Organisations need to manage their human resources since humans are responsible for almost all activities with them. To have excellent workers, an effective HR department must be instituted. This means companies need the right people and software products available for HR to execute their tasks.

Managers strive for every information about employees to be stored in a centralized database. This type of database allows HR members to view and report all employee data with ease. Modern HR systems must have appropriate core modules to perform key functions.

Human Resources Management System (HRMS) or Human Resource Information System (HRIS) is the collaboration between HR systems and Information Technology. It consists of core modules which impact business efficiency as we discuss below.

Core Human Resource Management Modules

A Core HR system module is a software type used by companies to manage essential HR information. Simply, it is a master record of key administrative, human resource tasks. Although their functions differ based on vendors, they all store employee information in a central database. They include:

Payroll Management

This module handles all that is required when it comes to accounting and employee payroll management. It possesses the ability to define pay grades and delivers each set’s allowances and deductions. It is linked with Time & Attendance to use attendance records as a basis for payroll processing.

It calculates payroll on specified timetables be they daily, weekly or monthly. The payroll management module can process compensations for single employees or do so in batches.

Common features:

• Generation of payslip
• Access to employee payroll record
• Multi-company, multi-currency processing

Recruitment

This HR module handles all form-filling and authorisation processes with an organisation. It assists managers and HR in posting advertisements and related documents online. The hiring module also enables applicant tracking and could perform the initial filtering.

It could also have a feature that allows you to build talent pools that can be perused for appropriate candidates when vacancies arise. Among the core HR system modules, this is the one that has greatly embraced social media. Its compatibility with platforms like LinkedIn is becoming a standard.

Common features:

• Customized channels for various roles
• One-click job postings and descriptions on different job boards
• Automated assessments, e.g., interview scheduling
• Resume analysis
• Applicant monitoring
• Social media presence

Onboarding

New hires typically have a hard time integrating with an organization, and that is where onboarding comes in. It automates the induction procedures of a company, easing the burden on management and HR team members. Recruits can get acquainted with the necessary people as they settle into their roles.

The organisation also benefits from automatic alerts directed at relevant departments. This will help hasten the resolution of issues such as building access, security passes, user accounts etc. An ideal HR system has this module interfacing with talent and performance management modules.

Common features:

• Seamless and paper-free set up of accurate employee records
• Automated meeting scheduling
• Probationary period goal-setting

Talent Management

The focus of this HR system module is on identifying individuals with potential. It assists in creating talent pipelines for succession in specific roles. Its links to recruitment and performance management should be streamlined.

Common features:

• Planning succession
• Identification of career paths and career planning for individuals
• Integrating with hiring campaigns

Performance Management

This core module can incorporate competence frameworks, job standards and other relevant areas into the appraisal process using automation. It involves the recording and tracking of employee task executions and allows for their assessment in comparison to company objectives.

Common features:

• Goal setting and management
• Links with the competency framework
• Automated appraisal meeting schedules
• 360 performance feedback
• Connects with talent management

Benefits Administration

Benefits administration has the propensity for being tasking and detailed. Also, since it is related to compensation, loud complaints could be attracted if it goes wrong. This makes its automation all the more important. It streamlines the open enrolment process while providing complex information to workers about its plans with the help of a variety of media.

It is all about delivering timely information to employees and helping them make good decisions based on circumstances. The module should track and manage employee benefits, insurance and welfare/pension packages. It should also track enrolment options and their financial implications.

Common features:

• Automated information delivery concerning enrolment options
• Legislative compliance
• Automated managing of events for the benefits life cycle

Time and Attendance

This is perhaps the longest-standing human resource system automation along with payroll. The time clock in modern systems often incorporates biometric identifications to eliminate “buddy punching”. It links directly to the workforce management module and feeds it information on your accounting and payroll.

Common features:

• Support for remote workers
• Employee attendance monitoring
• Time clock management

Workforce Management

This is essentially a scheduling function. It commonly features scheduling and shift management while monitoring workflow and managing dashboards with real-time metrics and data. Linkages with other business intelligence systems like CRM and ERP may be present.