An HR management system can mean the difference between an HR department that works like a well-oiled machine and one that’s clunky, slow and prone to errors. Pair an HRMS with HR modules and you have the power to eliminate and automate manual tasks. Yet not all HRMSs or HR system modules are created equal.

What is an HRMS?

A Human Resource Management System, or HRMS, is software that combines HR functions like talent management, payroll, time tracking, benefits administration and more into one platform. HR management systems utilize HR modules. HR modules are focused, automated tools that eliminate manual tasks, assist with compliance, and securely store data. HRMS modules can integrate with internal and external systems to improve processes further.

The term HRMS is sometimes used interchangeably with HRIS, or Human Resources Information System, yet there is a difference between the two. Think of an HRIS as the “core HR” functions needed to run your company properly. HRIS modules help track, measure and automate HR tasks. If HR solutions were a car, an HRIS would be the engine. In contrast, an HRMS would be an engine with a few more bells and whistles. An HRMS includes all the core functionality of an HRIS in addition to the added functionality of talent management.

Why Use an HRMS?

The basic function of an HRMS is to make your HR processes more efficient. A software system with integrated modules can automate many of the tasks that take up the bulk of your HR department’s time. HR system modules can:

Automate your workflows

Automated tools decrease the need to manually input data, eliminating the risk of errors while saving time and resources. HRMS modules can create custom workflows to support your HR processes. For example, you can configure enhanced workflows to create an Employee Record Management database, or a step-by-step process for your workforce during Open Enrollment that includes automated communications to keep workers on task. You can also easily check reports that show you when any of your employees are closing in on overtime, or make a quick correction if your payroll has become noncompliant with your state’s time and labor laws.

Securely store your data

An HRMS can ensure your employees’ sensitive data is secure. Breaches in security not only strain the trust of your employees, customers and partners, but you risk non-compliance by not adhering to data privacy laws. A cloud-based HRMS has built-in layers of protection, like access restriction and two-factor authentication, to protect all your data.

Employees manage their own data

An employee portal gives employees the ability to manage their personal data, relieving time constraints on your HR administrators. For example, employees can update their life change events (marriages, births, etc.), find their benefit statement and paystubs, and input time-off and sick leave requests. Putting this paperwork in your employees’ hands allows HR to focus on strategic, high-impact projects like benefits packages, performance reviews and onboarding. It helps maintain compliance because employees can see which benefits they qualify for. It also provides alerts when critical dates approach and automatically updates forms. For example, during tax season, you can set up each employee portal to automatically retrieve forms such as 1094-B, 1095-B, 1094-C and 1095-C depending on the healthcare they selected.

7 Core HR Modules

Recruitment

A recruitment module should provide a centralized and streamlined process for creating job requisitions, customization of job-specific questions, and an out-of-the-box recruiting portal. An ATS can publish job postings to leading national and niche boards and social media sites with just a couple of clicks. A modular ATS like Arcoro’s is designed to automate compliance by helping you follow federal hiring regulations.

Onboarding

This key module eases new employees into your organization and makes a good impression about your company. Many of the new employee onboarding steps can be completed through workflows, such as user accounts, badge access, training and more. Arcoro’s Onboarding module allows new hires to complete their onboarding paperwork before creating a user profile with kiosk software. For new hires without a home computer or smart device, Kiosk Mode offers another fast way to get started.

Performance Management

The Performance Management module supports organizations in recording their job descriptions, employee training and annual reviews in one convenient location. This module automates the performance review process, tracks personal goals and company KPIs and as well as manages completion of training and certification programs. Arcoro’s Performance Management module also offers robust reporting for compliance, real-time monitoring and 360-degree feedback.

Benefits Management

Benefits Management module gives administrators the ability to oversee benefits and apply deductions to employee records along with the capability to allow employee input on these elections. Arcoro’s Benefits Management module also offers additional compliance aids, like the Affordable Care Act Compliance module, that eliminate any confusion surrounding employee eligibility.

Time & Attendance

Attendance tracking, manager approval access and time clock management are the most common features of a time and attendance module. An HRMS will electronically route the data to your payroll provider. Arcoro’s Time & Attendance module incorporates job activity and expense tracking tools for budgeting and bidding data. It also includes health screening so your employees stay safe on the job and you stay compliant on FLSA and COVID-19 screening requirements.

Time Off Tracking

This is a key module to help automate how time off is allocated, booked, approved and monitored for any type of absence in your organization. Arcoro’s Core HR module allows you to easily approve or deny PTO requests, view Time Off accruals, set accrual rules and more.

Learning Management

A learning management module enables HR to provide and track training completions and certifications for compliance. Required training, like sexual harassment, can be assigned and accessed through the employee portal, 24/7. Arcoro’s Learning Management module gives companies the ability to upload customizable learning plans but also provides online content. Courses on diversity and inclusion, OSHA regulations, safety, leadership, ethics and more help maintain training compliance.

Arcoro’s cloud-based HRMS system utilizes HR modules in HR Management, Talent Management and Payroll Processing. With a built-in integration to over 300 partners, it can be scaled to meet your company’s changing requirements. The platform can be purchased and adopted as a full suite, or by individual module based on your needs. It can be integrated with ERP systems, insurance carriers, payroll processors, business intelligence applications and much more.

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