20 key HR management software system features and requirements
As businesses of all sizes strive to streamline operations and enhance employee experience, the demand for robust HR management systems (HRMS) has surged. These tools have become indispensable for modern teams, helping organizations save time, reduce costs, and maintain compliance with ever-evolving regulations. By automating tedious administrative tasks, an HRMS enables HR teams to focus on strategic initiatives that drive company growth.
What is an HR management system (HRMS)?
A Human Resources Management System (HRMS) is an HR software platform that combines multiple HR functions into one cohesive system. These systems are designed to automate and streamline essential processes such as payroll, recruitment, compliance management, and performance tracking.
HRMS solutions are crucial for modern teams. They reduce the administrative burden, improve accuracy, and help organizations comply with labor laws and data regulations. By centralizing HR processes, these tools free up valuable time and resources, enabling HR professionals to focus on strategic goals that contribute to business success.
20 must-have HRMS software features
When evaluating human resource management software, it’s essential to look for features that meet your organization’s needs. Below are the top features every HRMS software should include:
1. Employee database management
A centralized employee database simplifies the management of HR data, including work history, contact details, and compliance documents. This feature ensures that HR professionals can easily access and update records across departments.
2. Payroll management
HR software that automates payroll ensures accurate salary calculations, tax deductions, and compliance with tax regulations. Streamlining payroll helps HR departments pay employees accurately and on time, improving accuracy and reducing payroll errors.
3. Time and attendance tracking
Effective time and attendance tracking software integrates with payroll systems, simplifying wage calculations and ensuring accurate records of working hours, overtime, and employee attendance.
4. Leave management
Streamline leave requests and approvals with HRMS software. Employees can submit time-off requests while HR professionals track leave balances, helping manage resources and prevent understaffing.
5. Benefits administration
Simplify benefits administration by managing employee benefits such as health insurance, retirement plans, and wellness programs. HRMS software automates enrollment and updates and ensures compliance with regulations.
6. Compliance management
Stay on top of changing labor laws and industry regulations with automated compliance management. HR software generates reports and sends alerts for regulatory updates, helping the HR department avoid compliance risks.
7. Recruitment and applicant tracking
Streamline the hiring process with recruitment and ATS tools that assist HR professionals in posting jobs, screening resumes, and scheduling interviews. This feature ensures that your HR department maintains a pool of qualified candidates.
8. Onboarding
HRMS software simplifies the onboarding process by automating workflows. From account provisioning to training setup, new hires can quickly get up to speed, improving their employee experience and reducing time to productivity.
9. Performance management
Track and evaluate employee performance through features that allow goal setting, regular reviews, and feedback. HR professionals can identify top performers and areas for improvement, supporting continuous employee development.
10. Learning and development
Offer personalized training and development programs to employees. HRMS software helps HR departments manage skill development and monitor progress, contributing to a stronger, more capable workforce.
11. Succession planning
Plan for future leadership roles by identifying and developing potential successors. HRMS tools help HR professionals create tailored development plans for employees, ensuring smooth transitions in key positions.
12. Employee portal
An intuitive employee self-service portal allows staff to view pay slips, update personal information, and access company policies. This improves employee engagement and reduces administrative workload for HR professionals.
13. Mobile access
With mobile access to HRMS features, employees and HR professionals can manage HR functions on the go. This provides greater flexibility and ensures that HR professionals can respond to inquiries from anywhere.
14. Compensation management
HRMS software streamlines compensation processes, including salary structures, bonuses, and incentives. This ensures that compensation practices are transparent, fair, and aligned with company objectives.
15. Analytics and reporting
HRMS software offers analytics tools that generate reports on HR metrics such as employee performance, payroll, and turnover. HR professionals can leverage these insights to make data-driven decisions and optimize HR strategies.
16. Document management
Store and organize HR documents securely within the HRMS platform. This feature allows HR departments to manage important documents such as contracts, policies, and compliance forms, ensuring easy access and data protection.
17. Integration capabilities
Seamlessly integrate HRMS with other business tools such as accounting software, communication platforms, and project management systems. This ensures a smooth flow of information across departments, making HR software more effective.
18. Data encryption and security
Ensure the security of sensitive HR data with encryption and security protocols. HRMS software should comply with data protection regulations such as the GDPR, safeguarding employee privacy and preventing data breaches.
19. Scalability
HRMS software should be scalable to accommodate your organization’s growth. As the number of employees increases and HR functions evolve, the platform will need to adapt, offering additional features and supporting more complex HR processes.
