Data-Driven HR: Harnessing Analytics with HRM Software Features

Data-Driven HR: Harnessing Analytics with HRM Software Features

Do you need more than your currently used HR software?

In today’s fast-paced business world, human resource management is critical to the success of any organization. As organizations grow in size and complexity, manual HR procedures become inefficient and error-prone.

And how does a new HR staffer deal with documentation and administrative tasks?

This is where an HR Management System (HRMS) may help. HRMS is a complete software system designed to automate and simplify numerous HR operations, allowing HR managers to manage staff, policies, and processes efficiently. Automation is a win-win situation.

This blog will examine typical HR issues, HRM software features, and how HRMS software solves them. But before starting, let’s get our basics straight!

What is an HRMS System?

An HRMS (Human Resource Management System) is a sophisticated software system that centralizes and simplifies all human resource-related activities and duties inside a company. It is a digital platform that integrates diverse HR processes, data, and workflows, allowing HR professionals, managers, and workers to quickly and efficiently access, manage, and update critical HR information.

An HRMS’s primary goal is to simplify and automate time-consuming and frequently complicated HR operations previously managed manually, such as processing personnel data, recruiting, payroll, performance reviews, training, etc. The HRM software features improve HR operations’ efficiency, accuracy, and effectiveness by using technology and automation, freeing HR employees to focus on strategic planning, employee engagement, and other high-value duties.

Types of HRMS

Types of HRMS

HRMS systems are of several forms, each built to fit different organizations’ demands and requirements. The implementation, functionality, and scalability of these HRMS models differ. The following are the primary types with different HRM software features:

On-Premise HRMS

An on-premise HRMS is a typical software system installed and hosted on the servers or data centers of the organization. The IT department of the organization controls and maintains the system’s hardware, software, and security. On-premise HRMS systems provide total data management and the ability to customize to suit unique HR processes. HRM software features of On-Premise HRMS are suitable for small organizations working offline.


  • HRMS system features include complete command of data and infrastructure.
  • Customizable to meet specific HR requirements.
  • Data stays on the organization’s premises, which may be a statutory obligation in some businesses.


  • The expense of purchasing equipment and software results in a high initial setup cost.
  • Ongoing maintenance and updates need the use of specialized IT resources.
  • Accessibility is restricted, particularly for remote or off-site staff.

Cloud-based HRMS

Cloud-based HRMS, or Software-as-a-Service (SaaS) HRMS, is hosted and maintained by a third-party provider’s servers. Users can access the HRMS through the internet using web browsers or mobile apps. Cloud-based HRMS is popular among organizations of all sizes because of its scalability, flexibility, and affordability. Cloud HRM software features are usually offered at an affordable price for companies of all sizes.


  • There is no need to acquire hardware or software. Thus the initial cost is lower.
  • The company provides automatic software upgrades and maintenance.
  • Employees may now access HR information from any computer with an internet connection.
  • Solutions that are easily scalable to support corporate development.


  • Reliance on the provider’s infrastructure and data security safeguards.
  • Data is kept on external servers, which might cause privacy issues in some sectors.

Hybrid HRMS

The hybrid HRMS combines on-premises and cloud-based technologies. In this strategy, less critical or non-critical HR processes or data may be managed on the cloud, while more essential or sensitive HR data may be maintained on the organization’s servers (on-premise). This strategy strikes a compromise between accessibility and data management.


  • HRMS system features provide a customized solution for specific data privacy or legal needs.
  • Enables progressive cloud-based HRMS migration for businesses.


  • Requires significant integration between on-premises and cloud systems.

Open-Source HRMS

Users of open-source HRMS systems can access the source code, enabling them to adjust and personalize it to meet their unique requirements. Businesses with in-house IT experience frequently prefer this since it offers more flexibility and control.


  • Economical because there are no licensing costs.
  • Customizable and adaptable to special HR procedures.
  • Support from the community actively and regular updates.


  • It has to be configured, maintained, and customized with technical know-how.
  • It may need certain sophisticated functionality seen in professional HRMS packages.

Mobile HRMS

Smartphones and tablets are the key platforms for accessing and utilizing mobile HRMS solutions. They provide a user-friendly interface and let managers and staff handle HR-related duties while on the road.


  • An increase in accessibility for mobile workers.
  • Quick and easy access to HR duties and information.
  • User experience is improved through a mobile-friendly UI.


