Human Resource Management Systems is an essential part of every organisation. Smarter and more efficient people operations are now possible with the help of technology. As the workforce’s strength increases, HR tasks will also increase, and having all HR software features essential will help. In this article, you will learn about the top HRMS software features that every organisation should have for a seamless workforce management process.
Table of Contents
Basic HRMS Software Features
These are the building blocks of any HRMS, covering everyday HR functions.
Centralised Database: Store all essential information in a digital vault, which once had piles of paperwork taking up a lot of physical space. From employee information to company policies and others, eliminate the need for multiple data silos and have everything together.
Employee Database: A specific storage space for saving all employee details like personal information, education, work history and emergency contact details.
Employee Self-Service (ESS): Employees should have a dedicated portal through which they can access payslips, apply for leaves, and perform certain tasks single-handedly without depending on the HR or admin team. For instance, they can check their leave entitlements for the month.
Employer Portal: There should also be a separate portal for managers. It will be easier for them to access workforce information in a single dashboard, from team schedules to leave approvals.
Time Tracking: Tracking work hours of employees to use the data for payroll calculation, project costing and productivity analysis.
Employee Scheduling: Organisations having rotational shifts should consider this feature as it helps them to address their scheduling issues. It is certainly a challenge to plan a shift without any conflicts.
Leave Management: Declaring leave policies, applying for leave, and approving and rejecting them will be done through the leave software module without disrupting the workflow.
Payroll Management: Payroll is complex, but with the right payroll software features, it will be way too easy. Salary structure, tax deductions, bonuses and disbursements with precision can all be cleared with the payroll.
Benefits Administration: Oversees health plans, PF contributions, insurance policies, and wellness benefits.
Compliance and Data Security: Maintains compliance with labour regulations and data privacy standards like GDPR, securing employee information through encryption and access control.
Clocking In & Out (Biometric and Other Methods): Records attendance using fingerprints, facial recognition, RFID, or manual punch-ins.
Document Management and Employee Records: Digitally stores employment letters, appraisals, policy acknowledgments, and ID proofs, streamlining audits and retrievals.
Asset Management: Important for tracking laptops, phones, SIM cards, etc., especially for remote or hybrid teams. Typically used during onboarding/offboarding.
Custom Workflow Builder: Key for configuring approval chains or automating tasks without technical support.
Check : HRMS Tools that Every Business Should Know
Essential HRMS Software Features
These HRMS software features refine operations and support regulatory and strategic HR functions.
Applicant Tracking: If the system has an applicant tracking module, it will be helpful for the HR departments to smoothen the recruitment pipeline, including job postings, interview scheduling and offer management.
Onboarding and Offboarding: From joining to exiting of an employee, the system should be capable of supporting their journey.
Also read: How to Choose the Right HR Onboarding Software?
Performance Management : With the performance appraisal software, an employer should be able to set KPIs, conduct 360-degree reviews, and track development plans to support employee growth.
Learning and Development: New joiners and even experienced employees will require training to progress in the organisation as well as their careers. The learning and development module will have features like assignment of training, track completion rates and certification from the organisation to help.
Succession Planning: Maps talent pipelines, identifies future leaders, and supports continuity planning with skill-based analysis.
Automated Recruitment Compliance: Monitors hiring practices for adherence to government regulations and internal benchmarks
EEOC Compliance Automation: Reports for compliance with Equal Employment Opportunity Commission standards
Healthcare Benefits Compliance Automation: Employee health benefit structures conform to local laws and industry mandates.
Payroll Integration: Syncs HR data with third-party payroll tools to automate salary calculations and statutory deductions.
Flexible Payroll Periods: Supports weekly, biweekly, monthly, or custom payroll schedules to suit organisational needs.
Bulk Payroll Processing: Helps organisations to execute mass payouts and salary revisions with minimal manual effort.
Online Payslip Access: Grants secure, self-service access to downloadable payslips via mobile or desktop.
Global Payroll Compliance: Adapts payroll settings to suit diverse regional tax codes, wage laws, and compliance frameworks.
Overtime Management: System must be capable of automatically factors in overtime, bonuses, or penalties in payroll calculations.
Surveys and Feedback Mechanisms: Facilitates anonymous employee engagement surveys to gather actionable insights.
Communication and Collaboration Tools: Check whether the system includes chat modules, announcement boards, and team calendars for communicating within the organisation.
Automated Reminders and Notifications: Email, PTT or SMS alerts for events such as appraisal due dates or pending documentation.
Certification and Course Administration: Tracks employee progress in mandatory or optional certification courses with alerts for renewals.
Training Directories: Having a searchable list of available courses, instructors, and schedules for easy access.
Company Policies: Digitally disseminates and monitors compliance with company goals, values, and HR policies.
Premium HR Software Features
These tools elevate HR operations, offering strategic foresight and automation at scale.
Workforce Analytics : Hiring trend, analyses hiring trends, retention rates, and performance data to inform HR strategies.
Customisable Dashboards: Lets users configure widgets and views to track relevant HR metrics by role or department.
Real-time Reporting: Provides live updates on HR KPIs like absenteeism, leave balances, and attrition, supporting agile decision-making.
Cost Estimates and Resource Forecasting: Predicts upcoming labour costs and manpower needs for strategic budgeting.
AI-Powered Analytics and Insights: Utilises AI to identify patterns, recommend actions, and alert HR of anomalies or risks.
Automated Data Gathering: Pulls HR-related data from other business software to reduce duplicate entry.
Access Controls and Permissions: Limits data access based on role hierarchies and approval protocols.
Financial Analysis: Links HR metrics to business outcomes such as cost per hire, training ROI, and absenteeism impact.
Gamification Capabilities: Boosts employee engagement using interactive dashboards, badges, or point systems for completing HR tasks.
Probation Management: Automates probation tracking, triggers evaluation reminders, and simplifies confirmation decisions.
Employee Wellness Programs: Offers features for tracking wellness goals, accessing counselling, and participating in fitness challenges.
Multi-territory Workforce Management: Supports global HR management with country-specific modules for compliance, taxation, and language.
Employee Performance Tracking: Helps set individual objectives, align them with team goals, and monitor achievement over time.
Advanced Workflow Automation: Creates rule-based workflows for onboarding, transfers, leave approvals, and more
AI-Driven Resume Screening: Filters applicants using machine learning algorithms to match job descriptions with candidate profiles.
Digital Signature Integration: Enables secure signing of HR documents, offer letters, and policy acknowledgments directly within the platform.
Voice and Chatbot Support: Allows employees to interact with HR systems using natural language for tasks like leave requests or policy queries.
Incredible Customer Support: Responsive and knowledgeable customer support can make or break your HR software experience. Look for 24/7 availability, multi-channel support (chat, email, phone), a detailed knowledge base, and quick issue resolution times.
Final Words
Whether it’s streamlining the basics or unlocking strategic insights, HRMS software features offer transformative value when chosen wisely. From core HR data handling to advanced analytics and automation, the right system doesn’t just support HR team, it empowers them. Choosing a feature-rich HRMS is an investment in a more efficient, engaged, and future-ready workforce.
