HRMS – A Complete Guide to Managing Your HR Process

Expectations and requirements for employees may vary depending on HR. Employees can also have higher expectations and more stringent requirements. The HR department must also handle important strategic and operational tasks such as hiring employees for retirement.

What is HRMS, and how do you define it?

An HRMS can be a cloud-based platform that assists your HR in replacing unproductive or time-consuming functions with automated solutions.

HRMS (Human Resource Management System) is a software-based system that connects multiple HR functions, including payroll, recruitment, compliance, and employee management. It streamlines HR’s work and allows them to use software technology rather than pen and paper. It helps HR make faster, more intelligent decisions to focus on the strategic aspects of the business.

HRMS Guide: Why is it Important?

Modern organizations consider HRMS crucial because it is moving towards analytics and automation. According to statistics, around 80% of HR departments intend to spend some or even more on HR technology in the coming years. In addition to the growing technology, organizations will spend more on cloud-based platforms instead of installing systems on-premise.

With powered AI, the system will show real-time and accurate data wherever and whenever needed. The human resource system can not only benefit large corporations but can also be used to support startups and small businesses as they develop.

HRMS Process: Hire to Retire

HRMS processes include all tasks from Hiring up to Termination. These functions are all the same for every Employee. Each Employee is required to perform all these functions. This document is an indispensable guide for understanding how these tasks make the HRMS process more efficient.

Applicant Tracking

Applicant tracking or also called screening and recruitment can be described as an electronic method for recruiting. It involves everything from receiving the candidate’s resume to hiring them. It offers you the opportunity to store information about candidates, job openings and schedule interviews. Let your HR be focused on finding the right mix of skills. They don’t need to spend time creating resumes, interview scheduling, or piling them up.


HR must then provide information about the company, its culture, work environment, and products to the potential candidate. To ensure employee engagement. HR must issue an appointment letter, confirm the appointment, and collect all documents such as the Aadhaar card, PAN card, etc. Allocate assets to employees. All these come under Onboarding.

Employee Engagement

Employee engagement is a strategy to improve employees’ motivations for a productive workforce. HR has the responsibility to ensure employees’ needs are met. Employee issues should be addressed. Employees must meet the organization’s goals. Many practical tools, such as team-building activities or appraisal and performance management, can help you. It is necessary to adapt these methods for employees to feel more engaged.

Time Management and Employee Attendance

Tracking employees’ attendance and time daily spent on a particular project is essential for overall productivity and growth. An HRMS-based attendance management solution allows for biometric integration, which stores data directly to a centralized server. The HRMS tracking solution for attendance management also includes a Timesheet option that will enable employees to input their daily tasks and project work.

In addition, Geo-Fencing’ ensures employees can only punch inside the predefined boundary and Selfie Punch’ to authenticate Employee’ attendance via their selfie.

Shift and Roster Management

If your organization offers flexibility in working hours or various shifts, then the HRMS attendance module can help assign them to category-wise workers and further shift management. However, it can be difficult for HR personnel to manage and inform employees about rotating shift policies. Therefore, these companies can create a custom roaster using HRMS. This will ensure flexibility and a well-organized workforce.

Leave and travel management

HRMS software helps you design your company’s leave &travel management policy. It also provides benefits for employees like leave reimbursements, leave cash, etc. A proper approval workflow design is essential. Your managers can approve your application online without any HR intervention. You can trust this system. It eliminates the need for you to accept paper-based forms and store them.

Performance Monitoring

The Performance Management in HR program tracks and manages employees’ performance across the entire office. HRMS helps you track and manage your employees’ performance via various KRA, KPIs, etc. This system will ensure that employees have the same goals as the company and assign tasks accordingly. In addition, HR can evaluate employees’ development and determine who needs to be trained and promoted.

Training & Development

Continuous performance monitoring can help you decide whether your Employee needs more training to increase their capability and skills. In addition, it’s easy to create and maintain training and developmental schedules using HRMS.

Pay (salary) Management

HRMS can be used to automate your payment-related calculations. Enter all necessary inputs, and you will be able to generate your monthly income with just one click. The platform is entirely compliant with the law and can avoid any legal actions. HRMS calculates payrolls, including all deductions.

Reports from MIS, Management System Information

The MIS reports for HR departments include all the strategic functions that are part of an organization. These reports must be filed and kept for reporting and planning purposes. The system will generate reports for all tasks in an easy-to-read and accurate format. In addition, it offers in-built reporting for every module such as attendance, leaves payroll, travel, and performance. You can also mark time slots in advance so that you can generate a report on that date.


HR must perform a complete and final settlement when an employee is onboard or resigns. HRMS facilitates this FNF process and generates a letter of resignation. In addition, HR must inform employees that they need to return assets, pay their wages, receive incentives, and tell them of retirement benefits. With each exit, a new job is added to the platform.

With cloud computing on prior, many of the HR processes that include a lot of data can be automated and stored. Examples include timesheet submission, performance reviews, and leave requests. Employees can even update their own employee data forms by having a self-portal service. Ultimate Business System offers highly scalable cloud HR software solutions that avoid paperwork.

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