What is an HRMS?
Human Resource Management System, as the name suggests, is a transformational solution that brings together Technology and Human Resources through a software. It has revolutionized the corporate sector by mechanizing almost all the systems and processes involved in human resource management. Not only are the tasks combined together on a single platform, but they are also much more simplified than the individual versions. With the humongous adoption of HRMS software at workplaces, the monotonous, intricate and time-consuming work activities have been automated to a large extent, sparing time and resources to focus on more important challenges. Hence, it is a product of technology advancement and modernization that aims to achieve excellence in HR operations via a management software.
What are the types of HRMS?
People often confuse the features of HRMS with the types. The former are basically the processes that the software covers whereas the various kinds/types of HRMS software are as follows:
Human Resource Information Systems (HRIS): This one interlinks the HR activities with the information technology. It is the smallest type of HRMS software as it performs the least number of tasks. This HRM software is used to organize employee data/information and some processes & policies. The main elements of HRIS include Benefits Administration, and Legal/Regulatory Matters.
Human Capital Management Systems (HCM): This software involves all the functions of HRIS along with Talent Acquisition and Management, Performance Evaluation, Position Control, Analytics, and Global Support among others. It focuses on overall Workforce Management and is one step ahead of HRIS.
Human Resource Management Systems (HRMS): As compared to the former two software types, HRMS has the broadest scope as it encompasses all the functions of HRIS and HCM as well as some other. For example, Time and Labour Management and Payroll Processing are the features of HRMS software. Thus, it is the parent software of all others.
Applicant Tracking Systems (ATS): This HR software emphasizes one particular section of the Hr department, i.e., Hiring and Onboarding. So, ATS is specifically meant for tracking the documents of candidates for gathering information during recruitment. Moreover, the applications are shortlisted and automatically selected through this software.
Payroll Management Systems (PMS): As the name itself implies, this software deals with the payroll of employees. It covers the financial aspects of an employee’s lifecycle from salary calculation, distribution and deposit to invoices, payslips, fine and other related functions.
What functions does an HRMS perform?
Now, if we talk about the major functions that an HRMS software performs, it involves almost every HR activity that was earlier performed manually by the HR professionals . You just need to have the HRMS login and you can enjoy some main components including:
- Hiring and Onboarding
- Training, Learning and Development
- Time and Attendance Management
- Performance Assessment
- Payroll Processing/Management
- Employee Engagement & Motivation
- Workforce Management
- Reporting and Analytics
- Compensation and Benefits Administration
How to choose the perfect HRMS?
If you are a newbie in this area or if you are bringing a new HRMS home, in both cases, it is imperative to consider a few points before making the investment:
- Pick a top-notch software of the latest technology
- The HRMS must align with your business goals and needs
- It must be of high-quality yet cost-effective
- It should possess options of customization and personalization
- It must cater to employees, HRs, CXOs and other users
- The software should have high privacy and security optimization
Why is an HRMS the perfect solution in 2020?
Now that we have thrown some light on the level of advancement an HRMS software can bring into your company through automation, understanding the need and value of it must be easy. The multifarious functions that it can perform and the incessant advantages of HRMS are reason enough to believe that it will definitely progress into your corporate world. With the ongoing year, 2020, HRMS sounds like the perfect solution to take all your HR troubles away!
