Components/Elements of HRMS

A Human Resource Management System (HRMS) is a combination of systems and processes that connect information technology and human resource management through HR software system. A HRMS may help to revolutionize a workplace. The automation of time and repetitive consuming tasks related to human resources management will frees up some of the companies most worthy employees and permits the main focus to shift to culture, retention, and other highly impactful areas.

Human resource is a crucial aspect for the success of any organization. Thus, corporates are always in the hunt to search out the latest ways, practices and technology to assist the HR department run smoothly. HRMS is one of the most effective technologies that may transform the HR department of your organization. Being a software developed to assist you with day to day tasks involved in HR management, the system can create things simple, effective and less overwhelming for your HR team.

From recruitment, handling payrolls to performance analysis, a decent HRMS can enable you to handle your daily operations with much more ease.

Here are 10 components of an HRMS Software:

Payroll Management

A good payroll management performance is a must in HRMS. Automating your payroll method, the system will assist you cut down a major amount of manual employment in payroll management. The module will help you track and manage employee hours easily while taking care of issuing checks and payroll deposits for employees. Once you've got your system integrated, you further won’t need to stress over taxation because the system has options built-in to create tax computation in compliance with the local tax laws.


Recruitment is one of the most chaotic operations every HR department face. The recruitment element of an HRMS is specially developed to boost the recruitment method with higher efficiency. From job posting, talent exploit, interviewing to scoring candidates, the recruitment component can assist you build things organized and data more visible and accessible, taking out the complexity of the recruitment method.

Centralized Database

The centralized information of an HRMS can assist you, to store all the information of the department in a very centralized hub that everybody can access easily. With this, you'll be able to receive real time info updates. Security of the confidential data will be improved, as a good HRMS has encryptions and several other layers of security measures.

Employee data management

Managing staff files is a lot of work, that is why all the great HRMS has a module dedicated to serving you tackle your struggles in managing staff data. From necessary personal information, dates, wage to work history, the element can assist you store employee information digitally.

Everything will be well organized in one place permitting you to pull up any information or record anytime with ease. Thus, managers are going to be able to access information with a click of a button.

Attendance and leave management

Keeping a good track of employee timesheets, schedules and attendance is a big deal every HR manager struggle with. The time management element of an HRMS comes with a features of options to assist you tackle all of your challenges better than ever before. It'll assist you manage timesheets, sketch out workforce schedules, sustain with leave requests and more while integrating all the information with the payroll management. Thus, you'll be able to manage employee absence and time record following, analysing and reviewing a lot easier.

Performance analysis

Performance analysis is another must-have element of an HRMS. From setting goals to tracking progress and, reviewing and analysing a good HRMS can have comprehensive features that change you to conduct your employee performance analysis with way more ease. The system can offer you with all the employee data in one place, evaluating the performances against the KPIs you’ve allotted to the system.

Benefits management

The module should have features that facilitate data on employee benefits the person is entitled to and the person is given all the costs involved while simplifying the employee management documentation method which is able to come in handy in the IRS method.


Training your employees often is incredibly necessary to keep your staff up to date. The training element of an HRMS has the ability to provide individual training programs for your employees. Be it your own learning and training materials or materials of the third party from an external system, you'll be able to modify your employees training while keeping track of the expenditure and progress of the employees. The element can include features like learning portals, learning plans for individual user training recommendations and more.


Guiding the new hires through the organization's onboarding and induction procedures falls on the shoulders of the HR team. The onboarding modules of an HRMS brings the proper automation to the method enabling the HR department to introduce the new hire to the required people and to the organization effectively with a lesser effort. The component will be integrated with the talent management module of the system, so automatically notifying relevant departments to handle on boarding functions of the new staff such as user accounts, building access, goal setting and security passes.

Reports and analytics

Report and analytics generation is another necessary component of an HRMS. The module provides in-depth analytical and reporting capabilities that enable you to get a deep insight into what’s happening in HR of your organization. Thus, permitting you to develop better HR strategies to boost the operations of the department and ultimate the bottom-line of the organization.

Wrap Up

Selecting a HRMS to handle HR activities could be a trademark of the modern company, there are few successful corporates/firms in any industry that don't have some kind of automation in place for HR tasks at this point. Mobile accessibility has further worked to alter the landscape of HR by putting data and task management at the fingertips of staff and managers. HRMS has helped to effectively break down paperwork.