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A Complete Guide On Human Resource Management System (HRMS)

June 8, 2022
HRMS

HR plays an important role in any organization! It is comprised of different roles and processes involved in completing them.

You will have to start from the beginning!

And to handle HR processes, you need am HR software. According to Grand View Research 2020, the global HR software market size is expected to exceed USD 10 Billion by the end of 2022.

Let us understand what is HRMS, what are its function, and its benefits to your organization. In this blog, you will also understand how to choose a perfect HRMS for your organization.

perfect HRMS

What Is A Human Resource Management System (HRMS)?

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

Its role is to essentially make life much easier for those in charge of HR within a company.

It also makes life easier for employees as it’s common for these systems to have the option for self-service so employees can get stuff done at their convenience.

A human resource management system streamlines the company’s HR operations as these processes are automated and carried out more efficiently.

hrms

 

This means that the HR manager and team can focus their efforts and attention on other more important matters, as opposed to routine administrative tasks that can be more efficiently carried out by an HRMS.

11 Key Processes Involved in HR Automation

As we’ve already mentioned, there are different types of HRMS, all with different functions and features. It might be helpful to know what some of these features are and how these can be of use to your organization.

Functions of Human Resource Management System

Features and Functions of Human Resource Management System

Recruitment

This one is a common scope of human resource management where a module is prepared to hire a new joinee. When it comes to a Human Resource Management System, a particular module is prepared to help HR handle the different stages of the recruitment process.

Key processes involved in Recruitment:

  • Automatically sort through applicants and set an ATS system
  • Showcase vacancies for internal referral programs for employees
  • Manage the candidates with the help of a proper workflow.

Onboarding

As HR operations are handled by HRMS, you will see that it can help you with a step-wise guide to onboard a new employee. It will give a smoother and more efficient onboarding process for both employer and the employee.

Key processes involved in onboarding:

  • A checklist of all the steps involved in the automated process.
  • Collect employee data with the help of a self-service portal.
  • Store all the data employees digitally and keep it centralized.

Compensation

Employee compensation can help manage the internal part of HR operation whereupon have to decide how the employees are valued for their time invested in the company. An HRMS can help you with an accurate payment for the time tracked.

Key processes involved in compensation:

  • Get an accurate result of all the attendance tracking
  • Employees have the access to download payslips by themselves
  • A transparent compensation system for all employees

Performance

The performance of an employee is what determines productivity. And ultimately can you decide how effectively the employee makes up for the time he stays at work. An HRMS can help you determine the exact hours and the reports for everyday tasks.

Key processes involved in performance:

  • One single platform for all the employee data for analytics
  • Easy to schedule and create reports
  • Real-time feedback can be provided from the results

Offboarding

HRMS can help you handle the onboarding process with ease, as you have already listed down the task to be finished according to the position o the employee. Here everything can be efficiently handled by the organization.

The key process involved in Offboarding

  • Automated checklist for the employee and the task involved
  • Plan and organize the onboarding processes
  • Be it documents, or taking back the system, all of it can be included here

Training

One of the most important ways of handling the employee training function is how employees can upscale themselves to be beneficial to the company. They essentially define the future of the company. Human Resource Management System can make sure, it is well-managed.

The key processes involved in Training:

  • Allow your employee to customize their training needs
  • A learning portal to hare and gain knowledge
  • Get an online assessment portal for feedback

Database

A very common and very important aspect of a Human Resource Management System! With automated software for your company, you can handle your data in a paperless way. Store all your data on cloud-based storage and keep it conveniently stored! You can also, have it thoroughly organized.

The key processes involved in the Database:

  • A cloud-based storage system for your business
  • Easy to manage and organize data
  • A paper-less way of storing and managing data

Attendance

Tracking employee attendance can be tricky if you need to have an accurate time to see the salary management. This is a disciplinary aspect that you need to consider for your company. With an HRMS you can track your employees and thereby look after them.

The key processes involved in Attendance:

  • Automatically generate the attendance reports
  • Easily plan and schedule shifts
  • Allow your employee to clock in and out

Self-service

A self-service portal can help your employees cater to certain processes by themselves. For example, you can add documents, check leaves, apply for them, read policies, get access to EOD reports, etc. all by yourself.

