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Human Resource Management Software

Article Summary - This article presents a good overview of the features and benefits of HR management software. If you are just starting your search for an HR system, you may also want to download our HRIS Buyers GuideThis guide lays out a ten step plan for determining needs, evaluating, researching and finally, selecting HR management software.

HR Management Software

As the name suggests, HR management software, deals with and manages complete details for an organizations' employees. Companies have been using such applications on a large scale because it efficiently aids in data management of employees and various HR processes. HR management software is also referred to as a Human Resources Management System (HRMS).

There were many functions an HR department needed to carry out manually. However, with the intricacies of the processes and the increasing amount of data, there was a need for systems to be automated. HRM software suitably integrates HR management and information technology; thus, helping in planning and execution of automating HR processes. HRMS forms a part of enterprise resource planning (ERP) applications; this 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), are 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 an HRMS 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 to compute the payroll details of the employees. The module enables calculations of employee payments after considering the relevant deductions and taxes.
  • HR Management - this 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 is maintained in this module. This could include details about insurance policies, pension plans, stock options, and so on.

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

Jeff Smith is the managing director of Karma Technologies and feels strongly about implementing ways to be green into their business practices, to a point they are almost a paper-free company.

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