What is HRMS Software and What Are the Benefits of HRMS Software?

What is HRMS Software?

HRMS software is a digital solution for managing and optimizing the daily activities of human resources. The software enables area staff and managers to better allocate their time and resources to more productive and profitable efforts.

HRMS software technology has come a long way since computers were first used to manage human capital data in the 1970s. Now, most of the new systems are cloud-based, subscription-based, easily integrated with other data management programs, and highly customizable to the needs, goals, and budget of an individual organization. In short, there is now a human resources software solution for every size and type of organization.

What Does HRMS Software Do?

Human resources software assists an organization's HR department by automating manual tasks, organizing employee information, and creating data-driven reports. All of this is done electronically, eliminating the need for paper documents. The software can also serve employees and managers within an organization, helping with tasks such as time tracking, updating employee directories, and performance management.

Some of the functions that HRMS software can perform include:

• Safe storage and organization of employee data
• Create workflows and track approvals
• Self-service time tracking
• Monitoring of employee training for development and compliance
• Employee satisfaction measurement and reporting
• Performance management and goal tracking
• Automation
• Third-party application integrations
• Monitoring of all data changes
• Production of customized reports to provide strategic information

All of these actions are performed with an HRMS software suite.

What are the benefits of HRMS software?

While there are many benefits to using HRMS software, one of the biggest is its ability to reduce the time spent on repetitive, low-impact administrative tasks, which allows HR professionals to focus on more productive responsibilities and strategic outcomes in the longer term.

Apart from that, other important benefits include:

• Reduced errors
• Better organization of employee documents and data
• Optimized processes
• Continuous feedback
• More accurate analysis
• Improvements in planning
• Keep organizations compliant with regulations

What is meant by integrated HR management software?

For integrated software solutions, in the human resources sector, we typically mean an application capable of managing all the processes related to HR management, such as wages and contributions, attendance, holidays and leaves, recruiting, personnel evaluation, management of the training plan, etc. In this case, the modules that compose it share the same database and the same code.

An integrated software solution sets up a real-time connection between two or more modules, in which the data entered in the single database are immediately available to everyone.

In this way, a change made in the Payroll module is immediately visible and also available in the other modules.

Main advantages of an integrated HR management software

The main advantages of an integrated solution for HR and Payroll are:

• real-time data update on all management modules;
• only one interface to learn to master;
• all data is contained in a single database.

How to Choose

Having reviewed the strengths and weaknesses of each solution, let's see what are the factors that should guide the choice.

Current situation. If we already have a Payroll software that we are satisfied with or we outsource this function and we want to change only our application for HR, it is better to opt for a specialized solution. If, on the other hand, we want to change the entire business management system, then an integrated solution could prove to be less expensive.

Refresh rate. Most companies do not need to update payroll and contribution data and other modules dedicated to HR management in real-time. Unless your company has special needs, then, you can go both ways.

Centralization vs Specialization. Do you think it is more important to centralize information in a single system or have the most advanced and specialized software for each function?

Security. In case of failures or malfunctions, having specialized tools allows you to limit the problem to the software in difficulty.