What is HRMS? 

Human Resource Management System (HRMS) is an information technology-based software tool that enables an organization to perform all HR tasks. The idea of HRMS is to automate repetitive tasks, thereby increasing the organization’s productivity. That’s why companies prefer HRMS – an ideal combination of systems and processes connecting human resource management and information technology through HR software.  


HRMS frees up the time-consuming tasks of the employees and shifts its focus to culture, retention, and other impactful functional areas. 


So, What’s the Difference Between HRMS and HRIS? 


HRMS and HRIS are used synonymously for convenience. Functionally, there are very few differences. Here are a few differences, however, between these two very similar tools: 


  • HRIS can track numerical data and employee information such as SSN etc. 
  • HRIS helps the HR function to manage their policies & people in general 
  • HRIS core functions include reporting, training, recruiting, compensation, etc. 


  • HRMS has both IT & HR management technology 
  • HRMS is capable of non-quantitative handling of information of the employees and applicants. 
  • HRMS has some unique features like onboarding, employee satisfaction, analytics, and profitability, to name a few. 

Thus, as we can see, HRMS is a more rounded package offering a complete HR solution. 


Features of HRMS  


HRMS features vary from organization to organization. The job of the Human Resources Department is to keep track of employee backgrounds, qualifications, pay, achievements, and more. Information management tasks can be distributed so that the majority of information collecting is not left solely to HR by substituting some operations with various tiers of HRMS systems. Employees can maintain greater accuracy of the information and free up HR experts from tedious work by updating their data. 

Each module carries out a task within the HRMS that aids data collection or tracking. For instance, the recruitment and onboarding module would handle hiring, the performance evaluation and management module would manage employee performance, and so on.  

Enspire HR is a one-stop solution for all your requirements. Enspire HR provides a global solution that suits all countries and all kinds of policies. 

 Benefits of HRMS to an Organization 

Data Analytics 

Data analytics is the main reason most HR functions are moving towards automation. AI is the buzzword these days where it is all about having the correct information at the right time. Even the start-ups are facing HR challenges these days, thus calling for the need for a proper system in place. 


Employee Self Service 

ESS is a suite of information available to the employees through a central hub. HRMS tool comes packaged with ESS portal, which provides access to employees’ data like payroll, leave updates, tax liabilities, etc. It replaces the need for employees to approach HR each time they have a query. Also, HR is empowered to devote time to other strategic tasks that improve productivity. 


Easy Reporting 

HRMS tool can pull out a lot of predefined MIS and statutory reports without setup. Many relevant filters allow HR to generate reports based on custom inputs, which helps the stakeholders make vital business decisions. Critical information can be viewed on a single screen within the software.  


Cost Effective and Efficiency 

Modern cloud HRMS comes at price points that are highly cost beneficial, and the inherent benefits derived from the tool justify the purchase price, in the long run, adding to the productivity and efficiency of the HR function.   


Employee Engagement 

With a host of self-service features available, the HRMS tool helps increase the productivity and engagement of the employees. This, in turn, keeps the employees aligned with the overall business vision. A lot of HR data that is otherwise cumbersome to manage becomes streamlined, thus leading to employee satisfaction as most of their HR-related queries get resolved promptly due to efficiencies brought in by the HRMS tool. 


Statutory Compliance 

To run the business smoothly and efficiently, it is mandatory to comply with state and central laws. Modern cloud-based HRMS tool constantly works at the backend to update the statutory changes that are ever-evolving in the business landscape. Thus, the need to continually hunt for legal updates is avoided, and the business always stays compliant. 


Adopt Best Processes in the Industry 

HRMS is thoroughly researched to consider the industry best practices that are consistently applied. This ensures that there is a constant improvement in efficiency and productivity. Chances of errors are minimized at all times. A classic example of this could be the inclusion of templates for requests, mails, etc., which ensures that the business operates in a certain way.  


How to Find the Right HRMS? 


Once you have felt the need for HRMS, one of the pertinent questions that you may ask is, “How to decide on the right HRMS for my organization?” The following indicators will guide you systematically to finding the right HRMS. A cloud-based option is suitable if you aim to reduce cost, increase productivity, and engage employees. 


Setting up Best Practices  

If a business wants to change its HR policies and processes, introducing an HRMS tool could be a game changer as it comes pre-loaded with best practices. The HR & payroll procedures and formal policies often go missing in a smaller setup. Implementation of an HRMS tool corrects these anomalies.   

Cost Implications and Understanding your Requirement 

When choosing an HRMS software, it is imperative to understand the requirement and be clear on the output required for a smooth transition. Though the features may seem similar, each tool has a varied user experience. If you choose the right HRMS tool that meets your requirement, the ROI concern gets settled over a period of time. 

Employee Self Service – a must for Employee Satisfaction 

No employee should have the need to track HR to access their payroll and other HR information. ESS is an information suite giving direct access to employees. The availability of this information improves employee engagement and satisfaction. 

Eliminating Repetitive Manual Tasks with Automation 

HRMS automates several tasks that otherwise had to be performed manually and can boost productivity and save time. HRMS is a tool designed for efficiency. 

Customer Support 

Before buying any HRMS software, check if they have the required customer support service and their availability to attend to and address any software-related issue at any given time. After-sales service should be a must-have thing in your mind.  

Customization to Suit your Business Needs 

Cloud HRMS should be flexible enough to be fully customized to suit your needs. Be it leave or shift logic; the software should be able to customize on these fronts for efficiently carrying out the HR process. 

Need for Growth 

One of the main reasons to opt for HRMS is the need for scaling. With HRMS, you can easily upgrade plans to work with more functionalities based on your organization’s needs.  

Integration with Existing Systems 

It is important to consider direct integrations with HR features like payroll inputs (attendance/biometric etc.). Not just that, integrations it is also possible to integrate HRMS with accounting software, performance, and attendance tools.  


HRMS is suitable for large organizations and start-ups, boosting their overall growth and productivity and strengthening their position in the global marketplace. Consult with Enspire HR to choose the perfect HRMS for your organization to increase efficiency and manage information. 

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