Human Resource Management Software

By: Jeff Smith

Human resource management software, as the name suggests deals and manages complete details of the employees of an organization. Companies have been using such applications on a large scale as it efficiently aids in data management of employees and various HR processes. Human resource management software is also referred to as HRMS
There were many functions that the human resource department of an organization needed to carry our manually. However, with the intricacies of the processes and the increasing amount of data, there was a need to the systems to be automated. HRMS suitably integrate human resource management and information technology, thus helping in planning and execution of automating HR processes. Human resource management software forms a part of enterprise resource planning (ERP) application also, which makes it possible for other modules of financial applications to be integrated with it as well.

HRMS gained primary importance after it was recognized that employees and costs related to them (directly or indirectly) is a significant monetary business outflow. It was necessary to manage, administer and minimize these costs, and reduce the complexity of people and performance management. Some of the major areas where human resource management software is effectively used are


  • Attendance Management - this module is generally integrated with time collecting devices. The gathered information about employees time and work hours is then used in evaluating cost accounting purposes.

  • Salary and Compensation Management - this module uses inputs of employees working hours and attendance and then use it to compute the payroll details of the employees. The module enables calculations of employee payments after considering the relevant deductions and taxes.

  • HR Management - the module concentrates on collection and maintenance of employee information like skills, compensation, personal details, demographic information, and other relevant information. An HR management module helps a great deal from the process of recruitment to retirement.

  • Benefits Management - all the information related to any additional allowances and benefits provided to employees maintained in this module. This could include details about insurance policies, pension plans, stock options, and so on.


Human resource management systems also can be equipped with advanced features like automated check writing for payrolls and compensation, send relevant notifications to employees and/or other departments generate other complex reports, and analyze employee information for required business operations among many others. HRMS are capable of rendering services beyond conventional HR operations. Some versions of human resource management software also include features of content management and customized processes for improving communication among employees, thus reducing tasks of HR administration to a considerable extent.

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