Human Resources Management System Definition & Meaning

A Human Resources Management System (HRMS) is a software application that supports many functions of a company’s Human Resources department, including benefits administration, payroll, recruiting, training, and performance review. HRMS software is used to consolidate and centralize the different programs and processes HR professionals use to accomplish their goals.

HRMS features

Most HRMS applications typically includes the following features:

  • Talent management tools for evaluating employee performance and goals on a regular basis
  • Benefits administration tools for managing insurance, financial planning, and other employee benefit programs
  • Time tracking tools to keep track of company holidays, absences, time-off requests, and workforce scheduling
  • Financial management tools (like payroll) to administer employee compensation and rewards
  • Recruitment and hiring tools to advertise job openings, find prospective employees, and move candidates through the hiring and onboarding process
  • Learning management systems to ensure new and established employees alike have access to relevant documentation and training materials

HRIS vs. HRMS

HRMS and Human Resources Information System (HRIS) are often used interchangeably, but an HRMS application is usually more robust and encompasses more functions than an HRIS application. An HRIS application includes basic HR functions, such as benefits administration, compensation management, and personnel tracking, but usually does not include more advanced functions like talent management, onboarding, or analytics reporting. With the evolution of HR software, however, more vendors are avoiding the HRIS/HRMS distinction altogether and marketing their products as Human Capital Management (HCM) solutions.

HRMS software vendors

Prominent HRMS software vendors include:

  • ADP
  • Ceridian
  • Oracle
  • Sage
  • SAP
  • Kronos
  • Zenefits
  • Workday
  • Namely

 

Vangie Beal
Vangie Beal
Vangie Beal is a freelance business and technology writer covering Internet technologies and online business since the late '90s.

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