Human resource is apparently the most important factor of any company or organization. Management of human resources information, on the other hand, is not that easy and involves complex processes. This information is used for multiple tasks from recruiting to training, and evaluations in the end too. Now, the workforce is definitely not enough to handle all this information, and hence requires efficient management software for the same.
» What is an HRMS?
This management software is known as an HRMS software (Human Resource Management System) which is a system that connects information technology with human resource management. This HR software (Human Resources Software) can be used for payroll management, succession planning, performance evaluation, recruiting process, leave approval, or attendance tracking. Since all these tasks are performed repetitively, such software saves time invested by the valuable employees, and they can then focus on more important tasks.
HRMS- human resource management system is an extensive software that eases and integrates the core HR functions with strategic functions, all into one solution. It acts like a self-service platform for employees with a centralized database including all the important information about employees. Recruiting, automating administration, and reducing turnover are three main roles that HRMS plays. This is why it's an estimate, the HRMS market will probably extend by $30 billion in the coming 5 years. Companies prefer spending a significant amount of investment on HRMS in order to enjoy returns that follow.
For any organization, its workforce is the biggest asset they acquire. This is why the ability of an organization to hire top talents for every job position defines better results for it. But, hiring them isn't as difficult as managing that talented workforce, and it's even more difficult without the right approach and tools to help with that approach.
To deal with the above-stated problem, companies nowadays believe in spending a huge amount of money on HRMS software since they change the entire way day-to-day activities work making them even more efficient for the company. HRMS software not just simplifies day-to-day activities, but helps employees gather all their important data in one place. Since HRMS can turn out to be an inexplicably important part of organizations, there are multiple options to choose from so as to get a hold on a suitable HRMS software as per an organization's specific requirements. The top 10 available HRMS software are:
With BambooHR, an organization has the opportunity to set their employees free, and let them use the HR knowledge to build a workplace culture as they find convenient. Moreover, no other Human Resources Software company will consider a client's feedback for a certain improvement like BambooHR does. They put the customer experience above everything and try to put their client's success over their own. BambooHR HRMS helps you gather, store, and analyze the data of your people and manage it accurately.
• Single and secure database with powerful reporting tools
• Mobile hiring app with applicant tracking tools
• Easy onboarding process
• Reliable methods to track payroll data
2. Sage HRMS
Sage HRMS software is one of the most comprehensive yet customizable HR software today, especially for small and medium-sized businesses. It'll get you closer to conquering all the HR challenges you generally face in your organization, and will also play a crucial role in taking major decisions. Using Sage HRMS, you can save your time and reduce employee turnover using a single software to choose the best leaders for your organization.
• Helps you improve time management and track employee absences
• Payroll, performance reviews, and benefits management in a single software
• Relevant and reliable recruiting solutions
• Rich workforce analytics for better decisions
3. Zoho People
Zoho People, a human resource management system, is believed to provide every tool required to build, motivate, and manage the human resources of an organization. Zoho has designed its software in a way that bridges the gap that exists between management and employees since it provides all the information you need about the employee's department, location, or designation in a second under one roof. Moreover, the security of the entire data and software convenience is a plus.
• Allows you to generate accurate reports based on employee performance
• Highly customizable design with an option to add new services, or modify the existing ones whenever required
Oracle HCM is a human resources management system that helps you deliver experiences that empower your employees to put in their best work using technologies that are familiar to them. Unlike many other software in the market, Oracle Cloud can also be operated through your voice wherein a digital assistant will lead you to quick and accurate answers. Even if your employees find a particular function difficult, step-by-step workflows will help them instantly.
• Simple consumer configuration options
• Innovations in every few months with updated technology
5. Paychex Flex
An HR software that keeps all your important data organized at a single place while it's also extremely easy to access any second of the day. Now, since you'll have all the HR information in a single place, it'll be easier to share employee profiles when needed, stream forms, and set reminders for important events. Make better decisions about multiple health benefits by closely analyzing their effect on your employees and also their cost to the company. With multiple software, make informed decisions considering the employee insights like OSHA accident and illness forms.
