Human Resource Management System (hrms)

HRMS is a digital system that streamlines HR tasks by centralizing employee data and automating processes for improved efficiency.
AuthorSmitaAug 23, 2023
HRMS Interview

What is a Human Resource Management System (hrms)?

A human resource management system (HRMS) is a type of computer program that stores details about employees and helps with different tasks related to managing people in a company. It's used for things like keeping employee information, handling benefits, paying salaries, finding new employees, and providing training. People also sometimes call it a human resource information system (HRIS).

HR leaders and staff are the main users responsible for daily workforce operations and compliance reporting. But the benefits extend to managers and employees through self-service options, especially attractive to younger hires. Executives can utilize an HRMS to gain insights into workforce trends. As HR costs are significant, integrating HRMS with accounting is crucial for finance teams. Top providers offer advanced accounting to extract financial insights from HR data.

Video: What is Hrms?

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Why Hrms is Important

Human Resource Management System, is important because it streamlines and enhances various aspects of managing employees within an organization. It centralizes employee information, simplifies HR processes, and offers several benefits:

  1. Efficiency: HRMS automates tasks like payroll processing, benefits administration, and time tracking. This reduces manual work, decreases errors, and frees up HR personnel for more strategic activities.
  2. Data Management: It stores employee data securely in one place, making it easier to access and update. This ensures accuracy and helps with compliance.
  3. Employee Self-Service: HRMS allows employees to access and update their information, request leave, and view pay stubs. This empowers employees and reduces administrative workload.
  4. Compliance: HRMS helps in adhering to labor laws and regulations by tracking compliance requirements, certifications, and training.
  5. Reporting and Analytics: It generates reports on workforce trends, performance metrics, and other insights. This data aids in making informed decisions.
  6. Recruitment and Onboarding: HRMS streamlines recruitment processes, from posting job openings to onboarding new hires, improving efficiency and candidate experience.
  7. Performance Management: It facilitates performance reviews, goal setting, and feedback, leading to better employee development.
  8. Cost Efficiency: By automating processes and reducing manual work, HRMS cuts operational costs and maximizes productivity.
  9. Strategic Planning: With accurate data and insights, HRMS helps in strategic planning for workforce development, talent management, and succession planning.
  10. Integration: It can integrate with other systems like accounting, helping finance teams manage HR-related expenses more effectively.

Overall, HRMS improves organizational efficiency, employee satisfaction, compliance, and informed decision-making, making it a vital tool for modern HR management.

5 Best Hrms in India

1. Greythr

greytHR automates fundamental HR tasks, granting employees self-service portals and lightening the load for HR teams by ensuring smooth payroll processing, efficient leave and attendance management, enhanced employee engagement, and effective workforce oversight. It's an ideal solution for small and medium-sized businesses seeking a hassle-free HR approach.

Highlighted Features:

- Managing Employee Databases
- Streamlining Payroll
- Ensuring Statutory Compliance
- Monitoring Attendance and Leave
- Empowering Employee Self-Service
- Facilitating Onboarding
- Generating HR Reports
- Overseeing Claims and Expense Management


Although greytHR provides a free plan, its capabilities are limited. To gain a better understanding of the tool, opting for the entry-level package starting at ₹1495, with an additional ₹25 per employee, is recommended.

2. Zoho People

Zoho People serves as an all-inclusive solution for HR needs. It provides a consolidated platform for comprehensive HR management, encompassing tasks like overseeing databases, handling attendance and leave, and conducting performance evaluations. The following outlines what Zoho People brings to the table:

Highlighted Features:

- Efficient employee onboarding
- Effective management of employee databases
- Streamlined document handling
- Empowerment through self-service portals
- Attendance tracking and leave management
- Scheduling shifts for seamless operations
- Enhancing employee performance through management tools  


Zoho People offers a complimentary plan for up to 5 employees, while their paid plans commence at just ₹48 per month per employee.

3. Zimyo

Zimyo is your all-in-one solution for HR requirements. Its recruitment module effectively handles hiring needs, while also addressing payroll, expenses, and performance management. Zimyo stands out as a potent cloud HR software in India with the following key features:

Highlighted Features:

- Organizational Charts
- Employee Directory
- Central Document Repository
- Applicant Tracking System (ATS)
- Job Requisitions
- Integration with Job Boards
- Efficient Resume Parsing
- Offer Management
- Smooth Onboarding
- Precise Payroll and Expense Management
- Effective Performance Management
- Engaging Employee Activities


Zimyo's pricing begins at ₹60 per employee per month for up to 40 employees, with the option to scale up to ₹250 per month. The pricing varies based on the modules you choose to implement.

4. ZingHR

ZingHR presents a comprehensive HR solution that oversees every aspect of the HR journey from recruitment to retirement. Covering payroll processing, workforce management, talent acquisition, and performance management, ZingHR is suitable for businesses of various scales, making it a solid contender as one of India's top cloud-based HR software options.

Highlighted Features:

- Fundamental organization setup
- Efficient employee database management
- Streamlined payroll processing
- Effective leave and attendance management
- Geofencing capabilities
- Robust recruitment tools
- Seamless digital onboarding process
- Well-structured rewards and recognition program
- Employee survey and feedback mechanisms
- Strategic talent management tools


For a starting price of ₹7250, ZingHR offers its services to accommodate up to 50 employees.

5. Kredily

Kredily offers comprehensive support to companies in handling their HR and payroll tasks. Their robust payroll management assists in leave and attendance tracking, addressing Indian payroll needs, and enhancing employee satisfaction.

Highlighted Features:

- Streamlined Payroll Management
- Efficient Leave and Attendance Tracking
- Smooth Onboarding Process
- Convenient Employee Self-Service
- Interactive Chat and Collaboration Tools
- Effective Workforce Management
- Seamless Video Conferencing Integration
- Efficient Loans and Advance Management
- Accurate PF, Loan, and Arrear Calculations
- Secure Biometric Integration


Kredily's offerings begin with a forever free plan, while their professional package starts at ₹1499 for a workforce of up to 25 employees, with an additional cost of ₹40-₹50 per extra employee.

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