A Human Resources Management System (HRMS) is an automation solution to administer and manage the human resources functions including benefits, payroll, recruitments, employee trainings, performance analysis and review. Commonly known as Human Resource Information System (HRIS), the solution encompasses retaining, hiring, administration, managing, HR planning, recruiting/learning management along with facilitating the performance records, employee self-service, scheduling, absence management, analytics, and grievance handling by following precedents. In all, HR management system is an integration of various HR operations and information technology to enhance the productivity of each function.
A sound HR management software consists of the following vital modules accommodating specific HRMS processes:
- Recruitment and onboarding: Recruitment and onboarding module retains the information about all the applications received with status and remarks, candidates finalized, offer letters issued and candidates appointed. From the application receiving to the appointments, every step is recorded in this module.
- Personnel Information Management: This extensive module enables gathering, storing, and accessing employee information such as employee id, contact details, qualifications, key skills, department, etc. Essential documents such as resume, academic and work experience certificates etc. can also be captured in this module.
- Payroll Management: The payroll module automates the pay process based on the employee attendance and time contributed. The pay is auto-calculated with various deductions and taxes, and payslips are generated. Payroll module considers the data from the Personnel Information Management module for pay structuring and calculation.
- Time and Attendance: This module can be integrated with the biometric machines to capture the time in and out to auto-calculate the time contributed by the employee. The module also maintains a record of leaves taken by each employee along with leave details and helps tracking the absenteeism. The information in this module serves as the base to calculate the pay in the Payroll Management module.
- Performance Evaluation: Each employee’s performance can be recorded here. The tasks assigned along with status and performance review are recorded in this module that helps in decision making at the time of promotions and appraisals.
- Benefits Administration: This module deals with the administration of employees’ contribution in the benefits programs such as insurance, compensation, profit sharing and retirement.
- Training Management: The Training module allows the organization to administer and track employee training and development efforts. Also known as Learning Management System (LMS), this module allows HR to track education, qualifications and skill enhancement of the employees as well as scheduling the necessary trainings for the employee upgradation.
- Employee Self-Service: This module enables the employees to query HR related data such as attendance record and submit leave requests. The supervisors can approve O.T. and leave requests from their subordinates through the system seamlessly from within this module.
- Reporting and Analytics: This comprehensive module allows the HR to generate useful reports with customizable criteria and helps organizations analyse the data for efficient decision making.