HRMS is the type of information system which is designed for managing the automated human resource and computerized process of an organization. It is a unique combination of both software and hardware resources making the HR process a seamless one. In an organization, the major functions of the HR department involve tracking the abilities, skills, and accomplishments, salaries, of the employees. HRMS, as a solution facilitates in tracking these easily.
Why does every company need to have HRMS in their tech stack?
As per a survey report by one of the leading financial and business advisory services company, KPMG, HR departments in organizations are already witnessing the positive impact of HRMS, and almost 80% of the businesses are likely to spend more on HR technology in the coming years.
What are the components of the HRMS?
Some of the major components of the HRMS system are:
- Employee management: It involves storing the essential information of an employee in a centralized location. The information could be anything related to work history, profile, performance, etc.
- Benefits management: This component of HRMS gives a bird’s eye view of the provided benefits.
- Organizational management: Organizational management has numerous functions such as compliance obligations, business processes, related reports, supporting the HR department.
- Time-sheet management: HRMS automates the timesheet management process by having the complete view and control of the working hours of the employee.
- Exit process management: HRMS systems also help the HR department in the exit process management. It includes documentation, final settlement, and feedback of the employee.
- Performance management: The performance of an employee can be tracked with the help of this software efficiently. Here the centralized system helps in accessing the actual performance and get a precise picture of the shortcomings and achievements.
- Employee self-service: The system provides the employees with complete access to their own data. They can view information such as the available leaves, payroll, attendance, among others.
- Application management: This involves tracking job applicants across various job portals, websites. It assists throughout the complete process, such as screening, shortlisting, interviewing, and hiring. HRMS helps the recruiters in seamlessly collaborating on a single interface and streamlining the recruitment process.
- TLD management: Training, learning, and development develop the foundation for the success of an organization. HRMS helps to plan the process for better productivity of an employee.
- Analytics and reporting: One can get multidimensional reports of an employee through HRMS. It can provide strategic and usually predictive insights for developing a better business strategy.
The top challenges faced by organizations are:
- Retention of best talents
- Management of diverse workforce
- Privacy and confidentiality
- Profitability and productivity
HRMS modules can help with:
- Performance evaluation
- Benefits administration
- Learning management
- Employee scheduling
- Keeping attendance records
- Gathering and storing the information of employees
- Analytics and decision making
- Recruitment and boarding
- Managing payroll
Benefits of HRMS:
- Fast payroll processing
- Improved employee satisfaction
- Managing employees efficiently
- Reduces repetitive data entry
- Establishes the uniform process
- Improved access to the data
- Helps in the appraisal process
Some of the popular HRMS tools are:
- SAP SuccessFactors
Conclusion: The global HRMS market is likely to grow $30 billion by the year 2025.