• Centralized data administration
• Manageable onboarding process
• Modern performance management tools
For any organization, empowering their employees to some activities can prove to be a smart choice, and using Kronos, you can provide some useful employee self-services to them. It'll also impact your HR productivity positively. This HR software will also help you engage with your employees, control extra costs, and also reduce compliance risks. Everything will seem easier from benefits administration to talent management, and organizing everything will be efficient with Kronos.
• Single employee record
• Consistently enforced policies
• Useful HR insights from one of the best HRMS systems
• Modern workforce HR solutions
• Convenient hiring, retaining, and engagement with employees
Paycor helps you with everything from recruiting to payroll and benefits to onboarding. This HR software is not like others and will actually help you make a difference with their expertise. With every single trend in the market, Paycor also modernizes the way you can manage your people, recruit new employees, or develop existing talent in the organization. With the right technology and leadership techniques, accomplish all the management goals you've set for your organization. Build a strong company culture with an entirely satisfied workforce that believes in self-service more than anything.
• Up to speed hiring
• Improved employee experience with benefits and ACA
• ATS and recruiting HRMS tools
Ultimate Software is believed to be one of the best systems to offer HRMS technology since it's specifically designed to put your workforce first. It simplifies complex HR activities and provides timely employee insights to help you make important decisions about them. You can easily optimize your workforce activities, and improve the work culture for your people using Ultipro.
• Powerful Artificial Intelligence (AI) intuitions and convenient user interface
• Supports complex organizational needs like payroll, HR, talent, and time
• Recruiting, onboarding, and file management
9. Workday HCM
Unlike many other HCM systems in the market, Workday forecasts and prepares its technology for whatever may come next. For this constantly changing world of HR, Workday will help you deal with the changes your workforce needs, their way of work needs, and even the skills that need to be updated with the technical updates. Workday also helps you generate recommendations when needed, maintain clear communication with your employees, and suggest new learning methods to your people.
• Talent strategies using machine learning
• Strong and accurate people analytics for better-informed decisions
• Automation to reduce human efforts
For an even better and engaged workforce as well as a more resilient business, SAP SuccessFactors enables the easy shift of HCM from transactional nature to personal experience for both ends. SAP reassures every employee's experience to be good in the company, and if not fosters a caring culture for them. The work environment after using SAP HCM has a spark, passion, resiliency, and problem-solving factors in it. All they do is put people in focus, and rely entirely on them for amazing work culture.
• Not HCM but HXM
• Real-time financial reporting
• Automated routine tasks
• Accurate analysis
» What is HRIS?
HRIS meaning in HR can be viewed as an intersection of human capital with technology in order to carry out HR activities that can easily occur electronically. Basically, HRIS (Human Resources Information Systems) systems can be considered to be a simpler way to manage activities related to human resources as well as accounting, management, or payroll. This is yet another way to save and manage HR costs even more effectively without employing more people for the job.
At times, HRIS software is also put in use to increase the efficiency of the decision-making process, which in result automatically rises productivity for both employees and managers.
» What is HCM?
HCM meaning Human Capital Management is a collection of all the activities related to human resource management. Human capital management definition can be explained with its software that's a technical application of a system where employers can manage their human capital.
With this human capital management system, one is free to use as many functions as required by the organization. This entire HCM software is designed to store and record all the data based on employees of the organization.
» HRMS vs HRIS vs HCM
Well, it's a similar situation as Potato patato when it comes to comparing these three as an HR Software (Human Resources Software). In fact, nobody even bothers to differentiate between these terms since they're extremely difficult to distinguish. But, with increasing value for such systems, it's now important to understand how they actually differ from one another. Here it is:
› HRIS Software
Capabilities of HRIS Software:
• Recruiting activities, including the job posting, resume storing, interview management, and application tracking system.
• Increasing productivity of the company adding up to smooth workflow.
• Employee absence management
• Training and development of trainees into employees.
• Salary management from paid time off, bonus pay, overtime compensation, and other company-funded activities.
