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5 Key Features Your HR System Must Have

5 Key Features Your HR System Must Have

A digital world has ushered in a new way of working that demands more flexibility, accountability, and trust. HR is no exception. It's time for HR to evolve its systems and processes. This isn't just because the challenges HR faces are changing rapidly - it's also because other organizations have already incorporated these changes. 

HR systems are designed with the same end goal: to streamline the processes of managing and tracking employee data so that you track all the different information about them more efficiently. 

A good HRMS ensures that your company's HR policies are followed and implemented, along with its benefits for staff – both current and future ones. To have the best HR system, you need to have the right balance of features that work together to deliver a holistic proposition instead of bits and pieces.

Upgrading to HRMS helps to abandon fickle spreadsheets, saving you time and effort. HRMS software collects, stores, manages and interprets employee-related data eliminating data duplication and offering you the source of truth. This software provides an array of features tailored to soothe specific needs. 

In this article, we've enlisted five key features your HR system should be equipped with to stay ahead of the curve and avoid a clunky, slow, and error-prone HR process.

5 Must-Have Modules in an HRMS Software

In the present scenario, it is essential to choose the HRMS software that is flexible and efficient to work with. A good HRMS software should be able to enable quick hire and termination processes, as well as easily track absent employees. Apart from this, such software should provide accurate records, easy access to all employee data, and also allow a flexible work environment. 

It is best if HRMS software can offer an all-in-one solution for managing the HR needs of your company. Let's explore the key features of an HRMS to affluent your HR process:

2. Recruitment and Hiring

A recruitment module in HRMS or the applicant tracking system offers a centralized and streamlined process for creating job requisitions. It customizes job-specific questions allowing you to build a unique out-of-the-box recruiting portal. The HRMS features automate job posting compliance with federal hiring regulations. 

It is among the key features of the human resource management system that also optimize data analysis making the hiring process fast. Also, it enables the reactors to prepare templates and follow up with recruitment. It accepts or rejects applicants based on set criteria helping to save costs and resources. Against the background of active business growth, adopting the HRM feature reduces the apparent and latent threat.

Pro Tip: It is the right time to implement this feature if you are searching for ways to reduce recruitment costs and accelerate your recruitment efforts.

2. Time & Attendance Management

The HRMS features manage employees' working hours, vacations, and sick leave. Employee time records are maintained, allowing you to view the employee's attendance, their absence from the workplace, their overtime worked, and the time spent on a particular project. 

You can also create vacation time records that keep track of employees' days off. You can also create different leave records, such as sick leave, bereavement leave, etc. With the attendance management system, you can also generate reports on employee absenteeism.

In a nutshell, the critical features of Time and Attendance Management in HRMS software (checklist):

  • Track employee's time and attendance data.


  • View employees' personal timings 


  • Query employees' daily attendance records.


  • Estimate daily time deductions by using time diary data.


  • Generate reports on employee's time and attendance behavior


  • Maintaining Time Diary


3. Applicant Management

Applicant management is one of the essential features of HRMS software. These applications help companies to recruit, screen, and onboard candidates efficiently. These applications allow companies to manage their entire applicant tracking system (ATS) lifecycle, including recruitment, sourcing, evaluation, and onboarding.

The best HRMS software company will provide a robust applicant management solution that can be customized to suit business needs. Features that are essential in an applicant management solution include:

  • Application management: Manage all candidate applications in a single place. Capture all relevant information, such as application requirements, deadlines, and candidate status updates. Offer candidates advanced resume preparation tools that ensure a high quality of submissions.
  • Candidate tracking: View all candidate information on a single dashboard, including application status, training completion certificates, employment history data, and more. Easily update profile details such as educational qualifications and work experience.
  • Recruitment advertising: Conduct targeted ad campaigns with custom-built ads and landing pages for the most effective results. Include a call to action button for applying or completing the application process.
  • Applicant tracking: Organize your hiring process with automated time-tracking tools and project management features that keep everything organized and on track. Review completed assignments with instant feedback tools so you can follow up accordingly.

4. Employee Self-Service

Most HR systems are designed for managing the company's day-to-day operations — but what about the employees? With the proper functionality, it's possible to grant employees total self-management of their data, allowing them to set up their direct deposits and pay any bills that come due.

Furthermore, this self-service functionality allows employees to manage their schedules and get their paychecks for any reason as long as they have access to the payroll system. And with the right software, you can even give employees the ability to access their files, set up their accounts with other services, and more. 

A sound system will provide employees with the ability to access their daily data, whether checking their pay stubs or setting up new services. A good system further helps employees to view their data weekly or monthly, so they can see what information is in their system, whether it's their last paycheck or the balance in their savings account.

ESS makes it easier for them to retrieve their leave balance or payslips. HRIS with multi-channel accessibility, employees can view, edit, and retrieve all work-related information from a unified dashboard.

Pro Tip: If your organization is outgrowing the startup size to minimize the workload, you can rely on HRIS features like ESS, empowering the workforce to manage their profile.

5. Workflow Management

The management of HRMS is a complex task that requires a sound knowledge of both HR and MS functions. New employees' arrival, performance appraisal, career development, and other employee-related issues need to be managed efficiently. 

The smooth functioning of HRMS depends on the availability and integration of all the system modules. The workflow management feature can help in automating HR-related processes. It will result in better employee engagement and work satisfaction.

Workflow management is the process of organizing work into discrete stages and capturing the workflow between those stages. In HRMS software, the most commonly used procedures are:

  • Approval process
  • Creation process
  • Scheduling process
  • Tracking process
  • Process Status update
  • Process Monitoring and alerting system
  • Process Recipes/tasks generation/assignment

Also, you should check for:

  • Analytics and Reporting

The best HR systems understand the importance of analytics and reporting. By giving employees a clear understanding of the data they’re contributing, a good system will give them the power to improve their productivity and use their time more efficiently. 

To keep employees happy and productive, a good system will allow them to see the numbers behind their work — the number of hours they’ve spent on a project or the number of issues they’ve resolved for customers. 

With the right employee data reporting and analytics, an HR system can help employees stay on track and improve their productivity.

  • Collaboration and Networking

While HR systems need to be efficient and user-friendly, they must also be accessible and open. To keep employees happy and in the mood to network, your HR system needs to be easy to find, navigate, and use. 

An effective HR system must also include a way for people to collaborate across functions and teams. If your company is composed of multiple silos, an effective HR system should make it easy for people to communicate across teams and functions. 

To help employees stay on top of the projects they're working on, an effective system should allow them to collaborate across functions and teams.

Bottom Line

HR systems can do wonders for your company’s productivity and efficiency. They can help employees stay on top of their work, connect with colleagues, and get their paychecks on time. But it’s imperative that you look beyond the hype and examine the features of an effective HR system. To keep your employees happy and productive, you need an HR system that provides the five key features outlined above.

In addition, note that HR systems are designed to help your company succeed, but they can’t do their job if they don’t have a positive corporate culture, to begin with. To keep your employees happy, you must ensure that the corporate culture supports open communication and promotes growth. An effective company culture provides employees with the tools to talk about their concerns and ask questions without feeling like they’ll be judged or ridiculed for doing so. 

A strong company culture makes it easier for managers to talk with employees about their progress, provide mentorship opportunities, and offer training on new technologies and processes. 

Amalgamating the process drive approx with HRMS helps simplify the assessment process. HRs can get transparency and unbiased insights into attendance and punctuality of the workforce, and with productivity tracking, knowledge management becomes impeccable, aiding organizations to draw success. 


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Ekaterina K.

"Top-notch HR solution with excellent support team"

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