HRMS complete guide



HRMS stands for Human Resource Management System. It is a software used to track the employees of an organisation. It helps you to maintain a database of your employees’ details and also provides you with important information about them.

What is HRMS?

Human Resource Management System, or HRMS, is a system that manages the human resources of an organization.

HRMS is a business process management system and software that automates the human resource management process. In other words, it helps in managing all aspects of employee life cycle at one place.

All you need to know about HRMS

HRMS is a software that helps organizations manage their human resources. It automates the entire HR and payroll process, allowing them to effectively manage their employees and make sure that they are getting paid on time, in addition to other tasks such as onboarding new employees and keeping track of employee benefits.

In this article, you’ll learn everything you need to know about HRMS: what it is, who can use it, how it works and more!

Benefits of HRMS

You may have heard that human resource management systems (HRMS) are great for increasing the productivity of a company. But what exactly does this mean? It means that HRMS helps to automate the entire process of human resource management, making it possible for companies to complete more work in less time with fewer resources.

This can be accomplished by reducing costs, improving efficiency and ensuring compliance with employment laws and regulations. This can lead to an increase in profits and higher stock prices as well.

Types of HRMS

  • Cloud-based HRMS: These are the types of HRMS software that offers various functionalities and features to the users. These software systems are hosted in the cloud and therefore it can be accessed from anywhere at any time. The user can use this HRMS software on multiple devices like desktop computers, laptops, mobiles etc., as per their convenience. In addition to this, these cloud based software also offer facilities to integrate with other enterprise applications for a wide range of business automation activities such as payroll management, leave management and many others which makes it easy for organizations to manage their workforce effectively without spending much effort or money on developing them separately from scratch.* On-premise HRMS: This type of system is installed locally on your company’s servers with you getting complete control over its deployment.* Hybrid model: This model combines both models – On-premise & Cloud – together by having some aspects installed on your computer while other parts remain online so that you don’t have to worry about upgrading hardware every now & then when new versions come out (since they might require more RAM space than what yours currently has).

Features of HRMS

HRMS Self Service

Employees can self-service their data, benefits, leaves, training, performance and salary. Employees can also get all the information about their organisation’s role in the employee life cycle. They can view all the information related to them like payroll details, leave balance etc.,


Recruitment is the process of attracting, selecting and hiring suitable candidates for jobs within an organization. Recruitment can be done through various sources such as job boards, employee referrals, and social media.

Recruiters scan through resumes and do an initial screening based on skills needed or qualifications listed in the resume. They then have a phone or video interview with the candidate to see if they are a fit for the role. After this step, recruiters will present their findings to hiring managers who make final decisions on who will be hired

Attendance management

Attendance management is a crucial HRMS feature. It encompasses employee attendance and management, as well as employee leave and absence management. Attendance tracking software helps you track and analyze your employees’ attendance figures so that you can effectively prevent any issues related to absenteeism and tardiness, making sure that your employees are present at work when they should be.

Employee absence tracking software allows businesses to set up different types of leave requests for their employees which will be automatically processed by the system through an approval workflow. The number of hours each employee takes off or uses in a given period can also be tracked using this feature.

Compensation management

Compensation management is a process of managing the compensation of an organization’s employees. Compensation management involves determining the compensation amount for each employee, and this can be done in several ways. For example, you may decide to use a formula based on factors such as experience and education level, or you might use historical salary data from other employers to determine what to offer someone in your position.

You’ll also need to consider whether or not employees are eligible for any benefits or bonuses that go along with their salaries

Leave Management

Leave management is a key component of the HRMS and is an important module for all stakeholders.

  • It’s important for the company because it helps in managing the data related to leave such as employee’s details, holiday calendar, pending approvals, approvals done etc.
  • It’s also important for the employee because it provides them with powerful tools like automated approval requests, automatic reminders, efficient holiday planning and much more.
  • For HR department it helps them manage their resources better by understanding how many days are being taken by each employee. This will help them plan better vacations so that there would be no over-utilization or underutilization of resources.
  • Managers can easily track all the leaves taken by their team members which helps them plan vacations accordingly so that they do not clash with other teams’ vacations or meetings.

Training & Development

Training and development can be a big part of your HRMS. It’s important for both the employees and the company to keep up with new training methods, especially in today’s competitive market. Training is also a great way to improve your business, so you should make sure that all of your employees are trained regularly on new skills.

Training is also an important part of society at large—it helps people learn more about their jobs and how they fit into the world around them, which allows them to contribute even more than they already do!

Performance Management

Performance Management is a process that helps to improve employee performance by setting goals, identifying performance issues, and developing strategies to address those issues. Performance management is a key component of an effective HRMS because it allows you to:

  • Set clear expectations for employees;
  • Identify the strengths and weaknesses of each employee; and
  • Support your employees when they need it most.

Claims Management

Claims management is a process that is used to detect, respond to and resolve insurance claims. It is part of the overall insurance management process that includes risk assessment, policy design, loss control, underwriting and claim administration.

Claims management is a specific subset of the larger practice area known as risk mitigation or risk avoidance. The purpose of claims management (or claim processing) is to identify areas where errors can be made or situations which may lead to an increase in losses due to fraud; then make adjustments accordingly. Claims are often reviewed by those who specialize in this area such as auditors or investigators; they will look at both internal controls designed specifically for detecting fraudulent activity as well as external controls such as those put into place by other organizations (insurance companies).

Payroll Processing

Payroll processing is a vital part of the HRMS and it is a complex process. It takes a lot of time, effort and attention to detail. You can’t afford any mistakes when it comes to payroll processing because it could lead to serious consequences for your company and its employees. Payroll processing is critical for both the employee and employer as it directly affects their daily work life as well as their financial status.

HR Analytics & Reporting

This is the ability of an organization to understand its workforce, and then measure and analyze it in order to make informed decisions.

HR Analytics can help organizations by:

  • Helping them understand the workforce they have, and how this changes over time
  • Providing insight into which activities are most productive for employee retention, performance management and other HR activities.


So, if you are looking for a solution that would be able to centralize all the HR functions and process them in an efficient manner, then look no further because these features in online HRMS will help your business. We have taken care of all aspects of HR functions like recruitment and pay roll processing, leaving nothing to chance or guesswork. We offer you a single source of truth for all your HR needs which ensures transparency and efficiency in every department of your organization



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