Human resource management software is arguably one of the most popular types of systems adopted by modern businesses. The majority of companies already have HR software in place, but it is an extremely common endeavor for organizations to upgrade their existing tool. If your business is among this group, we’ve compiled this comprehensive HR system requirements checklist. We’ve found that the following list of HRMS software features and HR systems requirements are the most critical:
Employee Information Management
HRM solutions should include a complete directory of employee profiles that can include personal information, job and salary history, banking and tax details, insurance plans, time off requests, disciplinary history, performance feedback or any other custom fields important for the company. This keeps all of your employees’ information linked to the main record, for ease of tracking and reporting. HRIS systems can provide an employee self-service portal, letting them log in and view important information as well as a knowledge base of informative documents.
Employee Records and Database
Employee Self-Service Portal
Banking and Tax Details
Time Off Used and Accrued
Recruitment and Hiring
A comprehensive HRM software will assist with all human resource responsibilities throughout the employee lifecycle, beginning, of course, with recruitment and hiring. Human resource management software can completely streamline the hiring process for HR departments with automated HR system features. Businesses can post a job opening to multiple websites and social media channels with ease, and even use HRIS software to craft a job description. As the applications start pouring in, an Applicant Tracking System (ATS) can automatically accept (and reject) candidates based on predetermined criteria.
Job Board Posting
Applicant Tracking System (ATS)
Job Offer Extension
Branded Company Job Site
Human resource management software with robust talent management HR features continues to evaluate employees well beyond the interview process. Once hired, performance assessments provide information on employee productivity, customer satisfaction, etc. These programs can offer automated feedback, or HR departments can base their own reviews on the analysis provided by the software. Depending on the system, employee performance feedback may be visible to the workforce via a dashboard or some other kind of interface. This eliminates the need to notify employees of any evaluations via email or engage in time-consuming performance review meetings.
Key Performance Indicators (KPI)
Reviews and Feedback
Managing employee benefits, including healthcare, 401k contributions, etc., is a major component of human resource management software features. Your HR software should facilitate the workflows and information for benefits. Additionally, permitting employees to enroll in benefits through the HRM minimizes errors and extraneous work.
Paid Time Off (PTO)
Managing the payment of a workforce is one of the most integral duties of a human resource department. Through the use of an HRM system, your business can streamline this essential HR functionality and ensure all employees are properly compensated. Base salary administration, bonus programs, commissions, and stock and long-term incentive management are included in various modules. Some HRM solutions provide compensation management to simplify your company’s financial planning.
Time and Attendance Management
HRM systems can provide functionality for scheduling shifts and attendance to ensure compliance with staffing needs. These human resources software solutions can schedule employees across departments, locations and projects. Furthermore, many HRM platforms alert employees when schedules change or staffing levels are inadequate. Electronic timesheets make payroll and time tracking smooth. Time off management features handle paid time off accrual and use, disability leave, maternity/paternity leave, and other absences.
Paid Time Off (PTO)
Learning and Professional Development
Training and learning courses are vital to keeping your workforce up-to-date. A learning management system (LMS) included in a human resources management platform may be pre-loaded with educational resources and/or give users the option to upload their own customized materials to the software. Some HRM solutions can also tie into external systems to help provide course content to your employees. Keeping track of what certifications your employees hold minimizes staffing and planning issues.
Learning Course Administration
Professional Certification Management
Test and Training Customization
Multimedia Learning Materials
Accounting features in an HRM system promote financial planning and invoice management. HR budgeting and forecasting abilities consolidate and centralize financial information. These HR software features simplify accurate budget production and what-if scenario analysis for human resource-based expenditures. The automation of accounts payable and accounts receivable simplifies billing, especially for contract companies.
In addition to functionality requirements, it is equally important to evaluate the technical features of HRIS software your business will need in an HRM system. This may include standard technology-related aspects like deployment options and mobile functionality, or continued management options such as security, governance and user support. It is essential to consider the existing technical know-how and infrastructure of your business when evaluating this category of features.
A standard human resource management system is a necessity for all businesses — the need to store employee information in an accessible place, manage time, assist in hiring processes, and handle finances and benefits information are all essential functions across industries and company sizes. Beyond those basic capabilities, many businesses require advanced learning systems, performance analytics and accounting features in addition.
Evaluating the needs of your business is one of the first steps to finding a new HRM system. Once your HR requirements are mapped out, choosing (and eliminating) vendor options is simplified. Having a prepared list of desired human resource management system features can make the extensive HR software world less overwhelming and lead to the best choice for you and your employees!
Which HRM software features are most important to your business? Answer in the comments!