HR Management System: Challenges, Features and Advantages

The rapidly changing business landscape simply indicates that many human resource management challenges will continue to emerge in the upcoming years. Many HR professionals really think that implementing HR Management System can add real business value to their organizations.

Even though the restrictions of the recession aren’t over yet, organizations realize that they will have to take the necessary steps to retain their workforce. Some simplistic signs are that HR departments are planning to increase their resources and staff as organizations look to grow. This could be because of an increased emphasis on training and engagement plans or investing in areas that optimize investment, like integrated technology systems or advanced candidate engagement schemes.

Challenges Businesses Face in HR Operations

Since human resources is a business-driven operation, effectiveness relies on a thorough understanding of the strategic corporate direction and attracting key policies and decisions. Moreover, HR management difficulties must be established, and solutions are determined in order to succeed.

Large businesses can’t manage hundreds and thousands of employees, vendors, and finances manually. They need custom HR management software to increase efficiency and automate their regular tasks. HRMS can become a boon in managing and mitigating various business challenges. Its features can eliminate errors and help the recruitment industry with a single dashboard and analysis.

  • Mobility
    • The ability to access data and records on the go is a severe impediment. Not having a mobile application for mission-critical tasks such as tracking devices, leave applications, and scheduling shifts will deter users. It might be challenging to sync real-time data for leaves, attendance, and other tasks.
  • Self-serve Dashboard
    • Maintaining and managing documents for employees at a central location is essential and tricky. It has to be easy for reading and retrieval for data sharing. Enabling employees to set their own goals requires HR interventions and moderation regularly. If the dashboard does not function in the right way, then it will create serious issues.


  • Finance
    • Managing payroll, salaries, and payments is serious work. From onboarding to expenses and salaries to payments, not having a reliable HR management system can throw nasty surprises for everyone. One tiny mistake and the entire operation will go downhill.
  • Vendor
    • Suppliers and vendors need different arrangements for both payments and management. Integrating taxation and compliance to vendors includes another level of complexity and burden. Making an ideal vendor management module is necessary for any Human Resource Portal development.
  • Performance
    • Every employee has their own expectations. Preparing KRAs and KPIs for them is a must for any HR information system. At the time of appraisals, not having the right performance management module can cause chaos among employees. Not being able to manage assessments will invite some serious trouble properly.
  • Recruitment
    • A complete recruitment cycle is a nightmare for most recruitment experts. It places policy inductions, salaries, and many other hiring-related report submissions. It requires candidate screening, listing opportunities, and hiring that adds complexities to an already delicate process.

What Are the Features of an Efficient HR Management System?

As with extended functionality, HR Management System feature sets can differ broadly from provider to provider, and cobbling together numerous products may restrict the overall system. Finance, IT, HR, and other stakeholders should thoroughly evaluate which HRMS features are must-haves for the organization.

  • Workforce Planning
    • It offers the ability to plan and estimates workforce expenses and measure toward actual outlays for both current and future scenarios. It may also be used to identify skill gaps, create succession plans and prioritize recruitment efforts.

  • Centralized Employee Records
    • HRMS offers a single repository where all employee data can be saved, updated, tracked, and maintained. Allowing better reporting and minimizes the costs of compliance, and preparing for audits.
  • Benefits Administration
    • Benefits HR professionals to develop configure qualification rules plans and make payments or deposits to benefits providers. It also offers self-service open enrolment and integrates benefit costs with accounting.

  • Reporting and Analytics
    • Delivers the ability to run operational reports to track HR data, end-to-end compliance reporting, develop KPIs to measure HR process performance, and integrate HR metrics into financial dashboards for company-wide planning, analysis, and decision-making. Moreover, look for the ability to create ad-hoc reports.
  • Learning Management
    • These rich features help employees acquire or strengthen skills through course administration, course and curriculum development, testing, and certifications. It also enables an organization to roll out and follow required compliance training.
  • Talent Acquisition
    • Recruiters should be able to build career pages on the company website and intranet, create job requisitions and descriptions, integrate open positions with job boards, manage positions and resumes, track applicants through the recruiting process, provide job offers, perform background checks, administer pre-employment screenings and create joining forms, before handing new hires off to a generalist or the hiring manager to start onboarding.
  • Talent Management
    • Enables HR experts to develop and analyse employee performance reviews, goal management, and competency and skills test administration.
  • User Interface
    • A user-friendly interface is critical because an HRMS can be opened to the entire workforce. Today’s systems feature employee and manager mobile apps, localization, self-service, personalized dashboards, role-based access controls, workflow automation, and notifications to keep employees engaged and inquiries into the HR or IT departments to a minimum.
  • Time and Attendance
    • Delivers the ability to manage time-off balances and process time-off requests, employee scheduling, and absence management and provides timecards to be integrated with payroll and projects.

