According to statistics, Human Resource Management Software (HRMS) can increase employee productivity by 25%. And not only that, it also reduces labor costs by 22% and improves customer satisfaction by 15%. In order to be part of these figures it is important that you use the ideal software. That is because these programs are not the same or offer the same advantages since they operate in different markets and contexts.
In this article, we are going to explore the ROI measure that can be obtained by implementing a good Human Resource Management Software (HRMS), for the Dubai market. To do this, we are going to analyze the characteristics and functionalities that the ideal program for any company should have. We are also going to show you how ConnectHR stands out with the most efficient and innovative solutions in the sector. In the end, we hope you understand the importance of investing in Human Resource Management Software (HRMS).
Why is HRMS software so important for businesses?
The adoption of technology is given thanks to the great benefits it offers. In short, you want to spend the least amount of money and get a lot of benefits and technology is capable of making it happen. In this way, using human resource management software in Dubai will bring you many benefits. The main one is the ability to save a lot of time.
Being able to automate administrative tasks that are repetitive and low-impact can lead to greater efficiency in your human resources staff. In this way, your human resources department will be able to focus more on strategic objectives. For this reason, integrating the services of an HRMS into your company will increase productivity within your company.
While the ability to save time is important, it’s not the only benefit of using HRMS. In addition, you can considerably reduce costs and improve productivity if you choose the best software for human resource management. Other factors that indicate the importance of this service are:
- The streamlining of processes.
- Significantly increases feedback generation.
- Minimize errors.
- Provide you with compliance with local laws and regulations.
- Create analytics.
In addition, many of these functionalities manage to generate a greater positive attitude and confidence in employees. In this way, these services are a fundamental part of increasing the morale of employees. Furthermore, it generates greater functionality among employees and manages to reduce the abandonment rates suffered by companies that do not have these services.
Payroll Integration and how it boosts the way you work
Integrating the payroll improves the way the company works because it allows it to comply with its tax and labor obligations. In addition, everything is in the best way and at the predetermined time. It helps to facilitate the control and administration of personnel since there is a clear and updated record. In this way, the commitment and conditions of the workers are better, guaranteeing that they receive a fair and transparent payment.
By integrating payroll with the software for human resource management systems many processes have a connection. In this way, the data of the employees, schedules, licenses, attendance, and absences have a connection with the method of calculating their salary payments and benefits. Thanks to this, the processes of monitoring and managing employee schedules are greatly simplified.
By automating the calculation of schedules and payments, errors are reduced and errors that can affect productivity are avoided. When you integrate payroll in Dubai it is similar to doing it in other countries. However, there are some particularities that it is important to keep in mind.
- There is no income tax for companies or employees. This means that the net salary is equal to the gross.
- Employees must receive AED 3,000 per month as minimum wage. This salary is equivalent to $817.
- Salary must be paid in the local currency (AED), which is linked to the US dollar. The fixed exchange rate of 3.67 AED for each dollar.
- The payroll will be paid through the Wages Protection System or WPS electronic system. With this system, employees will receive their salary in the corresponding time and without deductions.
What is the ROI of Using Human Resource Management Software?
The ROI or rather the return on investment of HRMS is an index that measures the economic benefit of using these computer applications. Therefore, it is important to consider certain criteria when selecting HRMS software. In this way, ROI is calculated by subtracting the cost of the software from the value it has generated and dividing this result by the cost of the software.
There are many ways that HRMS software can create value. Among them is saving time and money in processes related to employee management. Like, for example, recruitment, training, and evaluation. In addition, there is an improvement in productivity and performance by employees. Thank you for providing them with a satisfying work experience.
By doing this, a greater commitment of employees to the company is created, generating greater retention of talent. On the other hand, if you want to measure the ROI of HRMS software in Dubai it will be the same as for the whole world. This is because it is a universal formula and what changes would be the costs and benefits of each particular software. If you want to measure ROI you can follow these steps:
- Define the objective and scope of the investment and the time you want to analyze.
- Identify the costs of the software, such as installation, maintenance, etc.
- Observe the benefits that the software generates, such as saving money and time.
- Use the above formula, it can be expressed as a percentage.
- Compare if the ROI obtained is as expected or if it is better than other alternatives. In this way, you can assess whether the investment will be profitable for your company.
Elevate Your Organization’s HR Efficiency with Our Advanced Solutions
ConnectHR is a company whose mission is to offer customized and integrated software solutions for Human Resources management. Both are for companies that have their HR team remotely or in person. As a result, you can increase the efficiency of your organization’s Human Resources team in several ways. In this section, you will see in detail all the benefits that you will have available with ConnectHR.
They optimize and simplify administrative and operational tasks related to personnel: As a business manager, you have the opportunity to relegate certain administrative tasks to experts. For instance, attendance control, payroll, document management, and others. Thus, you have a guarantee that they will do them efficiently.
