**HRMS (Human Resource Management System)** is a human resource management system, a comprehensive software solution for HR management automation. HRMS unites many HR processes on one platform - it helps to automate the work of all HR specialists and a full set of stages in the employee life cycle.
## What is HRMS?
HRMS automates all the key HR processes of a company: from [recruiting]() and onboarding automation to HR administration and personnel development. Automation of these processes naturally leads to centralization of all HR data in a single system, making them easily accessible for decision-making.
Let's take the process of recruiting a B2B sales manager: the system automatically sorts incoming resumes by specified criteria, organizes the approval process between hiring participants, guides candidates through the stages of the recruitment funnel and collects feedback after the interview. Based on these actions, detailed analytics on the hiring process are generated to help optimize [recruiting]().
By automating routine tasks, HR specialists are freed from mechanical work and can focus on strategic areas such as talent development, improving corporate culture and increasing employee engagement. At the same time, all data created during automated processes are stored in the system and used to analyze HR metrics, make informed HR decisions and comply with legal requirements.
Thus, HRMS acts as a single center of automation of all HR processes of the company, providing effective HR management at each stage of the employee life cycle: from recruitment to dismissal.
## Advantages of HRMS for business
HRMS transforms the role of HR department, turning it from an administrative unit into a strategic partner of business. Automation of routine tasks, such as generating orders, notifying employees, collecting and transmitting data, frees up HR specialists' time to address more important issues: working with talent, improving corporate culture and developing employee development programs.
The HR management system creates a unified information environment, integrating all HR processes and data. This not only improves communication and transparency, but also provides management with valuable analytics for decision-making. For example, analyzing the reasons for layoffs helps identify problem areas and reduce employee turnover.
HRMS also improves employee satisfaction by providing a tool for prompt interaction with the HR department: employees can independently order references, schedule vacations, enroll in training, and monitor their professional progress. At the same time, the system helps to comply with the requirements of labor legislation by automatically tracking the deadlines for signing documents and generating the necessary reports. This reduces the risk of fines and reputational losses, allowing the company to focus on business development and invest the saved funds in personnel.
Example
A company is expanding and opening a new sales office for which it needs to recruit a team of internal employees.
Without automation, the process of building a team for the new office would look like this: an HR specialist manually reviews employee files, trying to identify suitable candidates for relocation - this takes several days of painstaking work. Then he contacts department heads to get up-to-date information about the performance and competencies of potential candidates. It can take another week to collect and analyze this data. After that, the HR manager compiles a list of possible candidates and starts calling them to inquire about their willingness to relocate. The whole process stretches for weeks, and the information gathered quickly becomes outdated.
With the use of HRMS the picture changes - HR manager can set search parameters in the system: experience in sales, high performance indicators for the last year, availability of certain competencies. The system generates a list of potential candidates, including up-to-date data on their performance and skills, and also shows which employees have previously expressed interest in relocation or development in a new direction (this information is collected through regular surveys in HRMS). Through a built-in communication system, the HR specialist can immediately send suitable candidates a notification of a new opportunity.
The team building process is reduced to a few days and the quality of selection is improved by using objective data on employee performance and competencies. In addition, HRMS helps to comply with all legal requirements when transferring employees by automatically generating the necessary documents and tracking the deadlines for their signing. The opportunity to participate in new projects and be noticed for promotion increases employee satisfaction and loyalty to the company.
## Key HRMS
functionality
For an HRMS to truly simplify the HR department's work and improve the employee experience, it must work as a single HR ecosystem that is accessible to everyone in the company. Important functionality of the system includes:
1. **employee personal cabinet** \- a digital workspace where an employee manages their data, receives requests from HR, sees a list of their requests and requests to be matched.
2. HR services**catalog - a **convenient interface where all HR department services are collected: from ordering a pass or a reference to applying for professional development. The catalog simplifies employee interaction with HR and makes processes transparent.
3. **Dashboards and reports** \- visualization of HR data helps managers to quickly assess the situation and make decisions. For example, a dashboard can show the dynamics of employee turnover or the effectiveness of training programs.
Graph in SimpleOne HRMS
4. **process builder - **setting up work flows with the help of low-code tools does not require development assistance and gets rid of routine, for example, you can set up an algorithm of work when a new employee is hired so that the system automatically creates an account, sends notifications to the necessary departments and launches an adaptation program.
5. **Report builder - **this tool allows HR specialists to create reports on HR department activities and employee data.
6. **Kanban boards for HR teams** \- a visual task management tool that helps HR teams track project progress, distribute workload and increase productivity.