  • Small screen sizes may limit particular functionality.

The best HRMS to use will depend on the size of the organization, its budget, its IT skills, its need for data privacy, the HRM software features required, and the degree of customization required. You must select an all-purpose piece of software for your company, such as Moon HRM, that offers the most advanced features if you want the best outcomes.

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21 Features of HR Management System Software

HR management software (HRMS) provides many valuable features.

HRMS speeds recruiting by enabling proper tracking, assessment, application monitoring, performance management, leave management, and employee performance reviews.

This performance management software controls leave balances, ensures employees have enough vacation days and enables access to employee data through performance appraisals for objective evaluations.

These characteristics substantially impact the efficiency and effectiveness of HR operations, increasing productivity, accuracy, and decision-making.

Businesses may improve employee experience and contribute to the overall success and growth of the organization by automating and centralizing HR procedures.

Let’s find the top 21 features that help organizations.

1. Employee Database Management

An HRMS should have a centralized personnel database that maintains detailed information about each employee, including personal information, contact information, employment history, certificates, and performance records. This employee management software tool allows easy access to employee data, critical for HR decision-making and planning. Assume an HR Manager has to look at an employee’s performance history and work experience to see if they are qualified for a promotion or a new job within the organization.

2. Recruitment and Applicant Tracking

Starting with advertising job openings, accepting applications, and managing applicant profiles, the system should support the entire recruiting process.

Applicant tracking enables HR managers to evaluate prospects, arrange interviews, and make recruiting choices more effectively. HR may monitor the status of each candidate’s application, examine their credentials and talents, and compare them to job specifications.

3. Onboarding Processes

HRMS software facilitates recruit onboarding by providing crucial corporate information, policies, and training resources. This promotes a smooth transition into the organization and immediately boosts employee engagement. New workers are greeted with an email with links to online orientation materials, corporate regulations, and information about their first day.

4. Time and Attendance Tracking

Automated time and attendance tracking eliminates the need for human timesheets, allowing employees to record their work hours accurately. It also helps managers track attendance trends and ensure work schedules are followed. Employees may clock in and out via biometric devices, online timesheets, or mobile applications, giving the HR system real-time data.

5. Biometric Access Tracking

This HRMS software feature tracks employee attendance or access to secure locations using biometric technologies such as fingerprint or face recognition.

Biometric access control improves security, reduces time theft, and assures correct attendance records. Biometric tracking is a simple and dependable alternative for people who operate from home. The HR department can access the time of arrival and breaks of employees very easily through this system.

This attendance management system is one of the most common HRMS software features.

6. Leave Management

A human resource management system (HRMS) streamlines the leave application and approval process by allowing employees to seek leaves through the system and managers to accept or reject them. It keeps leave balances current and guarantees sufficient coverage during employee absences. When an employee submits a leave request using the HRMS, their manager receives an automatic communication, which allows them to accept or refuse the request depending on workforce availability.

7. Payroll Management

This feature automates payroll management, including salary, tax, and deduction calculations. It generates pay stubs and administers direct deposits to ensure employees are paid appropriately and on schedule. The HRMS computes each employee’s wage based on hours worked, leave taken, overtime, and deductions and provides electronic payslips for them to view.

8. Performance Appraisal

HRMS enables performance evaluations and tracks employee progress toward goals. It simplifies providing feedback, setting objectives, and documenting performance records. Managers and employees can collaborate on performance reviews using the HRMS, documenting achievements, areas for improvement, and development plans.

9. Training and Development

HRMS allows for performance reviews and keeps track of employees’ progress toward targets. It makes offering comments, defining goals, and recording performance records easier. Using the HRMS, managers, and employees may cooperate on performance appraisals, noting accomplishments, areas for growth, and development plans.

10. Employee Self-Service Portal

Employees may access and update their personal information, see pay stubs, request leaves, and execute other HR-related tasks autonomously using an employee self-service portal. Employees may use the self-service site to change their contact information, examine their forthcoming work schedule, and request time off.

11. Compliance Control

The HRMS ensures that organizations follow labor laws, industry rules, and internal policies. It automates compliance tracking and creates audit and reporting reports. The HRMS provides reports on labor law compliance, ensuring that employees get the necessary breaks and that overtime is computed correctly.

