Human Resource Management System

Since the 1960s, companies have gradually implement a human resources management system (HRMS) to help the HR department to be more strategic and efficient. Today, HRMS, far from the primary purpose which relies on administrative tasks, is an indispensable tool of the HR facing the new challenges of company era.

But , what is HRMS , what are its functions , and why your business needs it?
In this article we will highlight the definition of human resources management system , and far more its benefits and features and how to find the right one to fulfill your business needs .

HRMS: Human Resources Management system

The HRMS is a set of means set up to facilitate , reduce and improve the work of HR on a daily basis. In other way , human resources management system  is about computerizing HR processes , which implies of course software. These will not only make it possible to store HR information on a long-term basis , but also reviewing them to better evaluation and thus better capitalize on human resources of the company.


HRMS is an information system that manages a set of  software components to automate and monitor a number of human resource management tasks. These components can be of many kinds. : administrative staff management, social dashboards, training platform (including e-learning), skills and career management, payroll, time management and activities … An HR portal usually allows the various departments concerned to work in collaborative mode, while having access only to the contents that are dedicated to them.

Functions of HRMS system

Practically , a HRMS is structured around different modules encompassing the multiple facets of HR profession. It allows you to have an equally accurate follow-up of the different information from each component of the business. In general , HRMS modules can assist with:

  • Administrative function of HRMS system : all that is paperwork such as : activity report , managing payroll , contracts , expense reports , benefits administration; Benefits and Deductions,  … etc.
  • Human component : all that concerns employees such as : Recruitment and onboarding , Gathering, storing, and accessing employee information , gathering , storing , and accessing employee information , keeping attendance records and tracking absenteeism , learning management , employee self-service , employee scheduling , performance evaluation , …
  • Decision-making component : such as , turnover rate , social indicators , Analytics and informed decision making , payroll rates , …
  • Social function of HRMS system : all that concerns the social life in the company and the interaction between employees and HR (update of the salaried profiles, social network of company, etc.) . Also the use of this software contributes to a better relationship between HR and employees.

The Need for a HRMS “ human resource management” Solution

What is the use of Human Resource Management system in an organization
What is the use of Human Resource Management system in an organization

The need for a HRMS “ human resource management “ solution  manifest in addressing four major challenges  facing HR function in a company :

  • Partnership, to strengthen its strategic role.
  • Credibility, to improve its image and professionalism.
  • Organizational change, to intervene directly in the transformation of corporate culture.
  • Recognition of people, to give employees a qualitative recognition of their merits “ financial reward” , which may be a competitive advantage afterwards.

Read about : Financial Accounting

Features and Benefits of a HR System

In a context of digital transformation , the implementation of a HR system within the company is an essential step. Because it will simplify and improve all the HR process of a business. Given the multiple HR function issues of a company , the HR system has indeed many advantages. Features and benefits of an HR system can be summarized in :

  • Grouping of tasks and their simplification.
  • Saving time and increasing productivity.
  • Centralization of all HR data.
  • Accessibility: available online 24 hours a day, in SaaS mode (so without fear of obsolescence or update problem) and accessible via a browser too. the HR system has the advantage of going in the direction of a better organization of work by responding to company It allows you to work remotely and on the go, while reducing the number of emails or meetings in HR processes.
  • Interoperability: the HR system interfaces easily with other systems like finance , analytics , performance management and should have a consolidated database.
  • Employee self service: this feature gives the employees the ability to access freely their payroll , personal information , … and reveal them on the go without being compelled to pass through HR personnel . which in another way , allows the HR department to concentrate more on strategic tasks.

Through an HR system, a lot of data can be analyzed which is a real asset for management and HR managers. The data tracked and studied can be varied: compensation, performance management, career management, succession plan or work planning, for example.

Through operational reports or HR Analytics, the company can anticipate and refine its decision-making on human capital. At the same time, HR system has the advantage of addressing the most common concerns of HR decision makers:

  • Legal compliance in the long term.
  • An improvement in administrative productivity.
  • Better quality of HR services.
  • Data security.
Finding the Right HRMS

A human resources management information system will be used on a daily basis , both by HR staff and employees ( ideally) . this is why it is better to opt for a simple software that anyone can easily handle without having to constantly use the assistance of the IT team or the supplier.

Also , it is necessary to choose software that includes features that is really useful and match up with the size of the company , the number of users , sometimes even the specificities of sector of activity.

This will allow you to find the right HRMS that suits your company needs. Nevertheless , the minimum functionalities , really basic to have will be :

  • managing payroll.
  • Managing employee files.
  • Performance evaluation.
  • Keeping attendance records and tracking absenteeism.

Finally, you have the choice between taking an HRMS that you will install and use locally or a “SaaS”  Software as a Service mode and do everything online. The advantage of this last option is that you will not have to manage IT resources internally (especially if you do not know how to do it).

In fact, finding the right HRMS, concludes in choosing the one that gives you the opportunity to get rid of cluttered spreadsheets! From attendance to time sheets and performance, and run HR on the cloud. A software that offers a simple user interface,  effortless automation, and efficient processing with right data.