HCM & HRMS are often large suites, sometimes consisting of more than a dozen modules. The features of these products vary depending on the kinds of modules that are available. Each module is like an individual product on its own, with a distinct feature set.
Each HCM & HRMS will include some combination of these modules:
Core HR: A basic part of any HRMS or HCM software is its central employee information database, also known as core HR. These modules store employee records, including personal information, benefits, job classification, employment history, and compensation information. Platforms commonly include self-service functionality so that employees can view and update their information as needed.
Benefits administration: From defining benefits packages to streamlining benefits enrollments, the benefits management modules in an HCM or HRMS help HR professionals simplify benefits processes for themselves as well as employees. These modules enable HR specialists to customize their company’s benefits offerings, including creating rules for different employee groups or specific users. Employees can then access a self-service portal where they can enroll in benefits at the appropriate time, view their existing elections, and make changes as necessary.
Payroll: Processing payroll with the aid of the payroll module in an HRMS helps HR professionals ensure their calculations are accurate and that payments are efficient. Payroll modules enable administrators to set up payroll processes, automate calculations, and send payments to employees.
Recruiting: Depending on the product, an HCM or HRMS might have basic recruiting functionality or a range of tools to help users source, attract, interview, and ultimately hire candidates for open positions. Most systems will at least have an applicant tracking system for organizing candidate information and managing workflows during the hiring process. Some systems add additional functions like recruitment marketing capabilities, career pages, automated sourcing, and communication features for getting in touch with candidates.
Onboarding: The onboarding module in an HRMS helps HR teams streamline the process of getting new hires ready to be productive in their roles. These modules track tasks that newly hired employees must complete, organize documents, and facilitate communication between the company and the new employee before their first day of work.
Performance management: A key part of the talent management tools in an HCM or HRMS, performance management modules manage processes around evaluating and developing employees. Basic functions include conducting performance reviews, giving employees feedback, and managing goals.
Learning management: Many HCM and HRMS products have a corporate learning management system (LMS) built in, which can streamline the delivery of online training materials and courses. The core functions in an LMS include making course material available online, offering a content creation tool or integrating with one, and tracking learner progress. An LMS also keeps records of which training employees have completed for compliance purposes. More robust LMS modules may also include advanced course authoring capabilities, an on-demand content library, the ability to manage in-person trainings, and mobile device compatibility.
Workforce management: From managing employee schedules to forecasting labor needs, HCM & HRMS products come with a range of functions for both day-to-day workforce management as well as strategic workforce planning. Time and attendance functions help companies automatically calculate hours for workers, manage employee absences, schedule employee vacations, and manage overtime. Businesses also use these tools to create employee schedules, enable employees to sign up for shifts, and manage schedule conflicts and changes. Analytics tools track various workforce metrics to give managers insight into workforce performance over time. Some platforms also have predictive capabilities so that companies can forecast future labor demands and plan accordingly.
Compensation management: Also within the talent management umbrella, modules for managing employee compensation are often included in an HRMS. Compensation tools help organizations set compensation budgets, view existing compensation levels, review merit increases, and generate reports that provide a view of compensation across the business. Because these modules are integrated with the rest of the HRMS, they facilitate the seamless transfer of updated compensation data to other parts of the system, including payroll and core HR.
HR compliance: A key responsibility of HR departments is maintaining compliance with applicable laws and regulations. Compliance management modules help businesses stay abreast of changing regulations in areas such as work eligibility, healthcare, and data reporting and ensure the business’s policies meet regulatory compliance. These modules manage documentation such as employee handbook acknowledgment forms or Family and Medical Leave Act paperwork. Having all compliance information housed in a single system that integrates with the rest of an organization’s HR data helps organizations stay compliant with their jurisdiction’s regulations.
HR analytics: A major benefit of an HRMS or HCM system is being able to collect and store large amounts of organizational data centralized in a connected system. But in addition to collecting the data, HRMS products help organizations convert it into actionable insights through generating analytical reports or dashboards. These reports can analyze a variety of metrics, such as employee turnover, compensation levels, labor trends, employee demographics, and HR technology usage. Leaders can use this data to make decisions that impact employee retention or business growth.