• Providing employees with easy access to enrollment in health insurance.
• Maintaining a database of employee information.
• Providing a self-service portal giving each member access to edit their information if required.
› HCM Software
Common functions offered by an HCM system:
• All the functions of HRIS Software
• Tracking employee's productivity, performance, and more.
• Detailed analytics to get an in-depth view of the company's key metrics.
• Providing access to the entire database of a company's data, documentation, knowledge base, and policies.
• Helping the newly-hired employees keep up with speed by streamlining the entire hiring process.
• Wisely positioning and authority distribution in the company.
› HRMS Software
HRMS software includes the following:
• Everything that HRIS and HCM do!
• Controlling employee schedules, increasing productivity, tracking project deadlines, and much more.
• Automatically calculating payroll, taxes, deposits, and every finance-related transaction.
» Types of HRMS Software
The world today is technical. When we look back, there have been technical updates that nobody ever expected. The benefit of the same is that a lot of jobs can now be done faster, with less hassle, and quite effectively. But, when it comes to types of HRMS systems, it can be a little confusing to understand which one does what. What's the difference between attendance HRMS software and payroll software? If you don't know, the information below will be a lot helpful.
Type 1: Benefits-focused HRMS software
In any organization, employees play an indescribable role which makes it important for management to take care of their employees and offer them some additional benefits except the usual pay. Benefits-focused software helps you do that.
• Benefits: This human resource management system will manage and keep track of employee benefits such as overtime, compliance, health insurance, and retirement, all in one place. But, this module is often an integration of a much larger Human Resources Software.
• Compensation: This HRMS system also takes care of all types of compensation, including pay, commission, incentives, bonuses, etc. One can also track all this information at any time with the HRMS software.
• Payroll: The act of paying employees can be handled directly from this software. It'll also take care of deposits, taxes, cheques, etc.
Type 2: Recruitment-focused HRMS software
Generally, organizations go through a detailed hiring process where they need to handle hundreds of resumes and then coordinate with multiple departments at the same time. In such cases, recruitment-focused HRMS software works best. Here are a few roles that this HRMS technology plays:
• Applicants tracking: This HRMS solutions software is nothing but another recruiting software. It'll allow you to get to job applicants and track them through the hiring process. Many such software also allows you to post job openings online.
• Job boards: Such software sometimes also help you post and track jobs over multiple existing job boards such as Indeed or Naukri. Sometimes, you can also create your own job board for the company's open positions.
Type 3: Performance-focused HRMS Software
Many companies like to keep track of their employee's performance throughout the year, and especially during the employee review season. Such software helps the companies perform the reviewing process well. Here's what they do:
• Performance Tracking: This HRMS software allows you to track and manage all the employee goals, compensation plans, performance, and learning scales. This makes the employee performance review a quicker and easier process.
• Feedback: Some performance-focused systems have a 360-degree feedback feature where anybody can review anybody anonymously. Employees can even rate their managers as per the relationship, and so can the teammates.
• Employee appraisal: Through constant employee review, such software makes it easier to recognize top-performing employees so that they can be rewarded accordingly.
Type 4: Training-focused HRMS Software
For an organization to have an effective, engaged, and knowledgeable workforce, they need to provide adequate amounts of training to the employees. A training HRMS software helps an organization deliver that training. Detailed functions of training software are:
• Courses: With training-focused HRMS software, an organization can author multiple courses and training materials to comply with other learning management systems.
• Learning: Using this software, an organization can deliver training material directly to the employees with tests to track their performance.
•Onboarding: All the effort that is put by companies to onboard and recruit new employees in the company is handled well by the training HRMS introducing them to the work culture there.
Type 5: Talent-focused HRMS software
Talent management includes everything so far since it's a collection of recruiting, payroll, benefits, training, and benefits-focused HR software. This software is basically an all-in-one solution for everything that's listed above. You can either go for a specific software catering to a particular need or go for this one catering to everything.
