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How do Human Resource Management System & HRMS Apps help? How does sumHR fit into them in 2021?

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Vedika Nathani
July 27, 2016

Smart companies do not waste their time doing manual and basic tasks of the organization. By investing in HRMS software, they can delegate their work to a solution that will make their life easier.

An HRMS (Human Resource Management System)  is a type of HR software that performs all the HR functions through the use of information technology. The latest advancement in the HRM system is the proliferation of human resource management apps which have proved to help a lot of companies.

Now, when we talk about an “app”, the thing that comes to mind is a mobile app. However, in the case of an HRMS, we aren't talking about mobile apps. Instead, our focus is on human resource management solutions which offer robust, secure, and anytime-anywhere access from any device.

So yeah, you can access them on your mobiles, but they are certainly not limited to that ecosystem.

The main advantage of using human resource management apps is that the companies can track the employee performance and demographics in the best possible way - and this includes the whole gamut from leave tracking, attendance monitoring to analytics, and all in-between!

UNDERSTANDING THE DIFFERENCE BETWEEN HRIS, HCM, AND HRMS

When you hear the term HRMS, HRIS, and HCM, all these are cloud-tech and information-based technology to manage a workforce. Vendors, business analysts, and marketers use this software interchangeably.

But what do these terms actually mean and how are they different from one another?

By understanding the meaning of these terms and how different they are from one another, you might be able to find the right solution for your company.

First, let's start by giving the full form of the acronyms.

HRIS- Human Resource Information System

HCM- Human Capital Management

HRMS- Human Resource Management System

So what is the core feature of all three?

1. Human Resource Information System - This is the most basic software solution available to you. At its core, HRIS manages people, policies, and procedures. The function of HRIS software are:

  • Recruitment- Managing interviews, Posting job descriptions, and storing resumes with the help of an applicant tracking system (ATS)
  • Absence management - Tracking the leave of the employees
  • Workflows- These help in drumming up the productivity
  • Personnel Tracking- Storing all the data related to the employees
  • Self-Service Portal - Gives the ability to all the people in the organization to manage the sharing of their personal data.

2. Human Capital Management - This is the grey area of the water because not everyone agrees with the differences between HRIS and HCM. They have the misconception that they are one and the same thing.

However, one thing is a guarantee that HCM is more comprehensive than HRIS. All the features of HRIS are available in HCM plus you can also add the talent management features to the mix.

These include

  • All HRIS functions and features
  • Employee Performance- Track performance ad productivity of employees.
  • Onboarding- Helps new employees to get updated by streamlining the processes.
  • Analytics- Helps employee get in-depth into the key metrics of the company

3. Human Resource Management Software - It includes all the features of HRIS and HCM.

  • Features of HRIS and HCM.
  • Payroll Processing- Automatically calculates pay, deducts taxes, and sends deposits.
  • Time and Labor Management (TLM) - Track project times, controlling employee schedules to increase productivity and performance.

HOW HRMS SOFTWARE CAN BENEFIT THE ORGANIZATION

A common denominator among successful companies is using HR software for handling the functions of HR. The departments of HR have transformed due to the mobile accessibility of the software, putting information and tasks at the fingertips of the employees and management.

The rate of growth and efficient management increases with an HRMS. Below are some examples of the benefits of HRMS to give you a competitive advantage in the market :

  • Improves efficiency of core HR processes

By optimizing your core HR processes, you are in turn improving the efficiency of major key functionalities such as effective recruiting, employee onboarding, and the related onboarding process.

  • The high degree of employee self-service

With an HRMS, the HRs of the company have time on their hands to focus on critical tasks and better customer service. It gives your company a strategic advantage to properly handle the planning of key tasks and the basic functionalities of your company for a better customer experience.

Benefits of HRMS

COMMON FUNCTIONS OF HRMS SYSTEMS

1. Data security and privacy policy

One of the primary pillars of an HRMS is security. A good human resource management app should follow high standards of protocols when it comes to securing your data. It should also ensure the flawless functioning of the application; minus the constant need for threat and security monitoring.

2. Improved data management

Human resource management is people management and the apps assist the companies in managing the employee data as well as information on benefits, such as enrollment, policy changes, and so on.

3. Cost-effective

Many start-ups and small & medium organizations look for “low-cost high-value” products. So, when the pricing is made simple, transparent, and reasonable, it makes the human resource management app attractive for an organization to start using it.

4. Customer-friendly Support

The HRMS provider should have customer-friendly support. As an organization, you should get answers to your questions and enjoy timely follow-ups. If need be, the tech support should also return calls, solve setup problems, and bring about a positive and satisfactory impact on you - the end-user.

ASSESSING THE NEED FOR AN HRMS?

Before you decide on selecting an HRMS solution for your company, it is important for the senior management to understand the needs of the company, the interest of its employees, and how they plan on achieving the goals of the organization both in the short-term and long-term.


Depending on the size and structure of your organization, it is always advisable to arrange a meeting with representatives from each department to discuss the needs of HRMS for your company.

