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What is a Human Resource Management System (HRMS) ?

HR Technology
Published on: Jun 27, 2024

An HRMS, or Human Resource Management System, is a comprehensive suite of software solutions designed to manage and streamline various human resource functions within an organization.

What is an HRMS system?

What is hrms - Runtime hrms


An HRMS, or Human Resource Management System, is a comprehensive suite of software solutions designed to manage and streamline various human resource functions within an organization. Also known as HRMS software, these systems integrate multiple HR functions, ensuring that everything from hiring to payroll runs smoothly and efficiently. 

According to a report by Markets and Markets the core HR software market is anticipated to grow from USD 10.7 billion in 2023 to USD 15.1 billion by 2028, achieving a compound annual growth rate of 7.0%. This growth underscores the increasing importance of HR management systems (HRMS) in modern businesses. As technology evolves, HRMS solutions are prioritizing user-friendly interfaces, self-service capabilities, and mobile applications, empowering employees, and enhancing overall efficiency. 

Related topic to explore: 

What are the core functions of HRMS system?  

An HRMS (Human Resource Management System) integrates various HR functions into a unified system, streamlining processes and improving efficiency across the organization. Here are the essential functions of an HRMS system:  

Infographic core functions of hrms

  • Recruitment and Onboarding 

HRMS simplifies the recruitment process by automating job postings, tracking applications, and facilitating onboarding. This ensures that the right candidates are hired efficiently and integrated smoothly into the company. Evalution of onboarding is as crucial as the process itself therefore taking onboarding survey is suggested for organizations to enhance quality of onboarding process. Download our free toolkit for HR on employee onboarding survey.

  • Payroll Management 

One of the core functions of HRMS system is payroll management, it ensures timely and accurate processing of employee salaries, tax deductions, and compliance with labor laws. It reduces manual errors and administrative burdens, making payroll a seamless task. If you want to know more checkout: Payroll software

  • Time and Attendance Management 

This function automates the tracking of employee attendance, working hours, and leave requests. It helps in maintaining accurate records, ensuring uniformity in the process of attendance, and calculating compensation based on actual hours worked. Runtime Workman app helps employees to manage their attendance from anywhere, anytime on their fingertips. 

  • Performance Management 

HRMS assists in setting performance goals, conducting evaluations, and providing feedback. It helps in identifying high performers, planning career development, and aligning individual performance with organizational objectives. 

G2 blog mentioned despite only 16% of organizations using technology for performance tracking and employee engagement, there is a significant opportunity for other organizations to embrace these features. Leveraging such technologies can provide valuable insights, enabling HR managers to refine their practices and develop more effective strategies for boosting employee engagement and performance. 

Performance management can be an advantageous feature for organizations as tracking employee progress is vital for HR to help achieve a firm's objective. Runtime HRMS understands the importance of achieving goals with efficiency, that is why Runtime HRMS offers Performance management function that lets you manage team performance by assigning goals, tracking achievements and has 360° feedback. Assigning tasks and tracking progress just got easier! 

  • Benefits Administration 

Managing employee benefits such as health insurance, retirement plans, and other perks is streamlined through HRMS. It ensures employees can easily access and manage their benefits, reducing administrative workload for HR teams. 

  • Employee Self-Service 

HRMS offers self-service portals where employees can manage their personal information, view pay slips, request leave, and update their details. This feature enhances employee engagement and reduces dependency on HR for routine tasks. Runtime HRMS offers employees self-service known as Workman that provides ease to employees as it supports web and mobile modes, which makes it easier to access it. Runtime workman lets employee manage their attendance, leave requests and clock in and out remotely or in-office to provide ease on fingertips. 

  • Compliance Management 

Ensuring compliance with labor laws, safety regulations, and company policies is a critical function. HRMS automates compliance tracking and reporting, minimizing legal risks and promoting a secure work environment. To know more about: Statutory Compliance 

  • Training and Development 

HRMS facilitates ongoing employee training and development by tracking skill levels, scheduling training sessions, and evaluating the effectiveness of training programs. This supports continuous improvement and career growth. 

