HRMS Softwares are an integral part of IT systems today. From medium-sized businesses to Enterprises, the use of Custom Human Resource Management softwares helps streamline the process of recruitment, manage payrolls, track time and attendance, and help with the process of onboarding and offboarding among a lot of other softwares. HRMS Softwares have evolved over the past few years, and various processes have been streamlined with a structured workflow, while others have been automated. This article discusses the core features of an HRMS software, some of the best off-the-shelf HRMS softwares, their features, and how it differs from Custom HRMS software. As a software development company, Megh Technologies has developed Enterprise HRMS softwares which can be integrated into your existing system or as a standalone solution. This article discusses the pain points of companies and how technology has been able to solve them.
Core HR Software Features
All HR Softwares are required to have a few standard features. These features are common in all the softwares, off-the-shelf and custom solutions.
- Employee Information Management System: A centralized employee database is created with provisions to enter personal and professional details. The module also helps storage of digital documents like contracts and certificates in the system for instant retrieval when required. An employee information system is the basic module and the first module which is required in an HRMS software. This module stores the employee’s name, address, blood group, designation, qualification details, and other details.
- Recruitment and Applicant Tracking: One of the biggest hurdles enterprises and growing companies face is at the employment phase. With 1000’s of resumes flooding the system, applicant tracking is often a nightmare. Finding which applicant posted for a vacancy is often time-consuming when done manually. With a recruitment and applicant tracking system, you can manage job postings and track applications for a particular vacancy. With a database in hand, you can always go back to it in the future when a vacancy is available. The module stores information on candidate screening, interview scheduling, and offer letter generations among a list of other features. With AI integration, Recruitment and applicant tracking can be efficient by 80% or more.
- Onboarding and Offboarding Process: The process of onboarding with a checklist is created for candidates who are employed. A streamlined workflow on the process, training, and details on the probation period and their progress is tracked with the onboarding process. A structured workflow ensures a smooth process for the organization and the candidate. The offboarding process is also created with a structured workflow with a checklist of exit formalities and knowledge transfer process.
- Payroll Management: One of the crucial tasks of the HR Department is payroll management. With time and attendance tracking integrated into the payroll management, the software calculates salary automatically and deducts tax. Automated salary calculations and tax deductions save days in large organizations. With an integrated banking system and direct deposit, the HRMS software ensures a hands-free, secure process of payroll management with zero errors.
- Time and Attendance Tracking: Integrated with biometric or app-based attendance system, an HRMS software can manage leaves of employees, schedule shifts, and track time at the work floor. A systematic workflow allows easy leave application process and manages employees’ attendance details. The system is often integrated into payroll management systems for easy payment generation and salary.
- Performance Management: HRMS Softwares also integrate performance management modules to track performance. The module enables goal settings, performance appraisal, and feedback. Key Performance Indicator (KPI) tracking and reporting help assess employee performance quarterly, half-yearly, and annually. Appraisals can be decided based on ratings provided by the software.
Employee Engagement Modules
Employee engagement modules are a section that is dedicated only to the employees. It’s important, especially in large organizations, to have a self-service portal for employees to know more about the organization and how they can move ahead in their career. Engagement modules provide learning and development solutions with e-learning modules. Training module management is often integrated with certification tracking and career progression planning facilities. Gamification and recognition programs are created to boost morale of employees, and a survey and feedback section is important too for sentiment analysis and feedback collection, often anonymously.
Advanced Features of HRMS Softwares
Though advanced, some of the features below are becoming the de facto of HRMS softwares today. With changes in work environment and technology, advancement in the software is clearly evident, important, and a requirement now. Technology like automation and AI has helped HRMS softwares to integrate chatbots for employee queries and workflow automation of repetitive tasks. The need for remote work management, with many companies offering remote jobs for tracking productivity and virtual team collaboration, is now integrated into many of the HRMS Softwares too. Mobile apps for real-time access to the HR system ensure that employees can report and request services from any location and not just the office. A detailed analytics and reporting module helps with predictive analytics of workforce trends and talent planning. A customizable dashboard for the reporting makes accessing crucial information easy for the HR team. To top it all, HRMS softwares today come with the ability to be integrated into your ERP, CRM, and accounting softwares for seamless data exchange.
Limitations of Off-the-Shelf HRMS Software
Off-the-shelf softwares are often straightforward and have a clear mention of the features. Adding features to an off-the-shelf HR software is often cumbersome, time-consuming, and prone to bugs and errors in the future. Scaling an HRMS software could also be difficult. There are enterprise-level HRMS softwares which, though off-the-shelf, are easy to scale or customize. Unfortunately, enterprise-level softwares are often too expensive for small companies and are only recommended for large corporations. Understanding the limitations of off-the-shelf software can prevent loss of information, time, and money in the future. Listed below are some of the most used HRMS softwares for companies big and small with features.
| HRMS Software | Core HR (Employee Database, Onboarding) | Payroll Management | Time & Attendance Tracking | Performance Management | Recruitment (ATS) | Mobile Access | Analytics & Reporting | Customizability | Best For |
|---|---|---|---|---|---|---|---|---|---|
| SAP SuccessFactors | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | High | Large enterprises |
| Workday | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | Moderate | Medium to large businesses |
| ADP Workforce Now | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | Moderate | All sizes |
| Zoho People | ✔️ | Limited | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | Moderate | Small to medium businesses |
| BambooHR | ✔️ | Limited | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | Low | Small to medium businesses |
| Gusto | ✔️ | ✔️ | Limited | Limited | Limited | ✔️ | ✔️ | Low | Startups and small businesses |
| Freshteam | ✔️ | Limited | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | Low | Small to mid-sized companies |
| Oracle HCM Cloud | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | High | Large global organizations |
| Rippling | ✔️ | ✔️ | ✔️ | ✔️ | Limited | ✔️ | ✔️ | High | Tech-savvy businesses |
| Keka | ✔️ | ✔️ | ✔️ | ✔️ | Limited | ✔️ | ✔️ | Moderate | SMEs in Asia |
| Paycor | ✔️ | ✔️ | ✔️ | ✔️ | Limited | ✔️ | ✔️ | Low | Small to mid-sized businesses |
| OrangeHRM (Open Source) | ✔️ | Limited | ✔️ | ✔️ | ✔️ | Limited | ✔️ | High | Startups and SMEs |
| Bitrix24 | ✔️ | Limited | ✔️ | Limited | ✔️ | ✔️ | Limited | Moderate | Small teams |