You might think that finding the best Human Resource Management System HRMS for your business would be a never-ending challenge, but in reality, it is a series of obstacles that you need to overcome. One of the first steps you have to take is to identify precisely what features, functions, and modules you require, and it is one of the most crucial steps. Basically, you need to have a clear understanding of what you want the system to be able to do in order to support the strategic goals of your organization.
It is evident that the problem arises from the fact that the term “HRMS” appears to be quite a nebulous term once one begins investigating the numerous options available in terms of HR software and technology that are available today. A basic personnel database with a limited number of features and the ability to be further enhanced by the addition of a number of suitable modules is described by some vendors as a basic personnel database. In each of these modules, software support is provided for one of the many HR services that are outlined below.
The term is often used to refer to a system that incorporates the vast majority, if not all, of the following modules in one streamlined package. An HR management system can make all the difference between an HR department that runs smoothly and one that is cumbersome, inefficient, and prone to mistakes when implemented properly. Many HR modules may be able to solve problems that require a great deal of time and effort.
HRMS Modules: Why Should You Use Them?
HR software is primarily intended to improve the efficiency of HR procedures in your organization. Integrated modules in a software platform can automate many of the tasks that consume most of your HR department’s time. HR systems include modules that can:
1. Make use of workflow automation
Using automated technologies helps businesses save both time and resources by reducing the need for human data entry. By using HR modules, you may be able to create unique workflows to support your HR procedures. For example, you can configure enhanced workflows in order to create a database for Employee Record Management, or you can create a step-by-step process for your workforce to follow during Open Enrollment that includes automated communications to keep workers focused on their tasks. It is possible to use either of these examples. It is also possible to review reports that show when your workers are approaching their overtime limits, or you can make a rapid repair if your payroll has become noncompliant. It is very convenient to use either of these options.
2. Maintain a safe environment for your data(HRMS)
Maintaining the confidentiality of sensitive personnel data may be easier with HR software. You may lose the confidence of your employees, customers, and partners if you don’t maintain adequate security, but you may also be in violation of the many regulations that govern data protection if you don’t. In addition to access restrictions and two-factor authentication, cloud-based HR systems already come equipped with many levels of security to protect your data.
3. Data management and control should be made available to workers
If you provide workers with a gateway through which they can maintain their own personal information, your human resources managers will have more time on their hands. As an example, employees can update their life-change events (marriages, babies, and the like), as well as find their benefit statements and pay stubs, and request time off or sick leave. Human resources can concentrate on high-impact initiatives, such as benefits packages, performance evaluations, and new employee orientation, when workers handle this paperwork.
A benefit overview is available to employees, reminders are sent when important dates approach, and forms are automatically updated. The purpose of this is not only to maintain compliance, but also to maintain employee morale. As an example, you can configure each employee portal to automatically obtain tax forms like 1094-B, 1095-B, 1094-C, and 1095-C based on the healthcare plan the employee chose during tax season.
The following are quick explanations of the sixteen most common modules and features organized according to HR functions, as well as their essential components. Some of the most commonly used HR system modules and/or features are:
HRMS module 1: HR database
Using a Human Resource Management System, you can keep track of your employees’ information. This is not so much a feature as it is a foundation for all the other features. The information might range from a name, address, telephone number, and employment function to a comprehensive work record that includes performance management evaluations and training records.
Due to the fact that it stores personal information (possibly including bank details for payroll purposes), the issue of data security is crucial. Because it stores personal information, this is, in a sense, the most important feature of your HRMS.
HRMS module 2: Recruitment
As part of a recruitment module, your organization’s internal form-filling and authorization processes should be taken care of; HR and management should be able to post job advertisements and supporting documentation online; applicants should be tracked and sorted; and managers and/or HR should be able to post job ads online. If a position opens up, talent pools may be able to be “trawled” for suitable candidates.
A recruiting module has embraced social media more than any other HR technology. Interoperability with LinkedIn and other platforms is increasingly available as standard, and social capabilities are a key consideration when evaluating providers.
Common recruiting module characteristics include:
- Each job is tailored to a specific pipeline.
- Easily post job openings and job descriptions on multiple job boards.
- The entire evaluation process is automated, including the interviewing process.
- Monitoring of applicants.
- Resume parsing.
- Metrics and analytics of a standard kind for applicant profiles.
- Mobile app.
- Gamification (though opinion is divided between the pros and cons).
- Social media interface.
- Management of offers using digitalization.
HRMS module 3: Onboarding
The next step is to guide your new employees through your company’s onboarding and induction processes. It is possible to automate this process, which will significantly reduce the burden on managers and HR. In this way, new recruits can be “introduced” to the necessary people and to the organization itself. In addition, relevant departments may receive automatic notifications regarding building access, user accounts, security passes, and so on. The activities of onboarding should also be integrated with performance management and talent management modules in a perfect system.
