Guide to choose best HRMS software: what an ideal software must contain and the benefits of using it?

What is HRMS software?

Human Resource Management System (HRMS) is a software or a web application, which enables the effective management of employees in an organization. It is incorporated with several systems and processes to ensure not only the easy management of human resources but also business processes and data. A well-thought-through HRMS will empower the HR of an organization with the following uses:

  • Application Management
  • Employee Management
  • Organizational Management
  • Benefits Management
  • Payroll Management
  • Workplace Management
  • Compensation Management
  • Performance Management
  • Timesheet Management

As technology has invaded every sphere of business processes, HR is still one of the most technically oblivious, yet the most important part of an organization. The HR department is the one that is the prime pillar for any organization, and yet it lacks in the use of automated and technical processes. Many MSMEs and other small businesses, even today prefer hiring an HR or an accountant to do the job at hand, instead of incorporating HRMS software, which along with saving cost, will also enable one to have increased efficiency. The benefits of using HRMS software are:

  • Improving HR productivityAs mentioned above, one of the things HRMS software does is reduce the workload of the employees. For example, they can assist with recruitment by simplifying the process of collecting resumes, reviewing them, and more. It reduces the workload and allows the employees to focus on other impactful areas.
  • Improves Regulatory Compliance: Since all the data will be stored in one place, and it enables us to send automated reminders when actions need to be taken related to the compliance and regulatory requirements. It allows one to make the decisions in time and always stay abreast of the situation.
  • Make Decisions EasyOnce the data is in an organized and detailed form, it makes it easy for an individual to sort, analyze, and report any particular information, enabling the HR department and even the employees to make more timely and smart decisions. One would get evidence quickly, which in turn will make it easy for an individual to make decisions and form ideas.
  • Save Money and better delegationAs the HRMS system would reduce the workload by organizing the tasks at hand and enable project managers with better delegation; an employee would be able to focus on other things hence increasing productivity and saving money at the same time. Better data accuracy will also ensure fewer human errors.
  • Improve Internal Communication: When the work is progressing well, and smoothly, the internal relations between the employees also improve, leading to good communication. Also using HRMS software ensures easy access to HR policies, and clarity on the current status of leaves and other records, which avoid conflicts at a later date.


Integrating HRMS software in the organizational processes is a tedious task, and a time-consuming one, but it’s worthwhile. One can’t think of transiting between two HRMS software often, as it will require a lot of effort and time. While choosing an HR management software, one should ensure it has the following system in place:

  • 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

Also, make sure you chose the software, fulfills all your requirements and functions efficiently, and the alignment with your organizational policies. Not all the available options easily sync or align with your organizational requirement. At times, it can be done with minor twigs here and there, but often the conventional HRMS systems are prone to those changes. One should always look for the newer players in the market, and with the startup era booming, look for a growing player in the domain, which would be much more inclined to make changes as per your requirements. Some of the best players in the market would include:

  • BambooHR
  • Zimyo
  • UltiPro
  • Kissflow
  • Zoho

It is imperative in today’s era, where not only time but pace has also become of the essence to transition to a technology-based solution. Draft your requirements well, list the things you are looking for, and then try matching those functions with the prospective HRMS Software. It will be easy for you to chose then and understand what software would align with your purpose.


Also Read: Importance of having an accurate and updated database for an HR

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