Kanban board in SimpleOne HRMS
## What HR processes can be automated?
[HR process automation]() is not just about implementing individual tools for specific tasks. An effective HRMS covers the entire life cycle of an employee, from the first acquaintance with the company to the end of cooperation. Moreover, it touches related processes in other departments, creating a unified ecosystem of human resource management.
An integrated approach to automation allows you to maximize efficiency and avoid disparate data and processes. When all elements of the HR function work as a single mechanism, the company gets a holistic picture of the state of human capital and can make more informed strategic decisions.
![HRMS 3.png]()
HRMS provides tools to automate processes on both the HR department and employee side - two-way interaction creates synergy, increasing the efficiency of the entire organization.
For HR Department
For employees
task-management - the system allows you to track task progress, distribute workload and increase team productivity;
reporting and analyzing metrics - HRMS gives instant access to key HR metrics;
recruiting - you can automate all stages from publishing vacancies to candidate assessment, so that a person is involved in the process only when it is really necessary;
organizational modeling - visualization of the company's structure helps to plan HR changes, a model of goals to manage the company's strategy, a model of activities - job descriptions;
adaptation and training of newcomers - onboarding of employees takes place in an automated mode, which is especially useful for mass hiring;
HR referrals - with the corporate portal built into HRMS, employees can communicate with HR through a single point of access, and referrals for all issues are collected in one place;
Compliance Control automation - a directory of compliance requirements within the system helps to monitor compliance across the company.
sending HR queries, receiving references and resolving HR issues;
Tracking goals, development plans and achievements in a personal account;
tracking company events using the corporate calendar;
participation in the loyalty program.
## How do you realize that a company needs an HRMS?
As an organization grows, HR management becomes more complex and some of the operations start to require more time and resources. Growing number of employees, increasing complexity of HR procedures, the need for operational analytics - all these are signals that it is time for the company to think about implementing an HRMS, which can bring the HR function to a new level.
#### There are more employees
When a company has more than 100-200 employees, the labor costs of manual HR management increase. The more employees, the more difficult it is to track their data, maintain documentation and ensure timely fulfillment of HR tasks.
#### HR processes become more complex
If HR specialists are drowning in a sea of Excel spreadsheets and paper documents, it is worth thinking about automating routine work, such as sending tasks to candidates, onboarding new employees, and collecting feedback.
#### There is a demand for HR analytics
Collecting data on HR metrics can take weeks, and HRMS generates reports on the data in the system in a couple minutes. Access to analytics allows a company to act faster and make more informed HR decisions.
#### Costs need to be optimized
If the costs of HR processes are growing and efficiency is not increasing, there is a need to redirect resources to strategic tasks and give routine activities to the system.
#### HR department needs to be relieved
When employees are constantly calling HR for help or information, HR professionals quickly become overwhelmed - self-service tools in HRMS can solve this problem.
Example
The company started as a small firm with 50 employees, but over the past three years it has opened branches in five major cities and now employs more than 300 people. The old methods of personnel management can no longer cope with the increased workload, and the HR department faces a number of problems:
Manual record keeping has become the most voluminous task in the HR department due to the growth of the staff. Keeping track of probationary periods, annual leave and other HR processes consumes most of HR's time.
The company has implemented a complex KPI system to manage sales. HR spends a lot of time collecting and analyzing employee performance data to provide sales managers with information to make bonus decisions. In addition, the HR department coordinates this process with the accounting department, which deals directly with calculating bonuses based on the data provided by HR. This complex chain of interactions has often resulted in delays and errors in the calculation of bonuses.
Management needs a detailed analysis of employee performance by branch, but it takes several weeks to collect and process the data, during which time the information becomes outdated. Costs for administrative work of HR department increase, but efficiency does not grow. HR department is overloaded with routine work - employees constantly apply to HR for certificates, information about vacations and sick leave, which does not allow specialists to close personnel development tasks.
Implementation of HRMS will allow the company to effectively manage its growing staff, optimize HR processes and engage in strategic development of the HR function.
## Briefly about HRMS
HRMS transforms the HR function from a purely administrative function to a business partner of the company. This system not only automates routine processes, but also creates a unified digital environment for effective human resource management. HRMS covers the entire employee life cycle: from recruiting and onboarding to career development and compensation calculation. Implementation of HRMS allows companies to optimize HR management costs and make more balanced HR decisions based on up-to-date analytics. Thus, HRMS becomes an indispensable assistant in effective management of the main asset of any organization - its employees.