Features such as these are often seen in onboarding modules:
- Preparations are made before the first day.
- Keeping accurate employment records is easy (and can be done electronically).
- The necessary information required on the firm and its key individuals is provided.
- Learning via gaming.
- Automatically, the required appointments are scheduled.
- Legislative requirements must be followed.
- Probation begins with the formulation of goals.
module 4: Performance management
In order to automate the evaluation process, record and monitor objectives and targets, and keep track of progress toward those goals, this module should incorporate your competency framework, job standards, and/or any other applicable systems.
The following are common characteristics of performance management modules:
- Setting and monitoring one’s own performance goals.
- Competency standards are linked to a set of competencies.
- Performance evaluation and analysis meetings will be scheduled.
- 360-degree feedback on performance.
- Feedback tools for providing “at the moment” feedback.
- To provide a more complete picture of individual performance by collecting Big Data.
- Personnel management and succession planning have functional connections.
module 5: Benefits administration
The goal of benefits management is to help workers make informed decisions and provide them with relevant information in a timely manner. Manage and monitor employee benefits, including healthcare, pensions, and welfare packages, track enrollment choices, and any financial repercussions.
Modules for benefits administration often include the following features:
- Open enrollment online.
- Automated communication of enrollment options and information.
- This tool allows employees to compare the costs and contributions of several plans before making a decision.
- Benefits life cycles are managed automatically through events.
- Your jurisdiction’s legislation must be followed.
HRMS module 6: Workforce management
It is often integrated with time and attendance management and leave management, despite its primary purpose of scheduling. Integration with other business intelligence systems, such as enterprise resource planning (ERP) and customer relationship management (CRM), may be necessary to adapt workforce deployment to changing requirements.
Workforce management modules typically include the following features:
- Tracking shifts and making schedules.
- Monitoring of workflows.
- A management dashboard displays data and metrics in real time.
Module 7: Time and Attendance
The time clock has been fully automated for the longest time among HR operations. Today’s systems use biometric identification to prevent buddy punching. They will also integrate with your payroll and accounting software, linking directly to the workforce management module. There may also be other features included in such a system.
The following features are often included in time and attendance modules:
- Monitoring the presence of employees at work.
- Management of the time clock.
- Systems that use biometrics.
- Professionals can access their accounts remotely or on the go.
- Taking rest breaks as required by law (e.g.).
HRMS module 8: Absence and Leave Management
This function is often associated with time and attendance management and workforce management. A leave management module automates the assignment, booking, and authorization of absences from the workplace, as well as tracking and monitoring them. A vacation, a compassionate cause, a sickness, time off with the kids, or even jury duty may be the reason. Requests and approvals should be expedited, and the results should be included in team calendars whenever possible.
Absence and leave management modules often have features like these.
- Requests for leave can be submitted online.
- The ability to manage (and schedule) the workforce as well as keep track of attendance and time.
- Account management, including the monitoring of vacation time accumulated.
- Analytics and metrics, including absence counts and patterns.
Module 9: Learning and Development
In addition to producing individual training plans, managing bookings (for training courses and other learning options), and tracking training expenditure against budget allocations, this module may also manage follow-up evaluations and feedback. Performance management outcomes are often used as a starting point for this module.
In learning and development modules, the following characteristics are often seen:
- Education portal.
- Matching training recommendations to a person’s desired job, competence, and career path.
- Personalized lesson plans for each student.
- Defining and managing objectives.
- Competency standards are linked to a set of competencies.
- Learning administration that is more streamlined (reduced HR overhead).
module 10: Talent management
The purpose of this module is to help you establish talent pipelines so that your business can avoid critical skills and experience shortages that could potentially damage performance. During the session, we will identify potential talent and help set up talent pipelines. Performance management, learning and development, and recruiting efforts should not be separated.
The following characteristics are common to talent management modules:
- Alignment with the company’s strategic and operational objectives.
- Career planning and mapping out career trajectories.
- Recruiting drive integration.
- (Internal and external) benchmarking should be rewarded.
HRMS module 11: Succession planning
Succession planning and talent management are closely related concepts. An organized succession planning process involves placing the appropriate individuals in career paths that lead to specific job responsibilities and positions. Ensure that all of your most important duties and tasks in the company are always being fulfilled. In essence, you are futureproofing the workforce, and an appropriate HRMS can help you achieve this goal.
The following is a list of key actions involved in succession planning that may be supported by an HRMS:
Performance management data is used to identify workers who are qualified for promotions or have the potential to become qualified.
Professional routes that are tailored to your company’s needs.
An internal competence framework is used to map procedures.
