What is an HRMS?

HRMS software is frequently recommended to SMEs, employers, and HR professionals—and for good reason. Yet, you’ll often find people wondering, ‘What is an HRMS?’

Similar to and often confused with HRIS, an HRMS can boost productivity, streamline your workflows, inform personnel-related decisions and create reports.

They give those who oversee your company’s employees a competitive advantage. Harnessing HRMS’s full potential helps any ambitious business monitor and manage its employees for further growth.

Let’s discuss HRMS and its use in more detail and explore its features and benefits.

So, what exactly is an HRMS?

HRMS stands for human resource management system. This software lets your team make data-backed decisions and shapes their working processes. It’s designed to support your HR function and any admin, management, and finance employees who rely on having personnel-related information at their fingertips.

Many view an HRMS as an end-to-end system. It collects and stores employee data and details, guiding people management teams to oversee employees from recruitment to their departure from your company. An HRMS is a digital support system capable of generating insights for each employee for many years.

In a nutshell, this system helps you manage your human resources for optimum efficiency and growth.

How do businesses use HRMS systems?

Usually cloud-based, an HRMS simplifies the people-centered side of your business. You and your team can save time, avoid data entry errors, and simplify everyday HR tasks.

More advanced than an HRIS, you can use an HRMS to:

• Manage how your team is performing

• Comply with employment legislation for your jurisdiction  

• Track hours worked

• Update and manage payroll

• Review worker absences

• Collect new employee documentation

• View time-tracking results

This list isn’t exhaustive but hints at HRMS's broad functions.

When synced across the entire HRMS platform, anyone with the proper permission can log in to view up-to-date information on their device. This saves valuable time and resources.

All updated documents such as policies, company announcements, and health & safety guidelines would otherwise need to be printed out on paper and distributed. Here, it can be done with a simple email alert.

HRMS software is also favoured for the vast suite of features it includes. With an HRMS like BrightHR, businesses like yours can integrate applications such as Zapier, Xero, and Microsoft. It becomes a single point of access that helps your business identify opportunities for growth and increased productivity.

HRMS features

There are many vital features within HRMS software, specific to our HRMS software you’ll be able to:

• Depend on unlimited HR document management and storage with templates, document archiving, employee alerts, and read receipts.

• Expand your team with top talent using recruitment management tools, from job descriptions to applicant tracking and onboarding resources.

• Track employees’ hours and days worked and maintain legally compliant working hour records for streamlined payroll.

• Simplify your shift and schedule planning by filling open shifts or creating work schedules to meet demand. That can be circulated to employees in a few clicks.

• Easily manage staff absences and leave, avoid understaffing, and track remaining vacation balances to prevent burnout and increase productivity.

• Train your workforce using a learning management system. You can assign over 20 courses and

• Retain and reward your best-performing employees with a unique online benefits platform.

• Increase employee engagement and motivation for better business output and work culture with an employee recognition platform.

• And so much more...

Having the opportunity to provide reporting and employee self-service is another advantage our customers love.

HRMS benefits for business owners

An HRMS is designed to simplify working processes. But that’s not the only benefit for business owners—there are many benefits of HRMS software.

To touch on a few more it ensures that the information your company relies on is accurate and secure, which is crucial for legal compliance regarding workplace laws. It also improves data accuracy, supporting business growth by minimizing costly errors when creating work schedules or calculating leave, and ensuring that there are adequate numbers of employees working at any given time.

This accuracy and reliability result in more confident decision-making. Data analytics and automation can support and guide you and your team, leading to fewer wasted resources through poorly informed strategies and ultimately bringing cost savings.

One of the most compelling benefits is the money you can save with the right HRMS by your side. But don’t just take our word for it; see how much your business could be saving for yourself below…

Discover BrightHR’s HRM Software

Let BrightHR’s human resource management system grant you access to a world of HRMS benefits. Realize the potential of greater efficiency, enhanced communication and more empowered employees from a single centralized source.

Save money, time and human error, grow your bottom line and replace separate documents and spreadsheets with an easy-to-use alternative. This streamlined option also ensures you’ll continue to comply legally, with logs, fundamental training and leave management included.

Explore the features of our HRM software or book a free demo and talk to a friendly advisor today!