Key functions of HRMS

There is doubt that managing enterprises that belong to the small and medium category just might be a bigger challenge than looking after organizations that are big businesses and have their presence all over the globe.

If you happen to be one of those who happen to be working in the small and medium organizational segment then you are surely aware of the difficulties which such organizations face. Also, in order to automate processes in the HR function, it is essential to have efficient HR software i.e. HRMS that can deliver when it matters. The key functions of HRMS will make you understand why you need it for your enterprises.


I think there might have been times at your workplace where you were involved in repetitive and manual activities concerning the HR function. Mundane things like asking a new joiner to fill up forms, manually calculating an employee’s productivity figures, etc are just some of the examples. Well, life became a little better with the introduction of software systems that efficiently automated the functions of HR processes. This led to the following:

  • Improvement in the overall HR process.
  • The overall reduction in the cost of an enterprise.
  • Improvement in the decision making process.
  • Improvement in communication.
  • Ease of access to information.

Why HRMS for small and medium enterprise:

If you happen to be associated with small and medium enterprises in any manner, you are very well aware that the ecosystem is very different from organizations that have deep pockets to burrow in. Small and medium enterprises are very different from large organizations in the sense that the availability of resources, whether financial or otherwise is not limitless. Also, the deliverables or outputs from these organizations are in no way inferior as compared to competitors.

All of these point to a system where there is the efficient and judicious use of available resources in order to maximize the output. This necessitates the automation of processes wherever possible in order to reduce costs. HR functions happen to be one such area for which it becomes all the more important to have an automated HRMS for small and medium enterprises. The importance of HRMS in the SME segment has been dealt with in-depth in this related article.

Key functions of HRMS for small and medium enterprises:  

There are several functions that can help you in the day to day functioning of your business. Let us have a look at some of the main functions which HRMS for small and medium enterprises has to offer:

  1. Key functions of HRMS: Recruitment and onboarding

The recruitment module is one which in my opinion should be of interest to you, especially, if you happen to be the one who is involved in the hiring process of candidates for your organization. This module is capable of posting advertisements, track applicants, and provide for online documentation. Also, in order to leverage the power of social media, these days modern HR software systems are synergizing their efforts with social media platforms like Linkedln, etc. Additionally, after getting hired, this module helps in the smooth onboarding process of new joiners.

2. Key functions of HRMS: Reporting

The HR software system is capable of generating reports using the latest updated data from its database. A manager need not contact HR executives for his queries but can avail of the data just by having a look at the system which display all necessary data, using which necessary reports can be generated. Just have a look at this link HRMS for more details.

3. Key functions of HRMS: Attendance Management

You are surely aware as to how cumbersome the process of manual maintenance of attendance records is. Also, this is a very important aspect of the HR function as salary calculation, productivity figures, overtime, etc are dependent on this. You can breathe a bit easily, as an efficient HRMS helps maintain the attendance of employees while taking into account leaves and holidays. If there are advanced biometric systems, they can be integrated with the HR software and this eliminates the necessity of manual intervention while efficiently recording an employee’s attendance.

4. Key functions of HRMS: Managing leaves of employees

All employees are entitled to leaves as per their terms of employment. An efficient HRMS helps you by calculating and allocating leaves via its leave management module which helps in better management of an employee’s absence from the workplace. Have a look at this blogpost for more on this topic.  

5.Key functions of HRMS: Payroll processing

You will be spared of the trouble of processing the payroll of your employees on a monthly basis and to every month. An HRMS helps by coming to the accurate figure which each employee is entitled to as salary by considering attendance, leaves, holidays, and variables like overtime and deductions.

6. Key functions of HRMS: Managing performance of employees

HRMS is going to allow you to monitor the performance of your employees using metrics defined by your organization. These help in identifying talented resources who deserve recognition for their services. This link HRMS does have a look at the performance and compensation aspect at workplaces.

7. Key functions of HRMS: Training and development

This is an outcome of the performance management process module of the HRMS for small and medium enterprises systems. The employees who have been identified for further training are catered to by the training module. It consists of a learning portal that recommends training to the employees based on role, skill set, and career aspirations. Furthermore, it helps in the employees’ setting and achieving their own training goals.

I think by now, you shall have an idea of the benefits of HRMS for small and medium enterprises. Also, the features which HRMS has to offer organizations have been explained in threadbare details, so that one gets a vivid idea of the tool. Needless to say, it is only after organizations have used it will they be able to see the power of this tool.

Our organization has been involved in a major way in the area of HR software development, having developed and implemented a software product of its own in this domain, named HRMS. So, if by chance you have any queries on this front, we shall be more than happy to address them at your convenience.

Oh yes, before I take your leave do give me your feedback on this blogpost and the ways in which it can be improved or any other topic which you would want to read on. Shall be expectantly waiting for your feedback.

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