A bit of everything HR!
Sunday 06 Aug 2017

Human Resources Management System 101

A Human Resource Management System (HRMS) is an important part of every organization. Its main aim is to perform complex day-to-day HR activities and tasks, which allow for better cooperation, planning, and resource-allocation within an organization. The software can exist in SaaS modules or on-premise, depending on your business needs. However, if you want to leverage cost-efficiency and maximum productivity, it’s a wise option to go for the SaaS model, which can even be integrated to Customer Relationship Management Systems (CRM) and Enterprise Resource Planning Software (ERP).

Subsequently, they prove incredibly useful in relieving the HR department from cumbersome and heavy workloads, while ensuring all employees remain satisfied. The software is responsible for performing administrative activities, which are common in all types and sizes of businesses. You can use HRMS to actively monitor, engage, and analyze the fields of appraisal, payroll, performance evaluation, and recruitment. Since everything is automated, there are no chances of clumsy, paper-based errors with traditional HRMS strategies.

These software applications offer plenty of advantages to businesses. Subsequently, they are becoming a common asset in firms. You can easily use the HRM for automated processing of daily HR works and database management services. This shift from manual to automated systems has even allowed firms to reduce the workload of administrative activities, while improving efficiencies and lowering overall expenses. The software can easily manage confidential files/records and employee-databases, which include salary details and skills.

To ensure the HRMS delivers a user-friendly and convenient experience to managers and business owners, software developers have even created different modules within the software, which include employee self-service module, appraisal module, recruitment module, time-sheet module, and payroll module. All of these modules allow managers to access different areas of the business and perform distinctive functions for boosting overall efficiency. Look below to learn more about HRMS modules:

  • Self-Service Module – This module of the HRMS allows employees to access databases where they can put forward their queries to the HR personnel regarding any issue or for loan request status, leave application, and even resignation.
  • Recruitment Module – Also known as the “Talent management module”, this part of the HRMS identifies potential candidates, conducts interviews online, and recruits candidates through company-defined talent hiring principles, streamlining the entire hiring, training, and retaining process.
  • Appraisal Module – The primary objective of this module is to monitor the performance of every employee in your firm and determine their awarding contributions for preparing a better salary package. It involves tracking attendance, time-spent at work, and number of projects completed.
  • Time-Sheet Module – Some software applications may label this model as the “work time module”. Its main task is to manage project-wise time accounting for employees. In simple words, the main functions of this module is to record efficiency and do cost analysis.
  • Payroll Module – This module is responsible for handling and managing all payroll related tasks, which is probably one of the toughest aspects of HR management. By using this module, the automated processing of employee salaries has become possible. This is done by processing employee deductions, taxes, withholding, performance, and time and attendance. Salaries are transferred to employee accounts via direct deposit.

There is no doubt that HRMS has alleviated the workloads of all HR departments. If you are looking to reduce the HR burden in your firm, it’s time you consider investing in a human resource management system too. A quality HR management tool will enable you to not just streamline your HR functions and processes, but also enhance the productivity and efficiency of your employees, which will help you achieve your goals in the long run.