Here are some talking points that you can discuss in the meeting that will help you in deciding if your company requires a dedicated solution to your HR problems or not:

  • Your HR department is overworked and does not have time to do the important administrative tasks.
  • Your company is losing money on compliance errors and losing HR information.
  • You have branches all over the country and have no uniform platform to connect with all the supervisors.
  • You have no medium to monitor the high employee turnover or to control unengaged employees.
  • Your company or employees have no opportunity to manage their performance appraisals.

KEY FUNCTIONALITIES OF AN IDEAL HR SUITE?

Different systems have different functionalities and you can customize HR software for your company depending on your needs and business processes.

Here is a brief overview of some of the basic functionalities of HRMS

1. Recruitment and Onboarding Management Module

HRMS will allow you to configure the module for smoother and more streamlined candidate shortlisting, hiring, production of offer letters and contracts, and the onboarding processes of new candidates.

2. Performance Management and Talent Management

The employee appraisals in your company will be very convenient through automated templates and feedback forms available in an HRMS.

Running reports for identifying the weak points of your employees and assessing the right kind of skills and training they will need to improve will become much more convenient for you.

Read our guide on Performance Appraisal and how you as an HR can contribute to it

3. Scheduling and Time Management

Through this feature, the line managers can manage the workflows of the employees, the working pattern of the team, and authorize their time-off requests.

4. Analysis of workflow data

You can run a range of reports to create useful statistics about employee performance, employee engagement, and use these stats to underpin the people management of the enterprise.

How can sumHR, among the various Human resource management apps, help your organization?

sumHR is a modern, delightful, and extremely easy to use, cloud-based HR Management and Payroll software. It is a cloud-based solution that helps startups and small & medium businesses to streamline their HR & payroll processes.

Here are some of the key features of sumHR which makes it one of the best human resource management apps:

1. Cloud-based infrastructure

sumHR uses cloud-based infrastructure which is highly scalable and offers a world-class human resource, payroll, and attendance management tool.

2. Stay assured about security & privacy

sumHR's data is hosted in an extremely secure and safe environment. With 24×7 security and carefully guarded, limited-authorized access which is managed by world-class professionals; you can be rest assured about its stability and security.

3. Leave & attendance management like a pro

With sumHR's Biometric based Attendance Monitoring features you can create & manage shifts, define attendance policies, track every employee's in/out time, record work-from-home/out-duty attendance, and much more.

Its leave management feature also makes it easy for you to set leave policies, allow your employees to see their leave history, balance leaves, etc., so you are not bothered by these queries every now and then.

Its automatically generated FAQs ensure your employees get answers to common and recurring queries right on their homepage.

4. Employee database management

sumHR's company directory feature serves as a repository for accessing every employee's profile. The Smart Search feature ensures finding employee information is a breeze.

5. One-Click Payroll Management

for focusing on bulk data management, full and final settlements, creating and managing multiple salary structures for various seniority levels as well as automation of the most complex payroll procedures with ease and running the entire payroll process with a single click.

There are a wide variety of human resource management apps available in the market, each with its own pros and cons. Choosing the right HRMS solution for the organization is very important as it directly impacts the organization's growth.

Read More about sumHR's features here

You can try our HRMS absolutely FREE. Just signup here and you’re good to go!

FREQUENTLY ASKED QUESTIONS (F.A.Q)

1. What are HR software solutions?

HR software solutions, also known as HR solutions refers to a technology that a company uses to streamline its HR processes and its variety of functions. Examples include recruitment, onboarding, payroll, time and attendance, talent management, and many others.

They allow companies to work more efficiently and effectively which tends to increase the work-life satisfaction of the employees and managers alike, also causing high profits and low costs.

Here's a guide on how to choose the right HR Software.

2. How can HRMS can benefit your organization to increase its efficiency?

The use of HRMS can increase the productivity of your company. It allows the scope of HR managers to divert their minds and time to critical tasks that are more crucial in improving the efficacy of your company.

Common administrative functions such as record-keeping, managing the data of the employees, and completing paperwork take a lot of time for HR, giving them no space to work and focus on the KPIs of the company. This is when an HR software solution comes into the picture. This hot HR technology will solve all your day-to-day problems and make your life much easier.

3. How do I maximize organizational success through Human Capital Management?

Human Capital Management and Organization success are co-related to each other. The effectiveness of the company depends on hiring the right people for the right job at the right time.

In today's competitive market, you and your company have to strive for a high rate of competency. Human Capital Management helps you in reaching the top-scale by contributing effectively towards profits, quality, and consistency.

4. How does Human Resource Planning work in an organization?

Human resource planning is an essential part of every business. Unfortunately, many managers do not pay attention to this because they do not know the benefits they can reap with HRP.

It is the process of systematically planning ahead to optimize and maximize your business's most valued assets- high-quality employees.

The process of human resource planning are :

  • Analyze organizational strategy
  • Inventory of your current human resources
  • Forecast the future of your workforce
  • Estimate gaps in your human resource strategy
  • Formulate an action plan

What was your take on HRMS? If you have any questions drop it down below and I will be sure to answer it.

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Written by
Vedika Nathani
Vedika is a marketing intern at sumHR. Her educational background in management studies and social media internship her to get a keen insight into the marketing field.
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