Benefits of Using HRMS Software

HRMS Software
  • by bista-admin
  • Jul 04, 2017
  • 0
  • Category:

“Human resources are like natural resources; they are often buried deep. You have to go looking for them; they are not just lying around on the surface”    – Ken Robinson

As the above quote suggests, hiring a resource is the crucial and important process for any business. Other than hiring, HR department has to manage numerous records and documents of the different processes related to any employee of the particular company which includes hiring process, contract/agreement of employee with the company, leave management, payroll management, etc… The Human Resource department plays a vital role here. HRMS servers the benefits of Information and Technology in order to manage Human Information in a robust way.

Let’s have a look at the objectives:


  • Track the hiring process and keeping the details up to date
  • Manage the employee information
  • Maintaining the employee attendance
  • Manage the leaves data of employee
  • Employees should be able to access their information online
  • Use the payroll functionality to automate the salary computation
  • Payroll functions must calculate the basic salary, deductions, and taxes while setting the salary
  • Improve the productivity and efficiency of Company
  • Admin must have super user access to above-mentioned features

Below are some Benefits of HRMS Software

Improving HR Productivity

Using an online system, the amount of paperwork need to do by the HR people is reduced. The time needed to create, edit and find documents are decreased which directly benefits them in increasing the productivity.

Reduced Cost

Aside from the less tangible costs such as efficiency or productivity, a good HR system will save you real money. A standard benchmark for the number of full-time HR working for a company is one HR professional per 100 employees. Since less paper is used, more time is saved; HR system will save your money automatically.

Access to Information

While using an online system, for multiple users, the security is an important aspect one must keep in mind. If the processes are done offline, the security cannot be managed apparently. However, HRMS takes care of it automatically. Employees can see their own information only. Only an accountant can access accounting information and likewise.

Efficiency of Administration

If the company is using a paper-based system, it will be very difficult to keep track of the employee’s information for the Admin. For example, How many leaves did an employee take?, How many projects/tasks one is working on?. Using HRMS, this becomes easier for the Admin, as they can use simple search and filters to find relevant details.

Data Analysis and Quick Decisions

Since most, if the data managed in HRMS are up-to-date and robust, HR manager can make decisions faster. For example, how many people would need training? Who will be available as an Event Manager etc? Also using the reports generated by the HRMS software can easily do the analysis of these data.

Improved Communication

HR systems will include an employee directory. Using HRMS makes the internal communication possible without being dependent on any other tool. Also as an Admin, one can send messages to the bulk of people using HRMS.

Risk Mitigation

In the event of a legal dispute, how can you prove that an employee was made aware of a particular policy or trained on how to use a particular piece of equipment? Email communication is fine but it is not unheard of someone denying seeing an email. Many of today’s HRMS software offer a read and accept facility that provides a paper trail not only showing that an employee was sent a particular message but that they also have accepted the contents of the communication.

Security and Disaster Recovery

HRMS serves the security of the data. As the backup of all the data is taken in a timely manner and the same is stored in the cloud server. In the case of some natural disaster or man-made disaster, we can recover the same data from the cloud.

These are some of the benefits of using HRMS software in your organizations. This enables your employees to do more and more because they get access to technology. But there is one more factor; implementing HRM programs is not easy. It is important to know how to do it perfectly.

If you have any query for HRMS Software please drop an email at

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