Human Resources Management System (HRMS)

What is a Human Resources Management System (HRMS)?

Basically, a Human Resources Management System is a digital personal assistant to do tedious work for HR professionals. An HRMS helps manage employee functions like calculating and communicating time-off, onboarding paperwork, and managing employee performance—which lets HR focus on more important, strategic work.

Why is HRMS Needed?

No matter the industry or size of the company, HRMS is an integral part of running an organized, efficient human resources department, and overall business.

HRMS allows businesses to automate many processes and reduce errors, giving them a leg up against the competition and allowing them more time to perform necessary tasks. This type of platform eases communication, gives companies a way to monitor employees, and saves money over time.

A growing number of businesses are relying on HRMS to improve the hiring process, make onboarding more efficient, and improve overall satisfaction and productivity among employees. After all, employee satisfaction is strongly tied to company culture and employee turnover, and happy employees will make your company more efficient and profitable.

How Does an HRMS Work?

HRMS assists an organization’s human resources department by automating manual tasks, keeping employee information organized, and creating data-driven reports. This is all done electronically, eliminating the need for paper documents.

Because every business is unique, you can usually choose the apps and features you want for your HRMS. Each user will then set up a username and password to access the platform. Supervisors can tailor access according to the needs of each employee.

If a company has multiple locations or HR supervisors, they can access the HRMS from their various locations and get real-time updates on the status of various tasks relating to recruiting, payroll, benefits, and more.

When a user updates information within the HRMS, the changes are reflected across the platform and are stored in a secured cloud. For even greater ease of use, the HRMS can be integrated with other data management programs as needed by the company.

What's the Difference between HRIS and HRMS?

So, what’s the difference between a Human Resource Information System (HRIS) and Human Resource Management System (HRMS)? Most providers have combined the two systems and use the terms interchangeably since they work so closely together. Traditionally, an HRIS has been used to describe a system that tracks static employee information like social security number and name while an HRMS focuses more on the aspects of managing employee functions like performance, time off, and onboarding.