Identifying the gaps and creating personal development plans that are specific to the identified individuals.
Keeping track of one’s professional goals and future plans.
Mentoring and coaching program administration.
Module 12: HR analytics
The Human Resource Management System (and other business systems) provides reporting capabilities (frequently in the form of libraries of HR metrics and benchmarks) that analyze and assess data gathered and stored to provide strategic and predictive insights that can be used to guide the organization’s business strategy. An organization can use these insights to direct its business strategy. Often, HR analytics are incorporated into other modules.
HRMS module 13: Payroll
Payroll functions compute and pay salaries for employees, deduct and withhold appropriate taxes and deductions, and issue paychecks or make direct deposits into employees’ bank accounts. A payroll function will also withhold the appropriate amounts for taxes and deductions.
A dedicated piece of software used to handle automated payroll in the past. Payroll functions are increasingly being included within Human Resource Management Systems.
A major advantage of using an HRMS to manage payroll is that the key employee data (personal identification, banking information, record of hours worked, etc.) is already held by the HRMS. Another advantage of using an HRMS is that it provides access to all of your employees’ activities through a single portal. In addition to improved data security and accuracy, there is a lower risk of making mistakes, and applicable laws are met.
Module 14: Employee wellbeing
With the ongoing epidemic, the health and well-being of workers has become a key priority for a growing number of companies and their human resources departments. Incentives such as improved nutrition and exercise routines are provided to encourage healthy behaviors, including wellness and fitness programs, information campaigns, and information campaigns. A workforce that is present and functioning effectively and productively has a higher level of overall health.
Human resource management systems (HRMS) can assist in setting wellness objectives, communicating important information, and providing health reminders. In addition, wellness-related prizes and perks can be included in your total remuneration package. You have the option of choosing this option.
HRMS Module 15: Multi-Territory Workforce Management
Maintaining consistency is essential when it comes to HR policies, processes, and procedures, as well as how they are implemented throughout the workforce. Coordinating this aspect of your company’s operations will be more challenging if your company operates in several countries or regions. Crossing a border will result in different employment laws and regulations on the other side. There is change, even if it is only in payroll administration.
If all your workers are neatly housed within one nation’s borders, you may skip this section. Telecommuting, working from home, and virtual teams have led to an increase in companies hiring people from other countries. That is, unless you want to use different HRMS for each region, which defeats the point of using a Human Resource Management System in the first place. It is essential to have a system that can cope with multiple tax regimes, varying labor restrictions (such as varying working hours limitations), and changes in compliance reporting requirements.
HRMS Module 16: Tracking Time Taken Off
Automating the process of allocating time off, booking said time off, getting approval for said booking, and monitoring said absence will be made easier with this module. Core HR allows you to accept or refuse requests for paid time off (PTO), examine time off accruals, and create rules for accrual among other features.
HRMS Module 17: Administration of Learning
With the help of a module called “learning management,” Human Resources can conduct training and track whether or not employees have completed it. Employee portals enable you to assign and access required training, such as those on sexual harassment, at any time. With the Learning Management module, enterprises can not only submit their own individualized learning programs, but also access internet resources. Completing courses on diversity and inclusion requirements, safety standards, leadership and ethics, and more will help maintain training compliance.
HRMS Module 18: Employee Self-Service
Employee self-service is not so much a separate module as it is a foundational (and necessary) element, and no HRMS is considered complete without it. This feature is pretty much an absolute necessity if you want your HRMS to be influential and beneficial beyond the HR department and the boardroom.
Employees may be able to request paid time off by submitting a request. It is also possible to implement a full HR portal, including a personalized dashboard for each employee. Employees would have access to a wide range of HR services, such as choosing their own benefits and scheduling (and virtually attending) training sessions.
In terms of the operations or categories they belong to, some of the modules and characteristics described above may overlap. Management of benefits, for instance, might be considered part of payroll, while payroll itself might fall under the more general category of compensation management, including the administration of more comprehensive reward and recognition programs.
Also, Human Resource Management Systems can provide a wide range of functions and features (anyone for AI or HR chatbots?). Furthermore, the aforementioned features can be implemented in a wide variety of ways. A recruitment module could analyze applicants’ resumes, while another could assess them with gamified tests.
In our exploration of the various modules within a Human Resource Management System (HRMS), we’ve delved into the transformative power of technology in HR operations. At AskTech, we’re committed to providing innovative solutions that empower organizations to optimize their human resources, making work more efficient and productive.
Each HRMS module we’ve discussed, from payroll and recruitment to employee self-service and compliance, reflects our dedication to helping businesses succeed in the modern world. Our customizable HRMS offerings cater to the unique needs of your organization, ensuring you have the tools to elevate HR processes and employee experiences.