Human Resources Management System (HRMS)

What is an HRMS System?

A Human Resources Management System (HRMS) is a suite of integrated software tools that perform Human Resources tasks. 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 modules and tools sync with your employee database.

A Human Resources Management System automates tasks managers, administrators and employees would have to do manually. Digital documents replace paper forms and file cabinets. Templates streamline repetitive processes. Employees complete documents online and verify with e-signature.

Let’s look at the HR functions supported by an HRMS platform.

Recruiting/Hiring

• Applicant tracking
• Managing job descriptions
• Receiving/tracking applications
• Posting positions to job boards
• Screening questionnaires
• Resume parsing
• Interview scripts
• Standardized candidate scoring
• Auto-communication: emails/texts
• Talent pipeline engagement

Onboarding

• I-9
• Employment contract
• Direct deposit authorization
• W2, W4
• Benefits enrollment
• Employee handbook acknowledgment

Time and Attendance

• Punch in/out
• Timecards
• PTO management
• Import hours to payroll
• Mobile punch in/out
• Geofencing
• Absence management
• PTO requests/approvals/tracking

Employee Scheduling

• Shift planning
• Schedule publishing
• Multi-team scheduling
• Graphical interfaces (drag and drop employees into shifts on a calendar)
• Shift trading
• Schedule adherence
• Overtime alerts
• Labor force planning

Employee Engagement

• SMS alerts
• Company directory
• Surveys
• Rewards
• Suggestion box
• Employee recognition
• Wellness programs
• Employee self-management

Analytics and Reporting

• Time and labor metrics tracking
• Hiring, retention, engagement tracking
• Benefits tracking

How Does a Human Resources Management System Help My Company?

• 24/7 visibility into business operations
• Improve labor management
• Prevent payroll mistakes
• Helps remote and mobile employees perform their jobs offsite
• Streamline processes

What Kinds 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. This includes businesses with onsite, mobile and remote employees. Companies that are 100% virtual can manage offsite 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. Platforms designed for small businesses can cost less than ten dollars per employee per month. Systems designed for enterprise businesses can cost hundreds or thousands of dollars per month, depending on the functions and number of employees.

It’s important to know, however, that cloud computing has sharply reduced the prices. Small and mid-size businesses with smaller budgets can use a SaaS (Software as a Service) model which is similar to a subscription. Companies pay a monthly fee which is generally a flat rate per employee. Unlike Legacy systems, there is a relatively small upfront cost.

See also

• HRMS Success: How to Manage Human Resources
• Time & Labor Buyer’s Guide
• Time and Attendance: Timekeeping, Policies, Software, Compliance, Templates