What Is HRMS?

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HRMS is the type of information system which is designed for managing the automated human resource and computerized process of an organization. It is a unique combination of both software and hardware resources making the HR process a seamless one. In an organization, the major functions of the HR department involve tracking the abilities, skills, and accomplishments, salaries, of the employees. HRMS, as a solution, facilitates tracking these easily.

What is HRMS?

HR work is more complex and involved today than it ever has been. There’s so much that goes into the management of employee information, which is used for everything from recruiting and hiring to training, evaluations, and so much more. The importance and manpower behind these tasks make it critical for human resources professionals to have HR management software for more efficient management of HR information.

This is why many companies are now using an HRMS (Human Resource Management System) — a combination of systems and processes that connect human resource management and information technology through HR software. An HRMS can be used in candidate recruiting, payroll management, leave approval, succession planning, attendance tracking, career progression, performance reviews, and the overall maintenance of employee information within an organization.

The automation of repetitive and time-consuming tasks associated with human resources management frees up some of the companies most valuable employees and allows the focus to shift to culture, retention, and other highly impactful areas.

What are the components of the HRMS?

Some of the major components of the HRMS system are:

  • Employee management: It involves storing the essential information of an employee in a centralized location. The information could be anything related to work history, profile, performance, etc.
  • Benefits management: This component of HRMS gives a bird’s eye view of the provided benefits.
  • Organizational management: Organizational management has numerous functions such as compliance obligations, business processes, related reports, supporting the HR department.
  • Time-sheet management: HRMS automates the timesheet management process by having the complete view and control of the working hours of the employee.
  • Exit process management: HRMS systems also help the HR department in exit process management. It includes documentation, final settlement, and feedback of the employee.
  • Performance management: The performance of an employee can be tracked with the help of this software efficiently. Here the centralized system helps in accessing the actual performance and getting a precise picture of the shortcomings and achievements.
  • Employee self-service: The system provides the employees with complete access to their own data. They can view information such as the available leaves, payroll, and attendance, among others.
  • Application management: This involves tracking job applicants across various job portals, websites. It assists throughout the complete process, such as screening, shortlisting, interviewing, and hiring. HRMS helps the recruiters in seamlessly collaborating on a single interface and streamlining the recruitment process.
  • TLD management: Training, learning, and development develop the foundation for the success of an organization. HRMS helps to plan the process for better productivity of an employee.
  • Analytics and reporting: One can get multidimensional reports of an employee through HRMS. It can provide strategic and usually predictive insights for developing a better business strategy.

How HRMS Software Can Benefit an Organization?

Having HRMS software handle HR activities is a common denominator among successful companies; there are few businesses in any industry that have succeeded without some sort of HR automation in place. Mobile accessibility has transformed modern HR departments, putting information and task management at the fingertips of employees and managers. HRMS has helped to effectively break down bureaucracy and “flatten” many organizations.

An HRMS can help large organizations and small startups increase their rate of growth and productivity. Below are some examples of additional benefits that an organization can see using an HRMS platform.

  • Employees can handle certain clerical tasks pertaining to the input of their personal information, which puts time back in the hands of HR professionals
  • A HRMS comes with built-in security, including authentication measures that restrict access to authorized users and protect company data
  • Most HRMS platforms allow users to customize their workflow to the needs of their organization and get the best user experience
  • Organizational heads can schedule automated reminders and emails through an HRMS, which will facilitate acknowledgement of the message to save managers time tracking down responses.

How to Find the Right HRMS for Your Company

Selecting and implementing the right HRMS for your company can make a huge difference to future growth and success. While it is possible to take care of HR functions manually, an automated system can help to elevate productivity levels and can change the way that your company is perceived in the modern marketplace. It is important to remember that these systems are not “one size fits all,” however; just as each company is different, so are the systems available on the market to choose from.

Here are some tips for identifying the right HRMS for your industry and organization:

  • Understand the basic features of the HRMS and how it can address compliance problems and challenges posed by a growing workforce and evolving organizational structure
  • Identify the strengths of several vendors and compare their performances
  • Do your research and discover which technology best meets your needs
  • Determine which HRMS offers the best user experience for your employees
  • Assess the HRMS company as a whole, including its customer service, practices, and success in addition to the company’s product


By pairing your HRMS with simple workflow management software, you can establish a comprehensive way to document processes, assign specific tasks to users, and track progress in real-time. The point is to minimize human error, increase accountability, and provide employees with all of the tools and information necessary to complete their tasks as effectively as possible. We hope you found this article interesting and took away some valuable insights, whether you are searching for an HRMS solution or looking to improve an existing one. If it’s the latter, what kind of results are you and your team seeing from implementing an HRMS? Let us know, we’d love to hear your thoughts!

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