A Complete Guide To HR Systems for Businesses: Top Advantages and Features

HRs don’t have it easy; especially when the headcount increases as the company grows. The process of managing an employee’s entire lifecycle, together with the planning and execution of several other crucial HR processes is time-consuming.

Organisations, startups, and successful businesses have truly understood the value of investing in HR systems and HR software. They now know that, if nothing else, an HR software can at least help them manage their workforce with ease.
But what is an HR system? It’s a software or a platform that helps companies process and manage their employees’ information, amongst other things, such as people management and other HR tasks.

While isolated HR software can help your organisation handle specific HR functions and tasks like payroll, onboarding, and verification, others like an HRMS can offer comprehensive solutions to oversee every aspect of employee lifecycle, from hire to retire.

Given below are HR systems that your organisation ought to take advantage of (if your HR team has never utilised one before). Also included, are the key advantages and advanced characteristics of each which will give you a clear understanding of what’s best for your business.

1. Human Resource Management System (HRMS)

Human Resource Management Systems or HRMS is an all-inclusive software that provides a wide range of HR functionalities, such as candidate sourcing, hiring, employee onboarding, background screening, payroll management, attendance, time and leave management, and employee upskilling.

What are the benefits of HRMS?

An HRMS can integrate several functions performed by the HR department. It’s automated, and can easily combine with other systems and software so that your team of HR professionals can carry out several HR duties, and process large volumes of candidate information without any difficulties.

Key features of HRMS

  • Hiring process automation
  • Employee onboarding
  • Employee background screening
  • Employee document management

Advanced features of HRMS

  • Candidate database management
  • Employee benefits administration
  • Employee self-service portal and app
  • Performance and talent management
  • Employee workflow and scheduling
  • Employee offboarding and exit
  • Employee engagement tools and satisfaction surveys
  • Built-in learning and development (employee upskilling) tools
  • Advanced reporting and analytics

2. Recruitment and Hiring HR System

An HR software for hiring and recruitment does exactly what you expect it to — talent acquisition. Some HR software companies even combine this HR tool with an automated Applicant Tracking System (ATS) to post job openings across several job boards, process resumes, conduct interviews, manage applications, relay notifications and more.

What are the benefits of recruitment HR system?

The primary benefit (objective) of utilising recruitment software is the streamlining of hiring efforts. Together with an ATS and automation, an HR recruitment software helps you to advertise job openings and quickly sort through resumes. Having an HR system for hiring can help you deliver top-notch employee experience and eliminate irrelevant applicants. In short, you reduce your time-to-hire and make your HR team’s job that much easier.

Key features of recruitment HR system

  • Cross-platform job posting and job description templates
  • Applicant Tracking System(ATS)
  • Ranking and sorting of qualified candidates
  • Interview scheduling and process management
  • Internal evaluation and review tools

Advanced features of recruitment HR software

  • Recruitment process automation and marketing
  • Social media recruiting
  • Automated notification systems and advanced analytics

3. Employee Background Verification (BGV) HR System

HR technology for employee background screening is arguably the most important amongst other entries on this list. As an organisation, you need to be absolutely sure of who you’re hiring before actually hiring them. An HR software for background verification will help expose irregularities and hidden information about a candidate’s work history, skills, personality, work ethic, amongst other things like credit history, criminal records, and drug use.

What are the benefits of BGV HR system?

Background checks help you to expel candidates who might engage in workplace violence and pose a threat to others. Not only that, employee checks can drastically reduce the risk of legal hassles, penalties, and reputational harm relating to state and central regulatory laws. Additionally, with background screening HR systems, you make better hiring decisions, reduce turnover, get quality talent, and boost productivity.

Key features of employee background verification HR software

  • Identity verification
  • Resume screening
  • Address verification
  • Employment and work experience checks
  • Candidate reference checks
  • Education checks and skills assessments

Advanced features of employee background verification HR software

  • Criminal records checks
  • Checks for credit history, drug tests, and driving
  • Professional license and certification checks
  • Cross-checking of global database
  • Passport verification
  • Social media screening
  • Court record checks

4. Employee Onboarding and Offboarding HR System

Such software helps HRs when new employees enter and exit the organisation. It ensures that every aspect of onboarding and offboarding is expertly handled (and is compliant), whilst ensuring top-notch employee experience.

