A Simple Guide to Human Resources Management Systems (HRMS)

Whether your organization has a few or hundreds of employees, there are many parts to keep track of as part of human resource management. However, taking a manual approach is time-consuming and can lead to missed opportunities and mistakes. So, to streamline human resource management, it is critical to implement tools that can help save time, increase productivity, and provide better support to stakeholders.

To avoid the death-trap of well-weaved words that tempt you to choose the wrong tool, here we help you identify the different features of HR software and gain an in-depth understanding of the human resource management systems (HRMS).


What is a Human Resource Management System?

A human resource management system, or HRMS, is a system or software that manages various HR functions and processes for an organization. For example, some of these functions might include onboarding, payroll, performance, attendance, offboarding, etc.

HR tasks are too complex and time-consuming to do manually. Leveraging the help of technology solutions like HRMS can help you save time, cut costs, and better manage your staff. It also makes life easier for employees as these systems usually have an option for self-service (e,g., attendance so that employees can get the job done comfortably.

The Benefits of Human Resource Management System

HR operations are becoming increasingly complex in an ever-evolving digital world as more HR functions are added, and processes must be constantly updated. This is why HRMS can be highly beneficial for organizations.

Here are some of the benefits:

1. Centralized information

Instead of storing personnel documents in filing cabinets, software solutions ensure HR teams can access employee information anywhere, anytime. All company and employee data are at the HR department's fingertips. Some of the confidential information can be restricted with high-level access control.

2. Streamlined HR routine tasks

Human resource management systems allow routine tasks to be performed automatically. It streamlines HR processes and increases efficiency for standard forms and reports. It also helps reduce paperwork and speeds up the document creation process as it will be prepared and completed online. Basically, one of the major benefits of HRMS is that it saves time, meaning the HR team can focus on other valuable tasks.

3. Improved employee development

With HRMS, you can keep track of your employee development, such as training sessions completed by employees, qualifications earned, and their performance review results. As a result, it will be easier for you to identify poorly performed employees so that you can decide the development programs they should be on to help them meet their improvement goals.

Enhanced employee experience

Another benefit of HRMS is that it allows employees to self-serve, for example, by checking in and checking out for attendance or recording their timesheets. They can also add and modify their personal details, upload documents, such as doctor’s notes, and access information without having to rely on others. With the ability to control their own accounts, self-service portals increase employee satisfaction and make their lives easier.

Features and Functions of an HRMS

Each HRM system on the market is different from the others, so it can sometimes be difficult for businesses to choose the best one for their HR needs. To narrow down your search, you need to identify features you need.

Below are some of the essential features and functions you should look for in an HRM system. 

Recruitment Management
This is a feature in the software that supports the company's recruitment process in various ways, from start to finish. It allows you to automatically sort applications and potential candidates through defined criteria, simplify internal recruitment by enabling employees to access internal vacancies, and manage candidates throughout the process, including interviews.

Onboarding & Offboarding

These features enable organizations to have a smoother and more efficient onboarding and offboarding process for both employers and new employees. 

For example, automated onboarding and offboarding checklists ensure that everything has been covered, and collecting new employee details can be made easier if the new employee can use the self-service option to add their personal details. 

With these features, you can also conveniently plan and organize exit interviews and exit surveys and efficiently manage the required documents for offboarding (e.g., resignation letters). 

Payroll Management

This feature reduces the complexity of payroll processing with a full suite of payroll services by offering a built-in accounting module, automated tax calculations, frequent auditing & reporting tools, tabular data storage, and a configurable rules-based engine.

Attendance Management

With the attendance management feature, you can:

-Automatically register employee attendance

-Easily plan and schedule shifts

-Manage employee absenteeism and prepare accordingly

-Allow employees to check in or check out themselves

Performance Tracking

Another important function you should look for in a human resource management system is performance tracking. KPIs can be monitored through the HRMS system so that critical metrics can be observed and measured in real-time.

With the performance tracking feature, managers and supervisors can conduct reviews on one platform, and authorized employees can easily access them. One-on-one meetings can also be scheduled seamlessly. 

Training Management

The training management feature is a learning portal for employees to gain knowledge and develop their skills. It lets you provide your employees with customized training programs and online assessments. 

Analytics Report

Great human resource management systems allow you to conduct analysis and gain insights into the various parts of HR within the organization. Data analysis can be used to improve business strategies and future decision-making.

Finding the Right HRMS for Your Business

Your HRMS has a huge impact on your employees, business processes, and performance. Therefore, you need to choose your HRMS carefully. Follow this step-by-step approach to ensure you select the right solution at the right price for your business.

Define your HR requirements

You need to understand the HR challenges your company faces. Conduct brainstorming sessions with key stakeholders inside and outside HR to determine which functionality is an absolute must and what is a good one to have. Also, be sure to consult with the IT team and your employees.

Prioritize the user experience

Consider how much training employees need to learn your HRM tool and whether it's intuitive. Make sure it is convenient for employees to use the self-service model.

Create a shortlist

You will need to narrow your search to a number of vendors. Since you have specific criteria, you must choose the most suitable vendor to meet your needs. It is recommended to have a shortlist of 3-5 vendors that are within budget.

Focus on compliance

Be sure to consider whether the HRM system can accommodate compliance regulations and data protection rules for the specific location where your business has employees.


Human resource management systems can help collect, track, monitor, and analyze quantitative and qualitative data to improve productivity and employee sentiment. In addition, using HR automation forms and workflows can provide many benefits, including saving time and reducing manual errors. While there is a range of HR tools that offer the best set of features, finding the one that's best suited for your business is tricky. However, with due diligence, you will be able to find an HR management system that will take your organization to the next level.

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