Human Resources Management Systems: Trends you Need to Know

Human Resources Management Systems: Trends you Need to Know

What is Human Resources Management Systems (HRMS)?​​

A Human Resources Management System (HRMS) is software that combines various systems and processes to ensure the easy management of human resources, business processes, and HR data.

Related: What is a human resources information system and how to benefit from it


1. Cloud-based Human Resources Management Systems

Cloud technology has revolutionized HRMS by offering scalability, flexibility, and  accessibility. According to Bamboo HR, most HR management systems are cloud-based and customizable.  Cloud-based HRMS allows organizations to store and manage HR data securely in the cloud, eliminating the need for on-premises infrastructure and providing real-time access to information from anywhere, at any time.

According to HR Forecast, the HR software industry is expected to grow by 4.1% in 2023, with cloud-based HRMS significantly contributing to this growth.

2. Integrated Human Resources Management Systems platforms

Organizations are increasingly adopting integrated Human Resources Management Systems platforms that consolidate various HR functions into one system. This enables seamless data flow between HR processes such as recruitment, onboarding, performance management, benefits administration, and payroll. This approach is leading to improved data accuracy and efficiency.

3. Employee self-service

Self-service functionalities empower employees to access and manage their HR-related information independently. Through employee self-service portals, your employees can view and update personal details, submit leave requests, access pay stubs, enrol in benefits, and participate in performance evaluations. This empowers employees, reduces administrative tasks for your HR personnel, and enhances overall employee satisfaction.

According to Wikipedia, employee self-service is one of the top trends in Human Resources Management Systems.

Human Resources Management Systems Trends

4. Artificial Intelligence (AI) and Automation

AI-powered HRMS solutions are increasingly being used to automate repetitive and time-consuming HR tasks.AI is also being leveraged to analyze large datasets for insights related to workforce planning, talent acquisition, and employee engagement. Chatbots and virtual assistants can handle employee queries, provide on-demand information, and assist with basic HR processes.

5. Mobile accessibility

Mobile-friendly Human Resources Management Systems applications enabling employees to access HR services and information through smartphones or tablets are being used. This allows for greater flexibility and convenience, as employees can perform HR tasks on the go.

6. Data analytics and reporting

Human Resources Management Systems platforms incorporate robust analytics and reporting capabilities to extract meaningful insights from HR data. By leveraging data analytics, HR professionals can gain valuable insights into workforce trends, identify areas for improvement, make data-driven decisions, and align HR strategies with organizational goals. According to HR Forecast, data analytics is a top Human Resources Management Systems trend.

7. Enhanced cybersecurity

Human Resources Management Systems vendors are increasingly implementing advanced security features such as data encryption, multi-factor authentication, and regular security audits to protect confidential HR information from cyber threats.

8. Integration with other business systems

Integration between Human Resources Management Systems and other business systems, such as finance, project management, and customer relationship management (CRM) systems, is becoming more prevalent. This integration facilitates seamless data exchange, eliminates duplicate data entry, and enables comprehensive reporting and analysis across different facets of the organization.

9. Focus on employee experience

Human Resources Management Systems platforms are evolving to prioritize the employee experience with user-friendly interfaces, personalized dashboards, and intuitive navigation. Additionally, features like employee recognition programs, social collaboration tools, and learning management systems are being integrated into Human Resources Management Systems.

10. Compliance and regulatory adherence

Human Resources Management Systems are incorporating features to ensure compliance with evolving labor laws, data protection regulations, and industry-specific requirements. These systems aid in managing employee data privacy, tracking regulatory changes, generating compliance reports, and facilitating audits. Companies are turning to software solutions that mitigate compliance risks.

Benefits administrationHuman Resources Management Systems assists HR professionals in developing plans, configuring eligibility standards, and paying or  depositing benefits. Additionally, self-service open enrollment is available in some Human Resources Management Systems.

Centralized Employee Records: Human Resources Management Systems allow you to centralize employee records by storing, updating, and maintaining them in a single location.

Learning management: Learning management elements of the human resources management systems are intended to assist your employees in acquiring or developing skills through course administration, course and curriculum development, testing, and certifications. It also allows businesses to roll out and track mandatory compliance training.

Reporting and analytics: Human Resources Management Systems allow you to run operational reports to track HR data, complete compliance reporting, create key performance indicators (KPIs) to measure HR process performance and embed HR metrics into financial dashboards for company-wide analysis, planning, and decision-making.

Talent Acquisition: Human Resources Management Systems simplify the process of finding, acquiring, assessing, and hiring candidates to fill open vacancies.

Talent management: Human Resources Management Systems enable HR managers to develop and evaluate personnel through performance evaluations, goal management, and the administration of competency and skills tests.

Monitoring time and attendance: Human resources management systems allow you to handle time-off requests, monitor time-off balances, manage staff scheduling and absences and link timecards with payroll and projects.

User Interface: A user-friendly interface is essential because the entire workforce may use Human Resources Management Systems. Employee and manager self-service, mobile apps, localization, personalized dashboards, workflow automation, role-based access controls, and notifications are all available in today's systems to keep your employees engaged.

