeeping, and payroll can save hundreds of hours of work per month for room HR.
- Limit the legal risks due to pay the wrong rule, to help businesses comply with The Labour code.
3.6. Benefits manager compensation
In strategic hr management, salary is no longer the only factor that decides the ability to retain employees. Welfare and remuneration comprehensive increasingly important role in attracting, mount, maintain the human resources of high quality. However, with the business can scale from a few hundred to tens of thousands of employees, the management of the package benefits, pay subsidies or track fairness between groups become big challenge.
HRM bring to the management features, benefits, remuneration, modern:
- Construction of welfare policy flexible: the system allows to set many types of benefits (health insurance, vacation, lunch allowance, travel allowances, learning support, care, family,...) match each group of personnel.
- Automatic management: tracking history, benefit, limit, use object apply; minimize errors when calculating manually.
- Integration with payroll system: ensure the rights of employees is reflected transparency exact right in the pay table.
- Personalization benefits (flexible benefits): many HRM modern allows employees to choose the package of benefits to suit the demand, thereby increasing personal experience.
- Report analysis: provide data, compare cost benefits between departments, branches; assess the level of use, impact on the rate of the holiday.
The actual value that the business received:
- Increase the ability to retain personnel: According to a survey by Mercer 2023, there are up to 59% of employees said that welfare flexible comprehensive is the key element decided to stick with the business (source: Mercer Global Talent Trends).
- Enhance brand image recruiting: the Business have good policies for treatment and often attract quality candidates over the market.
- Optimal cost: HRM help businesses to closely monitor the budget, welfare, development, current policies, at least be used to adjust accordingly.
- Increased satisfaction, work motivation: employees feel are of interest comprehensive of all financial, health and spiritual life.
3.7. The report analyzes hr data
In the context of data become “strategic assets”, HRM is not only stored but also convert hr data into management information valuable.
Highlight features:
- Quick report in real time: automatically create reports about number of employees, hiring rate, absenteeism, labour productivity, the cost of training.
- Trend analysis: Based on the data of many years, HRM can predict trends, jobs, recruitment needs, or wage costs in the future.
- Dashboard visualization: Provide chart, dashboard, real-time help leaders to grasp the situation immediately instead of waiting for reports manually.
- Integrated KPI/OKR: Measure the performance of employees and departments, support transparent reviews.
Enterprise value received:
- A decision fast more accurate: According to a survey by PwC 2023, 64% of business leaders believe that the use of hr data significantly enhance the quality of decisions about resources (source: PwC Workforce Survey).
- Reduce the rate of the holiday: data analysis can indicate the cause employee leave (for example, salary is not competitive, lack of training), from which solution timely.
- Optimal staffing costs: Business easily track costs account for how many percent of sales, compared with the industry to adjust.
As such, HRM not only is the administrative tool that is platform strategy helps organizations and business are to find out information about HRM is what can visualize how this system a direct impact on all aspects of human governance from recruitment, training, performance to benefits, and labor relations.
4. Benefits when the application HRM in modern business
4.1. Increased productivity, efficient management
When business development, system implementation, Human Resources Management, hr processes are standardized automation helps to significantly reduce the processing time craft. Instead of taking hours to aggregate attendance data or reports, the hr department can focus on the activities strategies such as developing talent or resource planning.
4.2. Save operating costs
One of the benefits to notice of HRM is cost savings. Errors in payroll or recruitment't effective can make businesses lose hundreds of million per year. HRM solved this problem by:
- Reduced recruitment costs thanks to data analysis, candidate, choose the right person from the beginning.
- To limit errors in timekeeping, payroll, and insurance, to avoid the business to claim or lose credibility with employees.
- Optimal training costs through the efficient tracking each course, remove the program does not bring value.
For example: A manufacturing enterprise 2,000 employees when moving from a management manual to HRM is reduced by almost 20% personnel costs, indirect, thanks to automation, payroll, management shifts.
4.3. Improve the employee experience
HRM modern serve not only for hr but also bring a positive experience for the entire staff. They can easily access the system to check the pay table, sign, vacation, or join the training course without waiting for a response from hr.
This not only saves time but also create a sense of transparency is respected. Report Gallup 2024 suggests the business may experience good personnel increased by 23% level of employee engagement and reduce the 18% rate of quitting (source: Gallup).
4.4. Enhance competitiveness
In the context of labor market competition, owning system, HRM is a modern advantages markedly. HRM help businesses build professional image in the eyes of candidates, personnel management, transparency, take strategic decisions based on data.
The result is:
- Easy business attract retain talent.
- Leaders have the tools to resource planning in accordance with the plan long term business.
- Business building culture fair, transparent, thereby increasing the strength of the brand recruitment.
For example, A consortium national retail has application HRM to manage more than 10,000 employees at more branches, thus to maintain the welfare policies and keep a team of sales staff, experienced – core elements in maintaining revenue.
In summary, HRM not only solve the problem of personnel management daily but also create strategic value: enhanced performance, cost savings, improved experience staff and strengthen competitiveness. This is why more and more organizations and businesses are to find out information about HRM what is considered the application HRM modern is a priority in the transition of personnel.
5. Solution deployment HRM efficiency for business
5.1. Steps to implement HRM in business
Application to Human Resources Management (HRM) effective, businesses need a clear roadmap, avoid the deployment status, spreading, or lack align with strategic goals. The basic process consists of 4 steps:
- Step 1. Reviews the current state of hr management: Enterprises need to analyze the details of process are operated: attendance, payroll, recruiting, training, records management... from that recognizes the strengths – weaknesses. This helps leaders understand the “knot” as take a lot of time synthetic data, errors in payroll or lack of transparency in the evaluation of staff.
