Human resource management system is an all-in-one solution that is designed to manage every task associated with human resources.
This system offers all the functionalities offered by a human resource information system as well as extra features. These additional features include payroll, time management, and labor management.
We’ve listed below the key features offered by HRMS, to provide you with more clarity about its capabilities:
- Common HR feature that manages employee benefits
- Time and attendance features handle absences and ensure compliance
- Analytical functions involve real-time reporting, predictive abilities, and financial analysis
- Onboarding feature that uses digital forms manages reports, and handles probation
- Compliance management
- Learning and development features manage courses and update training materials
- Payroll feature, including batch processing, online payroll, and overtime record keeping
Basically, a human resource management system is a flexible tool that can be customized to fit and meet the specific requirements of every organization.
Furthermore, these systems are also suitable for managing different compliance standards and laws in different countries. For example, HRMS can help with taxes and make sure employees get their salaries directly in a timely manner.
That’s not all, HRMS has advanced capabilities that help in analyzing data. It creates reports and integrates with other (third-party) software the company uses.
Some HRMS even provide details about how employees support the organization on social media and other platforms.
How Does HRMS Work?
Human resource management systems run workflows to automate various HR tasks. It seamlessly organizes employees’ data and generates curated data-driven reports.
By automating these tasks, this all-in-one solution helps the HR team get rid of paper documents, making things work efficiently and effectively.
Organizations can customize the HRMS systems as per their need and employees can create usernames and passwords to access information based on the level of access.
The system electronically saves all the data and eliminates the need for any paperwork.
Discover Top HR Tech Solutions
Browse through our comprehensive collection of top HR Tech solutions that are created to perform and automate various day-to-day HR functions.
How Does HRMS Help Businesses?
HRMS is a digital tool that keeps everything organized, from hiring new talent to paying employees and everything in between.
Here’s how a quality HRMS can help businesses.
01. Keeping All Employee Information in One Place
- Central Hub: HRMS stores all employee details, like personal info, job history, and benefits, in one easy-to-access centralized portal.
- Self-Service Perks: Employees can create an account and log in to update their details, check payslips, request time off, and more. So, it acts as a self-service portal.
2. Simplifying Hiring and Onboarding
- Job Applications Made Easy: With built-in tools, HRMS helps post job openings, track applicants, and even schedule interviews.
- Smooth Onboarding: New hires get a warm welcome with automated onboarding that handles paperwork, orientation, and training.
3. Making Payroll Management Easy
- Automatic Paydays: HRMS takes care of calculating salaries, factoring in hours worked, leaves, bonuses, and deductions—so everyone gets paid on time.
- Tax Made Simple: It also ensures taxes are calculated and deducted correctly, keeping you compliant without the headache.
4. Tracking Time and Attendance
- Clocking In and Out: Whether through a mobile app, biometrics, or good old-fashioned login, employees can easily track their work hours.
- Managing Time Off: HRMS tracks leave balances, handles requests, and ensures accurate leave accounting when it’s time to run payroll.
5. Improve Employee Performance
- Setting and Tracking Goals: HRMS helps set clear goals, track progress, and schedule regular check-ins to keep everyone on track.
- Easy Reviews: Performance reviews are streamlined with templates and tools to make sure evaluations are fair and consistent.
6. Supporting Learning and Development
- Training Made Simple: The system tracks skills, identifies training needs, and makes sure employees are enrolled in the right modules to improve overall performance.
- Keeping Up with Certifications: HRMS ensures everyone stays up-to-date with necessary certifications and compliance training.
7. Handling Benefits
- Easy Enrollment: Employees can explore their benefits options, enroll in plans, and make changes during open enrollment—all through HRMS.
- Tracking Benefits: HR can keep tabs on benefits usage, manage vendor relationships, and stay compliant with regulations.
The Final Word on HRMS
As business needs and management styles continue to evolve, companies offering HRMS solutions have experienced rapid growth in recent times.
A high-quality HRMS is invaluable for businesses, helping to streamline information management and simplify processes for both HR professionals and employees.