Workforce Planning: This feature of Human Resources Management systems allows you to plan and budget for workforce costs and compare them to actual expenditures for current and future situations. Good Human Resources Management systems will undoubtedly assist you in carrying out these strategies quickly and effectively.

Onboarding: Comprehensive Human Resources Management Systems software package can simplify onboarding.

Communication and Fundamental Employee Services: This feature allows your employees to be aware of the Leave Policy, Attendance Policy, Travel Policy, Dress Code, etc. The information is typically available through the company's Human Resources Management Systems software. Any modifications to these policies, significant events and other information affecting employees must be communicated.

Performance Evaluations and Promotions: This Human Resources Management Systems feature focuses on the processes of creating individual/team performance goals and designing performance assessment systems.

Related: Amazon Human Resources Management: What you Need to Know

How to find the right Human Resources Management Systems Software

Identify your HR needs: Start by identifying the specific HR needs you want the software to address, such as payroll, benefits administration, time tracking, or performance management1.

Consider your budget: Determine how much you're willing to spend on HR software. Compare different software options' pricing plans and features and look for hidden costs or discounts.

Look for user-friendly software: Choose easy-to-use, navigate, and customize. Look for features like intuitive design, drag-and-drop functionality, and mobile accessibility.

Evaluate integrations: Check if the software can integrate with other tools and platforms that you use, such as accounting software, email clients, or CRM systems. Integrations can help you streamline your workflows and avoid data duplication.

Check for scalability: Look for software that can grow with your business and adapt to your changing needs. Look for features like cloud-based storage, unlimited users, and flexible plans.

Read reviews: Read user reviews and testimonials from other customers who have used the software. Look for feedback on the software's performance, reliability, security, and customer service.

Consider customer support: Choose software that offers reliable and responsive customer support. Look for features like live chat, phone support, email support, FAQs, and tutorials1.

You can also check out some of the best HR management software in 2023, according to Forbes Advisor, at systems/.

Related: What is Human Resources Information Systems?

10 Trending Human Resources Management Systems Software for 2023

1. Bamboo HR

Bamboo HR is one of the Human Resources Management Systems for small and medium-sized businesses. It offers all the features you'd expect from HR management software, such as applicant tracking, time-off tracking, Timesheets, onboarding, a performance management system, HR processes, and more.

2. Workday HCM

Workday HCM gives you total visibility into your global workforce and a superior user experience, allowing you to keep your employees engaged and help them grow. Reporting and Analytics, Global Compliance, Audit, and Internal Controls, Workforce Planning, Recruiting, Talent Management, Learning, Compensation, Benefits, Payroll Management, Time and Absence, and Expenses are some of the capabilities of Workday HCM.

3. SAP Human Capital Management

SAP Human Resources Management Systems are software solutions for human capital management, from HR Administration to employee experience management. SAP HR is a powerful software solution capable of handling all aspects of HR, from recruiting to retirement.

4. UltiPro

Organizations can use UltiPro to provide convenient recruiting and onboarding, process payroll quickly and accurately, facilitate ongoing employee learning and development, leverage advanced surveys and sentiment analysis, and drive smarter, people-focused results through powerful business intelligence and reporting.

5. Bitrix24

Human Resources Management Systems in Bitrix24 includes over 25 free HR tools, including, to mention a few, a private social network, absence chart, shared calendars, document management, resume storage, employee portal, leave requests, employee workload planning, tasks, and project management.

6. Zoho HR

Zoho People assists businesses in automating key human resource procedures. Zoho HR handles everything from onboarding and attendance management to time tracking and assessments.

7. ADP Workforce Now

ADP Workforce Now is one human resources management systems solution that supports the full spectrum of HR needs, from recruitment  to retirement and everything in between. You can log in as an employee, administrator, or accountant on their website.

8. HR HR is a cloud-based employee management system that helps you track your talent pipeline and engage your employees. It offers various features such as a Recruitment pipeline, Onboarding process, HR templates, and HR boards.

9. PayCor

Paycor is a publicly traded HR company that provides human resources management systems software solutions. It has more than 2 million users
and serves various industries such as healthcare, manufacturing, nonprofit, professional services, and others.

10. Rippling

Rippling is a workforce management platform that combines HR, IT, and Finance functions in one system. It allows you to hire, pay and manage employees and contractors across the globe, manage policies for different aspects of your business, automate workflows for manual processes, and control access and approval for various business systems.

Related: Common HRIS Integration Challenges & How To Overcome Them


Human Resources Management Systems (HRMS) have become essential for modern businesses to manage their HR processes effectively. By adopting HRMS, businesses can improve their HR operations, save time and resources, and focus on strategic initiatives that drive growth. As technology evolves, we can expect Human Resources Management Systems to become even more powerful and sophisticated, enabling businesses to stay ahead of the competition and attract and retain top talent.

Logical Zivurawa
This article was written by Logical a Consultant at Industrial Psychology Consultants (Pvt) Ltd

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