Business Management
Aug. 08, 2023

What Is HRMS and Why Do You Need It?

Keren Sherer Taiber

VP Product Management
What Is HRMS and Why Do You Need It?

Human Resource Management is a complex and layered process that helps recruit, onboard, train, evaluate and manage employees. There are many benefits to a technology-driven HRM solution. For example, HRM professionals also manage employees' day-to-day affairs, such as leave allocation, dispute resolution, reducing attrition rates, and ensuring that employees remain happy and productive.

However, software known as Human Resource Management System (HRMS) can automate most of these tasks. HRMS is a dedicated software solution that helps HR professionals and departments effectively manage HRM aspects efficiently and quickly.

Let's take a look at the different functions of HRMS tools.

1. Automate manual and repetitive tasks

HR professionals are often tasked with several processes that are pretty time-consuming. For instance, recruitment requires peering through many resumes or online profiles to look for the right candidate. An HRM system can automatically screen applicants and reduce the time it takes to interview candidates. In addition, HRMS automates various other processes such as time tracking, leave management, and employee self-service functions, in addition to facilitating timely appraisals based on multiple metrics.

2. Reduce bureaucracy and improve employee relationships

One of the drawbacks of an HR department in both small and large organizations is the bureaucracy involved. There are many documents to sign, processes to approve, and undesirable waiting lists. HRMS helps reduce red tape and bureaucracy within an organization and enhances internal transparency. In addition, it helps employees develop trust and makes them feel more like part of an organization — all because they don't have to endure the dreaded HR waiting lists for even simple queries and tasks.

3. Enhance productivity and communication

HR managers often waste a lot of time writing emails to their employees and getting them to respond in time. On the other hand, employees find it hard to approach key individuals who can help them achieve better work-related outcomes. An HRMS tool reduces the communication gap and allows all parties to quickly exchange ideas and information, leading to better communication within an organization. In turn, HRMS aids in enhancing productivity and dramatically streamlines the workplace culture. Many often say that HRMS tools have helped flatten the organizational culture instead of continuing with an oppressively hierarchical structure.

4. Generate valuable insights and reports

An HRMS stores vast amounts of data related to various processes and employee performance; how often they take leaves and how many have applied to quit their positions. This information is invaluable and can provide significant insights into the improvement potential for both the organization and its employees. HRMS is a valuable tool that helps generate important insights and reports necessary to make critical decisions. In addition, HRMS helps track key performance indicators (KPIs) that ameliorate various business processes.

5. Manage projects and resources efficiently

Finally, HRMS directly affects how employees perform and how resources are allocated to various projects. As a result, HRMS has direct financial implications that help companies reduce expenses and manage projects in the most cost-efficient manner possible. Most importantly, a good HRMS helps implement administrative policies effectively across the organization and enhances compliance with regulations.

Priority's HRMS tool is an advanced software solution.

Priority's ERP HR module is a powerful HRMS tool that helps managers and HR professionals to streamline all HR activities. It provides real-time analytics and helps manage onboarding, payroll, compensation changes, and promotions on a single platform. It can be used to share information and collaborate across multiple locations, making it easy to manage resources and staff. Priority's built-in SOPs help HR managers gain control over standard operating procedures and administrative policies.

Priority's HRMS tool also offers Talent Management, Global Employee Management, Executive Business Reports, Budget & Costing solutions, Project Management, Recruitment, and Role-Based Access to features.

The Author

Keren Sherer Taiber

VP Product Management

Since joining Priority in 1998, Keren has progressed through several leadership positions and now leads as the Director of Product Strategy. She has an industrial engineering degree and an MBA from Tel Aviv University. Her journey reflects a consistent dedication to advancement and excellence.

Get a demo