Type 6: Workforce-focused HRMS software
This HRMS software simplifies the usual day-to-day activities in the workplace. It includes attendance tracking, employee scheduling, employee management, employee engagement, and time and expenses activities.
» HRMS Modules
Among all the HRMS Modules, here are the 12 most common ones with a brief description for each one of them:
• Applicant Tracking System: This Applicant Tracking System (ATS) Software will help you generate statutory reports, drive candidate traffic, and set reminders for every hiring step.
• Recruitment: Recruitment software will handle all the authorization processes as well as the internal form-filling while also allowing managers to post advertisements.
• Onboarding: Onboarding software will take care of the preparation of the new employees pre-first day, set up employee records, and also automate essential meetings.
• Performance Management: An employee can set and manage goals for himself using the performance management software, schedule his appraisal meetings, and even get 360-degree performance analysis.
• Benefits: Benefits Administration software will help employees enroll themselves online, help them compare the plans, and also help them automate the management of their benefits cycle.
• Workforce Management: Workforce Management Software will help people with scheduling and managing their shifts, monitor the workflow, and also manage the entire dashboard with accurate data.
• Time & Attendance: An organization can closely track employee's attendance, connect biometric systems, and apply time clock management using time and attendance tracking software in an HRMS.
• Absence and Leave Management: Employees can use absence and leave management software to apply for leave online. The organization, on the other hand, can handle account management with the number of leaves and use the metrics to integrate better with the workforce.
• Talent Management: An organization can plan for succession using talent management software, align better with the goals, and also integrate with main recruitment campaigns for better talent management.
• Payroll: Payroll software will help an organization calculate payroll for wages, configure bonuses, and deduct taxes whatsoever for accurate payroll distribution.
• Learning Management: Learning Management system software (LMS) provides a learning portal where one can have personal training recommendations, learning plans, and a dependable learning administration.
• HR analytics: The HR analytics module has reporting capabilities that generally provides in-depth and accurate insights into the organization for a better business strategy.
» HRMS Features
When you're looking for an ideal HRMS software for an organization, there are certain important HRMS features to consider:
• Self-service portals: A perfect HRMS software will always provide a self-service portal to your employees in order to reduce the involvement and efforts of the HR department in day-to-day activities.
• Centralized Employee Database: HRMS is supposed to have the entire information of an employee, including their role, compensation, joining date, benefits, etc. This information is crucial for an organization at times and also helps the employees access their real-time data so that they don't need to ask anything from the HR department.
• Financial Management: Since financial management is one of the most important duties of the HR department, an organization can streamline this functionality using HRMS software. Various modules offer bonus programs, incentive management, salary administration, and commission management to simplify financial planning for you.
• Document Management: HRMS is the most automated and easiest way to keep track of all the industry-specific documentation for the organization. Certifications, education documents, licenses, and all other important documents can be saved in the HRMS for future use.
• Mobile Access: If an HRMS can be accessed through the mobile, it'll get easier for the management and employees to access the information that they need any second without the hassle of accessing it on a computer.
» HRMS Benefits
Nowadays, the best way for a business to reduce their costs is by increasing the efficiency of the business activities. From HR being a paper-based job to an entire software being focused on the HRMS activities, it's time you understand the benefits of HRMS software which are as follows:
› Simplifying recruitment process
The HR department is entirely responsible for recruitment and hiring of capable new candidates which is both an expensive and time-consuming process. HRMS saves that time and cost by reducing human efforts and automating various tasks like analyzing the CVs.
› Better employee evaluation
In order to remunerate employees carefully and distribute the benefits accordingly, it's important for an organization to be able to analyze their performance well. With HRMS software, it's easy to track absences, performance, and goal achievement of an employee.
› Easy integration
No, an organization doesn't need to undergo a complete change in order to integrate HRMS software in its day-to-day activities. In fact, its complete configuration and modern solutions make it easier to fit an employee's daily life.
› Automating daily activities
Resources- materialistic or human are both extremely important for an organization's growth. For optimum utilization of these resources, HRMS reduces the number of assets and human efforts spent in daily workforce activities by automating various activities throughout the day.
