How To Choose The Right Human Resource Management System (HRMS)?

Shivasankari Bhuvaneswaran

October 1st, 2018 HR Process  

As your team gets bigger, so does the problem of managing them. Investing in an Human Resource Management System (HRMS) is extravagant to SMBs that battle a cash crunch on a day-to-day basis. Despite the tightening drawstrings, you need to find a way around the technology block that is dragging down the efficiency of your HR Processes.

Most big name HR tools out there are also prohibitively expensive. Purchasing something all-inclusive like a complete Human Resource Management System is as realistic and useful as offering your employees high-end gaming laptops. Your limited IT staff has enough backlog as it is. Designing a tool for your HR department is not an option as well.

However, in your scavenger hunt to find the right HR Management Software, it is easy to get lost in the ocean of available products. To avoid the death-trap of well-weaved words that tempt you to choose the wrong HR software, you need to identify the differences in their functionalities and get an in-depth understanding of the blanket term Human Resource Management Systems (HRMS).

features of Human Resource Management System (HRMS)

What is a Human Resource Management System? (HRMS)

Human Resource Management System (HRMS) refers to an array of software including Human Capital Management (HCM) and Human Resource Information System (HRIS) that help HR staff take care of an organization’s most valuable assets, people. HR tasks are too complex and time-consuming when performed manually. Leveraging the help of a technological solution like an HRMS can help you save time, cut costs, and manage your staff better.

Depending on your needs, you could opt for a simple HR Management Software with features that takes care of day-to-day administrative tasks like Employee Management, Leave Management, etc. Or you  could choose a solution that addresses the strategic areas of human resource management like Training & Development, Performance Management, and Recruitment.

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Benefits of Human Resource Management System

A Human Resource Management System will automate repetitive and time-consuming HR tasks to make them more efficient and reduce their time-intensive nature. An organization needs an HRMS to:

  • Alleviate process bottlenecks
  • Minimize manual paperwork
  • Decrease employee stress
  • Reduce time lag in tasks
  • Lower operational costs
  • Easily implement process/policy change
  • Remove spreadsheet dependency
  • Improve internal communication

Components of Human Resource Management System

The main function of an HR Management System is to standardize and consolidate the core processes related to Human Resource management. An HRMS includes separate HR modules to take care of specific HR and admin tasks leaving HR staff free to focus on creating a better workplace. These are the core functionalities of an ideal Human Resource Management System:

1. Application Management

A holistic module to track and monitor applicants across job boards, recruitment portals, and websites throughout all phases (find, shortlist, interview and hire) seamlessly in a single interface to collaborate with recruiters and streamline the hiring process.

2. Employee Management

Store and retrieve all up-to-date, employee-related information (basic profile, employment history, performance, role, etc.) on a centralized database that can be accessed anywhere, anytime to take workforce or organization-related decisions.

3. Organizational Management

Accurately build an organizational structure with pre-defined industry-relevant templates, business processes, related reports, and compliance obligations to support global employee relocation and all other global workforce management tasks in a flexible way.

4. Benefits Management

Include multiple plans and assorted options to auto-define, manage, and tailor a full spectrum of employee-specific benefits in a single interface to easily govern the eligibility/costs associated with it.

5. Payroll Management

Tone down the complexities in payroll processing with a complete array of payroll services by offering inbuilt accounting module, automated tax computations, frequent audit & reporting tool, tabular data storage, and configurable rule-based engine.

6. Workplace Management

Optimize daily headcount using trends forecast and pre-defined templates for planning and managing workforce properly between processes like recruitment, employee onboarding, learning & development, etc.

7. Compensation Management

Design and manage comprehensive employee compensation plans across multiple teams, departments, and geographies uniformly. Link compensation with performance and organizational objectives, aggregate compensation data to view/edit it anytime.

8. Performance Management

Set individual goals, assign weightage, collaborate, create a development plan, and align it with organizational values to evaluate the performance of each employee in an organization with comprehensive reviews (quarterly, half-yearly or annual).

9. Timesheet Management

Automate timesheet process of employees to analyse performance, estimate costs incurred across the organization under several parameters (employee, department, client, role, project or activity) and integrate seamlessly with payroll and other modules.

A Modern Approach to Human Resource Management System (HRMS)

It’s not easy to manage an organization’s most valuable asset. HR Management is a laborious process. An older HR process used to be entirely human-centric and paper-based. The evolution of ERP and SAP R/2 injected technology into the world of HR. CIPHR released the first dedicated HR Management System ‘Compel’ in 1983.

Later on, in 1987, Peoplesoft launched the first HR-Centric software with an ERP (Enterprise Resource Planning) database. As time progressed, technology has transformed the HR Management Sector with disruptive innovation. Now, legacy solutions are outdated and have been replaced by convenient cloud-based HR platforms.

Organizations have started understanding how an HRMS can enable efficiency across all tiers of their organization. And they’re looking for modern, agile, contemporary, yet cost-effective cloud hr software solutions that offer unmatched performance, efficiency, and scalability at a reduced cost. Rather than giving an inflexible package, today’s HRMS platforms provide organizations with the liberty to choose the features that they actually need and the pay-on-the-go based on usage.

Features of Human Resource Management System (HRMS)

In addition to the comprehensive list of functionalities a robust HRMS tool should comprise the following features:

  • Centralized Admin System
  • Cloud-based Documentation
  • Sophisticated Mobile Functionalities
  • Employee Self-Service Option
  • Real-Time Analytics
  • Data Security and Audit Log
  • Role-Based Access and Collaboration
  • Agile Integrations

Finding the Right HR Management System

Before you start scurrying the web for the perfect fit, figure out what you need. Draft your requirements clearly, list the features you’re looking for, then try to match these with the functionalities available in a prospective HRMS Software. With due diligence, you’ll be able to find an HR management system that will take your organization to the next level.

There are chances that your HRMS might need some tweaks to fit your needs. Opting for a low-code platform will enable business users to customize the solution without support from the IT team. Finding a solution that automates all your HR tasks can be nigh impossible.

In case your chosen solution fails to automate niche processes time-off management, offboarding, onboarding, etc. try using a customizable HR tool like KiSSFLOW that seamlessly integrates with your HRMS and closes the process gaps in its existing HR modules. Sign up for the 14-day free trial to know how KiSSFLOW can be the best friend of your HRMS.

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