Aligned with broad functionality, HRMS feature sets can vary widely from provider to provider, while cobbling multiple products together may limit the overall system. HR, IT, finance and other stakeholders should carefully assess which of these Functions And Requirements For Human Resource Management System are must-haves for the company.
Helps HR professionals develop plans, configure eligibility rules and make payments or deposits to benefits providers. Also offers self-service open enrollment and integrates benefit costs with accounting.
Centralized employee records:
Provides a single repository where all employee records are stored, updated and maintained. Allows for better reporting and lowers the costs of compliance and preparing for audits.
This feature is designed to help employees acquire or develop skills through course administration, course and curriculum development, testing and certifications. It also enables companies to roll out and track required compliance training.
Reporting and analytics:
Delivers the ability to run operational reports to track HR information, complete compliance reporting, develop key performance indicators (KPIs) to measure HR process performance and embed HR metrics into financial dashboards for company-wide analysis, planning and decision-making. Also look for the ability to create ad-hoc reports.
Calculate salaries, hourly wages, variable payments for bonuses, overtime, sales commissions, shift differentials and merit increases while withholding regulatory and elective deductions, resulting in accurate net payments to employees at regular intervals. Benefits, like matching retirement fund contributions or mobile phone reimbursements, are sometimes included in this feature set.
Recruiters are able to build career pages on the company website and intranet, create job requisitions and descriptions, manage positions, integrate open positions with job boards, manage resumes, track applicants through the recruiting process, extend job offers, perform background checks, administer pre-employment screenings and create job application forms, before handing new hires off to a generalist or the hiring manager to begin onboarding.
Enables HR professionals to develop and evaluate employees via performance reviews, goal management, and competency and skills test administration.
Time and attendance:
Delivers the ability to process time-off requests and manage time-off balances, employee scheduling and absence management and enables timecards to be integrated with payroll and projects.
Since HRMS can be opened to the entire workforce, a user-friendly interface is critical. Today’s systems feature employee and manager self-service, mobile apps, localization, personalized dashboards, workflow automation, role-based access controls and notifications to keep employees engaged and inquiries into the HR or IT departments to a minimum.
Provides the ability to plan and budget for workforce costs and measure against actual outlays for both current and future scenarios may also be used to identify skill gaps, create succession plans and prioritize recruitment efforts.
Additional features can be found in specialized HRMSs and not every company needs a fully-loaded system. If you decide to use multiple providers to form the HRMS, ensure all the products include an open architecture to allow for bi-directional data exchange, needed integrations and file uploads across the system. Using a single provider for an HRMS reduces the need for one-off integrations, which can be expensive, complex and difficult to secure and update.
So far, we’ve talked about the functions and requirements for Human Resource Management System. But those who need to persuade leadership that an HRMS is a smart buy need to prepare for a higher-level business ROI discussion.