The scope of Human Resources has now widened beyond payroll and includes many complex business processes that weren’t considered before. HR personnel often find themselves engulfed in processing large amounts of data and looking over an extensive range of business processes. One way to help HR personnel perform their tasks efficiently is to take refuge in automation in the form of an HRMS. However, the old adage of an all-in-one system is most often questioned, as legacy platforms have significant limitations in adopting best practices as user expectations evolve in a rapidly changing technology-driven workplace.

Let us take a look at what HRMS is and how important it is for your business.

What is HRMS?

Human Resource Management Software efficiently combines all different HR processes to ensure easy management and processing of data and different business processes. It is implemented to help perform the critical tasks of the HR department, such as employee recruitment and onboarding, leave approval, employee learning and development, etc. HRMS aims to enhance employee performance to help an organisation accomplish its business goals.

How is an HRMS important for your business?

Achieving and maintaining a successful position without some form of HR automation is nearly impossible for companies in the modern business environment. Increasing employee productivity can help take a step toward business growth. The time spent by HR personnel doing repetitive and mundane tasks can be saved and utilised for performing strategic business processes using HRMS. Also, what used to be seen as a system for large businesses, is equally, if not more, important for small and medium businesses where HR teams and resources are considerably less.

Implementing the right HRMS is a common feature amongst the most successful organisations. It can help businesses of all sizes increase employee productivity and rate of growth. Some of the important benefits of having an HRMS in place include:

  • Allows employees to handle certain clerical tasks and reduces the burden on HR personnel
  • Authorised user access control helps ensure data security throughout the organisation
  • Streamlined and customised workflows to ensure a better user experience
  • Allows to schedule automated reminders and emails

How is it different from HRIS?

The term HRMS is sometimes confused with HRIS which stands for Human Resource Information System. However, both HRMS and HRIS differ in the tasks they can handle.

HRIS is an earlier form or a type of HRMS which primarily dealt with quantitative data of employees. It helps organisations keep track of numerical data of employees such as employee scheduling. The core tasks of an HRIS include recruiting data, reporting, compensation, data tracking, accounting, etc. Apart from this, it can also help organisations manage their policies and procedures.

Whereas an HRMS offers a more powerful solution than HRIS. It includes both IT and HR management procedures. An HRMS helps organisations manage all the tasks that an HRIS or HCM manages and adds more value by including non-quantitative data of employees and applicants too. It can help HR personnel with efficiently performing business processes such as onboarding, job performance, employee satisfaction, analytics, profitability, etc.

What functions does an HRMS perform?

Each module of an HRMS helps organisations gather and track information at various levels of HR business processes. Its workflows enable efficient data collection and processing right from when an applicant applies for a job through to the completion of their work in the organisation. It helps manage the recruitment and onboarding of an employee, evaluate their performance, allow them to learn and develop new skills, etc.

The main functions of an HRMS include (and are not limited to) the following:

  • Gathering, storing, and tracking employee information
  • New employee recruitment and onboarding
  • Maintaining employee attendance records and tracking leaves
  • Managing employee payroll
  • Evaluating and managing employee performance
  • Employee learning and development management
  • Employee benefits management
  • Providing employee self-service
  • Analytics and reporting for informed decision-making

How can you find the right HRMS for your company?

Choosing and implementing the right HRMS can largely decide the fate of your organisation as a whole. A well-crafted HRMS will enable business growth and achieve business goals. Implementing one that doesn’t support the functions required by your business can result in decreased employee performance, poor use of resources, and low return on investment.

A business that fails to implement the right HRMS for it can deviate from the growth path. Not all HRMS are the same, and the one-size-fits-all rule does not apply here. Therefore, every organisation needs to consider its primary requirements when selecting the HRMS.

Some other useful considerations that will help you select the right HRMS for your company include:

  • Understand the primary features of an HRMS and how it addresses the HR compliance problems and challenges that threaten your growing workforce and transforming the business structure
  • Identify and compare the strengths and performance of HRMS from several vendors
  • Seek advice from experts and do your research to know which technology will best serve your business requirements
  • Pay equal importance to the kind of user experience an HRMS can provide to your employees
  • Assess the HRMS vendor thoroughly as a company and go through their customer service and reviews


HRMS has become an essential part of businesses, given its ease of use, applications, and benefits. Implementing it can make a huge difference in achieving your business goals. Contact Sentrient HR today to implement the right HRMS for your business.