What is HRMS software?
Human Resource Management Software or HRMS software is a solution designed to assist employees and management perform at peak capacity. HRMS software solutions are deployed by businesses of all sizes – small, medium or large, in order to enhance productivity and employee satisfaction.
Due to rising competition and shortage of talent, companies and employees both have higher expectations from each other. HRMS software helps ensure employee expectations are being fulfilled as well as their output is being met as per company targets.
Effective HRMS software seamlessly integrates several processes such as recruitment, onboarding, workforce management, performance appraisals
, time scheduling and management, analytics, payroll solutions and exit management.
Who needs HRMS software?
All kinds of businesses whether big or small, having twenty or two thousand employees, require an HRMS software solution to manage their employees. HRMS software solves essential requirements of any business like creating a database where all employee related information (like their date of joining, birthday, address and ID proofs, work experience certificates, educational certificates) can be accessed.
Apart from this, you can make your recruitment process more efficient by assessing hiring requirements and posting them on various job portals. Onboarding employees becomes a piece of cake, internal and external communication becomes more streamlined, and the database is easily searchable offering advanced search and filtration facilities. Also, you can carry out accurate employee performance evaluation and appraisal. A good HRMS software monitors, evaluates and develops quality practices for appreciating good work, and a system for rewarding the best performing employees.
Why you need HRMS software?
The core purpose of an HRMS software is management of human resources. Unlocking employees’ full potential to help achieve organisation’s objectives and goals. Through an HRMS software, you can optimise and simplify your processes. Plus, you don’t have to maintain separate spreadsheets for attendance, leaves, punch-in/punch-out time, etc.
In addition, HRMS software can be scaled as your business grows with time. You can generate multiple reports for convenience sake with a single click. Moreover, HRMS software solutions maintain your employee database which can be quickly accessed when you need information about a particular employee.
Going for an HRMS software makes even more sense as it’s available in both on-premise and cloud versions. Both kinds have their advantages, though the cloud version holds an edge since you can access your data from anyplace and anytime. Also, in case of a catastrophe, such as fire, earthquake, power failure, your data is automatically saved and backed up on a remote server in case of a cloud HR software. Both versions offer mobile-compatibility for easy access. It’s a win-win any way you look at it!
Modules – HRMS Software in India
There is a plethora of modules offered by HR software solutions. We’ve compiled a list of most common modules herewith:
A robust recruitment
management system should be able to handle any processes related to authorisation and filling up forms. Apart from this, the HR or managers should be able to post job vacancy adverts and supporting documentation online. This module also enables the HR person to carry out the initial sifting of applicants and keep tabs on them. Basically, the HR can maintain a record of job applicants whom he/she shortlisted for the interview process and were later not selected.
You can also design a customised talent pool to ‘trawl’ for an appropriate candidate whenever a vacancy pops up. Recruitment module also offers compatibility with social media to gain insight about the candidate and his likes and dislikes. Human resource management system software collates all the information related to current vacancies including job descriptions, skills required for the job, status and number of vacancies.
The performance management module forms an integral part of the modern HRMS software. You can automate the appraisal process, record and track the set objectives and targets, incorporate a competence framework, work standards along with other pertinent systems. The HR manager can also integrate peer and self-reviews and keep tabs on any key performance milestones achieved by the employees during the appraisal cycle. Plus, he can supervise the work of his employees, track progress, and set goals for them and the entire team from a centralised location.
Once a new employee joins an organisation, he has to undergo an induction process, and get familiar with the company’s policies and guidelines. This process can greatly benefit from automation, which can lower the strain on the company’s HR team. New recruits can be introduced to the necessary people – their reporting manager, team members and other staff. Apart from this, the onboarding module helps in sending automatic notifications to relevant departments for issues such as vehicle pass for parking, user accounts, security passes, etc.
All the best HRMS software solutions offer a workforce management module which primarily takes care of scheduling needs of the organisation. This module closely ties up with (and is often fused with) time, attendance and leave management modules. Along with this, workforce management modules can also be linked up with other business intelligence systems like ERP and CRM. Herein, you can match your organisation’s workforce deployment to shifting needs. Furthermore, you can take care of workflow monitoring and track real-time data and metrics with the help of a workforce management dashboard.
