Human Resources Management System (HRMS)

Know all about the tech that can help you manage your business smoothly and efficiently.

For the smooth functioning of any organisation, an impeccable system is required to manage and organise the most valuable assets of the company-its employees.

Just hiring a team of human resource professionals is not enough. What completes the human resource management process in any organisation is a team of professionals that is well equipped with an easy to use, latest and productive platform which can assist them in managing the intricacies of an organisation’s human capital. And that platform is called a Human Resource Management System (HRMS).

What is a Human Resource Management System?

Human Resource Management System, commonly abbreviated as HRMS, is a software tool that assists in managing the human capital of an organisation and is a tool for the HR department of any organisation. HRMS has modernised the traditional management strategies as it has brought all the key functions of HR management, like managing wages and salaries, vacations, presence, personal information, perks, etc. under one roof. 

What is the need for an HRMS?

HRMS simplifies the work of the HR department and improves its efficiency manifold. For instance, before HRMS, the HR department of a company used to get overburdened with employee complaints. With HRMS, employees can express their concerns and submit them directly to relevant departments using the HRMS tool. 

This not only improves the communication process but also counters other hassles like privacy concerns. Employees who work remotely or off-site can also update their work status and other concerns using an HRMS tool due to the sheer simple user interface of the tool. It goes without saying that HRMS helps in improving employees’ work efficiency and capacity, as well as the productivity and profit of an organisation.


For the most suitable HRMS module for your business/company, you need to chart out your requirements.

HRMS is nothing short of a boon for human resource professionals. HRMS eases and enhances the ways HR professionals hire and retain talented people, helping a company grow significantly. It is worth noting that the role of HR departments is not just restricted to the management of employees, but is associated with boosting employees’ motivation. And HRMS enables them in doing so by giving detailed performance analysis of employees, and their strengths and weaknesses which can be further worked upon productively. 

Moreover, HRMS is a very secure and personal tool. Only the administrators in a company’s HR department have full access to sensitive data, thus limiting the scope of any privacy breach in the sensitive data of the company as well as the employees. 

Components of HRMS

1. Recruitment Module

Recruiting employees with a variety of skills and competencies is an important task. The HRMS recruitment module provides all the important recruitment procedures in compliance with general rules and authorisations. It can also build a pool of talent that can be searched for suitable candidates as and when there are vacancies.

Features of the recruitment module in HRMS include:

Special channels for different roles

One-click job posting and job descriptions to various job positions 

Automated review process, including scheduling interviews

Follow up with candidates

Resume parsing

Analysis of indicators and criteria for candidate profiles

Mobile application

Social media interface

Digital offer management

2. On-boarding Module

Once a new employee is hired, he or she needs instructions about the role and the organizational process. In this process, HRMS significantly reduces the workload for managers and staff groups as new employees are introduced to the nitty-gritty of the company, like organization strategy, motto, peers’ user accounts, respective departments, etc., using the HRMS tool. 

On-boarding module features include:

Pre-first-day preparation 

Simple (paperless) user record setup

Providing valuable information about the company and key employees

Automatically schedule important meetings

Meet the legal requirements

Goals setting for the trial period

3. Performance Management Module

Performance management of employees includes reviewing documents, tracking goals and objectives, professional background, standards of practice, and/or other relevant topics.

Performance management module features include:

Setting and maintaining goals

Scheduling meeting and reviews

360-degree performance analysis

Current feedback tool

Collecting big data for a better picture of individual metrics

Talent management and heritage planning functions interlinking

4. Administration Module

Management and administration primarily amount to providing timely information and necessary assistance to employees for making the right choices in a professional workspace. This module assists in tracking attributes like employee benefits, healthcare and pension/social security packages, and any financial engagements.

Features of an administration module include:

Online registration 

Automatic registration of enrolment options and information 

Plan comparative tools to take into account employees’ personal financial situation

Automatic control of events and their management

5. Workforce Management Module

Workforce management (WFM) is a set of processes that a company uses to improve the productivity of its employees. WFM includes effective forecasting of business needs, scheduling recruitment and management to perform specific tasks on a daily and hourly basis.

Workforce management module features include:

Scheduling and administration

Monitoring work progress

Management dashboard with real-time data and metrics

6. Time and Attendance Module

Combined with payroll accounting, time and attendance module is one most efficient job in HR automation. These systems often include biometrics to avoid proxy attendance and are directly linked in the workforce management module via informational links to payroll and accounting software.

