HRMS – Key features that you must know.

HRMS stands for Human Resource Management System. HRMS is a software solution for small business. It connects the human resources in the business with the help of information technology. HRMS is a revolutionary human resource management system software, used by many small and medium scale businesses.

Do you have a reasonable team size but you don’t have an HR team and planned policy management?

Here HRMS can be a helpful tool for you. HRMS is generally a cloud-based software that can help your HR team manage any specific size of human resources backed by employees and company database. But, how human resource management system software helpful to the HR team?

The HRMS reduces the amount of manual and repetitive task. This helps in reducing the time consumed by unproductive activity. If your human resource squad is looking for a more strategic and managerial task then HRMS can help them improve the utilization of work hours.

How HRMS is different from HRIS?

HRIS (Human resource information system) is a component of an HRMS. With so many HR software solution providing company coming into the HR Industry, they are branding the software with different terminologies.

You must compare an HRMS, HRIS, and HCM software in detail before subscribing to any hr software. There is no major difference between them. To add it into one picture, it can be described as:

HRMS = {HRIS + (Payroll+TLM)} Or HRMS = { HCM + HRIS + (Payroll+TLM)}

Where HCM Stands for human capital management

What is the need for HR Software?

With the advent of artificial intelligence, the requirement of automation with fast data availability has become a core requirement. Do you know, how fast is AI growing?

AI has seen huge growth in recent years. You can check the AI hypergrowth report to figure out its rising potential.

AI is also playing a significant role in the growth of hr software for small businesses. Even bigger size businesses are managing their entire human resources with automated software to overcome challenges in managing and maintaining the workforce.

Some of the needs that Hr Software are making it easy are:

• Easy reporting of Workflow.
• Data management.
• Compliance management.
• Employee Self-service.
• Employee engagement management.

Is it a feasible practice to keep asking employees to produce a hard copy of documents on a regular interval? How will you manage so many documents?

This tedious issue is easily managed with HR software. If you are looking for subscribing to HRMS software plans then you must check out top hr software for 2022. Let us have a detailed study on these needs that are fulfilled by HRMS.

Easy Reporting of Workflow

Are you struggling with creating a structured report that can summarize the work tracks? The human resource management system software is your solution.

HR software provides the best predefined MIS Reports without any hustle. They are pre-built and you don’t need to perform any setups. These reports can be like Absences, Assignment Status, Current and Projected Progression tracking, Job and Position Skills Matching, Salary Review and many other valuable inputs under a single framework.

You can modulate your requirement from these reports using advanced filters and output explorer. This helps an HR team to sync and observe the critical data that impact the business requirements.

Data Management in HRMS

The best hr software for small business focuses on building a secure database. HR software consists of an organization’s most sensitive data. These data need to be tracked and recorded for keeping an eye on organizational workflow.

Hrms provide an easy solution for data management. Overcoming the demerits of conventional data storing like paper records and spreadsheet management, Hr software has provided a revolution in workflow management with features like live tracking of data, Real-time report generation from the available data. This real-time data availability and handling are important because of the competitive workforce.

Statutory Compliance Management

HR software comes with compliance management because of the dynamic legal framework in any country. The HR team has to compliant with many employees related policies like provident fund, minimum wages, employee CTC, etc.

The new cloud-based HRMS keeps its algorithm updated with the legal laws to avoid any future penalties towards the organization. This indirectly helps in managing the legal reputation of businesses. According to a whitepaper published by Worktech shows that 2 out of 3 workplace-related lawsuits that go to trial are won by the employees. The HRMS makes it quite easy for the HR team to stay updated and therefore creates a healthy work culture in the organization.

Employee Self-service

All the best HR software for small business as well as large businesses consider having employee self-service feature because it creates personalize options for employees to see their details.

Do you want to create trust in work culture? Employee self-service helps in creating that.

With this facility, an employee can keep a record of their activity like leave management, download of payslips, keeping track of the tax liabilities, opting for exit and withdrawal of notice periods and many other integrations. Such integrations in any human resource management system software have great benefits because employees don’t have to approach to the HR team for every reason. This also helps the HR team to find time for other productive planning that can add value to the businesses so as to improve work culture.

Employee engagement management.

Engaging employees in a workforce is very crucial but important as it increases productivity and work quality. Employee engagement is maintained with workforce management under a manager with mentorship quality.

The cloud-based hr software also makes a healthy interface so that employee finds daily feeds and updates to keep them engaged with the company’s workflow. Employees get engaged with all updates relating to the company and find areas which they easily relate to their skills and needs.

Other features like absence and attendance tracking and downloading of payslips also help in creating an employee-friendly place.

HRMS Global Demands and trends.

HR software for small business has seen a sudden pull in its demand across the goal. Big companies were already using the technology but we have seen a shift for this in startups and small companies as well. Can you guess the possible reasons for this shift?

After a complete study and analysis, we found that companies prefer managing time over money. They want more work with less human resources. The artificial intelligence and feedback system is making HR software more trending application used by corporate sectors. Hence the human resource management system software is the best switch to make.

Google trends clear the complete scenario. Let us have an insight.

Getting deeper into web searches with region wise, we found that India has the biggest demand for HRMS.

With so much of demand making a market for human resource management system software, there must be some great functions of an HRMS backing it. You can consider knowing more about top trending HR software.

