Human resource is an important aspect of the success of any organization. Thus, companies are always on the hunt to find the latest methods, practices, and technology to help the HR department run smoothly.

HRMS is one of the most effective technologies that can transform the HR department of your organization if you select the right solution for your organization. Being a software solution developed to help with day-to-day tasks involved in HR management, the system will make things simple, effective, and less overwhelming for your HR team. 

From recruitment and handling payrolls to performance evaluation, a good HRMS will enable you to handle your daily operations with much more ease. 

If you are too in the hunt for a good HRMS here are 10 must-have components of an HRMS.

Here’s a reason this function is often referred to as “core HR.” Delivers a central portal to support analysis, reporting and compliance processes. It’s where you structure your workforce into organizational units, like departments or locations; define reporting relationships between managers and employees; and align payroll to accounting cost centers. It’s here where personal information is recorded and maintained, and this function is the cornerstone of efforts to offer employee self-service, maximize reporting and improve HR service delivery.

This module works in alignment with the company policy. The leave schedules can be automated using the module. You can read more on why you should automate your HR processes.  Booking, tracking, and approving any form of time off work becomes easy. Some other features this module provides are listed below:

• Information on leave balance for any kind of time off
• Online application with easy access
• Granting rights to HOD and HR department.
• Allowing all employees to view their leave history

Performance evaluation is another must-have component of an HRMS. From setting goals to tracking progress and reviewing and analyzing a good HRMS will have comprehensive features that enable you to conduct your employee performance evaluation with much more ease. The system will provide you with all the employee information in one place, evaluating the performances against the KPIs you’ve assigned to the system. 

According to expert HR managers, the employee lifecycle is an HR model that properly defines the different stages of an employee at a specific organization. Here HR executives play a great role. Proper analyzing or tracking each employee’s life cycle will help you to boost productivity as well as planning the training program.

From recruiting to off-boarding- a lifecycle of an employee. In short, you can say that it is all about the journey of an employee with a company. Every stage of the employee life cycle is all in a dashboard.

A good payroll management function is a must in an HRMS. 

Automating your payout process the system will help you cut down a significant amount of manual workload in payroll management. The module will help you track and manage employee hours easily while taking care of issuing checks and payroll deposits for employees. Once you have your system integrated, you also won’t have to stress over taxation as the system has features inbuilt to automate tax computation in compliance with the local tax laws.

Analytics and report generation are other important components of an HRMS. The module provides in-depth reporting and analytical capabilities that enable you to get a deep insight into what’s happening in the HR of your organization. Thus, allowing you to develop better HR strategies to improve the operations of the department and ultimately the bottom line of the organization. 

In the modern business landscape, HR is becoming more and more important day by day as every company wants to get the best yield from the talent that they have in their organization. An HRMS is a proven solution for this as it will help you manage and optimize your human resource wisely and effectively for the vigorous expansion you like your company to take towards.