HRMS: Human Resource Management System (A Complete Guide)

• HR Process

Human Resource Management System (HRMS)

As your team gets bigger, so does the problem of managing them. It becomes a struggle to get a single view of employee data. Sensitive workforce information will remain splattered across multiple folders or systems that don’t play well with each other. Integrations demand too much manual effort to stay intact. As a result, the efficiency of HR processes drops dramatically.

The only solution to all these issues is implementing an HRMS. Contrary to popular belief, not all HR management systems are expensive or rigid. There are an array of options available in the market today.

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 tool, you need to identify the differences in the features of HR software and get an in-depth understanding of the blanket term Human Resource Management S (HRMS).

What is Human Resource Management System?

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.

Features you should look for in a 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

Components of a Human Resource Management System (HRMS)

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 employee onboarding 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 each employee in an organization with comprehensive performance reviews (quarterly, half-yearly or annual).

9. Timesheet management

Automate timesheet approval 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.

Benefits of using a 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

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 functionality available in a prospective HRMS Software.

Here’s a time-tested checklist that will help you through the HRMS selection process without losing your head.

  1. Create a powerful selection team with a variety of stakeholders
  2. Identify current HR process gaps and map out your requirements clearly
  3. Compile a comprehensive list of preferred features and other specifications
  4. Shortlist vendors who meet your critical HR process requirements
  5. Gather more insights about the list of vendors that you have shortlisted
  6. Sort the list of vendors based on your business priorities (cost, timeline, etc.,)
  7. Attend software demo of your vendors and look into their customer profiles
  8. Ensure that the price or license fee is transparent and free from hidden costs
  9. Make sure that your future business needs will be met
  10. Use the data that you’ve collected so far to arrive at an informed decision

Kissflow HR Cloud

Popular Human Resource Management Software Solutions

If you’re in the market for an HR software, here are some of the popular HRMS softwares you should be evaluating for your needs.

1. BambooHR

BambooHR is an HRMS designed for Small and Medium Business. It has a lot of features that you would expect in an hr management software including applicant tracking, time-off tracking, Timesheets, onboarding, performance management system, hr workflows and more.

2. Kissflow HR Cloud

Kissflow’s HR Cloud was designed with simplicity and intuitiveness in mind. It offers a delightful and informative user experience to all employees no matter whether they are and what device they use. Kissflow’s dynamic user interface allows a business to fulfill the demands of a modern workforce without compromising on policies and compliance.

It comes with an intuitive self-service module that helps businesses organize, engage, and manage their global workforce effortlessly. As business requirements change, organizations can update all essential HR information including business rules, reporting priorities, employee assignments, and more. Best of all, with Kissflow HR Cloud, businesses can establish global consistency will making local variations.

It has a built-in recruitment module as well as robust HR functionalities that tackle performance management, onboarding, leave and attendance management, and offboarding. With Kissflow HR Cloud, businesses can easily align individual performance with business strategy and maximize the performance of their workforce irrespective of the size of the organization’s size and industry.

3. UltiPro

With UltiPro, organizations can deliver convenient recruiting and onboarding; process payroll with speed and accuracy; facilitate ongoing employee learning and development; leverage advanced surveys and sentiment analysis; and drive smarter, people-focused results with powerful business intelligence and reporting.

4. Bitrix24

HRIS in Bitrix24 comes with over 25 free HR tools, such as private social network, absence chart, shared calendars, document management, resume storage, employee portal, leave requests, employee workload planning, tasks and project management, to name a few.

5. Zoho HR

Zoho People helps companies to automate their HR processes. From onboarding and attendance management to time tracking and appraisals, Zoho HR has it all covered.

6. iCIMS

iCIMS combines Human Capital Management and Human Resource Information System to create the perfect HR management software. iCIMS has a lot of HRMS modules like recruitment, offer management, onboarding etc.

7. Workday HCM

Workday HCM provides complete visibility into your global workforce and better user experience, so you can keep your people engaged and help them grow. Some of the features of Workday HCM include Reporting and Analytics, Global Compliance, Audit and Internal Controls, Workforce Planning, Recruiting, Talent Management, Learning, Compensation, Benefits, Payroll Management, Time and Absence and Expenses.


Selecting an ideal Human Resource Management System (HRMS) is neither easy nor straightforward, but it is important that it is done correctly. While there are an array of HR tools that offer the best set of features, finding one that works best for your business is tricky. However, with due diligence, you’ll be able to find an HR management system that will take your organization to the next level.

Kissflow’s HR Cloud eliminates the need for individual applications and data integration infrastructure between applications. It allows businesses to seamlessly share and retrieve information from any other software as their needs demand. Kissflow HR cloud is simple, intuitive, and works from wherever you are. Its interface is simple enough for a casual user yet robust enough to manage the needs of power users like HR managers.

Get started with Kissflow today to see how it plugs process gaps and makes HR management effortless.

Kissflow HR Cloud

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