hrms tools

Choosing HRMS Tools for your business


Human resource management systems make it easier to manage employee information. With more user-friendly interfaces, intuitive design and powerful functionality, the HRMS market is expected to grow at a CAGR of 6.4% from 2019 to 2024. The Human Resource Management System (HRMS) has evolved from being a mere tool for maintaining employee records to a comprehensive suite of applications that empower an organization to manage its human resources effectively. The major features that have contributed to the growth of the HRMS market include:

HRMS helps organizations manage their human resource processes. It is also known as human resources information system, HRIS or HR management software. Human resources management systems (HRMS) have evolved over time to meet the ever-changing needs of organizations. In this article, we will be taking a look at the evolution of HRMS features in the last 10 years, so as to understand how they are currently being used and what changes have taken place in them.

Key Features

Employee Self-service (ESS)

Employees should be able to access their own information and make changes without having to ask IT or HR for help. The Online HRMS allows employees to manage their own information, including updating their personal information (address, phone number), updating their benefits status, viewing vacation balances and requesting time off. HRMS has employee self-service capabilities allow employees to enroll for benefits; change or update their personal data; view their salary history; submit expense reports; apply for leave, vacation or time off; check their schedule; submit time sheets; access training resources; review their performance reviews and training certifications earned.


This module allows companies to manage their payroll so that they can pay their employees correctly without having to worry about making mistakes which could result in fines for late payment or underpayment of taxes etc. Other payroll and benefits capabilities include payroll processing for all employees worldwide including deductions for taxes, insurance premiums, health care coverage and retirement savings plans.

Time and attendance management

Time and attendance capabilities allow employers to monitor employee attendance through timesheets or badges that track when employees arrive at work or leave work each day. Time clocks are also used to capture employee time based on when they swipe their badge at entry points into the building or company grounds.

Leave Management

Leave Management software is a type of HR and payroll software that allows business owners to track employee vacation, sick leave and personal days. It also helps them manage employee absences in a more efficient way, which can reduce costs and improve productivity.

There are many different types of leave management software available. Some systems are designed to simply record time off requests and manage those requests in one place. Other systems include features such as employee scheduling, time tracking and reporting. Leave management software is typically used by companies that have more than 20 employees.

Talent Management

Talent acquisition capabilities include applicant tracking systems (ATSs) that help you manage recruitment web sites so that you can find qualified candidates online by searching job boards as well as social media sites like LinkedIn.”


One of the most important HRMS features is recruitment. Almost all organizations use recruitment software that helps them manage their hiring process effectively. It also helps them to reduce their cost on recruiting new employees and increase their productivity. This module allows companies to manage their recruitment process from start to finish such as creating job advertisements, screening and selecting candidates for interviews and finally hiring new employees.

Performance management

Performance management is an important feature that has been added to HRMS systems over the years. It helps managers to assess employee performance and improve it by providing feedback and suggestions for improvement. This module allows managers to track employee performance and give feedback on how they are doing. It also allows them to reward good performers with bonuses or promotions and discipline poor performers who may need further training or coaching from other members of staff.

How to buy the right HRMS for your business

Online human resource management system can help businesses save time and money by automating certain tasks, such as payroll and employee benefits but you must choose the right system for your business. Additionally, there are features of these systems that allow for better employee collaboration, which can increase productivity and decrease turnover rates. Some mandatory considerations when buying a HRMS system include:

  • Integration with other applications such as time tracking or payroll software
  • User friendly interfaces that make it easy for employees to enter information into the system
  • Automated paperwork processing


The human resources management system includes employee self-service, payroll and benefits, time and attendance, talent acquisition, learning and development, performance management, compensation management and more. Some HRMS systems also support talent acquisition and on-boarding.

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