They facilitate collaboration and communication between employees and employers: This is because they provide a pleasant work environment between them. In addition, they grant access to different digital platforms, for companies that have a remote human resources team. Similarly, they provide access to digital platforms that allow feedback between both parties, recognition, and more.
Improve talent management: As a good human resources team, their job is to hire the best staff. For this, they must look for the best talents. In addition, they help employees who work in the company to develop professionally. They do this using tools that enable career planning, ongoing training, performance evaluation, and more.
The importance of measuring HR management system ROI
The Return On Investment or ROI, is a measure that indicates the profits obtained from an investment. This is about the cost of said investment for the employer. Also, ROI is considered a simple solution to payroll challenges in the UAE. The reason is that it allows us to evaluate if it makes sense to outsource the payroll processing to a company that offers the services, or if it is better to do them internally.
To calculate the ROI of payroll outsourcing you just have to apply a formula. Which is the following (total savings – total cost) / Total cost. The result can be expressed as a ratio or percentage. Generally, they put it in percentage terms for better understanding. On the other hand, there is an option that is to use online tools and calculators. These facilitate and ensure the calculation of ROI.
If the best option according to the ROI results is to outsource the payroll, you get the following advantages.
Save money and time: As entrepreneurs delegate different administrative and legal tasks, this allows you to concentrate on doing business and consequently, producing more money. Among the tasks they entrust are, payroll, tax calculation, deductions, bonuses, and more.
Increase the precision and efficiency of the human resources team: By having a team of experts and professionals in the field, you have a guarantee of success. In other words, in payroll management, you avoid errors and delays, which avoids sanctions or fines.
Improve the work environment for employees: The employer offers its employees a timely, secure, and transparent payroll service. In addition, it makes sure to comply with local regulations in the UAE. As a result, employees feel great satisfaction and their retention is guaranteed.
A simple solution to your payroll challenges in UAE
It is common for people working to make mistakes when calculating payroll. The reason is simple; they are usually simple accounts that have many details. These mistakes can bring severe consequences to the company. For instance, complaints and fines. Therefore, if you are not entirely convinced that Human Resource Management Software (HRMS) is a simple solution to payroll challenges; you should read the following items.
Eliminate waiting time: This software is characterized by accelerating the processing of information and the management of other issues. For instance, the payroll information. As a result, the human resources department saves time by relegating these types of mundane tasks.
Reduction of mistakes or manual errors: Entering employee data manually becomes a tedious task; and not only that, you are also very error-prone. You should know that even the slightest error when compiling payroll data can cost thousands, for example. If you have good Human Resource Management Software, you have a guarantee that this will not happen.
Risk reduction: This technology complies with all employment laws of the UAE. In other words, you have a guarantee that your company is not at risk of entering into legal disputes.
Maximize ROI with Advanced Solutions for Human Resource Management
If you want to maximize ROI with advanced solutions for human resource management, there are some recommendations that you will see below:
Define the metrics and objectives: It is important to define what are the objectives that you want to achieve with HR solutions. For example, reduced turnover, increased productivity, improved work environment, and more.
Select the best solutions: For this, you must be clear about the needs and characteristics of the company and employees. With that, you can choose the best HRMS software.
Implement the best solutions passively and effectively: In this case, you must take into account all the people involved. Among them, are employees, suppliers, human resources personnel, managers, and more. Based on their feedback, you can implement the solutions, but gradually.
Evaluate the results: Once the software is up and running, you must measure the impact of the HR solutions. For this, you must compare the data from before and after placing the application. Also, you have to calculate the ROI in financial terms as another indicator.
Improve HR solutions: If needed, you can adjust and improve it according to the opportunities for possible improvements and the results of the evaluation.
Communicate and disseminate human resources solutions: Once you have the results of the evaluation and the improvements to establish, it is important to communicate them to the entire team. This results in an increase in trust, loyalty and commitment on the part of employees.
Discover the HRMS Advantage at Connect HR Dubai
Some of the advantages that ConnectHR provides to Dubai entrepreneurs are as follows. Also, you can enter our software reviews section, and thus convince yourself that our software is the best.
- We automate and simplify your operational and administrative tasks, which are for the benefit of the staff. For instance, attendance control, document management, payroll, and more.
- Also, we improve the well-being and experience of your employees. This is because we offer benefit solutions that are very interesting and appealing to your workers. For example, health insurance. They can easily access this information through the Human Resource Management Software.
- Likewise, we expedite the employee termination and onboarding processes. In other words, we take care of managing visas, legal procedures, compensation, and more.
- Another interesting advantage is to integrate the software with other applications and systems. For instance, the calendar, accounting, and more.
- We make cloud technology available to you. With this, you can access the software from any device.
- You have the option to customize the software according to the preferences and needs of each company and its employees.
- Finally, you are guaranteed to have advice and support from a team of experts in human resources and technology.
If you are curious about the other advantages that the Human Resource Management Software in Connect HR provides; You just have to enter our website. You can also find information about our services and software solutions for HR management. To contact us, you can do so by phone at +971 43 316 688 or write to us at [email protected].