An HRMS is an integrated system or a software solution and it helps organizations by providing information employed by HR management when making decisions. It lets an organization to keep track of all staff members working within the organization and information regarding them, whatever information the organization opts for storing there, such as demographics of staff members, incentives and benefits tracking, and information associated with performance. Typically, it is created in a database or, more frequently, in a series of interconnected databases.
Indeed, an HR management system is a very crucial element that assists organizations in making better decisions. Does the HR management software provide the company with the features and benefits it needs? Most HR management software can track attendance time, administrate payroll, payroll and benefits, centralize information in a database, and administer and generate periodic and specific reports about this information.
However, basic HR software also incorporates many differentiating elements that prove to be essential functions for many companies. So, behold the following reasons to use an HRMS:
- Possibility for department heads and activity managers to use the centralized HR employee database to reference and enter information based on defined entitlements and access permissions
- Ability to administer a multi-tiered payroll management system that is capable of simultaneously addressing pay conditions for unionized employees (e.g. union dues deductions, union pay and benefits) and non-unionized employees
- Compliance monitoring in areas such as hiring, employee relationships, risk and security
- Opportunity to extend compliance monitoring and HR administration to countries where the company has employees
- International payroll function that supports multiple countries, languages, currencies and processing conditions
- Easy interfaces between payroll and benefits systems and third-party insurance providers, retirement savings plan, etc.
- Employee access to information on insurance and benefits at all times (24/7) and anywhere, from mobile platforms to generalized workstations
- Possibility to activate and deactivate certain functions and modules of the software to adapt it to the needs of the company and to evolve accordingly, the company paying only what it uses