Human Resource Management System or HRMS for short is a comprehensive software that integrates strategic and core Human Resource functions in one solution. It is often used for job applicants, training, employee management, performance evaluation, and maintaining employee information of a specific organization.
HRMS involves a centralized database and a service portal that automates streamline recruiting, administrative processes, which in turn will lead to a reduced turnover. In fact, according to the study made by the Human Resource Technology Market, over 54% of the companies are allocating more of their budget to HR technology.
More and more businesses are incorporating HRMS due to the increasing competition and complexity among various business industries–making employee management more crucial to the overall success of the business. As a result, businesses are now able to properly manage their employees as well as the output that is expected from them.
Common Types of HRMS Software
Specialized HR – This type of software primarily focuses on a single HR function or module, such as payroll or recruiting. It also includes advanced features and functionalities that allow companies to manage their human capital in a cost-efficient manner.
Comprehensive HR –This type of software is also referred to as HCM or HRIS software. It is designed to have a broad functionality in order to cover a wide variety of modules. Adopting this type of software could be very helpful, especially for companies who are moving towards greater system functionality and employee growth.
Common Features of HRMS Software
Listed below are some of the most common features of HRMS Software:
- Self-service portals – allowing employees to stay updated and on track about the latest information, such as emergency contacts, sick/vacation time, 401(k)s, insurance, deposit accounts, and etc. without the need to contact their company HR.
- Document management – some HRMS software offers document management features that eases the retrieval of any employee files, without having to rifle through stacks of paper.
- Employee database – one of the primary features of HRMS software is its ability to store employee information in a uniformed database that is easily accessible among organization members, regardless of the location.
- Social collaboration – modern day HR software are developing technological solutions that allow job postings and training programs on social media platforms, in order to increase productivity and collaboration.
- Mobile access – most HRMS software allows all the web-based functionalities to be accessed through a mobile application. This allows executives, managers and employees to track all HR activities just by flicking through their smartphones.
Popular HRMS software would include ClearCompany, Kronos, BambooHR, Oracle, Workday, Ultimate Software, Orange HRM, Namely, SAP SuccessFactors, and more.
Benefits of HRMS Software:
- It allows streamline hiring
- Robust capabilities and productivity
- Reduces HR and data entry questions
- Enhances your overall corporate culture
- Automate compliance and payroll process
- Can be custom built based on your needs and standards
Drawbacks of HRMS Software
- Internet dependence
- Increases the risk of data breaching
- You will have to wait to get the customizations in place