The key processes involved in Self-service:

  • Personally manage your data for the organization
  • Easy access to adding and updating data
  • Time-in and time-off requests

Analytics

HRMS must have a system to commonly communicate with all the data and carry out the analytics accordingly. With this data, you can easily create strategic planning for future growth, whilst making the changes.

The key processes involved in Analytics:

  • Visual reports to help you understand data
  • Improve your business strategy for future approach
  • Make employee appraisals accordingly.

Human Resource Management Software – All You Need to Know

Now, that we know about all the features and functions of a Human Resource Management System, let us understand what are the benefits of a Human Resource Management System.

benefits of an HRMS

Benefits of Human Resource Management System

A Human Resource Management System, as complex as it sounds can help you with growing your company with an efficient process. Let’s see what are those benefits!

Benefits of Human Resource Management System

Completes Routine HR Tasks

An HRMS allows introducing a system that can help you streamline all the HR processes. It also reduces the paperwork and speeds up the process of documenting the employee information.

Self-service Portal For Employees

Enable a self-service portal to help you add and modify personal skills in the centralized system at an HRMS. This can make employee life easier as they do not have to be dependent.

Improves Employee Development

Track your training sessions, and daily reports for the employee, it gives you performance reports, ultimately helping you with appraisal and promotions.

Monitoring of KPIs

KPIs, also known as Key Performance Indicators can help you with deciding the observable and measurable time for the employees. It can help you evaluate retention strategies.

Central data storage

HRMS acts as a data centralization tool for all your employee information. The system can help you keep it in one place.

Now that you have understood the benefits of introducing an HRMS to your company, here is how you can choose one!

Choose An HRMS

How to Choose An Human Resource Management System: 5 Steps

The below-mentioned graphic showcases the five-step methodology!

Choose An Human Resource Management System

Step 1) Define HR needs

Begin with knowing what are the exact needs of your HR. You need to determine the features and functions your company requires.

Step 2) Consult With IT Department

Involve your IT department in the decision-making process. You need to know which HRMS will be suited best for your company and see the software’s compatibility.

Step 3) Set A Suitable Budget

Include a maximum and minimum amount you can spend as a company on the system. You need to have a pre-approved budget plan.

Step 4) Create a Shortlist

Filter down from the vendors available. Once you have the best available option that suits your requirement, you can make your choice.

Step 5) Purchase the HRMS

Make the purchase decision. Initiate the process and begin with the introduction and the implementation process.

Purchase the HRMS

And the easiest way is to choose!

5 Point Checklist to Pick An Agile HRMS and Mistakes to Avoid!

UBS All in One Business Management Software

Let’s Conclude!

One of the most important aspects of buying software is to have a support team that is available 24X7 to help you with queries. Apart from all the necessary features, you might require, UBS human resource management system provides you with excellent support.

Book a demo now!

FAQs

What is a human resource management system?

A human resource management system or HRMS is a suite of different modules combined in software to help you with HR processes.

What are the types of human resource management systems?

There are different types of HRMS. Some of them include HRM - Human Resource Management, TMS - Talent Management System, ATS - Applicant Tracking System and LMS - Learning Management System, and Payroll Management System.

What are the 7 functions of HRM?

Listed here are the 7 key functions of HRM: Talent hiring, Onboarding, Training management, Performance appraisal, Workforce engagement, Payroll management, and Compliance management.

Why HR system is important?

An HR system can help you handle processes with ease. Unless your Hr loves to do manual processing and you are okay with errors, you can bring in a human resource management system to your company and make it all quick and easy.

What are the key components of human resource management?

The key component of HRMS may include how to standardize and consolidate the processes related to HR management. These components may include employee management, workplace management, compensation management, performance management, Organization management, benefits management, and timesheet management.

Alpesh Vaghasiya

Alpesh Vaghasiya

The founder & CEO of Ultimate Business Systems Pvt. Ltd. (UBS), I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments. With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally. The core mission of UBS is Connecting people, Optimizing the process, Enhancing performance.

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