» Types of HRMS Buyers
There are generally two types of buyers for HRMS:
• Small and medium-sized businesses (SMBs)
• Large and enterprise-level businesses
For small businesses, HRMS can really help with record-keeping since it's a law to keep track of healthcare or taxes, and also in terms of recruitment. A paperless small business will run more efficiently because there's no HR department to handle all the documentation from time to time. This way, with reduced human efforts, small businesses can also save themselves a significant amount of money that they would spend on multiple resources.
On the other hand, for large enterprises, HRMS eases communication and gets everybody at a single platform to solve their respective queries. The HR department of a large enterprise is responsible for an innumerable number of tasks, and HRMS plays an important role in reducing that number. Moreover, HRMS acts as a self-service portal in large enterprises that empowers everybody to solve their own problems.
» HRMS Pricing
As far as the pricing of HRMS is considered, vendors generally adapt two pricing models for HRMS, namely subscription plan, and perpetual licensing.
• Subscription plans: When a vendor hosts a company's server, they typically charge them monthly or annually with a subscription fee. This is a good option when a company doesn't wish to host and maintain data on their own. This pricing structure though would depend on the number of active employees in a company or the number of administrative users using the software. But, in case the company opts for a self-service module, employees will also be considered as users.
• Perpetual Licensing: Here, the company hosts its own server, and hence needs to pay for the software only. This cost will be a recurring payment for the maintenance and support concern. This is an ideal option for companies who are concerned about their data security and have complex needs from the HRMS software.
» How to choose an HRMS?
Even though choosing an HRMS seems like an easy task, it's pretty evident that it's not that way! A company needs to consider a lot of factors before it settles for software that suits its needs. Such factors are listed here:
› Consider your HR strategy.
The first step is to sit and think about your current Human Resource Strategy, which was implemented in an old-fashioned way. Set your HR goals, and then sit down and go through the number of available HRMS software. Choose software not for the feedback it has received, but according to your HR strategy.
› Decide your software requirements.
Now, the next step is to decide what tools or HRMS modules will be needed to implement the strategy and achieve the goals that you just set for your company. Define HR tasks in detail, and see which software offers them all.
› Consider your budget
Before you go on searching for software in the market, you need to evaluate the amount of money you're planning to spend on your HRMS system. You can go for a monthly, quarterly, or yearly plan as per the costs of implementation.
› Shortlist some vendors
Do not go for the first option that fits your requirements but sits and analyze a certain number of vendors. Make a spreadsheet, compare them, and then start ruling out the ones that seem more expensive than others.
› Organize a demo
Now, if you've researched about the chosen vendor well, set up a demo with their software. Invite some people who will be using the HRMS software, and tell them to review it in terms of convenience and other important factors. If a lot of questions arise, drop that option and move on to the next one.
› Make a decision
Finally, decide which vendor best suited your requirements. Get your management to approve that option and get going with using it!
» HRMS Market Trends
Factors that influence HR software market trends in 2021 are:
› Performance and Productivity:
HRMS just started with being an accounting software and ended with being the only source to prevent time-consuming processes in the organization, innovate business strategies, improve communication, and improve employee performance in the organization.
› Remote working:
Let's face it! Digital world is the new face of world, especially after what covid-19 has led us to do. Work from home is now the new trend, and HRMS being an online service makes it convenient for employees to work from home.
› AI and ML
Artificial Intelligence and Machine learning are quite popular in 2020 since they improve the cash flow for a company, and reduce bad debts while also maintaining a balance between all the departments. HRMS software is now expected to have AI and ML functions.
› Mobile Application
Among all the other HRMS trends for 2020, HRMS in a mobile application is what everybody expects the most now. Now, no vendor enters the market without having that server in a mobile application.
In this constantly changing digital world, you need a vendor who plans to be in the market for the long-term and has a strong strategy towards surviving the competition in the market. Consider the benefits of an HRMS software well, and take a wise decision of gifting this convenient system to your employees.