The Guide to HRMS All You Have to Know


The Guide to HRMS All You Have to Know

An HRMS (Human Resource Management System) is a kind of software for HR that allows the management of various HR functions through information technology.

An HRMS usually covers all aspects of an HRIS and incorporates the capabilities of a human capital management system. Two of the most common HRMS characteristics are Payroll (TLM) and Time & Labor Management.

The most common functions of HR

Human Resource Management (or simply HR) is a job every organization has. It's intended to enhance the performance of employees and be in line with the employer's strategic goals. HR is primarily focused on how people are managed in organizations with a focus on systems and policies. HR involves the sub-functions listed below:

Manpower Planning

The principal focus of human resource planning is the estimation and distribution of resources required to achieve desired business results. HR plans may be immediate/short term or strategic.


It is essential to discover the right combination of skills and abilities in employees at the correct time. This includes filling vacancies through initiatives such as promotions, internal job postings and employee referrals.


An applicant who has accepted to join an organization would be expected to report for work at an exact time. This day is called the Joining Date. When the first employee joins the company, there are certain activities. These are referred to as Employee Onboarding.


Typically, employees are placed on probation for 1-6 months after joining. During this time, both the employer and employee examine each other and decide if they would like to continue their association. When the Probation period, the employee would normally undergo a confirmation procedure.

Employee Information Management

The HR department plays an important role in maintaining accurate information about employees.

Transaction Management and Leave Policy

The Leave Policy is one of the duties of the HR Department. The HR Department is responsible for every transaction. Therefore, it is a mandatory (legal) obligation to provide the employees leave within a company.

Monitoring Attendance and Time

Every day, they are keeping track of the time employed by employees and the time that he comes in, the time when he exits or leaves, etc. It is now attracting the attention of organizations and, consequently, HR departments. This data can be utilized to process Payroll. The organizations will also have to develop a range of statutory reports using the attendance data.

Salary Changes and Increment Calculations

In consultation with Business Heads, the HR Departments assist in the revision or fixing of employees' salaries. A typical salary increase is supported by a Salary Revision letter. The information is given to the Payroll team, who will include it in the Payroll for the following pay period.

Processing of Payroll and Salary Payment

Payroll processing is an extremely critical task for both the employer as well as the employee. It is directly related to one of the core reasons an individual work for an organization apart from the statutory requirements. Payroll processing also involves calculating all the statutory dues (employee and employer contributions) and generating the necessary reports. In addition, employees need to be kept up-to-date on their salary and tax deduction calculations and balances of reimbursement. These activities are the responsibility of Payroll processing.

Separation Process

If an employee files a resignation or quits the job, it's usually called resignation. That's where the HR department comes in. This would include conducting an exit interview, ensuring that cleared certificates are given, handovers are made and transferring all relevant information to Payroll. The Payroll team completes the final settlement, and the employee will receive his final payment. When the employee is done with this procedure, the Manpower plan will get updated, and, based on the company's needs, the request for recruitment would get initiated.

Communication and Basic Employee Services

The role of HR departments is to make sure that managers and employees have regular communication. It is crucial to ensure that employees know policies such as the Attendance Policy and the Travel Policy, Dress Code, and the Leave Policy. Then there could be various rules and regulations which employees are required to follow in the organization. Changes to policies, major events, or other information that may impact employees must be made known. All of these should be made known to the HR Department.

Engagement of Employees

HR departments are experiencing constant change. They are no longer functioning as a function that is primarily transactional but are becoming more strategic. People who are aligned with the company's goals and requirements is key to an organization's success. HR departments play a crucial role in creating this alignment.

Statutory Compliance

Another important job of the HR Department is to ensure that the company complies (adheres) with all the relevant laws of the region (State/Country). Therefore, they must be aware of these laws and take up any necessary actions to ensure that the requirements are fulfilled.

HRMS software solutions in India are growing with time. With so many technical improvements in the recent past, paperless solutions are acquiring a huge user base, and as HRMS is a paperless solution the demand is increasing in India. Ultimate Business System (UBS) is providing scalable and advanced HRMS solutions to small and medium-sized organizations.

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