20. Employee wellness
Support employee well-being with HRMS tools designed to enhance mental health, stress management, and overall wellness. HR professionals can use these features to boost employee engagement, reduce burnout, and create a more productive work environment.
5 advanced HR system features
While foundational HRMS features effectively manage day-to-day HR functions, advanced capabilities often fall within the realm of Human Capital Management (HCM) platforms. Unlike traditional HRMS, HCM systems are designed to address complex workforce needs, including global workforce management, predictive analytics, and flexible work arrangements. For businesses seeking to go beyond core HR operations and enhance strategic decision-making, these advanced features of human resource management can provide a compelling reason to consider an HCM platform. Here are five advanced HR software features that can elevate your workforce management strategy:
1. Attribute-based access control (ABAC)
Modern HRMS platforms offer attribute-based access control (ABAC) to protect sensitive employee data. This feature allows you to set granular access permissions based on roles, departments, or other criteria, ensuring that only authorized personnel can view or edit specific information.
2. AI-powered workforce insights
Artificial intelligence transforms HR analytics by offering actionable insights into workforce trends. With AI-powered tools, you can predict employee attrition, identify skill gaps, and tailor engagement strategies to boost satisfaction and retention.
3. Global workforce management
Managing a geographically dispersed workforce requires advanced HRMS and HCM software to handle global payroll, compliance, and communication. These tools enable organizations to customize HR documents for local labor laws, automate compliance tracking, pay employees and contractors in multiple currencies, and administer region-specific benefits like health insurance and leave policies.
4. Predictive analytics
Predictive analytics leverages historical data to forecast workforce needs, such as hiring demands or training requirements. By anticipating trends, organizations can proactively address challenges and allocate resources effectively.
5. Flexible work arrangement management
With hybrid and remote work becoming more of the norm for many workplaces, HRMS platforms must accommodate flexible work arrangements. This feature allows organizations to manage remote hours, track productivity, and create adaptable schedules for distributed teams, ensuring employee satisfaction and efficiency.
Rippling: The #1 HRMS for modern teams
Your HR department wants to save time, make more strategic decisions, automate manual tasks, and give employees access to information they need. You need Rippling.
Rippling HRIS gives you a single source of truth for employee data with granular control over access—you can grant employees access to the relevant data they need via a modern, intuitive interface, so they can get insights faster, without going through you.
The HRIS powers Rippling HCM—the only HCM that unifies HR, IT, and finance in a true all-in-one platform.
Every Rippling product is natively built and designed to seamlessly share data—including third-party apps—so you can automate every step of the employee lifecycle and build custom workflows to suit any business need. Trigger workflows using any data in Rippling, like time off requests or employee start dates. Unlike other HCMs, Rippling’s workflows can take advanced actions.
FAQs about HR management software features
What are the three main types of HR software solutions?
The three primary types of HRM software solutions are HRIS, HCM, and HRMS, defined below:
- Human resources information systems (HRIS): HR software designed to store, analyze, and manage employee data essential for core HR functions.
- HR management systems (HRMS): A Human Resources Management System (HRMS) is an HR technology that allows organizations to run various HR functions within a single platform.
- Human capital management (HCM) systems: HCM software is a comprehensive, cloud-based HR solution that provides a powerful tool suite to help organizations close the gap between HR initiatives and their overall business strategy.
What are the basic features of an HRIS?
A Human Resource Information System (HRIS) is HR software designed to store, analyze, and manage employee data essential for core HR functions. It serves as a centralized database, helping all HR processes run more effectively, with improved accuracy and less time.
What are the basic features of an HRMS?
A Human Resources Management System (HRMS) is a platform that consolidates and performs core HR functions, such as:
- Tax and payroll compliance: An HRMS system can streamline payroll processing by accurately calculating salaries, wages, and deductions for taxes and benefits.
- Benefits administration: HRMS systems help ensure compliance with employee entitlements and allow employees to enroll in benefits online.
- Time and attendance tracking: Companies can monitor working hours, PTO, and accrued balances and manage schedules through the HRMS.
- Employee onboarding: An HRMS streamlines employee onboarding by organizing documents and centralizing information, making the process more efficient.
- Personnel tracking: HRMS software stores and updates key employee data, such as personal details, contact information, and position information.
Which is the best HR management software system?
Rippling is one of the top HR management software systems. Its all-in-one HCM platform simplifies complex HR processes, offering tools for payroll, benefits, compliance, and more. Additionally, Rippling’s intuitive interface and advanced features make it ideal for modern businesses seeking to streamline their HR operations.
This blog is based on information available to Rippling as of December 23, 2024.
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
