What is the definition of HRMS?


Common Questions about ERP Software

Definition of HRMS

HRMS is an abbreviation for Human Resource Management Systems. These systems manage employee information such as benefits, time and attendance, performance, training, applicant tracking, onboarding, and compliance requirements. Another acronym commonly used to describe the same thing is HRIS, which stands for Human Resource Information System.


HRMS contains functional components and features that are richer and deeper than those offered by most ERP applications. This niche software is well-suited to larger organizations and should be integrated with ERP since there is an overlap of employee data between systems.

HRMS Features

HRMS features widely vary from vendor to vendor. HR, IT, Finance, and other stakeholders should carefully access the suite of possibilities before selecting an HRMS or other applications with similar features. You can buy many of these features as stand-alone applications and find some within existing ERP systems.

Learning Management: These features allow you to provide structured training, testing, and skills records. You may track both job-related skills and provide mandated training on subjects like tolerance and harassment in the workplace.

Benefits Administration: This helps HR professionals manage the benefits selection process and offers employees an easy way to self-select their plans. Benefits packages often integrate with the employer’s financial management software.

Centralized Employee Records: HRMS manages a considerable amount of employee information from time and attendance to confidential records and evaluations. It enables companies to launch and track compliance programs.

Payroll and Merit-Based Pay: This application can not only calculate wages but manage sales commissions, shift differentials, and merit-based bonuses. It can process time-off requests and integrates with other timecard solutions or have its timecard system. HRMS automates calculations to ensure accurate net pay for the most complex incentive programs.

Talent Acquisition: Recruiters may use talent acquisition features to build career website pages, create job posts, manage positions, and integrate with job boards. With these features, they can track applicants through the recruiting process, perform background checks and pre-employment screenings, significantly improving the quality of applicants by the time of the first interview and beyond.

Reporting and KPIs: Ultimately, you can use the data provided by HRMS to develop and monitor key performance indicators (KPIs) for compliance, recruiting, and employee effectiveness. With these reports, your management team will have the tools need for company-wide analysis, planning, and decision making regarding your most valuable assets – your people.

Common Questions about ERP Software

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