Time and attendance module features include:

Attendance monitoring

Clock management

Biometric system

Remote efficiency for mobile employees

Law compliance 

7. Absence and Leave Management Module

This module also is often associated with time and attendance, and management functions module. This module is an automated way to assign, reserve, approve, track, and monitor any absenteeism in the workplace.

Leave application can be for different reasons, including any compassionate cause, illness, parental leave, etc. The application and approval processes are streamlined and the results should be included in the team’s schedule where required.

Absence and leave management module features include:

Request for self-service leave

Work schedules, working time and presence functions

Account Management to track vacation time and usage.

Measurements and analyses, including levels and trends of leaves

8. Learning and Development Module

Using the outcomes of the performance management process as the basis, this module creates a unique staff training plan, schedule, and practice (for courses and other learning opportunities) and assists in managing the assessment and response steps.

Learning and development module features include:

Training portal

Training recommendations related to roles, skills and career aspirations

Independent customer training scheme

Goal setting and management

Competency range links

Effective management of training (reduction of additional resources)

9. Talent Management Module

This module is designed for focusing on identifying potential individuals and helping build a talent chain that deals with specific roles and heritage planning. The links between employment, training, development and activity management are continuous.

Talent management module features include:

Final planning board

Consistent plans with the business goals 

Identifying the business process and plans for each event

Integration of important meetings

Reward milestones 

10. HR Analytics Module

This module is integrated with almost all other modules to provide HR analysis and reporting functions (mainly in the form of HR indicators and measurement libraries) to the teams easily. It also provides insights and predictions by analysing data collected by HRMS (and other business systems) to guide the organization’s business plans.

It is important to remember that some of these models might overlap in some HRMS tools. For example, benefits management might fall under the payroll banner. In some tools, payroll itself might be an independent HRMS module. 

How is HRMS beneficial for employees?

Firstly, HRMS provides the option of self-service, thus making employees’ access to their personal records and details just a click away.

Maintaining accurate information about employees is clearly the most important aspect of any HRMS module. These important pieces of information usually include:

Name, gender, date of birth, contact information, phone number, email ID, etc.

Preliminary employment information

Information about the current department, location, level, reporting manager, etc.

Payment and legal information, such as PF number, ESI number, PAN income tax, etc.

In addition to the above, HRMS also stores information about employees such as passports, visas, company names and assets. Ensuring that accurate and up-to-date information for employees is kept is one of the most important tasks of the HR department and HRMS makes the task easier for both employers and employees.

How to find the right HRMS?

Before beginning your search for the most suitable HRMS module for your business/company, you need to chart out your requirements. Draft your necessities, list the features you require, and try matching them with the functionalities that a prospective HRMS Software is offering.

This quick and detailed checklist will help you in figuring out the right HRMS for your organisation: 

Create a strong selection team with different partners

Identify gaps in the current staffing process and clearly plan your needs

Make a complete list of selected features and other features

List of applicants for suppliers who meet the main requirements of your HR processes

Gather more information about the list of suppliers in the list of candidates

Sorted the list of suppliers based on business preferences (cost, time limit, etc.).

Undertake vendor demo software and get to know about their customer reviews and profiles

Ensure that the price or license fee is transparent 

Ensure that future business needs are met

Use the data collected so far to make an informed final decision


HRMS is an automated way to assign, reserve, approve, track, and monitor any absenteeism in the workplace.

An ideal HRMS for your organisation must comprise the following features:

Centralized management system

Cloud-based files

Latest features of mobile applications

Employee self-service options

Real-time analysis

Information security and audit records

Role-based visits and collaboration

Updated and agile integration


It can be concluded that choosing the best HRMS is not easy and straightforward, but it must be done correctly. While there are many HR tools that offer many features, it is really hard to find the best ones. With good research, you can find an HRMS that will ease up your organizational functions and smoothen the workflow.

Always choose the HRMS that best suits your purpose, which is eliminating the need for individual applications and data integration infrastructure between applications and you to seamlessly share and retrieve information across the organisation.

Read more about topics like Leadership: Lift Your People Up, Bring Them Together and Recruitment Strategy Done Right: How To Hire The Best Candidate on our website.

Aakash Sharma
Aakash Sharma
Aakash writes on Startup Ecosystem, Policies, Legal and Regulatory aspects of business planning. An alumnus of Delhi University, he is assistant editor at Dutch Uncles.

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