Complete Guide on Managing Your Human Resource

As your team member increases, so does the issue of managing them. It becomes a challenging task to get a consolidated view of employee data. Sensitive workforce data will remain splintered across multiple folders or systems that don’t work well with each other. Integrations require too much manual effort to stay intact. Thus, the efficiency of HR processes drops dramatically.

The only solution to all these problems is implementing an HRMS. Contrary to popular belief, not all HR management systems are expensive or rigid. There is an array of options available in the market today.

Before choosing any HRMS, you must have in-depth knowledge about its meaning, features, and functions performed by HR and HRMS. In this guide, you’ll learn more about:

  • What is HRMS
  • Why is HRMS important for your organization?
  • HRMS Process: From Hire to Retire
  • Features you should look for in an HRM System
  • How to find the right HR Management System that suits your needs?
  • Conclusion

What is HRMS?

An HRMS is a cloud-based solution intended to help your HR reduce specific time-consuming and unproductive functions by replacing them with an automated solution.

HRMS full form being a Human Resource Management System it connects various HR functions such as payroll activities, recruiting, statutory compliance, employee management, and many more with software technology. Leveraging the help of a technological solution such as an HRMS can help you save time, cut costs, and manage your staff better.

Based on your needs, you could opt for a simple HR Management Software with features that can take care of day-to-day administrative tasks such as Leave Management, Employee Management, etc. Or you could find a solution that addresses the strategic areas of human resource management like Training & Development, Performance Management, and Recruitment.

Why Is HRMS Important for Your Organization?

HRMS is essential for modern organizations since it is now moving towards automation and analytics. As per statistics, 80% of HR departments are likely to spend more money on HR technology in the upcoming years.

An HRMS will automate repetitive and time-consuming HR tasks, making them more efficient and decrease their time-intensive nature.

An organization needs an HRMS to:

  • Alleviate process bottlenecks
  • Minimize manual paperwork
  • Decrease employee stress
  • Reduce time lag in tasks
  • Lower operational costs
  • Easily implement process/policy change
  • Remove spreadsheet dependency
  • Improve internal communication

HRMS Process: From Hire to Retire

HRMS process includes all the tasks – right from Hiring to Termination. All these HR functions are similar for every employee. And with an increase in the number of employees, the burden to process all these functions additionally increases. Thus, it becomes important to understand how these tasks ease the HRMS Process.

  • Onboarding
    • After finding the worthy candidate, HR has to provide them with essential information such as company history, working environment, culture, product information, etc., for effective employee engagement. Along with this, HR needs to provide a confirmation letter, appointment letter, collect various documents like PAN card, Aadhaar card, etc., and allocate critical assets to the employees.
  • Applicant Tracking
    • Applicant Tracking, or screening and recruitment, is an electronic way of recruiting. It is another way of receiving the candidate’s resume for hiring them. It gives you the right platform to store lists of job openings, candidates’ details, and interview schedules. Thus, let your HR focus on recruiting the right blend of skills and expertise rather than wasting their time building up and piling resumes and interview scheduling.
  • Employee Management
    • Store and retrieve all up-to-date, employee-related data (basic profile, performance, employment history, role, etc.) on a centralized database that can be accessed from anywhere and anytime to take workforce or organization-related decisions.
  • Timesheet Management
    • Automate timesheet approval process of employees to analyze performance, estimate expenses incurred across the organization under several parameters (employee, client, role, department, project, or activity), and integrate seamlessly with payroll and other modules.
  • Payroll Management
    • Reduce the complexities in payroll processing with a wide array of payroll services by offering an inbuilt accounting module, frequent audit & reporting tool, automated tax computations, tabular data storage, and a configurable rule-based engine.
  • Performance Management
    • Set individual goals, collaborate, assign weightage, create a development plan, and align it with organizational values to analyze each employee in an organization for comprehensive performance reviews (quarterly, half-yearly or annual).
  • Compensation Management
    • Design and manage proper employee compensation plan across multiple departments, teams, and geographies uniformly. Link compensation with organizational and performance objectives, aggregate compensation data to view/edit it anytime.
  • Training & Development
    • Continuous performance tracking will assist you in determining your employee’s further training for upgrading their skills and capability. With HRMS, it will become easy for you to schedule and maintain training and development sessions.
  • Offboarding
    • When an employee is resigning or offboarding, HR needs to perform a full and final settlement process. HRMS helps you with this easy FNF and generates a resignation letter. HR should inform employees to return assets assigned to them, complete their payroll and earned incentives, inform them about their retirement benefits and other such data. With every exit, a new vacancy is generated into the platform.

Features You Must Look for In A Human Resource Management System

Apart from the comprehensive list of functionalities, a reliable HRMS tool should comprise the following features:

  • Centralized admin system
  • Cloud-based documentation
  • Sophisticated mobile functionalities
  • Employee self-service option
  • Real-time analytics
  • Data security and audit log
  • Role-based access and collaboration
  • Agile integrations

How to Find the Right HR Management System That Suits Your Needs?

Before you begin scurrying the web for the perfect fit, figure out what you need. Draft your requirements, list the features you’re looking for, and then match these with the functionality available in a reliable HRMS Software.

Here’s a time-tested checklist that will assist you through the HRMS selection process without losing your head.

  • Create a powerful selection team with some stakeholders
  • Recognize current HR process gaps and map out your needs clearly
  • Compile a comprehensive list of required features and other specifications
  • Shortlist vendors who meet your crucial HR process requirements
  • Get more insights about the list of vendors that you have chosen
  • Sort the list of vendors depending upon your business priorities (Timeline, cost, etc.)
  • Attend software demo of your vendors and search their customer profiles
  • Make sure that the price or license fee is transparent and free from any hidden costs
  • Ensure that the software is scalable to meet your future business needs
  • Use the data that you’ve gathered so far to arrive at an informed decision


Choosing an ideal Human Resource Management System (HRMS) is neither easy nor straightforward, but it must be done correctly. While many HR tools offer the best set of features, finding one that works best for your business is challenging. However, with proper guidance, you’ll be able to choose an HR management system that will take your organization to the next level.

Deck IT’s HR Cloud solution eliminates the need for data integration infrastructure and individual applications between applications. It enables businesses to seamlessly share and retrieve information from any other software as their needs demand. Deck IT’s HR cloud solution is simple, intuitive, and works from wherever you are.

Get in touch with the experts at Deck IT today to see how it plugs process gaps and makes HR management effortless.