Time and Attendance
Apart from payroll, probably the most oft available module offered by every HRMS solution – time and attendance. One of the foremost functions to be automated, it incorporates biometric identification to avoid ‘buddy punching’ (the practice of asking a fellow employee to clock in/out for him). Time and attendance module is a vital part of the workforce management module. So, employees better be careful if they think they can game the system. The biometric device
acts like Heimdall, the gatekeeper of Asgard keeping his eyes on one and all who go to and fro the city.
Absence and Leave Management
This is another module offered by HRMS software that integrates with time and attendance and workforce management functions of the solution. Through this, an organisation can automate several processes such as allocation, booking, approval, tracking and monitoring any employee absence from the workplace. Employee absence may occur due to several reasons such as vacations, compassionate leave, illness, parental leave, etc. An HRMS solution helps streamline leave request and approval processes and feed them into team calendars.
Learning and Development
Companies offer employees the opportunity to undergo trainings and skill development courses. This helps improve the skill-set of employees. Now how does the learning and development module helps make the life of HR easier? By creating individual training plans for staff and organizing training courses along with educational programs. The HR manager can also easily manage the follow-on evaluation and feedback process. Last but not the least, the training expenditure can be tracked and evaluated against budget allocations.
HRMS software comes equipped with talent management module, whose main purpose is identifying company employees’ exuding potential. The manager can establish talent pipelines with specific roles and succession planning in mind. This module can seamlessly be integrated with several modules namely, recruitment, learning and development and performance management.
Forming a core component of HRMS software solutions, HR analytics offers reporting capabilities via metrics and benchmarks. These assist in the examination and analysis of data stored within the HRMS system. HR analytics also helps in devising strategic and predictive insights, so as to design the organisation’s business strategy.
In this module, emphasis is placed on providing timely information, and management and monitoring of employee benefits. These benefits pertain to managing healthcare and pension/welfare packages, tracking enrolment options and any other financial implications. Employees can go for online enrolment. They receive automated communication about these enrolment options and other relevant information to help make their decision.
This module offers a solution for all things related to employee clearances and exit compliances. No matter how much a company may want an employee to continue or decide to part ways, employee termination forms an integral part of the organisation’s policy. From employee separation requests to relieving letters to experience certificates, the exit management module covers these subjects. Every company has a distinct exit process and is considered to be an important feature of HRMS software. Ticking off the employee process checklist, from the start of the employee termination process to its tracking, status change, etc., is efficiently carried out by the HR software. Through HRMS software, you can take feedback from your exiting employee with the help of an exit questionnaire. Exit questionnaires offer insights into the reasons why an employee is leaving the company. These are helpful in creating a better environment and policy and rectify the drawbacks highlighted by the employee.
An essential part of any HRMS solution, it’s quite inconceivable to imagine an HRMS system without payroll integration. It’s Robin to HRMS’ Batman, Bucky to Captain America, what Jai
is to Veeru.
This module automatically computes salary for all employees including statutory deductions (PF/PT/ESI/TDS), loan deductions, arrears, revisions, loss of pay, pro-rata salary, IT computation, etc. You can also tailor your salary structure specific to your industry standards, specifications, requirements and employee category. Compare your present and previous month’s payroll, customise salary register and payroll statements as per your needs.
The module also offers automated reimbursements, loans and advances and automatic closure on completion of repayment. That’s not all. Take advantage of seamless integration with leave and attendance modules to calculate payslips. Pick and choose from multiple payslip formats and automatically full and final settlements, LOP and LOP reversals.
Apart from this, payroll management
module delivers an exhaustive post-payroll process to generate statutory return file formats, such as PF ECR file, ESI Returns, PT reports of all states and Form 24Q returns without having to perform any additional data entry work.
Features in Best HR Software
There are certain features which you’ll find in best HRMS software available in India. Let’s take a look at them:
: This feature includes employee’s complete data like medical history, leave management
, PPF and EPF forms, grievance history, and other pertinent information. Through the HRMS software, the HR manager has access to full employee records considered relevant to the organisation or the employee.
