A Guide to Choosing the Best Human Resource Management System

Category : ERP
Blog posted by : Admin / 03 Oct, 2022


A Human Resource Management System (HRMS) is a software solution that streamlines and optimizes all Human Resource (HR) tasks by automating the company’s process workflows. It can be integrated with other systems and applications to form a centralized management system. It processes data at faster speeds, gives accurate results and generates reports. 


A Guide to Choosing the Best Human Resource Management System

Features                               Benefits                             Who should invest?

Things to Consider Before Buying HR Software for your Organization

Type of software 

ERP provider’s experience

Size of the company 

Latest technologies

A centralized system

Training and support



The first step to choosing the best HR Software is to understand what it can do for your company. Here are a few things your human resource team can accomplish when working with automation software:

  1. Store, process and instantly retrieve employee data

  2. Set up and track key performance indicators and goals

  3. Automate attendance, leave and incentive calculations

  4. Automatically record sign in/ out information such as time and location

  5. Provide multiple secure ways to sign in and out whether on site or remote 

  6. Provide, communicate and track onboarding plan for new hires

  7. Optimize and speed up recruitment and selection process

  8. Design and track rewarding employee engagement plans 

  9. Auto-generate reports and predictive forecasts 

  10. Monitor location of company assets 



Why Automate Human Resource Tasks?


Once the daily tasks are automated, it saves a lot of time for the HR team to invest in other important tasks such as: 

  • Finding and retaining talented people and improving employee turnover 

  • Building effective employee engagement programs including rewards and recognition

  • Keeping the workforce morale high by enriching employee experience

  • Making result-oriented decisions based on system-generated forecasts 



Who Should Invest in HR Software?


A HRMS and its diverse functionalities help drive businesses of all sizes to more efficient processes and favorable outcomes. The way it is bundled up depends on the size, budget and needs of the company. 


A delivery or logistics company may be interested in purchasing the Employee Self Service ESS mobile app to track the whereabouts of its vehicles and field agents. It also allows them to clock in and out anytime through their ERP mobile app irrespective of their location. 


A large sized enterprise, on the other hand would want an all-inclusive HR & Payroll software capable of automating all processes beginning from hiring employees to retaining them and managing post-retirement processes.


Some industries that would readily adopt the automation software are real estate, manufacturing, construction, infrastructure, education, power & energy companies among many others. 



How to Choose the Right HR Software for your Organization?


A step-by-step approach in accordance with the needs of your organization will help you choose the perfect solution that is customized to tackle unique challenges in workforce management.


Step 1: Type of Software 


Cloud software has been experiencing a tremendous rate of adoption by businesses over the last few years. They are often preferred over on-premise systems. 

  • There are no additional infrastructure costs that come with it as the information is stored on the cloud

  • A device-breakdown in the office infrastructure will not affect the service of cloud HRMS

  • It can be accessed online through laptops, computers, smartphones and tablets

  • Upgrades can be downloaded over the internet through the ERP store


Review the challenges your workforce faces and evaluate your human resource team’s effectiveness to understand the features needed to improve the productivity and effectiveness of workforce management. 



Step 2: Size of the Company 


Taking into consideration the employee strength and requirements for your organization, you may choose from various sizes of software suites. The HRMS software is available in small, medium and large bundles.

  • A basic HR payroll software will streamline administration work and payroll processing

  • A medium sized solution will streamline admin work, payroll, hiring and provident fund compliance

  • The large sized software will add employee self-service, biometrics integration, performance management, GPS tracking and task management to its list of modules


A Complete Human Resource Management System

Recruiting & Onboarding 

Employee profiles 

Employee self-service

Attendance & leave management 

Incentive & overtime calculation 

Document creation 

Tax compliance 

PF compliance

Predictive analytics 

GPS tracking 


Performance management system

Goals tracking 

Biometrics integration

AI voice assistant 

Employee engagement 



Step 3: A Centralized System 


Any solution you adopt, you need to make sure that it integrates well with other systems and devices. Working on different systems creates an unproductive and disconnected environment where transfer of information and communication breaks down.  


In order to integrate well, the HRMS software needs to be able to create an IoT network and other API integrations, as required. It helps the ERP system connect easily with:

  • Devices 

  • Applications

  • Machinery

  • Equipment


The one-window solution provides a common platform for and opens lines of communication among employees, management, vendors, contractors and key stakeholders of the company. 



Step 4: ERP Provider’s Experience 


One way to find out if the software you are planning to invest in, is good or not, is to look at client testimonials and case studies. Generally found on the company’s website, you may even ask the ERP company to provide you with some of their ERP case studies and testimonials. Some would even happily connect you with their clients for a tete-a-tete. 


ERP software companies with decades of experience would surely be aware of the current challenges that need to be solved. It also gives them an opportunity to work on client feedback to continually enhance their software to better tackle industry challenges.



Step 5: Latest Technologies 


To create a truly future-ready Human Resource Management System, users should look for software that is integrated with the latest technologies. 


-Voice assistant: Using Natural Language Programming (NLP), the system converts voice into text, thus enabling a hands free Employee Management System.


-Voice commands: Built-in voice commands are an easy way to instantly display the data you need to see without having to use the keyboard. They can also be used to record screens and transcribe the audio automatically. Especially beneficial for HR personnel when conducting online training sessions or meetings. 


-Low/ no code programming: It allows users with a non-technical background to customize the Human Resource software to fit their process workflows more accurately. It allows quick customization without having to code. 


-Mobile App: Managing a workforce spread over various locations becomes easy when you invest in a mobile ERP app. The Employee Self Service app allows employees to manage their attendance, leave, salary and performance anytime from anywhere. 


-Predictive Analytics: Machine Learning driven analytics reports are generated by the system to help predict labor attendance, attrition, vacancies, leaves and salary differences based on the past data. The reports serve as reliable guidelines to manage human resource and payroll activities specific to an organization. 



Step 6: Training and Support


Talk to the service provider to understand how they help their clients manage change, train and implement the HR & Payroll software. Ask questions to ensure their support is ongoing and end-to-end. 

  • For easy ERP implementation, training videos for every module are available on the system for quick access. 

  • A well-thought-out implementation plan should be set up, giving you an idea about the duration of the training and the topics covered. 

  • A good ERP support system provides its clients with multiple options, such as raising tickets within the HRMS, phoning and emailing the team, providing a list of FAQs or making a knowledge base available to troubleshoot common issues quickly, without seeking external help. 


Along with effective training and support, confidentiality and integrity of your business data should be a priority for the ERP software developer. Before investing in any Employee Management System, ask questions about user authentication, data security, data centers, servers, backup and recovery solutions. 



The selection of the right software can become challenging due to the availability of many types of solutions in the market. By creating a systematic approach and your own guide to choosing the best HRMS, you can achieve your organization’s goals. 

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