HRMS: Human Resource Management System - A Complete Guide

Human Resource Management System (HRMS) software plays a crucial role in maintaining a productive workplace with increased employee engagement and satisfaction. It is used by many companies to improve the executive experience by allowing HR managers to automate tedious operations and focus on paperless processes, from attracting new applicants to retaining potential new employees.

In this blog post, we aim to understand HRMS and its features for building a successful workplace while maintaining growth and revenue.

What is HRMS?

HRMS (Human Resource Management System) is software that allows companies to manage a variety of internal human resources functions and processes.

It allows a company to have a complete overview of its employees, from tracking and hiring to payroll. It also helps HR managers manage the modern workforce.

Because of the importance and amount of work involved in these tasks, many companies today use HRMS software to combine human resources management and information technology.

A Human resource management system (HRMS) can be used for:

Recruitment of employees
Payroll management
Vacation authorization
Succession planning
Attendance control
Professional development

It is usually used to increase the production and efficiency of a company and includes all aspects of an HRIS (Human Resources Information System).

Features of HRMS
HRMS is crucial for the smooth operation of various HR functions, including:

Management of employee data
Managing employee payroll
Recruitment management
Employee benefits administration
Management of contingent employees
Easy tracking
Self-service for employees
Time management and attendance

Management of employee data
With the help of HRMS, an HR manager can easily manage their employees' data in the system. It minimizes time-consuming personnel record keeping tasks, such as: B. professional career, educational qualifications, training certificates, remuneration and benefits as well as proof of personal identification.

HRMS also helps speed up the documentation process for new employees, which is highly beneficial throughout the hiring and onboarding process.

Managing employee payroll
HRMS can be used to effectively manage the entire payroll of a company's employees. Payroll management is no longer limited to just paying out wages. It covers a wide range of tasks that need to be completed as part of employee payroll administration.

HRMS can assist with important HR functions such as salary disbursements, tax deductions.

Hiring management
Finding employees with the right skills and abilities at the right time is crucial. This is where HRMS software comes into play.

It is a simple, easy-to-use program that automates many areas of recruiting, such as: B. Sourcing, screening, verification and onboarding to dramatically reduce the effort and time spent on hiring.

Benefits of employee management
HRMS helps in efficient management of employee benefits for the company's employees. By effectively managing overtime, workplace safety, bonuses and insurance reimbursements using HRMS, you can protect your employees' rights and benefits.

Thanks to HRMS, employees and management can view the entitlement, allocation and calculation of resources. This helps eliminate numerous inconsistencies.

Management of temporary employees
In any company, managing contingent employees is essential because not all employees are full-time employees.

Because these employees are not always on the payroll and are typically not eligible for benefits, the HRMS cannot fully manage these activities. However, the work they do is critical to the success of the business and it is important to keep track of how many temporary workers are on board at any given time and what the total costs are.

Easy tracking
Without any setup, an HRMS can instantly generate a variety of pre-defined legal and MIS reports. As far as legislation is concerned, reports such as the CLRA report, the Stores and Establishments Act report and others can be prepared in their specific formats with little effort.

In addition, powerful filters allow you to generate reports on the workforce on demand, usually at the request of management, based on a variety of parameters. The HR dashboards therefore offer a quick overview of the most important data on a single screen.

Self-service for employees
Employee Self Service is a central hub where employees can access a wide range of information through HRMS.

Employee self-service portals are included in modern HRMS and allow employees to access all of their own data. Such a comprehensive overview of important data such as payroll, vacation and attendance not only strengthens trust in the company but is also beneficial for employees in several ways. They can now view/download their payslips, vacation updates, real-time attendance statistics and tax liabilities for the month or year without having to contact HR.

Time management and attendance
Employee engagement is a critical component to the company's success. Employee attendance and time management are also important factors in an employee's engagement with the company.

HRMS provides an effective corporate attendance tracking system (ATS). This fantastic tool allows HR professionals or managers to track an employee's attendance and absence. It makes it easier for both parties to process applications.

Managers can use this integrated attendance system to instantly access the leave database to determine an employee's total available leave days and approve or reject the request based on availability.

Key benefits of HRMS for various stakeholders

Human resources department: HRMS allows HR managers to automate workflows and focus on other tasks that require more attention and interaction.

Organizations: With all the paperwork taken care of, companies have more time to focus on hiring candidates and employees, allowing them to expand faster. This increases the company's productivity and leads to higher revenue.

Employees: Employees can use the Employee Self-Service page to receive notifications and edit their profiles, helping to reduce misunderstandings and promote higher levels of engagement and satisfaction.

Conclusion
A cloud HRMS is the new automation paradigm in HR that is cost-effective and easy to implement. Such technology not only increases the efficiency and productivity of your company, but also creates the basis for organizational change.

Modern HR management software like IceHrm can provide tools to help HR make data-driven decisions. It is an essential step in creating a workplace ecosystem where employees are happy and paid correctly, while the company achieves higher productivity and revenue.