A Software Solution to Meet the Needs of HR – HRMS 

An HRMS, which stands for “Human Resource Management System,” is a specific kind of HR software that, when combined with information technology, makes it possible to handle several HR-related operations.

By automating formerly labor-intensive and time-consuming processes, a Human Resource Management System (HRMS) works toward the improvement of an organization’s overall productivity and efficiency. This, in turn, makes the time of the HR team’s members more available. In the role of managing human resources, the increased bandwidth may be put to use in addressing more strategic and mission-critical activities for the company.

bb A Software Solution to Meet the Needs of HR - HRMS 

Looking for the Best Human Resource Management System ? Check out the Best Human Resource Management System.

The features of a human capital management system are often included in an HRMS, and the HRMS normally includes every aspect of an HRIS. Payroll and Time & Labor Management are two of the most common features included in a standard HRMS (TLM).

What Are the Most Typical Duties Performed by HRMS Systems?

The purpose of human resource management, often known as HRM or simply HR, is to improve employee performance in a manner that is congruent with the strategic goals of the employer. This role is present in every firm. Systems and policies are the primary drivers behind human resource management, which focuses primarily on the management of people working inside businesses. The following are examples of HR sub functions that may be automated and streamlined with the aid of an HRMS:

Planning of the Workforce

The assessment of the resources that are going to be necessary in order to meet the goals that have been set for the organization is the primary focus of human resource planning. Plans pertaining to human resources may either be urgent or short-term, or they can be long-term and strategic. It is possible that an excellent HRMS will make it possible for the HR staff to carry out these plans in a timely and efficient manner.


One of the most important things to do is to make sure that the personnel you hire have the appropriate set of abilities and talents at the correct moment. It involves filling vacancies via activities such as internal job postings, employee recommendations, and promotions inside the company.


An applicant who has reached an agreement to become a member of an organization would begin their employment on a certain date. The day in question is referred to as the Joining Date. When an employee initially starts working for a company, they are required to participate in a predetermined series of activities on their first day. Onboarding refers to all of these different activities for new employees. The procedure as a whole may be simplified by using comprehensive HRMS software.


After an employee has been hired, there is often a period of time between one and six months that is referred to as the “Probation Period.” During this time, the company and the employee evaluate one another and determine whether or not either of them would want to maintain their connection with the other. In the regular course of events, the employee would go through the confirmation procedure after the completion of the probationary term.

Management of Information Regarding Employees

The Human Resources department is responsible for a number of critical responsibilities, one of the most crucial of which is preserving correct information about the personnel.

The following are examples of essential bits of information that need to be kept updated:

  • Name, Gender, Date of Birth, Joining Date, Contact Information, Telephone Numbers, Email IDs, and Any Other Necessary Data.
  • Previous job history details are required.
  • Details about the present organization, such as its Department, Location, Grade, Reporting Manager, and other relevant information.
  • Information about payments and statutory obligations, such as a PF number, an ESI number, an income tax PAN, and so on.

In addition to the aforementioned, human resources keep track of information on passports, visas, nominations, company assets, and so on. The human resources department is responsible for a number of important tasks, one of the most important of which is to guarantee that accurate and up-to-date information on the workers is preserved. The managers and upper management of the company base a significant number of organizational choices on these facts. A significant number of the Indian states are also keeping up with the maintenance of separate websites in order to manage the information of their public servants. (e.g. Punjab, Haryana, Odisha, and Karnataka.)

Management of Transactions and Policies Regarding Leave

The department of human resources is responsible for a number of tasks, including the formulation and management of the company’s leave policy. In addition to being responsible for developing HR policy, the HR Department is also accountable for recording and tracking all transactions that take place. This Herculean endeavor may be made easier with the help of an HRMS. It is an obligation imposed by law that employers provide their staff with paid time off, sometimes known as leave.

Monitoring Employee Time and Attendance

On a daily basis, a lot of attention is now being drawn to the process of recording the amount of time worked by an employee, the time when he comes in, the time when he departs, etc., and this is causing HR departments to pay a lot of attention to the process as well. In addition to using this information for the processing of payroll, businesses will also be required to create a variety of statutory reports based on the Attendance Monitoring Data.

