HRMS: What is a Human Resources Management System?

What is an HRMS (Human Resources Management System)?

An HRMS, or a human resources management system, is an integrated suite of software tools that automate HR processes. An HRMS is similar to other types of HR systems. These include HRIS (Human Resources Information System), HCM (Human Capital Management) and HRM (Human Resources Management).

In this article we will dive into the differences between these systems, and describe how an HRMS can be a huge benefit to your business.

How is an HRMS different than other unified HR solutions?

HRIS tends to focus on information instead of processes. HCM is generally designed for enterprise workforces. HCMs often include components that aren’t applicable to small and mid-sized organizations. HRM puts the focus on Human Resources management to the exclusion of information processing.

An HRMS is comprehensive, including both the information and management tools found with the other platforms.

An HRMS includes:

1. Hiring and applicant tracking
2. Onboarding
3. Core HR: HR documents, PTO, payroll integration, benefits
4. Time, attendance, scheduling
5. Performance management

How can an HRMS help your business?

Employee self-service

HRMS allow employees to complete Human Resources transactions on their own. Custom on-premise and SaaS platforms allow employees to log into the system from an internet-connected device. Once in, they can handle HR tasks. For example, they can clock in for shifts, see their work schedule, request vacation and update their contact information.

Employees can immediately get answers to their HR questions in the portal. Was my paycheck deposited? Do I work next Friday? When does open enrollment end? Did my manager approve my vacation request? After tying up any loose ends, they start their shift ready to focus.

Improved management

It’s amazing how improved oversight increases effectiveness. Managers can make better decisions because they have more information and an easier way to interact with employees.

• Approve timecards, shift changes, and PTO requests
• Monitor onsite, mobile, and virtual employees
• Ensure employees sign important documents
• Provide flexible schedules without coverage gaps
• Limit overtime without missing production goals
• Identify top performing team members and reward accordingly
• Spend less time doing paperwork and more time helping your employees succeed

HR efficiency

An HRMS transforms HR job roles. Administrators can use the HRMS to:

• Post jobs, track applications, and make better hiring decisions
• Manage onboarding and monitor completion of new hire paperwork
• Save time not having to answer payroll-related questions
• Track employee hours for payroll
• Manage employee benefits
• Track performance reviews
• Keep the employee handbook up-to-date

HRMS analytics

An HRMS provides a wealth of analytics that increases in value over time. This includes hiring, time and attendance, scheduling and productivity data.

HR Compliance

There is a compliance component to virtually every HR process. Anti-discrimination laws affect recruiting and hiring. FLSA regulates minimum wage and overtime. Fair Workweek laws influence shift scheduling. Plus the Affordable Care Act, the Family Medical Leave Act, and laws at the state and local level. Add collective bargaining agreements, industry regulations, and provisions that apply to government contracts. On top of it all, employers are required to keep records to verify compliant practices. It helps to have several employment law experts on your HR staff!

An HRMS automatically keeps records. You can set alerts for pending overtime. Configure timekeeping for meals/breaks laws. Administer protected leave. Manage your employee handbook and verify new hires have read and acknowledged company policies. Run EEOC reports on your hiring data. An HR portal protects your company from DOL audits and employee disputes.

See also

• Human Resources management
• HRIS
• HR software
• Applicant Tracking System

Additional resources

• 13 Smart Ways Businesses Are Leveraging Tech In HR
• HRMS Success: How to Manage Human Resources in 2021
• 7 Ways an HR Portal Can Radically Transform Your Business