What is HRMS? Human Resource Management System (Complete Guide)
By: Brian Habibi -
Modified Date: October 25, 2023
Table of contents
Human resources (HR) are often the core of your organization who have a passion for people. They can shape your corporate culture and ensure you are hiring and retaining your talent. The tricky thing is that running smooth HR operations requires a lot of work. Managing employees and employee information is steeped with different aspects, from local law compliance to ensuring your payroll run on time, not to mention your employee experience. The good news is that Human Resource Management System (HRMS) can ease the burden on your HR professionals by automating manual processes, so they can get back to the part they love most – your people!
What is a Human Resource Management System?
Human Resource Management System is a software combining the different systems and processes of HR. It uses technology to solve, manage and perform those processes often with the help of automation. An HR Management System can be used in a variety of HR functions from candidate recruitment to payroll management.
What are the functions and features of HRMS systems in 2023?
To better understand how HRMS works, you should consider its main functions and features. The intricate details always depend on the software in question, as there are many HRMS products out there. However, they typically have five core modules. These are:
1. Payroll Processing
The most common system is payroll. The HRMS software can be a full payroll management system or utilise it as a function. For example, it could simply use certain elements of payroll as part of its functionalities.
2. Benefits Administration
Tied closely to payroll is benefits administration and management. An HRMS can eliminate the time HR professionals spend on looking after benefits, such as healthcare insurance and family support.
3. Training systems
A big part of a good HRMS focuses on training your employees. An integrated training system can track skills and make sure the employee skillset is up-to-date. The benefit of HRMS is the ability to tailor training systems to individual employees.
It’s not just about training your existing employees either. A good HR system will help with the recruitment process. The features can help with each step from creating job postings to onboarding.
5. HR metric analysis
Whatever functions your HRMS software has, it will almost undoubtedly feature analytical tools. These can take the wealth of data created and turn it into actionable information. You can use the data to understand what is happening in the business and how to improve it going forward.
How HRMS System can benefit SMEs?
What is HRMS software & How does an HR management system help your organization? The multiple functionalities lead to actual, tangible benefits. These include:
Improves your hiring – Not only can the software boost hiring practices, but it can also ensure you attract more talent. Applicants can find your hiring processes smoother and the employees you hire are likely to be happier. You hire people for the right positions which drives up growth!
Frees up time and increases efficiency – With automation and the use of the cloud, your HR department has a lot more time on their hands to focus on what really matters. You don’t need them to prioritize between the more mundane aspects of HR (that still matter!) and the tasks that require a human touch. Professionals can put their focus on key HR tasks, including employee outreach.
Boosts your data collection and improves decision-making – HMRS systems are treasure troves when it comes to data. You will learn a lot about your organization and with the help of these systems, you can analyze and use the data to your benefit. You will be better at predicting the future and creating systems that reflect what actually works for your business.
Enhances your security – While many still fear for the use of digital tools, the right product can actually help keep your data safer. HR systems have great encryption these days to ensure personal information is safe. In many ways, these tools can be safer than your old paper file systems.
Minimizes compliance issues – In the current business world, compliance is the king. Whether or not your small business works across national boundaries, you’ll need to comply with a lot of legislative steps. Complying with laws can be costly but choosing the right HRMS in Dubai can make it a lot easier. Because these HR solutions use the cloud, the adaptation of new compliance rules is also easier.
How to find the right human resource management system for your businesses?
An HRMS can help with many essential HR functions. The use of the software can provide small businesses with many benefits, cutting costs and improving productivity. But SMEs must understand that not every HMRS is the same and not every software is suitable for every organization. It’s important to know there is no ‘one size fits all’ in HR solutions. Each company is different and each HRMS will offer different things.
Finding the right HRMS for small businesses is possible with the right approach. Your organization has to approach choosing an HRMS with these key things in mind:
Understand the basics of HRMS – You want to learn what they are and how they function. Having a good grasp of the software will make it easier to understand which products are good and which might be lacking in features.
Identify your unique needs – You need to look at your organization and its HR needs. You should figure out the key areas you need help with before you start comparing different products. It’s hard to find the right HRMS software if you aren’t sure what you need or want to achieve.
Compare different options – Like with most things, organizations shouldn’t just pick the first thing they see. Comparing different options tends to lead to better outcomes because you have a wider perspective on what the market offers.
Talk to the company and assess them as a whole – You shouldn’t focus purely on the software. You’ll want to view the customer service you’re getting along with other values and practices the company has to know if it’s a good fit. Even the best of products can’t cover a lack of customer support.
If your organization follows the above steps, then it can match what it needs from the software to a product that delivers.
The last few years have been tough to HR. The pandemic has put a lot more pressure on HR to deliver results and employee management has become harder. A lot of teams have had to work remotely and the management of employee benefits has changed. Having a good HRMS system to support your business is crucial more than ever in 2023.
Finding the right HRMS system in 2023 is not hard. It takes a tiny bit of research and analysis. You want to find an HR solution specializing in the UAE workplace that uses the latest technology to deliver results. We believe at Bayzat that the modern HRMS system needs to be fast, flexible, and compatible with varying business needs.
If you want to find out more, then check out our Payroll and Employee Benefits software. We will gladly answer any questions or concerns you might have. Let’s make 2023 the year your HR took the next big step!