Benefits of HRMS


HRMS is the human resource management system which combines the HR functions of the organization with technology to automate those human resource functions within the organization. The HRMS or HRIS can exist either as module of an ERP system or as a separate software application. Usually large organizations employ ERP systems which cater to all major functions of the organizations like accounts, marketing, sales, finance, HR and supply chain. Smaller organizations use individual software applications to cater to the limited functions in the organization.

The human resource management system can offer a wide variety of benefits to both small and large business organizations. Benefits can range from increased efficiency to positive incline in productivity of the department as a whole. This in turn will cut down expenses and increase profits but all of these will only be beneficial if the HRMS is itself easy to use, scalable and free of all types of errors/bugs.

A good human resource software used by a professional can yield extraordinary results making your whole HR department more effective. Following are the functions of an optimal HRM application:

  • Payroll Management
  • Attendance & Timesheet Maintenance
  • Performance Management & Appraisals
  • Recruitment & Onboarding Management
  • Leave & Absence Management
  • Self Service Employee Portal
  • Schedule Management
  • HR Analytics

Apart from performing these functions the HR management system needs to have the following characteristics:

  • Flexible: Flexibility of HRMS amounts to the ability of the application to integrate with the business processes of the HR department
  • Comprehensive: The HR software should support all types of major HR functionalities within an HR department of the organization
  • Automation: The major function of HRMS is to make the manual processes automatic. A good HR system has processes automation with a well-structured work flow
  • Scalability: The HR software application should be scalable because organization expand and evolve as time passes.

Benefits of an HRMS can differ greatly based on the type of organization, workforce, HR department functions and the IT infrastructure of the company. For small organizations the IT infrastructure can be moderate where the application is deployed on a server and employees can use self-service options using web browser or desktop application.

If however the HRMS is a module of an entire ERP system then the IT infrastructure needs be a high level structure with a whole team of ERP support team. Here are some of the major benefits of HRMS for an organization:

A Paperless Office: With HRMS you can conduct all your recruitment functions online and create a CV bank. Moreover all types of candidate documents can be stored on the HRMS.

Increased Efficiency: The overall efficiency of the department increases by several folds ensuring that processes takes place effectively to make timely decisions.  

Shorter Cycle Time: The overall time taken to perform a task in HR department reduces significantly which has a direct impact of the workflow and productivity.

Easy Performance Management: The HRMS allows you to set KPIs for individuals and team members. Based on those key performance indicators each member can be evaluated and appraised accordingly.

Analysis, Workforce & Succession Planning: The human resource system provides analytics that can help in forecasting future workforce needs of the organization and help in succession planning of the current workforce.

These are some of the major features, characteristics and benefits of human resource management system. At iLead we have Matrixel HRMS which is a part of the Matrixel ERP solution designed for all types of businesses. For more information on Matrixel HRMS solution visit iLead website or get in touch with us by filing the contact form.


The human resource management system simply automates the whole HR function of the organization making it more efficient and productive. The employees within the organization can interact with HR department more easily and offers benefits like increased efficiency, shorter lifecycle, great performance management and good succession planning. Organizations need to have HRMS to compete in this technologically fast paced world and a competitive market.

One thought on “Benefits of HRMS

  1. Kevin Anderson says:

    Hr system have many option have to perform, and it’s easy to use.



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