Employee Life Cycle Management: The Center piece of a good HRMS/HRIS

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.

• 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

Clearly, life cycle management is the heart of any HR system. Rethink the capability of your HRMS/ HRIS system if you don’t have this capability.

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