A Complete Guide To Human Resource Management System (HRMS) in 2024-Shrmpro
  • By: SHRMpro Bureau
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May 14, 2024

What is HRMS?

A Human Resource Management System(HRMS) is a type of HR software that empowers the management of several HR functions with the use of Information technology.

It mainly aims to improve the productivity and efficiency of the business by automating manual and repetitive tasks. This frees up the HR team’s time and increase their productivity.

There are popularly two types of HRMS Payroll and Time & Labour Management(TLM). Some software have HRIS+Payroll+TLM whereas a few have HCM+Payroll+TLM.

What Are the Common Functions of HRMS Systems?

Human Resource Management is a function in every organization designed to increase employee performance aligning with higher authorities’ strategic objectives. HR involves the following sub-functions and an HRMS helps automate and streamline them:

Recruitment

The right mix of skills and competencies at the right position and time is a critical task. It includes filling positions through initiatives like internal job postings, promotions, and employee referrals. 

Onboarding

A candidate who has been selected for the job by the organization and has confirmed his joining will have to report to work on the joining day. A certain set of activities are done on the first day which is called Employee Onboarding. An HRMS software can ease the entire process.

 

Employee Information Management

One of the important activities of the HR department is managing and maintaining the accurate information of the employees. 

The data could include name, gender, date of birth, previous employment information, payment & statutory information, etc. 

It is one of the most critical jobs of the HR department as in a lot of organizations, decisions are taken based on this data. 

 

Time, Attendance & Leave Tracking

Daily tracking of the amount of time worked, leaves, and attendance management of numerous employees is a hectic task for the HR department. The Attendance Data is used to process payroll and generate several statutory reports.

 

Payroll Processing and Salary Disbursement

Payroll processing is a critical activity for both the organization and the employee. It involves the calculation of all statutory dues and generating the necessary reports.

An HRMS software will execute all this automatically. These activities would also fall under payroll processing.

 

Employee Engagement

HR Departments are undergoing a change from a transaction-oriented function to a strategic one. One of the keys to organizational success is having employees whose requirements and goals are aligned to those of the organization. HR departments play a vital role in building this alignment.

 

Training and Development

Training and development of employees is very necessary as upgrading the knowledge and skills of the employees empowers the organization. 

Employees are also trained in various skills such as leadership skills, team building, etc., and behavioural skills such as time management, etiquette, etc.

 

Human Resource Development

A human resource development program is an attempt by the Human resource department to improve employee motivation and workplace morale through improved communication and encouraging employee participation in the decision-making processes. This enhances employee growth which ultimately contributes to achieving organizational goals.

How Can HR Software Benefit an Organization?

The main reason for HR functions moving towards automation is Data Analytics. As AI is becoming the essentiality of the future, everything is powered by having the right information at the right time.

 

The main benefits of an HRMS software for an organization are:

Data Management

An HRMS software tracks real-time data across various HR functions. This becomes invaluable at a time when employees are increasingly being viewed as customers and employee engagement has become a part of the organization.

Employee Self Service

Modern HRMS comes with an Employee Self Service service which gives employees access to all their own data. Such a comprehensive view of critical data related to payroll, leave, and attendance not only increases trust in the organization but also proves practically beneficial to employees on several occasions.

Efficiency and Cost Effectiveness

Incorporating an HRMS solution automates payroll management and reduces the chances of being slapped down with fines and penalties. The duplication of information is avoided, leading to improved department efficiency. The features of HRMS software reduce the time-consuming processes and contribute to organizational growth.

Improved Employee Engagement

An engaged employee is a productive employee. Implementing HR software that aligns with the organizational goals ensures a productive environment. With the decreased time spent on repetitive tasks, an HR can focus more on promoting employee engagement and a healthy worksphere.

Adopting Best Processes in the Industry

Best practices take you to the top of your market because adopting the best practices improves efficiency, increases productivity, and reduces the chances of errors. 

Incorporating an HRMS in such a way that it aligns to the the best practices in the organization helping you reach new heights with minimum efforts.

 

How to find the right HRMS solution for you?

There are a variety of HR software in the market but implementing the right one is the toughest part. 

The following pointers will guide you in a systematic way to find the right HRMS solution.

Cost Effective and Requirement Based

You need to have a precise understanding of your requirements and be very clear on specific modules and features you want so that you can have a smooth transition.

Cloud-based HR software are in nature highly cost-effective compared to other options such as desktop software, etc. 

Your ROI from cloud-based HR software isn’t something that you will have to worry about if you have chosen the one meeting your needs.

 

Eliminates Repetitive Manual Tasks

An HR goes through numerous repetitive tasks on a daily basis, rather be it tracking the attendance or leave management, doing it manually decreases their productivity. 

 

An HR software must be able to automate the repetitive manual tasks and increase HR’s productivity.

Integrates with Your Existing Systems

Multiple individual software may lead to missing out on data and data mismanagement. 

An HR software that integrates with the existing applications can prevent this and simultaneously increase your efficiency.

Uncompromised Customer Support

For instance, if you are out of town and suddenly your HRMS system breaks down, you will require technical support in this situation.

 

Therefore, before you adopt an HRMS software, it is necessary to confirm the time and the quality of their customer support.

SHRMpro: AI-based HRMS solution

SHRMpro is a cloud-based HR management software coded to simplify workforce processes for businesses. 

With a user-friendly interface, it automates tasks like employee data management, attendance tracking, and training sessions. 

 

It aims to streamline HR operations globally, catering to organizations of all sizes. SHRMpro offers a versatile solution for HR management, embodying qualities like reliability, professionalism, and accuracy.

 

To know more about our software and how we can solve your challenges in your HR, book a demo of our HR software today!

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