  • Analytics and Reporting 

Most HRMS systems provide powerful analytics and reporting tools that offer insights into workforce trends, performance metrics, and other key HR indicators. This data-driven approach helps HR professionals to make informed decisions. It can be hectic to keep up with unlimited reports. Well worry no more, Runtime HRMS offers unlimited report feature so that no queries go unanswered. 

Implementing a comprehensive HRMS can significantly enhance HR efficiency, improve employee satisfaction, and support organizational growth by automating and integrating critical HR functions. 

5 Benefits of Human Resources Management System


Implementing a Human Resource Management System (HRMS) could be a momentous change for your organization. Let us explore the top five benefits: 

  • Increased Efficiency and Productivity 

Imagine a world where repetitive tasks like payroll processing, attendance tracking, and benefits administration are all automated. An HRMS makes this possible, freeing up valuable time for your HR team to focus on strategic projects. This automation reduces manual errors, speeds up processes, and significantly boosts overall productivity. 

  • Improved Employee Experience 

With HRMS, employees can easily access a self-service portal to manage their own information, request leave, and view pay slips. This not only empowers employees by giving them control over their HR-related tasks but also enhances their overall satisfaction and engagement. Tools like surveys and peer recognition features help maintain a positive and engaging work environment. 

  • Better Employee Development and Retention 

HRMS systems are designed to streamline recruitment, onboarding, and performance management. This ensures that new hires are smoothly integrated into the company and that their performance is continuously monitored and improved. By providing a structured approach to employee development, HRMS helps in retaining top talent, which is crucial for any organization’s success. 

  • Cost Savings 

Imagine spending hours manually processing payroll, tracking benefits data through scattered spreadsheets, and managing employee onboarding paperwork. This is the reality of manual HR, a process riddled with inefficiencies that cost your company money. HRMS flips the script entirely. By automating repetitive tasks, an HRMS can complete what used to take hours in a fraction of the time. Think payroll processed in minutes, not days, and benefits data readily available for insightful negotiations with insurance providers.


This newfound efficiency translates to direct cost savings, freeing up HR professionals to focus on strategic initiatives and employee engagement. In short, HRMS is an investment that pays off by streamlining processes and saving your organization valuable time and money. 

  • Enhanced Compliance and Data Security 

Staying compliant with various regulations can be challenging, but HRMS simplifies this by automating record-keeping and reporting. This ensures your organization adheres to legal standards and reduces the risk of non-compliance penalties. Furthermore, HRMS systems enhance data security with advanced features like role-based access controls, safeguarding sensitive employee information from unauthorized access. 

What is Human Resources Management (HRM)? 

Human Resource Management (HRM) is crucial as it strategically optimizes human capital to drive organizational performance and achieve business goals. By integrating practices like recruitment, training, and performance management, HRM ensures that employees' skills and motivations are aligned with company objectives, fostering a conducive environment for individual and collective success. 

This alignment enhances workplace culture and organizational dynamics, facilitating sustainable growth amidst competitive business landscapes. Thus, HRM is pivotal in maximizing workforce potential and sustaining long-term organizational prosperity. 

What is the role of HRMS for HR?


Human Resources management system (HRMS) is software meant to make HR tasks uncomplicated by facilitating automation to streamline workforce effectively and efficiently. Therefore, HRMS system has become one of the necessities for HR professionals, enabling them to manage employee data, payroll, benefits administration, and performance evaluations with ease. By centralizing these functions, HRMS reduces administrative burden, minimizes errors, and provides valuable insights through data analytics.


Reducing administrative burdens, HRMS enables HR professionals to concentrate on strategic initiatives, such as talent development and organizational growth. This focus enhances overall productivity and employee satisfaction, underscoring the importance of HRMS in effective human resource management. Runtime HRMS provides a full-fledged hrms system to cater to the needs of businesses in the most efficient and effective way. What are you waiting for? Schedule a demo today. 

About the Author
Prerna Rajput

Prerna Rajput

Prerna is a business student, is passionate about marketing. Her insatiable curiosity drives her to constantly learn and explore new things. With a penchant for writing captivating content, she adds vibrancy and depth in her work.