A Human Resources Management System (HRMS) is a system that consolidates many human resources function into one efficient package.
Predominantly software-based as a HR Management Information System (HRMIS), functions may include:-
- benefits administration
- Heath and Safety
- performance analysis and review
How HR Management Systems help businesses
A HR Management System will undoubtedly help your business, not least by streamlining data management, documentation and processing into one holistic, efficient system.
Labour-intensive work can be standardised and reduced, as repetitive tasks (presentations, policy and reporting) can all be centralised.
Often in conjunction with an Enterprise Resource Planning (ERP) software, a HRMS allows the human aspects of a business (Operations, Logisitics etc.) to be married up to the financial aspects (cashflow, payroll, profitability, operating costs etc.) to accurately and clearly display business performance and efficiency.
Functions of a HRMS
A typical HRMS system will often be customised to provide a bespoke solution for a business, or off-the-shelf modules purchased to replicate the particular requirements or business type.
Some regular business functions that can be incorporated into a HRMS are:-
- Time and Attendance
- Financial – payroll, taxation, expenses
- Benefits administration – insurance, profit sharing, compensation, retirement, medical, equipment and asset management
- HR Planning
- Staff Training – records/certification
- Learning Management
- Employee self-service
- Absence Management
- Analytics – business intelligence
- Disciplinary Procedures
Applications of a HRMS in business
Depending on the size of a company, it could be only specific ‘packages’ of a HRMS are applied. Whilst it’s highly likely software will implemented, there are paper/documentation-based HRMS around although these are becoming almost obsolete now.
Software-based HRMS can be implemented from a local/enterprise system, or even be cloud-based, and can work with desktop, tablet and mobile devices.
For example, a company could choose to implement a Learning Management System (LMS) to onboard its new employees about processes and systems within the business.
Recruitment departments may implement a recruiting package, for talent development – internal and external – but also to ‘data share’ with outside recruitment agencies.
Finance Departments will often employ speficic accountancy packages to handle payroll, receivables, payables, expenses etc. but these will often be closely synchronised with HRMS processes for employee timekeeping.
Project Management tools will also link with HRMS, for aspects like time tracking, risk management, billable hours, Works BreakDown Structures (WBS) as well as timelines for delivery, implementation and operation of services.
A popular HRMS application in business today is of employee self-service, where employees can integrate directly with the workings of the company – such as booking vacation time, learning processes, availing of benefits, and day-to-day administration such as tracking company car mileage.
Conclusion: HRMS can provide a boost to almost any business
If a business has specific routine functions, it’s highly likely any aspect of these can be made more efficient by application and integration of a HRMS.
No matter how big or small, companies can benefit on human – as well as financial capital – along with greater efficient and effectiveness.