HRMS: What Is It and How to Implement It In Your Business

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Human Resources Management Systems (HRMS) have been around since the 1960s, and it’s no wonder why they’re such an integral part of business operations in today’s world. HRMS software automates many of the administrative tasks that make up the human resources department, while also simplifying and streamlining other departments to improve overall efficiency. This system can be an invaluable tool that helps make your company more efficient, more productive, and more profitable—which makes implementing an HRMS in your business seem like an excellent idea! But how do you go about choosing and implementing an HRMS solution?

What is HRMS?

An HRMS (Human Resource Management System) is a software package that automates many of the tasks involved in HRM. This includes tasks like employee scheduling, payroll, job postings and others. An HRMS can also be used for other business operations like customer service, marketing, sales and more. The most popular HRMS platforms are SAP Success Factors, Oracle EBS, Kronos Workforce Central, and Workday HCM.

The benefits of implementing an HRMS

An HRMS can provide employees a better experience, reduce the workload of HR personnel, and increase efficiency. The best way to determine if your business needs an HRMS is by answering these five questions.

  • Do you have more than one location?
  • Do you have more than 50 employees?
  • Does your workforce consist mostly of hourly or salary employees?
  • Would you like to be able to access information about your employees at any time?
  • Are you looking for a system that will allow you to customize your reporting needs with minimal effort? If so, then an HRMS is worth considering.

How to implement an HRMS in your business

There are many HRM systems available for companies, including ERP and CRM. However, these are not the only options available. Other HRM software includes HCM (human capital management) systems, LTSS (long-term care), EAPs (employee assistance programs), RBPS (retirement benefit plans), HROs (human resources outsourcing), PEOs (professional employer organizations), MSPs (managing service providers) and more.

Benefits of an HCM System

An HCM system streamlines your HR work by automating things like scheduling, hiring, payroll processing, benefits administration, training and more. The system makes it easier to manage all aspects of human capital with one integrated solution, which eliminates duplicate data entry and simplifies communication across teams. Plus, it helps you comply with labor laws such as FMLA or COBRA in a more streamlined way.

Defining Long-Term Care Needs

Long-term care is typically for seniors who need help with activities of daily living such as bathing, dressing, eating and using the toilet. These needs may be due to aging or physical limitations or because they have a serious illness or injury that requires help managing their daily life.

The key features of an HRMS

  • On-premises HRMS
  • Cloud based HRMS
  • Hosted (software) HRMS
  • Mobile (apps) HRMS
  • Customized/self-built HRMS
  • Off the shelf HR management system
The different types of HRMS

The three types of HRMS are on-premises, cloud, or hybrid. On-premises is when the HRMS is installed locally on a computer within your company. Cloud is when it’s hosted online by an outside vendor that you pay a monthly fee for access. Hybrid is when an outside vendor hosts part of the system while your company hosts the other part. The importance of selecting an appropriate HRMS solution: After determining which type of HRMS solution best fits your needs, it’s important to do some research into which vendors offer the type that you need. Some examples include ADP (on-premises), Workday (cloud), Kronos (on-premises), and SAP Ariba (cloud). Once you’ve narrowed down your list, compare them based on price, features, customer support quality and any specific needs they might meet such as GRC integration with leading identity management solutions like Auth0.