Human Resources Management: What Is an HRMS?

HRIS
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Liz Strikwerda

Content strategist and corporate blogger (2000+ posts). Her work has been featured on G2's Learning Hub, Human Resources Today, Better Buys and over 500 business websites. She plays bluegrass mandolin and enjoys sailing her catamaran and hiking in the red rock wilderness of southern Utah. Connect with me on LinkedIn

Choosing enterprise Human Resources software can be overwhelming. There seems to be more options than ever before. And choice overload doesn’t help.

In today’s post, we look at a platform that does it all: HRMS (Human Resources Management System), sometimes called HRIS (Human Resources Information System).

What is an HRMS?

HRMS is an umbrella term for an integrated HR software suite. Each tool allows you to manage one or many HR processes in the employee life cycle. Whether the task is done daily or once a year, the HRMS performs and documents the actions.

The various tools interact with your employee database. They also work together, sharing information and coordinating processes. (Hence the term ‘system.’) This eliminates most of the manual data entry required with spreadsheets.

How Does an HRMS Work?

An HRMS automates things HR used to do by hand. Electronic documents replace paper forms and file cabinets. Templates streamline repetitive workflows. Employees complete forms online and verify with e-signature.

Today’s HRMS have mobile access and employee self-service (ESS).

What Does an HRMS Do?

Here are broad categories of HRMS functions with the related sub-processes and features.

Recruiting/Hiring

Onboarding

Time and Attendance

Employee Scheduling

  • Multi-team scheduling
  • Graphical interfaces
  • Shift trades
  • Schedule adherence
  • Overtime alerts
  • Labor force planning

Employee Engagement

  • SMS alerts
  • Company directory
  • Quick surveys
  • Rewards
  • Anonymous suggestion box
  • Wellness programs

Employee Self-Management

  • Virtual shift trade board
  • Timesheets
  • Work schedules
  • Paystubs
  • Tax forms
  • Policies and procedures

Provable Compliance

  • Audit history
  • Reports
  • Certifications
  • Hiring practices

Manager Tools

  • Time off requests
  • Schedule templates
  • Schedule rules/alerts
  • Geofencing/mobile clock in/out
  • Timesheet approvals
  • Overtime management

Training and Development

  • Performance reviews
  • Product/services training
  • Succession planning
  • Talent pipeline engagement

What can an HRMS do for my company?

We’ve outlined the nuts and bolts. Now let’s discuss high-level benefits.

Visibility

24/7 visibility of business operations. Analytics detect trends early. This lets you make proactive instead of reactive decisions.

Labor Cost Management

Optimizing human capital ensures you get the most value from your labor dollar. Employee schedule forecasting. Overtime alerts to avoid costly time-and-a-half. Schedule lockout prevents time card padding. Real time productivity monitoring.

Increased Accuracy

A webclock captures employee punches. A computer calculates hours. This prevents payroll mistakes due to human error.

Convenience

Mobile HR management for employees, supervisors, and admin staff. Templates streamline processes. Search tools access information with a mouse click.

Workplace Culture

Your workplace culture is inextricably linked to HR management. When an applicant applies, they are exposed to your culture. Each interaction reinforces it. An HRMS reinforces your commitment to efficiency and innovation. It allows your employees to find answers to HR questions so they can concentrate on their job duties.

Collaboration

An HRMS centralizes information. Everyone in the organization can interact with the necessary people data. Real time updates reduce confusion.

What Kind of Companies use an HRMS?

Small businesses, mid-size businesses, and enterprise level organizations use HRMS. They can be found in every industry around the world. Companies that are 100% virtual can manage remote employees in every time zone.

How Much Does an HRMS Cost?

There is such a wide variety of configurations, it’s impossible to pin this number down. Systems designed for small businesses can cost less than ten dollars per employee per month. Swipeclock’s WorkforceHub, for example, is only $6 per employee per month. It includes all modules for core and strategic HR functions.

Systems designed for enterprise businesses can cost hundreds of dollars per month.

It’s important to know, however, that cloud computing has sharply reduced the prices. You don’t have to house the software on company servers. Your HRMS vendor keeps the software secure and up-to-date.

It’s important to not that you can use cloud-based HRMS with capabilities that used to cost thousands of dollars.

WorkforceHub

WorkforceHub is one of the most affordable HRMS on the market. The tools integrate seamlessly and the interface is so intuitive it requires very little training.

WorkforceHub is a one-stop HR resource that revolutionizes the way you run your business.

Simplify HR management today.

Simplify HR management today.

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