Functions that make a good HRMS

HR in any organization is responsible to manage the team for better performance so that the productivity can be improved. There are some important functions to be handled by HR so as to align with company and legal policies. The HR team of small and medium businesses now prefer using cloud-based HRMS because it reduces efforts and time. Some of the functions of HR software are

• Workforce Management
• Work Hour Time Tracking
• Leave management systems
• Performance Tracking
• Payroll Processing
• Recruitment and onboarding
• Exit process management
• MIS Reports
• Employee information management.
• Document sharing.

They were some of the significant features that make a good HRMS. Let us discuss in detail about all the features of an HR software.

Workforce Management

HR software help in planning the required workforce needed to meet the business requirement. With workforce management function in HRMS, it becomes easier for the HR team to estimate the right skills and manpower that can give a quality production for the project.

Work Hour Time Tracking

Time tracking function enables the organization to maintain a record of the contribution made by an employee towards the project. It helps the concerned senior level management to keep an eye on the utilization that an employee is using for giving their output. The time from login into the system until the logout is evaluated along with the amount of break taken during the work hours.

Leave management systems

Employee attendance is very important because it helps them manage payroll processing. On a daily basis, the attendance is recorded on an HRMS which helps the HR team evaluate the total working days spent by employee. It is the most transparent feature of any best hr software for small business as well as a big entity or firm. The LMS generate the reports with options of advanced filtering that can be produced for higher-level management presentation for reporting purposes.

Performance Tracking

For evaluating the employee performance, HRMS works smartly. The employee’s growth evaluation highly depends on performance tracking. The conventional technique was very difficult to manage and was error-prone with no real-time data tracking but with HRMS solutions it became easier. Goal setting method used in performance tracking tool which enables the managerial level to monitor the employee’s work and contribution.

Payroll Processing

The most critical function in any business is processing the payroll because an employee works for pay apart from statutory compliance. You must set up the best hr department system to manage payroll. Payroll processing handled by good HRMS is very intelligent solutions. All due calculation from employer and employee ends are calculated in payroll processing so as to meet all compliances. Information like salary credits, tax deductions shared with the employees comes the ambit of HRMS payroll processing.

Recruitment and Onboarding

The HR software help in managing employee since recruitment itself. The applicant data is saved in the database to match his skills with the current openings and remind him of opening. The HRMS makes it easier for the HR team to find the right candidate and hire the best talent with hr automation using hrms.

The hired candidate onboarding task starts from the HR software and he gets access to the company’s directories and feeds. The human resource management system software feeds the onboarding data and makes it available to be fetched by the concerned team.

Exit process management

When an employee takes an exit from any organization, it is a high priority task to initiate a quick exit procedure. You must avoid getting the best talents making an exit and improve employee retention. The access removal, full and final settlement and related formality handling are performed with HRMS. With every exit, a new opening gets generated into the HR software.

MIS Reports

MIS Reports collectively gathers all the critical data in different report format. The HR team shares the reports with the concerned team or client to help them plan their organizational reporting processes.

Employee information management.

The HR software manages the employee details in its database. Some of this information can be

• Name, Joining date, DOB, Contact Info, email-id, Gender
• Previous employment details.
• Department allocation info, Location, Reporting Manager, etc.
• Payment & Statutory info like PF number, ESI number, Income Tax PAN, etc.
• Passport, VISA, etc.

All correct data get enlisted into the HRMS cloud and decisions are taken by management based on these data.

These were some of the important functions of cloud-based HRMS solutions. They have made the corporate workflow easier. These HR software not only helps in creating a better workflow but also build trust and everlasting relations between the employer and the employee.

Document Sharing

It allows businesses to share documents and keep the workflows transparent. With document sharing facility we get to see some of the following benefits.

• Better employee relationship management as team collaboration becomes easier over a specific task.
• 24/7 availability for business needs. You can share documents to anyone from anywhere if you get the required authority to do that.
• Managing documents become easier.
• Saving confidential documents become quite secure as you can lock such documents in cloud servers with high-security systems.

Document sharing is one of the core features that every HRMS have.

How to choose the best HRMS solution for your business?

Human resource management system software can manage any number of employee in an organization. While you select an HRMS for yourself, you need to have a Checklist for choosing the Best HR Software. A few handfuls of questions to be answered before making a buying decision. So what those questions you should be aware of before buying?

We will list down the best questions here to make your decision process easy.

1. What are the requirements in handling the team? Example, the features that your organization will need in the HRMS.
2. What will be the total strength of the team to be managed?
3. What type of Software will be more suitable for the organization? A cloud-based or not.
4. What budget is suitable for subscribing to an HRMS or buying an in house pack?
5. What speed and performance are you expecting with the software? Is your hardware ready to match?
6. What kind of customer support is available with the software packages?
7. How many vendor’s trial offer should you shortlist for purchase evaluation?
8. How flexible is the HRMS package to meet future needs?
9. Is the software user-friendly?
10. What are the customer’s feedbacks for the vendors that match your needs?

When you are evaluating the software, answer these questions because it will help you find the best out of many. You can save your time by directly reading Top HR Software – 2022 Reviews & Pricing

A final verdict

HRMS Key features make it a good or bad Saas product. The rising demand in the best hr software for small business and medium scale businesses is at a peak because companies are moving towards automation. The HR software saves a lot of time for the team for other strategic planning and hence more and more companies want to have their own HR solution software. Find the best solution so that human resource related challenges vanishes.