Calculations Regarding Changes in Wages and Increases

When it comes to determining or modifying the pay of workers, HR departments often confer with the heads of other departments before taking action. A letter titled “Pay Revision” is often sent along with a salary adjustment of any kind. The Paycheck department receives this information as well, and they will include it in the subsequent payroll that they process. In addition, the HRMS Software that the organization uses allows workers to observe any modifications that have been made.

The Processing of Payroll and the Distribution of Salaries

Processing payroll is an activity that is incredibly important for both the company and the individual. Aside from the need of meeting regulatory requirements, it is directly connected to one of the fundamental reasons a person works for an organization. In addition, processing payroll requires the computation of all statutory dues, including payments from both employees and employers, as well as the generation of any relevant reports. In addition, workers have a right to be informed about the wages given to them, the calculations for tax deductions, the reimbursement amounts, and other relevant information. All of this will be handled automatically by software designed for HR management. The processing of payroll would also include these other operations since they come within its purview.

The Process of Separation

The act of submitting one’s resignation to one’s employer or just stopping one’s employment is often referred to as resigning. The Human Resources Department is in charge of ensuring that all of the work necessary for this procedure is carried out successfully. The task that would need to be done would consist of conducting a departure interview, ensuring that all clearance certificates are granted, performing a handover, and providing Payroll with all of the relevant information. The Full and Last Settlement for the employee would then be processed by the Payroll staff, and the employee would get his final payment. At the conclusion of this procedure, the Manpower plan would be brought up to date, and then, depending upon the requirements of the company, a request for recruitment would be sent.

Communication and Essential Support for Staff Members

One of the responsibilities of a human resources department is to facilitate and maintain an open line of communication between the company and its workforce on a consistent basis. Employees have a responsibility to educate themselves about the company’s rules, which may include the Leave Policy, the Attendance Policy, the Travel Policy, the Dress Code, etc. After then, there may be a variety of rules and regulations that an employee is required to adhere to while working for the business. The HRMS software used by the organization will often make all of this information accessible to users. Any modifications to these rules, noteworthy events, or any other information that might have an effect on the workers would need to be notified to them as well. The HR Department is responsible for ensuring that all of these things take place.

Employee Engagement

The purpose of human resources departments is gradually transitioning from being heavily focused on transactions to being more concerned with strategic planning. Having workers whose needs and objectives are congruent with those of the business is one of the most important factors in determining how successful an organization will be. In the process of developing this alignment, HR Departments play a crucial role.

Legal Obligation to Comply

Another essential duty of the HR department is to guarantee that the company complies with all of the relevant local, state, and national regulations. This is an important component of the HR department’s overall mission. They have a responsibility to make sure that they are familiar with these laws and to engage in all of the actions that are necessary to guarantee that this requirement is met.

The following is a list of the numerous actions that are included in statutory compliance:

  • Making certain that all employee- and labor-related permits and approvals are secured is an essential step.
  • The process of enrolling all workers, both new and existing, in the different programs that are offered by the firm.
  • Taking into account the different payroll-related deductions that must be made from an employee’s pay in accordance with the rules that are in effect.
  • Ensuring that all required reports are handed in on time to the appropriate authorities in accordance with the timetable that has been established.
  • Either electronically or in physical form, reports may be sent in. Either way is acceptable.
  • Taking the necessary steps to ensure that a departing employee receives all of the necessary statutory paperwork and certifications before leaving the business.
HR Software to Build Performance-Led Culture
HR Software | HR Software Solutions | Smart HR Software
Click Here

The MIS Reports

There are various reports that need to be sent to the stakeholders by HR. Some of these reports will be delivered on a recurring basis (weekly, bimonthly, monthly, etc.) and will be formatted in a pre-defined manner that is accessible via their HRMS program. This is a crucial task from the standpoint of the stakeholders, as they will utilize this information in the planning and organization reporting activities that they conduct.

Instruction & Instructional Programs

The enhancement of the workers’ knowledge and capabilities is the primary emphasis of this job. Training on the organization’s products and procedures is provided to newly hired staff members. Employees also get training in a variety of “soft skills,” such as “team building” and “leadership abilities,” among other things, as well as “behavioral skills,” such as “time management,” “etiquette,” and so on. The gap between the abilities that are needed and the set of skills that workers already possess serves as the basis for the design and delivery of the training programs.

