Human Resources Management Systems

What is HRMS Software?

HRMS software is defined as a software application that combines many human resources functions, including benefits administration, payroll, recruiting, training, and performance management & analysis into one package. It combines multiple systems and processes which simplify HR processes and enhances business productivity.

One key element of Human Resource Management software (HRMS) is that they can automate various transactional tasks such as:

    1. Employee Onboarding
    2. Core HR
    3. Leave management system
    4. Attendance management system
    5. Expense management
    6. Payroll Employee Self Services
    7. Exit management

HRMS is a combination of HRIS (Human Resource Information System) and HCM (Human Capital Management) Suite. The use of Human Resource management software helps in minimizing the time consumed in tasks and increasing overall productivity.

Features of HRMS

HRMS platforms bundle a whole lot of features into one complete software suite. HRMS solutions aid in effective human resource planning is to streamline repetitive tasks and to automate them wherever possible. However, various HRMS platforms differ in features primarily based on business needs.

Here are some of the most common HRMS features present in most of the software solutions:

Employee Onboarding

This HRMS features generally include robust applicant tracking functionality from efficiently monitoring traffic on job posting sites to managing applications and scheduling interviews. Once the right candidates are identified, HRMS platforms automate the onboarding process for new hires such as offer letters, benefits packages, internal training requirements, and more.

Employee Lifecycle Management

Payroll, Time Tracking, and More – Another important HRMS feature is day-to-day employee management which includes mundane and repetitive tasks such as managing time-off requests, tracking hours worked and working with employees who are out for extended leave. Having this feature allows the companies to run the gamut from tracking overall performance, managing improvement plans, rewarding individual accomplishments, and ensuring that all necessary credentials are met.

Workforce Management

Linked closely to the time, attendance management, and leave management functions, workforce management is essentially a scheduling feature and generally includes real-time functionality, matching workforce deployment to shifting needs.

Performance Management

One of the main parts of an organization’s talent management strategy is regular employee reviews. This is a key feature of any HRMS solution system to facilitate various 30, 60, 90-day reviews, 360-degree reviews, goal planning and annual performance reviews.

Data & Analytics

Drawing on all system data, an analytics module generally includes a dashboard of ready-made reports, predictive capabilities, real-time reporting, and automated data-gathering.

Still using traditional ERP? Shift to New Age HRMS

Modules of HRMS

The HRMS software module can be defined as the automated features to handle various aspects of personnel management, right from onboarding to payroll and attendance, along with many other critical HR operations.

Below are some of the most important HRMS software modules along with their features:

 New hires in any organization need to be guided through the onboarding and induction procedures. By automating this process, your organization can significantly reduce the burden on both managers and the HR team.

  • Among the common onboarding module features include –
  • Easy setup of accurate employee records
  • Gamified learning
  • Provision of essential information about the company and main personnel
  • Automatic scheduling of meetings

The absence and leave management module is an automated way to book, allocate, approve, track, and monitor the leaves and absence from the workplace.

Among the common absence and leave management module features include –

  • Self-service leave requests
  • Tracking employees’ accrued vacation time and usage
  • Integration with workforce management and time and attendance functions
  • Metrics and analytics, including absence trends

The time clock is one of the longest-standing HR automations. Most of these systems today incorporate biometric identification and link it directly to the workforce management module.

Among the common time and attendance module features include –

  • Time clock management
  • Biometric systems
  • Employment attendance tracking
  • Functionality for remote workers

Most of the modern HRMS come bundled with an employee self-service portal which gives employees access to all their own data.

Among the common payroll employee, self-service module features include

  • A comprehensive view of critical data relating to payroll
  • Viewing/downloading payslips
  • Functionality for tax liability information
  • Leave updates and real-time attendance data

Similar to onboarding, the off-boarding or separation process of an employee needs to be smooth and systematic, to ease the exit of the employee from the organization. Automating this module helps in automatically calculating the employee notice periods and salary settlements and increases the overall efficiency in employee exit management.

Among the common separation module features include –

  • Various aspects impacting the organization’s ability to reclaim or settle with the employee
  • House-keeping requisites such as no-due certificates from various departments required by the employee

Importance of HRMS

As we talk about going digital, It is important to understand the benefits which one can drive by investing in the modernized HRMS
and below are the six key drivers for implementing an HRMS system:

3 AAA (Access Anywhere Anytime)

Accessibility to the platforms is of prime importance wherein you cannot just restrict people to work from any specific place or desk as the entire globe has got converted into the hot desk. Ease of use is the table stake for driving the adoption of any new technology. On the go accessibility to key information and the introduction of self-service will reduce the inflow of basic queries thus contributing towards process efficiency gains.