: HRMS software solutions also offer application management feature wherein you can record and store information of applicants related to a job opening, progress in the interview process, it’s line-up, audit records, etc. Furthermore, in includes an employment form consisting of an acceptance letter, relieving letter of previous job and other details required before joining. Last but not the least, you can also conduct an applicant’s background check. This is also helpful in bringing efficiency to the onboarding process.
Company Documents Management
: The HRMS software also ensures that all data and information relevant to the company is maintained and managed efficiently. Company documents entail legal documents, yearly holiday lists, business documents, company policies, benefits and insurance related information.
: This feature of HRMS software solution, you can execute and manage a project effectively. Keep track of project sheets, execute task management, team management, progress analysis, etc. You can also analyse a project’s effectiveness whether it’s feasible or not.
: HRMS software helps HR managers to perform their daily activities effectively. These daily tasks may comprise of reminders (employee birthdays, work anniversaries), updates on events, collaboration between departments, resource sharing, training schedules and more. The HRMS solution has an in-built checklist which you can edit to ensure that emails or alerts are sent out on time.
: Every HRMS software maintains a database full of vital information related to employees and company. The database is shared among the employees who are responsible for updating their leaves, work schedule, attendance, etc. This enables higher accuracy while cutting down on dependency. The HR person can also schedule daily reminders for employees to complete their tasks to ensure that the efficiency and effectiveness levels don’t take a hit.
: Using this feature, the manager can schedule shifts and attendance, and keep track of who is doing what at any moment of time without difficulty. Employee scheduling helps enhance the company’s assignment practices, improve cooperation between departments, and smoothen any changes in the schedule. Basically, keep things chugging along without any break in the machinery!
Security and Safety
: HRMS software are available in two variants – on-premise and cloud-based. Both have their pros and cons though cloud-based solution holds an edge due to its regular security updates and monitoring of digital threats. Users may raise an eye over hosting the database on a virtual and shared platform however the benefits are simply hard to ignore. Hosting on the cloud offers high protection, as the codes and passwords are created with great care and transmission of data is done in encrypted form. Moreover, due to frequent updates, the cloud offers better security to the system.
Easy Data Management
: HRMS solutions help minimise and simplify management of vast amounts of data. This feature helps streamline complex processes and makes the life of HR personnel easier.
Ease of Use
: Majority of HRMS software systems are designed focusing on “ease-of-use” aspect. Having a user-friendly UI also helps get familiar with the HRMS solution’s interface quickly.
: HMRS software offer flexibility and support scalable IT architecture. This helps you take care of software upgrades automatically which are saved directly on the server side. (For the less tech-savvy among us, there are server farms which host and save data on servers which are available on lease.)
Enterprise Social Networking
: This nifty tool helps in free flow of communication within the organisation no matter which team, department or location the employees works at. Enterprise social networking helps foster collaboration enabling employees to share updates, democratise decisions, schedule events, and create work/interest groups. Be careful though and don’t let it become a hotspot for the gossipmongers. Use it for constructive work such as brainstorming or discussing any brainwaves which you might get!
Advantages of HRMS Software
HR software solutions offer quite a few benefits to businesses and help bring a level of efficiency, efficacy and order to the organisation. Some of the advantages of HRMS systems are:
Improving Productivity of HR People
By using an HRMS solution, the amount of paperwork to be processed by your HR department is reduced. They no longer need to invest as much time on creation, editing and searching for documents which in turn augments their productivity.
A good HRMS software not only helps you enhance productivity but also helps in lowering costs. In a typical company, the ratio of HR to employees is 1:100. Some HRMS solutions can even help expand this ratio to 1:140. So, a company having 280 employees would require two full time HR professionals instead of three to manage their workforce needs. You make a killing by saving the money that you’d have spent on paying the salary of an extra HR person.
Access to Information
When it comes to data, security is a top concern of one and all. An HRMS solution contains information with respect to employees as well as company policies. In this solution, information is shared on a restricted basis. For example, employees can view and edit their own information and do not have access to other employees’ data.
Increased Administrative Efficiency
Let’s be real. Keeping track of employee related information such as their attendance, number of leaves taken in a month, late comings can be quite difficult to track if you’re maintaining a paper register. By switching to an HRMS software, it becomes much easier to carry out your administrative duties. How? You can apply filters to search for the required information such as typing an employee’s name to know details about his/her birthday, date of joining, etc.
