Human Resource Management System

What's the difference between HRMS, HRIS, & HCM?

Human Resource Information System (HRIS)

HRIS is a software used for the data tracking, data entry, and data management of all HR related operations of an organization. It also helps translate this data into useful insights.

Human Capital Management (HCM)

HCM is a function that is focused on maximizing employee performance in line with the company's strategic objectives through workforce acquisition, management and optimization. The software used to achieve this is called an HCM software or HCM System.

Human Resource Management System (HRMS)

HRMS while not much different from an HRIS is the intersection between a HRIS and an HCM system. It merges the process of an HCM system with the information technology to ensure the workforce and organization runs efficiently, productively and accurately.

Check our blog on How To Choose the Right HRMS Provider?

What forms the core of any HRMS Software?

The core of any HRMS software include:

• Recruiting or Applicant Tracking System: It helps in accelerating the process of finding the best talent along with facilitating the tracking process.
• Core HR: This caters to all the fundamental HR needs of an organization.
• Compensation & Benefit Management: It enables seamless management of the end-to-end compensation planning cycles that aligns with your employees, business, and budget. It also efficiently manages the benefits and rewards that the employees receive.
• Leave/Absence Management: It enables easy management of leave or absence in an organization by efficiently allocating time, schedule and resources.
• Training & Development: This is an essential part of the HRMS software that provides regular learning and training opportunities to the employees and is customized especially for them.
• Workflow Management: One of the most essential day-to-day tasks that an HR performs is managing its workforce. It provides access to employee data and effective analytic tools as well.
• Employee Self-Service: This essentially enables the employees to service their own needs such as managing their attendance, their schedules etc.
• Performance management: This module helps to monitor the performance of the employees on a regular basis and helps them constantly push their boundaries.
• HR Analytics: This is the latest module that has joined in to make HRMS more robust. It leverages the power of data to draw meaningful insights.
• Reporting: It is important in that it helps convey critical information to the stakeholders with respect to metrics.
• Payroll: Automation of the entire payroll system makes the job of HR fairly simple to manage crucial tasks related to payment and compensation.
• Time & Labour Management: This is an effective software that caters to saving time and managing the workforce.

What are the benefits of having an HRMS software?

Some of the benefits of using an HRMS are:

• HRMS enables the organization to go digital and completely paperless.
• It enables timely decision making.
• It automates certain tasks that further improve the overall efficiency.
• It can significantly help reduce overall cycle time for a plethora of tasks.
• It Increases the ease of performance management by allowing you to set and track KPI's, manage and appraise your employees on the system.
• HRMS provides robust analytics. Easy access to data also helps improve decision making capabilities and identify areas of improvement.

What are the types of HRMS deployment?

There are three types of HRMS deployment:

• Cloud: As part of the cloud, the system and the data are hosted on a third-party server. This essentially leverages the power of the internet.
• On-Premise: In this, the system is installed and set up on the company's own hardware and servers. The organization does not host or utilize the internet.
• Hosted: This is similar to the on-premises method of deployment with the only difference being that the company pays a third-party server to keep their data.

What are some typical modules that HRMS offer?

These are the 5 typical HRMS modules:

• Talent Acquisition [Workforce Planning, Recruitment, Onboarding].
• Workforce Management [Core HR, Time & Attendance, HR Workflows, Helpdesk].
• Payroll & Expenses [Payroll Management, Travel & Expenses].
• Talent Management [Vibe, Rewards & Recognition, Performance Management].
• People Analytics [Custom Report Builder, Visual Analytics, Talent OneView].

What is the importance of human resource management?

Human Resource Management is a function that acts as the backbone for any organization. It acts as the medium between the employees and the management of the organization and helps align the workforce to the business goals and vision. Some of the reasons why HRM is important are:

• It plays a key role in finding and retaining the best talent.
• It helps in designing efficient recruitment and training processes.
• It helps in establishing a professional working environment.
• It helps in handling the disputes.
• It simplifies the workforce management process.
• It helps in maintaining smooth working relationships.
• It helps in enhancing teamwork.
• It helps in efficiently handling payroll.

What are the emerging trends in HRMS?

Some emerging trends for HRMS that will shape the future are:

• Artificial Intelligence and automation are becoming a part of almost every function in business. They not only reduce errors but also accelerate the mundane manual processes.
• Data is driving most decisions and thus people analytics will be embedded in HRMS to draw meaningful insights and to make predictions.
• Going forward, an intuitive UX and an overall ease of use will shape most of HRMS software’s look and feel.
• Performance Management done annually is the talk of the past. With HRMS, organizations will be able to manage and review the performance of its employees more frequently.
• HRMS will provide greater integration capabilities.
• The future of HRMS will be marked by touchless attendance and shift management.
• Remote working facilities will also form a core part of HRMS.

How can you find the right HRMS for you?

Finding the right HRMS that works for you is a challenging as well an important task. It is the HRMS platform that you choose that will shape how your HR team as well the whole employee ecosystem will function. Following are some things to keep in mind when finding the right HRMS for your organization:

• Find out if the HRMS solves the exact problems that you are facing.
• Determine if easy it to integrate or not.
• Understand the costing and if it fits your budget.
• Ensure if the HRMS will guarantee employee satisfaction.
• Determine the ease of use and the level of customization possible.
• Find out if the HRMS is scalable enough.

What is the job description of HR?

The job description of HR (Human Resources) typically includes responsibilities such as:

• Recruitment and Talent Acquisition: Identifying staffing needs, conducting interviews, and hiring employees.
• Employee Onboarding: Assisting new hires with orientation and paperwork to ensure a smooth transition into the organization.
• Performance Management: Setting and tracking performance goals, conducting performance reviews, and providing feedback.
• Training and Development: Organizing and facilitating training programs to enhance employee skills and knowledge.
• Employee Relations: Handling employee grievances, conflicts, and promoting a positive work environment.
• Benefits Administration: Managing employee benefits such as health insurance, retirement plans, and leave policies.
• Payroll and Compensation: Calculating salaries, processing payroll, and ensuring compliance with wage and hour laws.
• Compliance: Staying up-to-date with labor laws and regulations and ensuring the organization's HR practices adhere to them.
• Workforce Planning: Anticipating staffing needs, succession planning, and addressing talent gaps.
• HR Data Management: Maintaining employee records and utilizing HR information systems.
• Diversity and Inclusion: Promoting diversity, equity, and inclusion initiatives in the workplace.
• Policy Development: Creating and enforcing HR policies and procedures.

The specific duties may vary depending on the organization's size, industry, and HR structure. HR professionals play a crucial role in managing an organization's workforce, fostering a positive workplace culture, and ensuring compliance with labor laws.

What are the 5 steps to writing a job description?

The 5 steps to writing a job description are:

• Job Title and Summary: Start with a clear, descriptive job title and provide a brief summary of the position's purpose and role.
• List of Responsibilities: Outline the main duties and responsibilities the role entails, focusing on essential tasks.
• Qualifications and Requirements: Specify the qualifications, skills, experience, and education needed for the job.
• Company Overview: Provide a brief description of your company, its culture, and its mission to give candidates context.
• How to Apply: Explain the application process, including submission instructions and any required documents.

By following these steps, you can create a comprehensive job description that attracts qualified candidates and sets clear expectations for the role.