Do you recall the days when every employee had a physical file?
A quick glance at that file would give you a rich source of information about
when the employee joined, when he or she was confirmed, promotions, transfers,
increments, commendation letters, termination letters and much more. The only
problem was that if you wanted to know how many promotions were given in a
year, you would have to go through all employee files to get that information.
If the files where maintained in another location, if would mean asking someone
there for search it for you. It is great that HRMS software available now can
make life simpler, and allow HR to manage more employees easily.
You would expect that any HR and Payroll system would therefore include an Employee Life Cycle recording and reporting feature in their product. Yet there are numerous products without this feature. In the rush to ensure that an employee database exists and payroll can be processed, the availability of an online recording system of life cycle events as and when they occur is missed out. And when that is missed out, the wheels of the HRMS software goes missing. Soon the system degenerates to inaccurate data, delayed information to payroll and other complications. Just how important this piece is can be judged by how many other modules are impacted because of the presence of a life cycle management module. Whenever an Employee Life Cycle event occur, the following occurs too.
You would expect that any HR and Payroll system would therefore include an Employee Life Cycle recording and reporting feature in their product. Yet there are numerous products without this feature. In the rush to ensure that an employee database exists and payroll can be processed, the availability of an online recording system of life cycle events as and when they occur is missed out. And when that is missed out, the wheels of the HRMS software goes missing. Soon the system degenerates to inaccurate data, delayed information to payroll and other complications. Just how important this piece is can be judged by how many other modules are impacted because of the presence of a life cycle management module. Whenever an Employee Life Cycle event occur, the following occurs too.
- The
employee database becomes uptodate when a life cycle event occurs. Any
confirmation, promotion, transfer, or termination automatically updates
the employee database.
- Most
life cycle events causes a change in remuneration and updates payroll
automatically.
- Any
time a life cycle event takes place, an equivalent letter needs to be
printed out, formally conveying to the employee that the event has
occurred and the date from which the event becomes effective.
- The
impact on remuneration has an immediate impact on benefits like PF and ESI
applicable to the employee, and the statutory reporting related to these
benefits
- The
impact of remuneration also has an impact on income tax calculations and
deductions
- Leave
policies may become different as an employee moves location, becomes
confirmed, or changes grade
- A
movement of location, office, office or department has an impact on
related HR activities like performance appraisals and training
- A
retrospective life cycle event can also occur (e.g. a promotion with
retrospective effect), which in turn affects all of the above, also with
retrospective effect, and calculation of arrears
- The
resulting values of most HR reports change as and when a life cycle event
happens
At KServeHRMS Employee Life cycle is a key module in the system. All the above features and much more exists.
For more information visit www.KServeHRMS.com