Outsourcing is on the rise, companies are focusing on their core competencies, leaving the functional management to the domain experts in each area. In short, outsource what is not core!

Thus arises the need for monitoring the outsourcing services received. Are you getting the best for your buck? Since volume of outsourcing services & resources are increasing, need for automation has become a necessity.

Manpower outsourcing majorly involves resources & their performance; it becomes an obvious conclusion to include this function under the supervision of HR & the use of managing contractor resources on the HRMS platform.

It is clear that HRMS software is the only way to manage & monitor the outsourcing resources for its attendance to billing & performance to employee compliances. So what is it that needs to be checked in HRMS software?

Following is the list of functionality that is required to manage the contractor resources on the HRMS software :

1. Contractor management module

• Register the contractor & its compliance data [insurance, registration of establishment, others … ]
• Map the PO with nos of resources required for the tenure of the contract
• Capture contractor employee’s mandatory data like Full name, DOB, Addresses, contact details, PAN, Adhaar details & similar data as required from time to time.

2. Time & Attendance software and integrated Biometric attendance system.

• Every contractor employee needs to be registered with an attendance device
• Attendance compliance needs to have adhered, like weekly working hours, OT hours, weekly offs, and compensatory off for extra work done, especially national holidays as per rules stated by each state

3. Payroll software

• Contractor employees need to be paid as per the job role defined
• Minimum wages state wise & category wise need to be paid
• PF, ESIC, PT, LWF & bonus needs to be calculated as per rules

4. Payroll compliance state wise

• All statutory payroll compliance challans need to be submitted on & before the defined dates.
• Maintaining of registers [Time & Attendance, leave card, wages register]

5. Integrated with ERP software [Vendor management, billing, SAP…]

• HR automation is complete only when there is integration is seamless to get the desired output
• Integration is necessary for ease of flow of data, and reports to make correct decisions

The above-stated 5 points are minimum mandate to have in an HRMS software to run the contractor management module.

Let us start with the above parameters in HRMS software for contractor management.

As we all know, automation is just the beginning & it is going to mature over time. The next breed of HRMS software automation is already geared for employee engagement, gamification, artificial intelligence & much more.

Keep watching this space for more on HR Software & Automation.

Calling all HR to share your needs for HR automation, we shall be happy to add it in our list. If your organisation has already done automation & would like to share please write to me on dhwani@opportune.in or call 022 4036543.