An HRMS , or Human Resources Management System, or Human Capital Management, is a CRM system focused on your own people, not your customers, with tools and supporting technologies to help you attract, engage and retain the right people for your company's success. The processes of recruitment, selection, talent attraction, orientation, staff training and development, performance evaluation, determining compensation and benefits, motivating, maintaining the right relationships with each team member, and ensuring job security are automated in an integrated way by applying HR software and HR analytics.
These systems are oriented to the collection, storage and follow-up of the most important assets of the company: its employees. The mechanical tasks of the hr department are replaced by programs and databases that will make it possible to extract the stored information and perform different complex analyses for decision making. It allows the monitoring of productivity at various levels according to the needs of each segment in the organization and the self-management of the employees to solve by themselves their doubts and requirements.
1970s. Initially, Human Resources Management was a paper-based function. Companies began to be interested in automating the payroll of their employees as a first necessity. At that time, the available technology was the large computers called "mainframe", which entered the scene for the processing of massive information. Input and retrieval were done through green-screen terminals connected to these mainframes and basic reports were printed on paper, such as employee lists with their associated data.
At the end of the decade, SAP launched the ERP product SAP R/2, which integrated and combined HR management with production planning, materials management and finance management functions in a single database.
1980s. PeopleSoft creates an ERP based on client-server technology that was developed from specific HR functions, unlike SAP R/2 and R/3, where the financial function was the core of the system and the HR software programs were an add-on.
1990s. At the beginning of this decade, new HR management software providers appeared on the market. Oracle and JD Edwards introduced systems with expanded functionalities in the area of human resource management: payroll management, employee benefits, personnel hiring, compensation, performance, training needs and issuance of various reports with the possibility of creating them ad-hoc.
This decade saw the leap to WEB technology, making it unnecessary to install the HRMS locally. The automation of new processes and the attention to information needs at various levels of the company also began, both for managers and employees themselves, through self-management. Job boards were created, which allowed communication between recruiters and applicants.
2000s and 2010s. Cloud technology systems are consolidated as a solution model where the provider maintains the software and performs the relevant updates. The customer pays for the service provided, does not need infrastructure for processing and storage of information, nor staff dedicated to software maintenance.
As of 2020 . Solutions that adapt to any business size and type of human resource management model continue to be innovated. Machine learning and predictive analytics technologies are being integrated into many human resource management systems (HRMS), as well as artificial intelligence to further support recruitment management and onboarding, among others. The trend is to take care of and keep the employee so that the employee takes care of and keeps the customers.
An HRMS makes it possible to streamline, accelerate, automate and optimize the processes of the human resources department. If you want to have a complete and integrated human resource management system (HRMS), the entire life cycle of the employee in the company must be digitized, from entry to exit for any reason. Another important function is that employees themselves can use the tool to search for resources, modify their profiles, manage their absences, enter invoices, payments and remuneration. The aim is to prevent the human resources department from acting as an intermediary between the employee and the information they have created or that belongs to them.
The most common modules of an HRM software are:
Companies are interested in developing a corporate vision and work culture that reflects the strength of the company in the eyes of its customers. A human resources management system provides a lot of information about the employee from the moment he/she is hired until the end of the employment relationship. On this platform, it is possible to communicate the rules and security measures that guarantee ethical and correct behaviour by all the actors in the company. Of course, it is very important to invest efforts and financial resources in the right solution and in a reliable HRMS provider.
A human resources management system ensures the rapid exchange of information between all levels in a closed loop where opinions, decisions and points of view can be freely shared. The adaptation of new employees to the work environment can be carried out with maximum efficiency. The system allows onboarding to be customized and controlled in a single system.
Transparency in the workflow enables employees to have an overview of processes, to know what is going on around them and to cooperate with their colleagues. Access to and exchange of information between different departments is facilitated by the communication channels provided by the system.
Using an hr management system (HRMS) it is possible to set and evaluate the goals for each employee, team or company, monitor goal achievement progress and the efficiency of the company.
The HRMS substantially improves a company's efficiency. As an integrated system, it enables consistency and coherence of results in the management of the different HR activities. The results, as well as everything that happens in the company, can be communicated at all levels. Company goals can be established and disaggregated down to individual objectives, allowing progress, deviations and appropriate corrective actions to be visualized. It promotes teamwork and facilitates communication among employees. All this strengthens engagement and translates into greater productivity and growth of the organization.
Each HRMS can offer different functionalities and there are HRMSs on the market that best fit the size and needs of each company. Finding the HRM that fits your business needs is fast and easy with PeopleForce. PeopleForce is an HR automation platform that facilitates and optimizes the HR functions and recruiting process. PeopleForce helps to save the time of hr professionals and to focus on what’s important – people.
Overall, the system defines 6 core HR processes:
Managing human resources is nowadays a priority for companies that must attract the best talent to position themselves in the market, which is why the implementation of an HRMS widely favours the achievement of this objective in terms of:
HRMS: Human Resources Management System
HRIS: Human Resources Information System; HRMS: Human Resources Management System.
The difference between the two is established by the functionalities they involve and the HR processes they support. The scope of both is notably different, the HRMS includes the functionalities of the HRIS and other additional ones.
Supports all HR processes related to an employee, from hiring to retirement. Allows users to perform tasks, analyze critical data trends, create and manage reports. Manages dynamic or frequently changing information such as attendance, vacations, payroll, performance, evaluation, meetings, etc.
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