Human Resources Management System or Human Capital Management is a form of Human Resources software that combines a number of systems and processes to ensure the easy management of human resources, business processes, and data.
It is a Model which is a record of all the basic demographic and addresses data, selection, training and development, capabilities and skills management, compensation planning records, and other related activities.
Finding the right HRM module for your business can seem like an endless series of challenges.
Some vendors use it to describe a basic employee database with limited functionality, onto which can be bolted a number of compatible modules, each providing software support for one of the different HR functions listed below.
The Most Popular HR System Modules Include:
HR Database
This can be as basic as name, address, telephone number, and job role, right up to a complete work record, including performance management assessments and training undertaken.
Recruitment
A recruitment module should handle all your internal form-filling and authorization processes; allow managers +/or HR to post advertisements and supporting documentation online, offer applicant tracking and even initial sifting.
Of all HR technology, it’s recruitment modules that have embraced social media to the greatest extent – for example, compatibility with LinkedIn and other platforms are increasingly found as standard – and social capabilities are a key topic when questioning vendors.
Common recruitment module features include:
- Customized pipelines for different roles
- One-click posting of jobs and job descriptions to a variety of jobs boards
- Automated assessment processes, inc. interview scheduling
- Applicant tracking
- Resume parsing
- Standard metrics and analytics for candidate profiles
- Mobile app
- Social media interface
- Digitized offer management
Onboarding
Once you have your new hires, they need to be guided through your organization’s on-boarding and induction procedures.
Common on-boarding module features include:
- Pre-first day preparation
- Easy (and paperless) set up of accurate employee records
- Provision of essential information about the company and key personnel
- Gamified learning
- Automatic scheduling of essential meetings
- Compliance with legislative mandates
- Goal-setting as a basis for probationary period
Performance Management
Automating the appraisal process, recording and tracking objectives and targets, this module should incorporate your competence framework, job standards and/or other relevant systems.
Common performance management module features include:
- Setting and managing goals
- Links to competency framework
- Scheduling of appraisal meetings
- 360 performance feedback
- ‘In the moment’ feedback tools
- Big Data gathering for a broader picture of individual performance
- Links to talent management and succession planning functions
Benefits Administration
Benefits management is all about providing timely information and aiding employees to make the right choice for their circumstances. This module should manage and monitor employee benefits, healthcare and pension/welfare packages, tracking enrollment options and any financial implications.
Common benefits administration module features include:
- Online Open Enrollment
- Automated communication of enrollment options and information
- Plan comparison tool to aid employee choices, inc. costs and contributions breakdowns
- Automatic event management of the benefits life cycle
- Legislative compliance for your territory
Workforce Management
Primarily a scheduling function, this module should link closely to (and is often combined with) time and attendance and leave management.
Common workforce management module features include:
- Scheduling and shift management
- Workflow monitoring
- Management dashboard with real-time data and metrics
Time and Attendance
Alongside payroll, this is probably one of the longest-standing HRM module automation the time clock. These days, such systems often incorporate bio-metric identification to avoid ‘buddy punching’ and will link directly to (or be an integral part of) the workforce management module, with information links to your payroll and accounting software.
Common time and attendance module features include:
- Employment attendance tracking
- Time clock management
- Biometric systems
- Functionality for remote and mobile workers
Absence and Leave Management
Again, often linked to the time and attendance and workforce management functions, your leave management module is an automated way to allocate, book, approve, track and monitor any absence from the workplace.
It may be for vacations, compassionate reasons, illness, parental leave, even jury duty. Request and approval processes should be streamlined and the outcomes incorporated into team calendars where appropriate.
Common absence and leave management module features include:
- Self-service leave requests
- Integration with workforce management (scheduling) and time and attendance functions
- ‘Account management’, tracking accrued vacation time and usage.
- Metrics and analytics, including absence levels and trends
Learning and Development
Often using the outcomes of the performance management process as a starting point, this module may produce individual training plans for staff, deal with bookings and manage the follow-on evaluation and feedback process, while tracking training expenditure against budget allocations.
Common learning and development module features include:
- Learning portal
- Training recommendations linked to role, skillset, and career aspirations
- Individual user learning plans
- Setting and managing goals
- Links to competency framework
- Streamlined learning administration (reducing the HR overhead)
Talent Management
Focusing on identifying individuals with potential, this module should assist with setting up talent pipelines with specific roles and succession planning in mind. Links to recruitment, learning and development and performance management should be seamless.
Common talent management module features include:
- Succession planning
- Alignment with organizational strategic business goals
- Identification of career paths and individual career planning
- Integration with key recruitment campaigns
- Reward Bench-marking (internal and external)
HR Analytics
Often incorporated as functions within other modules, HR analytics provide reporting capabilities (frequently in the form of libraries of HR metrics and benchmarks) assessing and analyzing the data gathered and stored with the HRM module(and other business systems) to provide strategic and predictive insights that can be used to guide the business strategy of the organization.
Payroll
Traditionally, automated payroll was usually handled by a separate, dedicated piece of software. Other benefits of HRMS-based payroll are data security and accuracy, less likelihood of errors, legislative compliance, and having all your people-related automation accessible via a single portal or access point.
It’s important to do your research and analysis, and to talk to key stakeholders about what a new hrm module needs to facilitate – what functions do they need, and what must those functions do? Equipped with that information, you’re ready to start searching for the ideal HRMS for you.