Evaluation of One’s Performance and Promotions

Evaluation of performance is a methodical process that enables an organization to identify the degree to which an employee’s contributions are matched to the firm’s overall business objectives. HR professionals are responsible for the development, implementation, and maintenance of the Performance Management system (PMS). The procedures of establishing objectives for individual and team performance as well as devising techniques for evaluating performance are the primary emphasis of this function.

The Planning of Successions

The process by which an organization identifies individuals who have the potential to move into positions with more responsibilities and continually develops those people so that they are capable of obtaining these positions is referred to as succession planning. It is the responsibility of HR Departments to locate such candidates, provide them with the necessary inputs, follow and monitor their development, and evaluate their performance.

The Development of Human Resources

The goal of a human relations program is to promote employee motivation and workplace morale by fostering better three-way communication and encouraging employee engagement in decision-making processes. Instead of focusing on the technical or financial sides of employment, human resources tries to put the spotlight on the employees.

What are the Advantages that an Organization Can Gain by Using an HRMS Software?

Data analytics is one of the reasons why HR services are increasingly heading toward automation in today’s world. As artificial intelligence (AI) becomes the buzzword of the moment, having the appropriate knowledge at the appropriate time is becoming more important.

This is not something that is exclusive to large organisations; rather, it is something that is affecting even younger and more rapidly expanding businesses as well. These businesses have extra difficulties, which can only be simplified by putting in place an appropriate framework.

Data Management

Data pertaining to human resources (HR) is among the most sensitive information that is held by a business. The older method of storing and handling this data relied on paper, which necessitated a considerable financial investment in the amount of space necessary, and the amount of time required also provided a big barrier. The age of spreadsheets began shortly after this development. This approach was not only time-consuming but also prone to making mistakes. The Human Resource Management System (HRMS) is the solution to all of these issues; since it is a paperless system in the first place, it eradicates issues such as documents being lost or left out, as well as a number of other issues.

An HR management system (HRMS) software enables the recording of real-time data across a variety of HR operations, including payroll, attendance tracking, and leave management, for example. This becomes especially important in an era in which workers are more often seen as consumers, and in which employee engagement has emerged as an essential piece of the organizational jigsaw.

Employees Serving Themselves

The term “Employee Self Service” refers to a collection of informational tools that are made accessible to staff members in a centralised location. Modern human resource management systems often come packaged with an employee Self Service portal that provides workers access to all of their personal data. Not only does this kind of complete perspective of important data, such as that pertaining to payroll, leave, and attendance monitoring, inspire confidence in the company, but it also proves to be tangibly useful to workers on a number of other counts. They are now able to access and download their payslips, examine adjustments to their leave policies and real-time attendance statistics, as well as check their tax responsibilities for the month or year without having to contact HR. Increasing the amount of time available to the HR staff to focus on other strategic initiatives contributes to an improvement in the working efficiency of the organization.

Simple Record-Keeping

You may instantly create a variety of preset statutory reports as well as MIS reports with an HRMS even if the system has not been set up. On the legislative front, reports such as the CLRA Report, the Shops, and Establishment Act Report, and others like them are readily available in the forms for which they were intended and may be obtained without any effort at all. In addition, strong filters make it possible to create any report about the workforce depending on a variety of factors on an as-needed basis. This is often done at the request of top management. In addition, HR dashboards provide you with a concise overview of essential data, which is shown together on a single screen inside the HRMS program.

Effectiveness while minimizing waste and costs

The most recent cloud HRMS offerings are available at pricing points that are quite cost-efficient. The little financial outlay required to acquire them is considerably outweighed by the potential financial rewards that may be attained via their use. For example, once compliance is achieved and the possibility of being hit with fines and penalties is removed from the equation, the expenses associated with payroll administration experience a large drop. In addition to this, information is not repeated, which prevents the waste of time and contributes to an increase in the department’s overall efficiency. The process of managing leaves is simplified, and it is now possible for workers and the managers who report to them to address the matter on their own rather than engaging HR. A similar truth comes to light with regard to the administration of attendance records.