As we are walking through a new normal of not just working from home but working from anywhere security and controls needs to be stringent so that you do not miss out org specific info anywhere and everywhere. Thus, It becomes all the more important for an organization to invest in a platform that can guard you against data theft and keep your data safe. Gone are the days when we use maintain p-files for the employee records however with digitization taking over we need to look at data security.

Centralization of data 

Today data has become the talk of the town however we are also going through the crisis of data overload and decentralization. HRMS helps organizations to synthesize their data that can help drive a digital mindset. It helps in creating a “one stop” shop for all data repositories.

Drive Productivity

Productivity is one of the core focus areas to achieve your business goals. An HRMS should focus on augmenting your business objective and thus helping you drive productivity. No longer employees must go to HR for getting their records updated, to check about the policy document, to check their leave balances, and much more

Re-invent the HR Wheel

HRMS facilitates a 360 degree turn into your day to day operations. You get more time to move up the value chain instead of just getting stuck in the web of operational tasks. HR professionals need to focus on bringing about a transformation wave instead of being stuck in the dark hole of managing the transactions.

Data Analytics

Having data all around you does not make any sense until and unless It is processed to fuel up the decision making. HRMS empowers you to get processed data with valuable insights that can help you in preparing the plan of action. This helps you in forecasting the risks and coming up with a mitigation plan.

What’s the Difference Between HRMS, HCM, and HRIS?

A Human Resource Management System (HRMS) emphasizes employee life-cycle management processes. A human capital management (HCM) system comprises core HR functions for workforce acquisition, workforce optimization, and personnel management. A Human Resource Information System (HRIS) enables you to handle the intelligence of your personnel, procedures, and policies online.
HRMS is the most comprehensive HR solution and comprises all the features provided in HRIS and HCM systems. HCM includes all the features offered by HRIS and includes talent management facilities to the mix. HRIS is the most primitive choice, as per the general consensus. It manages people, procedures, and policies.
Functionality offered:

  1. Performance Management
  2. Recruiting
  3. Onboarding
  4. Reporting
Functionality offered:

  1. Administrative Functions
  2. Organization Data
  3. Talent Management
  4. Labour and Workforce Management
Functionality offered:

  1. Payroll and Tax Compliance
  2. Attendance
  3. Administration
  4. Personnel Tracking
HRMS systems review qualitative employee information, such as performance and employee satisfaction. HCM systems comprise the entire scope of employee engagement, both quantitative and qualitative. HRIS systems monitor quantitative employee data, such as SSNs and schedules.

The factor that differentiates HRMS from the rest is that it can help companies drive engagement by delegating personalized employee goals and managing regular performance tracking in an all-in-one system.

Steps to Find the Right HRMS Software

STEP 1. Define Your HR Software Requirements

Determine the HR tasks that your software must fulfil as per the requirements of your company. Most HRM applications offer these functions –

  • Employee database (Store employee data including attendance, performance, compensation, scheduling, and more)
  • Recruitment, applicant tracking, as-well-as onboarding
  • Learning management (organize training data that includes information about courses, trainers, and locations)
  • Report writing
  • HR analytics

STEP 2. Set a Budget 

It is imperative to determine how much money you will spend and request management’s approval. Typically, the HRIS charge comprises a one-time payment for software, a monthly or quarterly charge, and costs for implementation, support, or other miscellaneous expenses.

STEP 3. Pick some Vendors for Review 

You must browse various vendors and fill out the spreadsheet to determine how they satisfy your requirements.

There are a plethora of vendors that offer solutions; thus, you shortlist at least 10 vendors to have reserve options.

STEP 4. Conduct the Demo 

Invite the personnel who will use the HRMS daily, so they can see how the software works and give their remarks.

Do not pick software with a complex interface that may retard the speed of work and cause errors.

STEP 5. Checklist Questions you must ask your vendor while assessing proposals:

  1. Understand the depth of the solution
  2. Implementation capabilities of the solution provided
  3. Is the vendor Service-oriented?
  4. Security & GDPR Compliance for product
  5. Detailed feature analysis
  6. Product road map

Virtual HRMS Implementation

With the ongoing pandemic, virtual HRMS implementation is the only viable option for a remote workforce; here are some ways to achieve it –

STEP 1 - Create a Project Team

Create a set of employees to establish a comprehensive project plan and implement the new system. This step will comprise drafting objectives, satisfying all deliverables during the implementation phase.

STEP 2 - Hold Virtual Meetings

Notify all employees as-well-as the stakeholders that an HRMS solution implementation is ongoing by organizing virtual meetings. This step will keep the employees prepared to avoid bothering HR with immediate inquiries.

STEP 3 - Online Training for Employees

The HR team after testing the HRMS software must provide online training and query sessions for employees to render deeper insights into its operation and help them implement it seamlessly. Using tools such as a training session, giving FAQ handouts and manuals can help HR to communicate the information in a streamlined fashion.

HRMS Solution for Specific Industries

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