Choosing an HR software
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Download for freeIs an HR management system (HRMS) right for your business?
Managing people is complex, but the right tools can make it easier. A human resource management system (HRMS) helps to streamline processes, improve accuracy, and empower HR teams to focus on strategic work rather than repetitive admin. In this article, we’ll explain what a HRMS is and help you choose a HRMS solution with all the right features to support your business. Here’s how to find your best fit.
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What is a Human Resources management system (HRMS)?
A human resource management system (HRMS) is a centralised platform that stores employee data, automates routine HR tasks and analyses data to inform business decisions. Useful across the employee life cycle, an HRMS can be used from recruitment to performance through to offboarding.
How does an HRMS work?
Most HRMS platforms operate on cloud-based software. It is common to have customisation options to select the features and integrations which best meet your business needs.
The HRMS streamlines HR tasks by automating information gathering, offering template forms and generating reports. It also gives employees self-service access to submit or make changes to their information and request time off or other adjustments.
What are the main benefits of an HRMS?
Benefit | How it helps |
Data accuracy | HRMS platforms reflect updated data in all linked locations, eliminating the need to manually remove outdated information. This makes it easier to provide accurate compliance reports and update company policy documents. |
Communication | From staying in touch with job applicants, to guided onboarding and transparent performance evaluations, HRMS platforms make it easier to communicate across the organisation effectively. |
Cost savings | Eliminates the need for manual data entry, and reduces the overhead needed to create and maintain employee data files or run personnel reports. |
What is the difference between HRIS and HRMS?
While a Human Resource Information System and Human Resource Management System are often used interchangeably, they differ in scope. The truth is a lot more complicated, but generally, an HRIS is the more basic of the two.
Comparing them is a lot like comparing a filing cabinet to a digital workspace. Both help to organise your important data, but HRMS goes a step further by giving you greater tools to analyse that data and draw insights.
If your business is still relying on spreadsheets or paper files, implementing an HRIS can significantly refine your workflows and reduce manual effort. As your operations become more complex, upgrading to a full management system allows you to automate repetitive tasks, improve process efficiency, and ensure smoother, more consistent HR operations across the board.
What features should an HR management system have?
An HRMS platform can cover several functions but keep an eye out for platforms that will support you in four key areas: talent management, HR management, reporting and analytics, and scalability.
1. Talent management
From recruiting to performance and development, an HRMS should help you attract top talent, manage reviews, and support employee growth through training.
2. HR management
Automate onboarding, time tracking, and leave management. Give employees self-service access while keeping data secure and compliant.
3. Reporting and analytics
Get real-time insights into trends, absences, recruitment performance, and pay. Look for customisable, secure reports that update automatically.
4. Scalability
Start with essentials and expand as your business grows. Personio’s flexible pricing makes it easy to scale HR tools to fit the evolving needs of UK businesses.
What should a great HR management system do?
Feature | What it does |
|---|---|
Talent Acquisition | Create and distribute job postings across multiple job search platforms. Track candidate status within the hiring pipeline from sourcing to extending an offer. |
Onboarding | Gather new hire documentation. Guide new hires through their first days and weeks. |
Digital employee files | Store and organise employee data and forms in one central platform. Assign access rights to ensure only the right people have access. |
Legal compliance | Collect and report required employee data to government entities and maintain it all in compliance with data privacy laws. |
Payroll administration | Automate payroll calculation and pay stub creation. |
Benefits administration | Give employees access to select their benefits. Automate benefit deductions calculations. Track benefit usage for individual employees and across the organisation. |
Learning and development administration | Track training attendance and completion rates. Publish optional training opportunities to encourage enrolment. Add calendar invites or reminders for trainees. |
Leave and attendance tracking | Provide employees with self-service access to request leave or view their leave balances. Calculate available leave balances by employee and coordinate return to work plans following long-term leaves. |
Time tracking | Track employee time for payroll calculations. Track overall hours put into defined work projects. |
Performance management | Templates and reminders help ensure routine performance reviews are conducted on time, ensuring goals and progress are tracked. |
Data integration | Integrate with existing software to automatically pull in data for things like expenses, benefits costs and more. |
Reporting | Evaluate the organisation’s progress toward goals and personnel spending. Automate routine reports to track progress over time. |
Who benefits from an HRMS?
An HRMS is applicable across your organisation, not just in HR. Every person in the business will touch the system at one time or another. HRMS platforms benefit three main groups:
Employees - Employees typically use an HRMS to manage their employee data and access self-service features. Through the system, they can directly update contact details, emergency contacts and banking information. Employees can also use an HRMS to check available vacation or sick leave and submit requests for time off.
Line managers - An effective HRMS will help line managers stay on top of employee needs and encourage effective performance management. Line managers can often approve leave requests right in the HRMS. Time can also be tracked, allowing line managers to set and confirm working hours.
HR managers - An HRMS supports HR managers by automating routine tasks, maintaining records and delivering HR reports and analytics. For example, HR managers use HRMS to manage talent acquisition, document management and employee files, matters of HR compliance and make data-driven decisions with reporting and analytics.
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Personio: An ideal HRMS for your needs
Personio is designed to be the ultimate HR management system (HRMS) for organisations in the UK. It offers a comprehensive suite of tools that streamlines HR processes, enhances employee experience and drives organisational efficiency.
Here’s why Personio stands out as the ideal HRMS for your team:
Streamline every HR process: Personio covers the entire employee lifecycle, from recruitment to offboarding. This all-in-one solution ensures that all HR processes are managed seamlessly, reducing administrative burdens and allowing HR teams to focus on strategic initiatives.
Centralised employee files: Keep all your HR data secure and accessible in one place. Personio’s digital employee file feature ensures that important documents and employee information are always up-to-date and easily retrievable.
Efficient time tracking: Personio integrates HR data with working hours to improve efficiency and compliance. It supports accurate payroll calculations and provides reliable data on employee working hours.
Simplified absence management: With Personio, booking leave is a breeze. Employees can request time off with a single click, and managers can easily track absences across the organisation. Automated holiday approval processes and workflows further streamline this process.
Detailed reporting and analytics: Gain instant access to key metrics and reports with Personio’s robust analytics tools. Track headcount, salary data, absenteeism, and more to make data-driven HR decisions.
On top of that, Personio offers fast implementation and quick benefits. Its intuitive interface and comprehensive features ensure that your HR team can start seeing improvements in efficiency and productivity almost immediately.
Personio is already trusted by 15,000 companies in the UK and Europe, including companies like Mindful Chef. To hear it from Sarah Thomas, People Lead at Mindful Chef, "One of the greatest things about Personio is the constant improvements… I invested in it 12 months ago, but we are getting new tools and functionalities almost every day. Personio is not one static product, it’s evolving and becoming even better every day."
Ready to learn more? Start a free 14-day trial of Personio now, or book in time with one of our HR experts today.