The benefits of employee onboarding and offboarding HR software

The process of bringing employees on board or letting them go is usually riddled with errors and mismanagement. With an HR system, you can be sure of tying up all loose ends, especially when it comes to compliance tasks such as collection of documents, distribution of offer letters, and closing of official email IDs.

Key features of employee onboarding and offboarding HR system

  • Creation of onboarding checklist
  • Collection and storage of candidate documents
  • Templatilisation of offer letters
  • E-signature configurability

Advanced features of employee onboarding and offboarding HR software

  • Employee self-service app and portal
  • Automated creation of compliance paperwork
  • Advanced reporting and analytics
  • Mechanisms for bulk and individual onboarding
  • Auto-registration on government portals for benefits administration

5. Employee Attendance Management System

An online attendance management system is a HR software that manages employees’ attendance, leaves and work hours on a daily basis. With an automated attendance system, you can control and monitor login times, time offs, total hours worked and more.

The benefits of employee attendance software

Most of all, HR software for attendance management eliminates the need for manual tracking and recording of employee attendance, time, and leaves. In short, you’ll be eliminating errors and chances of employees abusing the attendance system which will lead to more accuracy when it comes to calculation of salaries and payroll.

Key features of employee attendance app and software

  • Foolproof system for clock-ins and clock-outs
  • Timely updates and notifications
  • Payroll integration with leave management
  • Employee self-service
  • Attendance regularisation

Advanced features of employee online attendance system

  • Advanced reporting and analytics
  • Calendar integrations
  • Geofencing, biometric and facial-recognition attendance management

6. Payroll and Accounting HR System

Payroll and accounting, when done manually, can not only be labour-intensive but also error-prone. An automated payroll software accurately calculates employee compensation, ensures legal compliance with regard to regulatory laws and guidelines, and disburses employee salaries on time.

The benefits of HR payroll system

Accuracy in payroll calculation and legal compliance are the foremost benefits of HR accounting and payroll systems. You make fewer errors, save time and effort, and bypass legal hassles and hefty penalties.

Key features of automated payroll system

  • Seamless integration with attendance management system
  • Accurate calculation of employee wages
  • Storage and processing of compliance and tax-related documents
  • Processing and disbursal of employee payments

Advanced features of payroll system

  • Reporting and analytics
  • Calendar integrations for deadlines
  • Automation of statutory, tax, and wage-related registers
  • Support for compliance and regulations

7. HR System for Staff Learning and Development

Learning and development of employees (employee upskilling) is managed via HR training software, which is also used to develop and oversee employee training initiatives. HR technology of this type can be used to administer third-party courses, produce and distribute exclusive learning content, assist with new employee orientation, and monitor employee learning and development trajectories.

The benefits of learning and development HR Software

By using HR L&D software, you can make sure that a new hire is adequately equipped with knowledge and skills. Additionally, employee upskilling makes sure that workers are abiding by company regulations and policies. For instance, if your business mandates cybersecurity awareness training, HR software for employee training and development allows you to deliver courses and reading material on the topic, and keep a log of staff members who finish the training program.

Key features of HR software for employee training and development

  • Online and offline learning and development via L&D app and upskilling portal
  • Automated and timely notifications for learners
  • Learning progress and course completion analytics
  • Assessments for learning efficacy

Advanced features of employee upskilling HR software

  • Guided and gamified learning paths for personalised upskilling
  • Integrations with third-party L&D and skilling platforms
  • Co-authoring tools for course materials

Investing in HR Software: It’s Not a Matter of If, It’s a Matter of When

Your business’ growth and success should hinge on a solid human resources team. This team of HR professionals manages a company’s most important resource: its people, and works diligently to preserve adn nourish the bond between employees and the employer, eventually boosting corporate reputation.

However, HRs don’t have it easy; especially when the headcount increases as the company grows. The process of managing an employee’s entire lifecycle together with the planning and execution of several other crucial HR processes is undoubtedly time-consuming.

State-of-the-art HR software can help. With each passing day, HR systems are being adopted by businesses of all sizes and stature to automate and streamline erring HR activities. The benefits and features of HR systems are out in the open for everyone to gauge — they lower the potential for error and improve the administration of complex HR tasks and processes..

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