- Step 2. Define target deploy HRM: Every business has different needs. With big business, the priority can be synchronized hr data across multiple branches. With small and medium businesses, the goal is usually to save operating costs, reduces errors in payroll. Identifying the right target right from the start will determine the success of the project HRM.
- Step 3. Choose software solutions HRM match: Instead choose to follow the “trend”, business need for projection software features with actual needs. For example: if the business has many employees working in shifts, the software must have the ability to manage shifts, flexible. If the business focus on development of human resources, the system should support route training and competency assessment.
- Step 4. Training application sync: A solution of HRM only effective when employees in the hr department and other parts are trained, know how to use.
5.2. Criteria for selecting software HRM
To ensure software HRM bring real value, businesses should consider the following criteria:
- Fully responsive professional personnel: From recruiting, records management, attendance – payroll, to benefits, training, performance reviews.
- The ability to integrate flexible: can connect with to the ERP systemCRM , or accounting software for the data to be synchronized transparency.
- Support report data analysis: Provides dashboard visualization helps leaders make decisions based on data instead of hunches.
- Experience user friendly: easy to use interface for both the office and staff common. This helps to reduce training time, increase the level of acceptance system.
5.3. Solution overview HRM of Lac Viet SureHCS HRM
With over 25 years of experience in implementing the solution hr management in Vietnam, Vietnam SureHCS HRM system is HRM comprehensive is designed to fit many type of business:
- Hrm master: Cover the entire life cycle, from recruitment – integration – record management – timekeeping, and payroll – benefits – training – evaluation capacity.
- Apps, AI, data analytics Help businesses forecast staffing needs, detect trends, the holiday, the optimal plan hr strategy development.
- Practices for successful implementation: SureHCS have been many large enterprises use the information as Takashimaya, coca cola, .... These organizations noted a pronounced effect in reducing 30% processing time hr jobs, increase the level of employee engagement.
CONVERT THE NUMBER OF PERSONNEL WITH COMPREHENSIVE LAC VIET SUREHCS HRM
LV SureHCS HRM is the solution in hrm comprehensive (HRM) is developed by Lac Viet from 1998, now serves more than 1,000 businesses in Vietnam with international standards such as CMMI Level 3, ISO 9001:2015 and ISO 27001:2013. Platform help of optimized every aspect from recruitment to employment, improve the experience of staff and effective management of resources.
Feature highlights:
- Candidate Pool AI + AI Resume: automatic dissection CV any format, search for suitable candidates instant, a 70% increase quality, reduce recruitment time significantly
- Timekeeping software – payroll – C&B auto: integrated benefits, overtime, insurance, export report, payslip correct for business scale up to 10,000 employees
- Experience hr – wallet reward – ranking behavior – survey periodically: internal management, honor, mounted staff in real time.
- Assessment and capacity development: KPI/OKR flexibility, feedback 360°, the proposed route train personalization according to the evaluation results
- Internal training & LMS integrated AI: learning anytime, anywhere, content management, multi-modal with personalization from AI
- Dashboard BI + AI Advisor: real-time reports, suggestions leadership decisions based on data resources.
TYPICAL CUSTOMERS DEPLOYING LV SUREHCS HRM
- Coca-Cola Vietnam: System deployment LV SureHCS to digitize comprehensive human resource management group has standardized the data, the optimal operating HR according to international model.
- Textile company Success (TCM): Application LV SureHCS to manage hr, payroll, benefits, timekeeping and capacity profile for nearly 5,000 employees across 5 areas of activity – from textiles and fashion to real estate.
- Total company air Port, Vietnam (ACV): Choose to trust LV SureHCS to operate the system large-scale personnel with over 10,000 employees, 24 subdivisions, solved the problem of complex business of modeling state-owned companies.
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AI INTEGRATION ACCELERATES DIGITAL TRANSFORMATION OF HUMAN RESOURCES
Vietnam has officially launched The 3 AI assistant hr deeply integrated into the LV SureHCS including LV-AI.Docs, LV‑AI.Resume and LV‑AI.Help to automate the task administration, standardized data enhanced experience personnel
- LV‑AI.Docs: automatic dissection transfer data from documents such as CCCD, windows, SOCIAL insurance, by level of digital records, standardized
- LV‑AI.Resume: analysis of CV auto, construction, candidate profile, find people with the right criteria by prompt intelligent data mining candidate pool efficiency
- LV‑AI.Help: chatbot internal support, answer questions HR 24/7 access form process quick contextual user
WHAT DO BUSINESSES GET WHEN DEPLOYING LAC VIET SUREHCS SOFTWARE?
- Comprehensive solutions from A‑Z cover the entire process of HR from recruitment, profile, attendance, payroll, benefits, training, reviews, experience staff
- Highly customizable & flexible connection to suit any scale, industry, easy to connect with ERP, finance, office of chemical
- Save cost & performance enhancement help to lose 40-60% of the cost of operating personnel, retain talent, improve the work efficiency
CONTACT INFORMATION:
- Hotline: 0901 555 063
- Email: surehcs@lacviet.com.vn | Website: https://www.surehcs.com/
- Office address: 23 Nguyen Thi Huynh, Phu Nhuan, ho chi minh CITY.CITY
Through the above analysis, one can see the answer to the question “HRM, what is” not just stop at the concept of human resource management. Software HRM today has developed into a comprehensive system to help businesses optimize from recruitment, training, timekeeping, and payroll to benefits manager, data analysis, hr.