Additional features can be found in other HRMSs, but not every organization needs a fully loaded system. When you reach out to multiple vendors to create an HR management System, make sure all the products include an open architecture to facilitate bi-directional data exchange, file uploads across the system, and required integrations. Using a single trusted provider for an HRMS decreases the need for one-off integrations, which can be expensive, complex, and challenging to secure and update.

What are the Top Benefits of an HR Management System?

The primary payoff of an HRMS is having all your workforce data in a central repository. That minimizes compliance risks, provides a rich data set to inform decision-making, helps keep employees engaged, and makes HR professionals more productive and efficient processes.

Let’s dig into the top six business benefits of an HRMS.

  • Improved Employee Engagement
    • An HR management system is incredible in acquiring and retaining talent—something HR leaders are indeed passionate about. HR professionals can easily create customized learning plans, training curriculums, career paths and establish mentorships within an HRMS.
    • In fact, Harvard Business Review recommends that skills development is of prime importance to younger employees and explicitly suggests a mentoring program focused on sharing expertise. Moreover, Gen Z and Millennial workers expect to be asked regularly about their experiences. An HRMS can match senior employees in one department or geography with those who can get benefits from a counselling relationship, organized virtually, and deliver exceptional employee satisfaction and engagement surveys.
    • All these development activities are maintained and tracked in the HRMS to identify development milestones. This also helps in keeping employees on track and loyal to the company.
  • Better, Deeper Insights
    • Without an HRMS, managers and employees create data in numerous places, from spreadsheets to expense applications to paper records, making it quite challenging to gain a 360-degree view of workforce costs. With a robust HRMS, all data is stored in a single bucket with higher integrity. That enables better and faster decision-making. It’s additionally pivotal to a workforce planning and analytics initiative, where an organization assesses its existing workforce and compares that reality with future requirements as foreseen by business objectives.
    • Some essential benefits are recognizing and addressing skills gaps before they affect productivity, codifying succession plans, and keeping a tab on labor expenses by analyzing how overtime or double-time payments affect financial performance.
    • With an efficient HR management system, HR teams can additionally spot early indicators of problems. For instance, if Rockstar employees in one department leave at a higher-than-normal rate, that might signal a toxic manager. An HRMS can bridge these gaps easily and help identify at-risk employees.
  • Process Efficiency & Culture of Self-service
    • Responding to queries or administering large programs, like performance reviews or benefits enrolment, can take up to 40% of an HR professional’s time every week—and in many cases, individuals would be much more than happy to do that work all by themselves.
    • Within an HR management system, HR can set up a rich knowledge repository so employees can find answers to most asked questions. Managers and employees can securely access their very own records, allowing HR to focus on more value-added tasks.
    • In addition, HR processes that require various levels of approval, such as job requisitions, processing timecards, and time-off requests, can be a major time-consuming task. An HR management system permits approval workflows for automating these and some other processes, so approvers are informed when it’s their turn to approve or reject. That can reduce the processing time by more than 50% and improve accuracy.
  • Going Paperless
    • Green is the new Blue nowadays. True to that motto, an HRMS permits digital storage of data, documents, and essential files. They can be IDs, resumes, compliance documents, or any other policy-related documents. It empowers businesses to maintain entire HR management digitally with absolute transparency.
  • Faster Recruiting
    • Bringing Rockstar talent and growing your organization’s reputation as “the place everyone wants to work” is another area HR professional are passionate about. However, the candidate experience has been ignored mainly because it’s challenging to gain deep insight into the job search when postings happen outside of the organization.
    • An HR management system solves this issue by connecting recruiters and candidates electronically via job boards and mobile apps, making the process more efficient and enjoyable.
  • Complete Access Control
    • Outlining and implementing role-based systems between management, employees, and admin improve security and efficiency. HR management system-based permission management for groups and individuals to access data and reports to ensure complete control over systems. It additionally enables performance evaluations, feedback, and finance management.


The HRMS market is exploded and sometimes can be overwhelming. Many leading software review websites list more than 700 companies that provide HR management systems. Evaluating each of them at a rate of two per day would take almost an entire year.

Analyzing the needs of your business is one of the primary steps to finding the best HR management system. Once you’ve mapped out what you require, choosing (and eliminating) vendor options is much simpler. Choose an integrated Human Resource Management System that can create a strong HR team that is both agile and adaptive.

Get in touch with experts at Deck IT for a reliable and efficient HR Management System.