Increased Participation of Employees

A productive employee is one who is engaged in their work. It is easy to see how features such as employee Self Service, timely and accurate payroll management, improved leave and attendance monitoring, and so on, contribute to the organization’s goals by keeping employees engaged and thereby ensuring a more productive workforce. Keeping this in mind, it is clear how these features contribute to the organization’s goals. Streamlining HR activities that, in the past, would have been disorganized and time-consuming results in increased employee engagement and satisfaction levels.

100 percent compliance with all applicable regulations

The degree to which a corporation abides by local, state, and federal rules is a significant factor in the degree to which its operations are clean. If it is not managed with care, it may even have major economic repercussions, which come in the form of fines and penalties that need to be paid out to various government organisations. You are not required to go looking for the nitty-gritty of legal changes in a continuously growing legal environment such as that which is present in India since modern cloud HRMS provides compliance via frequent updates of statutory changes to the back end of the software.

Adopt the Most Effective Methods Currently Used in the Industry

Following industry standards helps to guarantee that you are doing your very best, notwithstanding the constraints imposed by your operation. Adopting industry standards and best practices boosts productivity, lowers mistake rates, and provides a number of other benefits. Research is done and the HRMS is designed in such a manner that it combines within itself the best practices that are already being employed in the industry. Checklists established templates for letters, requests, and other forms, and the like are a few examples of this kind of document.

What are the New Trends in HRMS, and Why Do They Matter?

The Human Resources department is making strides in improving organizational efficiency and implementing predictive analytics. In addition, HR practices are shifting from a tactical to a more strategic orientation. The transition of transactional human resources work to chatbots and other forms of automation is well underway. The most up-to-date HRMS systems already include the majority of these functions. Now, the term “human resources” (HR) is interchangeable with “strategic planners” in the business, and this helps with dealing with frequent HR problems.

The Development of Organizational Network Analysis, Also Known as Relationship Analytics

The establishment of strong employee connections inside an organization is facilitated by the presence of social networks within the firm. It examines the ways in which workers inside a business communicate with one another on a variety of social platforms in order to better understand how internal relationships are formed. The results of this study may then be used to determine how they might better coordinate their efforts to achieve more efficient response and output. In its most basic form, it is a human network operating inside the firm. With more and more applications of AI coming into play, even HRMS systems are becoming more intelligent.


In recent years, every HR professional has been talking about 360-degree feedback. Companies are transitioning away from 360-degree feedback and working toward a feedback loop that is continuous. It is also conceivable for remote and virtual teams to get developmental feedback while on the go.

Employee Experience

Experiences that have been curated and personalized for certain career phases, ranging from onboarding through professional development, are becoming more popular today. Self-education is becoming more popular, and there is an increased emphasis placed on e-learning as an experience. E-learning is evolving into brand new forms, such as learning molecules, which are mostly comprised of very few informational units that are made available on mobile phones to workers, particularly those who are always on the go.

Artificial Intelligence

Today, an increasing number of businesses are turning to artificial intelligence (AI) solutions in order to forecast the results of employee-defined goals, such as key results areas (KRAs). Training of workers on the already available technology by using AI to better comprehend the advantages offered by new technologies, demonstrating those benefits to employees, and ultimately increasing the rate at which new technologies are adopted.

How to locate the HRMS that best suits your needs

Okay, so at this point, you have the impression that a solution that uses an HRMS is just what you need at this time. Since you have already made a decision, the next step is to pose the most important inquiry. How can I choose which human resource management system is best for my company?

You should be able to discover the appropriate HRMS by following the recommendations that are provided below in a methodical manner. Nevertheless, as a general rule, if lowering costs, increasing productivity, and increasing employee engagement are your major priorities, then continuing to use a solution that is hosted in the cloud is your best chance.

Establishing Industry Standards for Human Resources and Payroll

Introducing an HR management system (HRMS) brings in the same, as it comes pre-built with industry-standard best practices already incorporated into the product. This is useful if you are planning on establishing industry standard best practices or want to revamp your existing HR policies and processes. In the realms of human resources and payroll, formal rules and processes are often absent in small and medium-sized businesses. The implementation of an HRMS inside the firm has the ability to bring about discipline on these several fronts.

