Human Resource Management System or HRMS is a broad-gauge term that refers to the software and associated hardware used for automation of HR functions in a business firm. It is undoubtedly one of the most popular software adopted by businesses in modern times. This software is turning out to be a great support for the HR team when they are drowned in work and fail to provide the efficiency needed by the organization. It comprises of multiple modules or features to solve all of your problems within a matter of minutes. Let’s have a look at those modules of HRMS:-
Employee information management
As day-by-day data is becoming one of the most significant assets for a business, a rise in the threats to data security is also taking place simultaneously. The HR department maintains accurate data about employees which also includes sensitive employee information and confidential business-related data. Hence, managing and governing this data systematically becomes very important, which is done by cloud HRMS by providing you utmost security from any sort of loss of data, information security threats, and unauthorized access to data. This software also provides a self-service portal to employees, giving them access to log in and view important information along with a knowledge base of informative documents. This is one of the important modules of HRMS.
Every company needs to figure out the best way to manage payroll. A disorganized payroll process jeopardizes the company’s reputation by upsetting employees, causing legal issues, and leading to the downfall of the company.
HRMS online software will fulfill all the requirements concerned with accounting and management of an employee’s payroll like- accelerating the process of payroll, reimbursement of claims and loans, facilitating view, accessing and printing of pay slips, customizing payroll management reports as per requirement and provisioning benefits like gratuity and full and final Settlement.
Recruiting and Onboarding
It’s a known fact that labor costs are generally one of the highest expenditures in any business. That is why optimizing recruitment efforts with HRMS online software becomes a great help to companies. Cloud HRMS makes it fast and simple to post-hiring needs. It can automatically sort all applications so that a lot of time is saved from managers to HR professionals. During onboarding and training phases, HRMS can also forward recruits to the next phase of the hiring process which is very efficient in terms of money and time.
Managing Attendance Records and Tracking absenteeism
When you have a large workforce, then efficient time and attendance tracking become a very important aspect of a successful HR strategy. Outdated time and attendance tracking system may cause havoc at your workplace with wrong information flowing through your records. Hence to overcome this drawback, HRMS online software automates time and attendance management. It reduces the possibilities of errors and eases the application of complex rules. For tracking absenteeism, biometric identification is incorporated that also keeps a check on ‘buddy punching’.
For some companies, the main reason behind using online HRMS software is that it benefits the administration. It is so because it reduces potential costs and saves time. This module includes features like online open enrollment, management of the benefits life cycle, statutory compliance, and automated communication of enrollment options and information.
Workforce management is all about providing timely information along with enabling employees to make the right choice in any of the circumstances. This plays a major role in managing and monitoring employee benefits, healthcare, pension/welfare packages, tracking of enrolment options, etc. It includes features like automatic event management, handling of contribution breakdowns, legislative compliance, and plan comparison tool for aiding employee choices.
Evaluation of performance
The use of modules of HRMS to monitor, track, and review employee performance can help you to maximize efficiency in the organization and provide accurate feedback to the employees. The incorporation of performance review software will help you to set and manage goals, schedule appraisal meetings, provide you overall performance feedback, big data gathering facility for a broader picture of individual performance, and links to competency framework with talent management and succession planning functions.
HR analytics refers to the process of measuring the impact of HR metrics like revenue per employee, offer acceptance rate, training efficiency, training expenses per employee, voluntary turnover rate, involuntary turnover rate, time to hire, time to fill, absenteeism, and human capital risk. This module of HRMS integrates with other modules and systems to generate reports through which one can get a broader view of the overall performance so that relevant steps can be taken.
Everyone is aware of the fact that employee scheduling is a very tedious job. Managers and HR personnel spend a lot of time creating schedules for the following weeks, especially those involving complex shift patterns or a large workforce. When problems in scheduling arise, the quality of work might be compromised while wasting a lot of time. This module of HRMS helps to prevent such situations by providing benefits, as it has built-in scheduling software. It makes your priorities clear and enhances efficiency in the organization.
Learning and Development
Training is one of the key functions that an HR department performs. This module of HRMS makes you capable of having documents uploaded, managed, and distributed for trainees through web-based software. It is integrated with employee performance goals and also incorporates a calendar function that helps instructors to schedule training and evaluations that are easily accessible to trainees. It facilitates them to communicate with other trainees and instructors. It includes features like- Learning portal, setting and managing goals, individual user learning plans, streamlined learning administration and, training recommendations linked to the role, skillset, and career aspirations.
This module helps you in identifying the individuals who have potential. It assists in setting up of talent pipelines along with specific roles and succession planning in mind. It keeps an eye on attracting and retaining fresh talent, skilled employees, and efficient workforce with features like- succession planning, integration with key recruitment campaigns, alignment with organizational strategic business goals, reward benchmarking (internal and external), and identification of career paths and individual career planning.