12. Document Management

The HRMS provides a safe place to keep and manage HR-related documents such as contracts, policies, certifications, and personnel data. HR may upload and organize documents such as employment agreements, performance reports, and disciplinary actions to be conveniently available whenever needed.

13. Human Resource Analytics and Reporting

HRMS software gives valuable insights into HR data through analytics and reporting features. Employee turnover, performance trends, and workforce demographics may all be generated through reports on metrics such as HR experts. HR managers utilize HRMS analytics to analyze employee turnover rates, identify reasons for attrition, and create employee lifecycle retention measures.

14. Employee Engagement

Employee engagement levels are frequently measured using HRMS elements like surveys and feedback tools. These employee management software tools aid in identifying areas for development and promoting a pleasant work environment. HR uses the HRMS to conduct regular employee engagement surveys to measure employee happiness and obtain work-related feedback.

15. Employee Polls

HRMS may provide anonymous surveys to workers to get input on many areas of the organization, such as work culture, management effectiveness, and benefit satisfaction. Employees are sent a survey link via the HRMS to provide workplace communication and teamwork feedback.

16. Exit Management

The HRMS aids in smoothly administering employee offboarding, including exit interviews, equipment returns, and updating pertinent data. When an employee resigns, the HRMS starts the departure process, ensuring all relevant activities are done before the employee’s last day.

17. Employee Benefits Administration

Human resource management systems (HRMS) help administer and track employee benefits, including health insurance, retirement plans, and other perks. The HRMS allows employees to enroll in benefits programs, and the system maintains track of their benefit selections and eligibility.

18. Automation of Workflows

HRMS automates repetitive HR procedures, which reduces manual involvement, eliminates paperwork, and improves overall productivity. Employees are automatically emailed reminders about upcoming performance reviews or training sessions via the HRMS.

19. Compatibility with Mobile Devices

When employees are not at workstations, they may use the HRMS mobile app to seek leaves, view pay stubs and check their training schedule.

20. Integration Capabilities

The HRMS communicates with the organization’s accounting software to precisely convey payroll data for financial record-keeping. One of the most popular HRMS software- Moon HRM, also has Basecamp integration that provides easy management of tasks and to-dos to maintain workflow.

21. Data Protection and Privacy

Privacy is an essential factor for your company, no matter what. Employing software that provides adequate protection is crucial.

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How Can HRMS Benefit Your Business?

Consider a busy organization where the human resources department is straining to maintain track of personnel information, manage payroll, and handle many leave requests.

And Human Resource Management System or the HRM software features can be a valuable addition to this organization.

It automates time and attendance monitoring, eliminating the need for human timesheets and giving precise data for payroll calculations. Employees may quickly request leaves using the system, which reduces administrative costs and ensures prompt approvals. As a result, the HR team with the best HRM software features can concentrate on strategic efforts such as increasing employee engagement through automated surveys and feedback channels.

Here are some benefits of features of HR software and HRMS software implementation:

  1. Enhanced Efficiency: Automating HR activities reduces manual labor, enhancing efficiency and productivity.
  2. Data Accuracy: Centralized data management reduces mistakes and ensures that information is consistent and correct.
  3. Savings on Infrastructure: Cloud-based HRMS software decreases infrastructure expenses and removes the need for physical storage.
  4. Compliance Adherence: Automated compliance tracking guarantees that labor laws and industry rules are followed.
  5. Employee Empowerment: Self-service features empower employees by giving them more control over their information and work processes.
  6. Improved Talent Management: Efficient recruiting and performance management systems attract and retain top talent.
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Adopting an HR Management System (HRMS) like Moon HRM can transform how your company handles its human resources.

The centralized method simplifies numerous HR operations, decreases human mistakes, increases efficiency, and improves decision-making. The benefits of HRMS are evident whether you use an on-premise or cloud-based solution.

Using an HRMS system provides several benefits that modern organizations cannot afford to neglect. Moon HRM Software, a cutting-edge solution, stands out as an outstanding option for revolutionizing HR processes and improving workforce management.

Moon HRM provides an all-encompassing platform to streamline HR processes and boost overall efficiency, with a host of essential features such as Employee Database Management, Project Hours Tracking, Time Logs, Daily Worksheet, Attendance Reports, Leave Requests, Employee Ticket Management, Team Access Control, Employee Screen Tracking, and the innovative addition of Biometric Access Tracking.

Accept the digital transformation of HRM software features for HR operations and see how it affects your company’s overall development and success.