HR Management System (HRMS) software: purchase guide
What is HRMS Software?
Definition
A Human Resources Management System (HRMS) is an HR software designed to manage all of the HR processes of your company such as recruitment, training, payroll management or administrative management.
Human Resources Management Software (HRMS) such as Sage HRMS, Recruiterbox and BambooHR, ensures that HR processes are automatically following national and European legislation.
How Does it Work?
From recruitment management to training and career management, HRMS software offers many features:
- Administrative tasks management: holidays, retirement, expense reports, time and schedule management, activity reports, etc.
- Career management: personnel file, profile and skills updating, internal mobility, training requests, etc.
- Internal procedures management: memos, annual interviews, notice to attend health consultations, internal regulations, etc.
Secondary needs are identified according to the company's specific expectations and are expressed in the form of modules to be added to the HR solution:
- Recruitment and career management
- Management of expense reports
- Time and activity management
- Leave and absence management
What Are the Main Features of HRMS Software?
Administrative Management of Staff
HRMS works like CRM software applied to human resources.
You have an employee file that centralizes information according to individuals: resumes, position, skills.
In addition, there is a document manager (DMS) or electronic safe to access your employees' contracts or payslips.
With this management software package, you also manage working hours by activity (GTA) and the schedules of your employees:
- Pre-filled time sheets take into account working days, time-slots and public holidays to simplify time entry.
- Schedules for each individual or team can be entered and distributed to the individuals concerned.
- Time Management by Activity (task, project, mission, internal or external) can be performed by the HR department, or directly by the employee on his HR portal.
With this IT tool, you can simplify the handling of leave and absence. Each employee has a self-service portal on which he or she can access his or her time counters (remaining balance, days set and days to be acquired) and can submit requests. These are automatically submitted to the HR manager for validation. An accepted request automatically notifies the applicant, counts the days set and updates the schedules.
Expense Reports
The HRMS offers employees the possibility to record their business expenses (travel expenses, meals) manually or simply by taking a picture of an invoice using the OCR (Optical Character Recognition) technology of the mobile application provided by the software editor.
Expense reports are automatically sent to the HR department for validation. A validated request automatically triggers the refund workflow.
Recruitment of New Employees
In the e-recruitment phase, the HR system simplifies sourcing in your resume library or on LinkedIn: you identify certain essential criteria (knowledge and skills), and the tool evaluates the relevant profiles.
When a talent is identified:
- You send an automatic notification to the applicant to schedule a job interview
- Prepare for the interview: create questionnaires or select one.
Human resource planning
In addition to the recruitment process, an HRMS software lets you manage your employees' skills:
- Define job descriptions and evaluate the skills of the candidates
- Mapping of the company's skills and identifying needs
- Define a plan and manage HR training
Talent management, which is included in Human resource planning, lets you schedule individual assessment interviews and establish career plans for example.
HR Management
HRMS provides a dashboard that gives you an overview through a series of key performance indicators (KPIs) related to human resources:
- The social balance sheet and the development of the total payroll: recruitment, salaries (fixed and variable distribution)
- The rate of employee turnover and its increase
- Reporting on wellness at work;
- Measuring individual potential and identifying key individuals and new talent
- Etc.
From your interface, you can generate automatic reports that will support the justification of the cost of a project, the time spent in case of labour inspection control, or in creating administrative files.
Who Uses HRMS Software?
Previously limited to the HR functions (departments and human resources managers) of large groups. Today, HRMS Software is adapted to small and medium-sized companies (SMEs), this saves them time and productivity in managing HR processes.
And, they can add additional features or extensions to the HR tool as they grow.
HRMS Software is a key management tool for a company that is looking to expand abroad. This will make it easier to deploy new teams, comply with local culture and legislation, and consolidate data across the group.
Why Use an HR Management System in a Company?
HRMS Software lets your HR managers rationalize the tasks related to human resources management.
Advantages of using an HRMS
- All HR data is centralized in one tool, fewer errors related to multiple entries of the same information
- A wide array of features that automate certain time-consuming tasks and allows you to focus on strategic human resource management
- HRD, CFO, Managers, Employees, all work together and save time
- API that allows the tool to be integrated into the payroll and accounting software to automate accounting entry
- A cloud solution that automatically backs up data
- Software that takes into consideration legal obligations, international rules and HR policy.
Disadvantages of using an HRMS
- Outsourcing of a company's sensitive data to a third party
- Risk of disclosing certain strategic information to all members
- These SaaS solutions may lack flexibility in relation to the HRMS processes specific to each organization
To know more about HR process automation, discover our guides on HRMS.