The Financial Implications, as well as Comprehending What You Need

There is more than one kind of cloud HRMS. Although the fundamental functions may seem to be comparable, the level of knowledge provided in each of the areas handled and the overall quality of the user experience is likely to be very different. Therefore, in order to choose the HRMS software that is most suited to your objectives, you need first to ensure that you have a clear comprehension of those criteria. If you want the move to go as smoothly as possible, you need to have a very clear idea of the precise modules and functionality that you desire. In terms of price, cloud applications have a greater propensity to be very cost-effective when compared to other choices, such as desktop software, that are now on the market. This is because cloud applications are provided by their very nature. If you’ve done a good job of selecting cloud software that caters to your specific requirements, you won’t have to worry about the return on investment associated with using it.

image-10 A Software Solution to Meet the Needs of HR - HRMS 

Self-Service for Employees is an Absolute Necessity for Employee Satisfaction

No worker should ever have to run after a member of the HR team in order to access the payroll and HR information that is rightfully theirs. This is made feasible via the use of a cloud-based HRMS. The employee’s direct access to his paystubs, tax information, leave and attendance information, and other data are one of the primary benefits of employee self-service, which is basically a suite of informational tools for the employee. Moreover, by using a cloud-based HR management system, all of this information may be made accessible in real-time. Because of this availability of information, employee engagement and levels of satisfaction have increased. Employees now have a better understanding of the hows and whys of their income, their leave balance, and other aspects of their employment.

Automating Tasks That Were Previously Done Manually To Eliminate Repetitive Work

Even in its most basic form, a human resource management system (HRMS) is capable of automating a number of processes that would otherwise need to be carried out manually. The data on workers’ leaves of absence and attendance, which before had to be verified and rechecked using a muster or Excel, is now gathered in real-time and instantly provided to employees. When you have an integrated HRMS, you can be confident that data from payroll will flow into the HR system without any problems. These are some of the most important ways that using a human resource management system (HRMS) may increase productivity and save time. In this sense, human resource management systems are in fact designed to be efficient.

Support for the Customer That Cannot Be Compromised

Imagine that you are out of town or are presently located in a foreign nation when an emergency occurs with your HRMS system. What steps would you take if you found yourself in a position where you needed assistance with technical matters? Given the conditions, you will need support assistance that is available 24 hours a day, seven days a week from the firm that makes your software in order to respond to and resolve that problem.

Therefore, it is quite important for you to learn about the customer support service that a company offers before you invest in any HRMS software. You need to make sure that you ask them whether or not they provide customer care around the clock. Or will they just answer the phone at certain times of the day over the course of the day? You should also inquire as to whether or not you will be required to wait around after you have left a message for them to contact you back. It is possible that the responses to these questions will offer you a sense of the level of activity and attention placed by your HRMS provider on their after-sales customer care.

Personalization to Satisfy the Demands of Your Company

Cloud HRMS must be adjusted in accordance with your preferences. Whether it leaves policies and attendance monitoring rules, holiday lists, and shift logic, they are flexible enough to be completely personalized on these fronts and more, depending on the solution that you pick. In addition, they may be fully customized on other fronts as well.

Your HRMS System needs to be ready to scale in accordance with your expansion

The fact that cloud HRMS uses a pay-as-you-go approach and is extremely scalable means that this is not an area that should cause you any worry. In point of fact, based on our previous experiences, we have found that the need for scalability is often the driving force behind the decision to go with a cloud-based HRMS. On the back end of the product, it is possible to make simple modifications and upgrades. You may also effortlessly upgrade your plan to one that has additional capabilities if you feel the need to do so.

Integration with the Systems that You Already Have

This is particularly very important when taking into consideration direct connection with payroll inputs like attendance or biometric systems. Additionally, you may have data flowing into other systems from the HRMS, and this capability is now available with the majority of cloud-based HRMS thanks to application programming interfaces (APIs). Integrations with other types of software, such as management tools for attendance and performance, as well as accounting software, is feasible.

Overall, a cloud-based human resource management system (HRMS) is the new standard for automation in the HR sector. These kinds of technologies not only boost the effectiveness and productivity of your company but also establish the groundwork for an organization-wide shift in addition to being incredibly cost-efficient and simple to install and put into operation.

Software You Need For All Your HR Software Solutions


HR Modules


Happy Clients


Satisfied Users

Get Started ➡️