Data Analysis and Quicker Decision Making
An HRMS solution helps keep your data organised and up-to-date. You can quite easily analyse your data through user generated reports and make decisions based on the results. Like for instance, you need to find out the number of people who are going to attend Friday’s training session. Simply, pull up the relevant task and peruse it.
Typically, HRMS systems offer the functionality of an employee directory. Through this, you can send internal messages to the company workforce. This feature eliminates the need of using any other tool since you can pick and choose whether to send a companywide email or a SMS directly to employees’ mobile phones.
Even though, try as one might, sometimes legal disputes do happen. You have to be ready in the event when an employee sues the company, you can prove that the employee did training for a particular equipment, or that they received and read a certain email. Though, it can be protested that a particular email was not opened, most HRMS solutions come equipped with a read and accept facility. This helps create a paper trail to verify if the employee was sent a message and whether they opened the mail or not.
Security and Disaster Recovery
An HRMS software keeps your data secure from outside threats and creates a data backup. This backup can be scheduled for automatic update at a scheduled time every day/week/fortnight/month based on your requirement. Backed up data is saved on the cloud or in-house/remote servers. In the case of any natural disaster such as earthquake or fire, the data can be recovered from the cloud or remote server.
Q. Do I need to purchase new IT infrastructure to use HRMS software?
A. No, you don’t have to. You simply need a computer device whether it may be a tablet, mobile, laptop or a desktop with a good internet connectivity and you’re good to go.
Q. My company has 25 employees. Do I still need to buy HR software?
A. If you are having trouble maintaining employee data, processing payroll, managing employee benefits, and so on, HRMS software has the answer for you. So, coming back to the question, do you still need to buy HR software? I guess you know the answer.
Q. Should I purchase on-premise software or cloud HR software?
A. On-premise is best suited for companies having their own IT team and dedicated infrastructure for IT applications. On the other hand, cloud HR software is ideal for firms who do not have a dedicated IT resource team. Plus, on-premise HR software requires considerable investment vis-à-vis license purchase, annual maintenance cost, etc. Cloud HR software offers the freedom to pay on a monthly/yearly basis and even pay by use model.
Q. Does any annual maintenance fee have to be paid?
A. Annual maintenance fees is applicable only for on-premise software licences purchased by the company. If you’re paying subscription fees for cloud HR software, you do not have to pay annual subscription fees on them.
Q. HRMS software have multiple modules. But I don’t need all of them. Can modules be purchased separately?
A. Yes, you can purchase modules as per your company requirements. If your primary need is to process employee salaries, choose payroll management module. Keep track of employee punch ins/outs with time and attendance management
module. Basically, you can pick and choose which module you want and build from there or buy the full HRMS software complete with all the razzle-dazzle!
Buyer's Guide for HRMS Software in India
If you’re looking to buy HR software, there are certain criteria which you may need to evaluate first before taking the leap. Let’s find out what you need to keep in mind before investing in a HR software:
The first step on your journey to buying HR software is assessment of your need. Whether you really need it or not. Do you want a core HRMS portal
that takes care of your major HR tasks like recruitment, onboarding, time and attendance? Do you need a HR payroll software to execute your payroll needs seamlessly? Or you require a customised HR software solution that fulfils your niche requirements such as talent management and employee exit process?
After you’ve performed the internal assessment, you’ve to choose the best HR software according to your defined needs from a list of available HR software. Budget
Check if the HRMS software in India offer free demos or trial version. This is especially useful if you don’t want to make a significant investment without having a look at the software first. Find out if the HR software fits the bill and offers the features/modules you’re looking for. After going through the demo, evaluate if you’re comfortable and willing to take the jump.
UI plays an important role when it comes to choosing a HR software solution. The design aesthetic of the system, how pleasing it is on the eye, its user-friendliness can swing the buyer’s decision. An exhaustive HR software overflowing with modules, will not overwhelm the user if its backed by a clean interface.
List of Best Sellers
- Focusinfosoft (Cilfi)
- HR Mantra
- Xecute HR
- People works
- Perk Payroll
- Saral Paypack
- Zoho- People
- Pocket HRMS