When you are asked which department should be functionally far ahead, your answer could be either sales or finance. But the efficiency of a business lies in the effective functioning of human resource management.
While that holds true, there are scenarios where businesses find it difficult to manage their HR processes with traditional HR solutions. With growing business complexities, the traditional way of managing human resources becomes time-consuming and costs organizations much.
Smart approach is indeed the best way. With HR self-service tools available to streamline both human resource management and employee experience, it is worth have a comparison between ESS vs manual HR.
What is Manual HR?
Manual HR refers to the traditional way of managing HR processes. In this traditional way, HR personnel have to execute many processes manually. For example; processing employee paperwork, handling communication, and arranging in-person meetings.
At the same time, employees must contact HR departments directly to inform them about leave requests, payroll queries, or to inquire about benefits programs or other personal information.
The manual way of processing HR tasks puts your business on the backtrack in this fast-progressing landscape.
Understanding traditional HR management
Traditional HR management involves a human touch in every aspect of the HR operations. HR teams often rely on manual processes to address the operational aspects of employees such as recruitment and hiring, payroll and benefits administration, maintaining employee records, and conducting annual performance reviews.
Advantages
- Ensures adherence to labor laws and regulations
- Effectively addresses employee concerns with a human touch
- HR teams have a complete control over employee records and thus data
- Ideal for smaller businesses with fewer employees
Disadvantages
- Slow to adapt to technological advancements
- Consumes excessive time to handle daily HR tasks
- High chance of data entry errors
- Leads to inefficiencies, with employees having to contact HR directly for their HR needs.
What is Employee Self-service Portal?
ESS stands for Employee Self-service portals. Employee self-service is a technology or software that allows employees to handle many human resources needs on their own through a user-friendly interface.
By employing a state-of-the-art employee self-service portal (ESS), you can reduce the administrative workload on HR employees. An important point is that an ESS portal does not necessarily cover all human resource management functions.
Given the focus on improving modern workforce management, the most reliable choice is to adopt either a highly advanced ESS portal or a human resource management solution (HRMS).
Benefits of ESS
- Increased efficiency as employees can handle their routine HR tasks without HR intervention
- Reduced HR workload due to self-service capability and automation
- Employee empowerment as they take control of their information
- Automation reduces data entry errors and allows HR teams to focus on strategic activities
- Self-service access improves employee engagement and satisfaction
- Better data management
Disadvantages of ESS
- ESS solution requires investment for implementation and training
- Employees may require time to adapt to the system
- Strong security measures are needed to protect employee data
- Integration with other technology poses a challenge
We will look into different scenarios with respect to ESS vs Manual HR.
The first thing to ask is whether you need a separate ESS or an HRMS. ESS can be available as a separate solution or as a component of HRMS. But mostly today’s advanced HRMS solutions include employee self-service technology.
When do you need a separate ESS?
Your organization may require an individual ESS if:
- Your HRMS lacks features support self-service, such as payroll access, benefits tracking, and personal details update.
- You need a customized ESS that specifically aligns with your business goals.
When do you need a separate HRMS?
You can opt for an HRMS if:
- Your current system lacks features to support growing HR needs or the scalability to support business growth.
- You need extensive HR functionalities, such as advanced payroll, benefits program management, performance management, and more.
- You need to integrate business applications like third-party payroll systems, ERP, or other systems.
The comparison covers various aspects of both the modern employee self-service portals and traditional way of managing HR processes. But the key question remains: which one is right for your business?
The choice depends on various factors
Business size: If you operate a small business with fewer employees, traditional HR is sufficient. But for larger businesses, adopting an automated HR solution or ESS is a must.
Workforce preferences: Today’s workforce appreciates the use of ESS while traditional HR works well for those with less digital exposure.
HR workloads: If HR teams have too many administrative tasks to execute, implementing an automated HR software or ESS can be a game changer.
However, for your growing business, adopting modern HR self-service tools built on top of the Microsoft ERP platform can be a wise choice. When opting for an HRMS, ensure it supports the HR technology trends to drive transformation in the modern workforce management.
If you want to learn more about the ESS portals or advanced human resource management systems, partner with the leading Microsoft consultants, IAX SERVICES.
FAQ Section
What is the difference between ESS and manual HR?
ESS (Employee Self-Service) is a digital solution that allows employees to handle HR tasks like leave requests, payroll inquiries, and benefits tracking on their own. Manual HR, on the other hand, relies on HR personnel to manage these tasks, requiring employees to contact HR directly.
When should a business consider adopting an ESS portal?
A business should consider an ESS portal if its HRMS lacks self-service features, such as payroll access and benefits tracking, or if it requires a customized ESS that aligns with its business goals.
What are the key advantages of an ESS portal?
ESS portals improve efficiency, reduce HR workload, empower employees, minimize data entry errors, enhance employee engagement, and streamline data management.
Is an ESS portal suitable for all businesses?
While an ESS portal is highly beneficial for larger businesses with complex HR processes, smaller businesses with fewer employees may still manage efficiently using traditional HR methods. However, as businesses grow, adopting an ESS portal or a full HRMS becomes essential for scalability.