What is a human resources management system (HRMS)?
Bewildered by the latest HR terminology? Wondering what is an HR system, an HRMS or an HRIS and whether they’re right for your business? A human resources management system (HRMS) or a human resources information system (HRIS) are business reporting systems that automate those time-consuming HR tasks threatening to swamp your teams on a daily basis.
We’re talking about a cloud-based HR management system that replaces separate manual HR, payroll, time and attendance processes. A human resource management system can enable managers and HR teams to:
- Access employee data
- Recruit new staff and keep track of their onboarding
- Evaluate time and attendance information
- Conduct performance or employee engagement assessments
- Monitor staff training
Perhaps most important are the data analysis tools and reports available from HRMS software, so that managers can pinpoint trends or patterns and then pivot the business accordingly.
What are the benefits of using an HR management system (HRMS)?
There are many benefits to business leaders of uniting multiple HR sources into one HRMS solution. Not only does management and reporting become much easier, but manual data input errors are eradicated, boosting security. Meanwhile, with greater visibility of data comes more transparent collaboration and productivity between multiple teams across your company.
Easier collaboration
When HR and payroll data is synced, it’s easier for teams to collaborate across the business.
Trend spotting
Access to smart data enables business leaders to see patterns in employee behaviour.
Data analysis
Managers can now generate reports for a deeper exploration of the data.
Greater agility
Businesses can plan for events before they happen and take more informed decisions.
Enhanced productivity
Time-consuming administration is now automated and streamlined, saving valuable time.
Automatic compliance
Thanks to automatic updates of HRMS software solutions, keeping compliant is no longer an issue.
What is the difference between HRMS and HRIS?
Both these terms (HRMS and HRIS) tend to be used interchangeably to talk about the technical systems powering many HR functions, such as managing employee data, running payroll or other staff benefits. While human capital management (HCM) describes the overall strategic or management approach a company takes to maximising the potential of its talent, HRMS and HRIS are used to highlight the more technical solutions.
Choosing an integrated HCM solution over a single HRIS platform is vital if your company wants to deep dive into data analytics, reduce repetitive tasks and boost operational efficiency.
What does an HR management system do?
An HR management system automates and manages internal HR processes. These span the whole range of employee activity, from hire to retire, and include:
- Hiring and talent management
- Managing employee data
- Running payroll
- Paying staff benefits
- Tracking time and attendance
- Organising training
- Delivering employee engagement
A human resource management system automates previously manual and paper-based admin processes, so that HR teams have more tools and data at their fingertips from one cloud-based system of record.
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What does ADP's HRMS offer?
ADP® iHCM: Payroll with HR, time and talent
Our HR management software is called ADP iHCM and brings together payroll, HR and analytics in one cloud-based system to manage and pay employees across their entire life cycle from hire to retire.
A scalable system available in three editions and optional modules, ADP iHCM grows with your business. As an HR system, it provides tools for human resource administration, reporting and analysis. With one system of record for all employee data, your teams can monitor everything, including staff performance and time management, talent acquisition and people analytics.
Which ADP iHCM edition is right for you?
Essential Edition
Award-winning Payroll
All the tools you need to run an accurate, automated payroll. Designed for companies just starting on their digital transformation.
Advance Edition
Payroll + HR + Talent
For improving your recruitment, and developing talent into high-performing teams and leaders.
Standard Edition
Payroll + HR
Integrates payroll with HR tools, for managing your employee life cycle and boosting efficiency.
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Your HRMS questions answered
- What is a human resources management system (HRMS)?
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A human resources management system (HRMS) is a cloud-based HR management system which automates HR administration. It replaces separate, often paper-based HR, payroll, time and attendance processes and unites all data in one system of record.
With an HRMS, one system covers the whole range of employee activity from hire to retire, and includes hiring and talent management, employee data management, payroll, benefits, time and attendance, training, and employee engagement.
- What is the difference between HRMS and HRIS?
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Both terms, a human resources management system (HRMS) or a human resources information system (HRIS) are used to describe the software systems powering many HR functions that were once paper-based. These HR functions include managing employee data, running payroll, overseeing time and attendance, finding and recruiting talent, paying staff benefits, and ensuring employee engagement.
- What does an HR management system do?
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A human resources management system (or HRMS) automates and manages HR processes. These cover the whole range of employee activity including hiring and managing talent, safely storing employee data, running payroll, paying staff benefits, tracking time and attendance, organising training and motivating employees.
A human resource management system replaces paper-based admin. With more data available from one cloud-based system of record, managers can spot trends and patterns, responding with more insight.
- What does ADP's HRMS offer?
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ADP’s human resource/s management system (or HRMS) is called ADP iHCM. It’s one cloud-based HR and payroll solution for managing and paying employees from hire to retire. As a scalable system, ADP iHCM grows with your business, wherever you are based.
With one system for all employee data, this HRM software lets your teams monitor everything, from staff performance and time management, to talent acquisition and people analytics.