The Complete Guide to HRM Software in 2025

Ever wondered how a company or an organisation runs. How do the top management and the bottom management of the organisation work in sync? Who is the mediator between the employees and the employer? How does the communication of even basic details of the employees reach the TOP Management HRMS Software in India?

The answer to these questions is “the basic tasks and the communication is done through a software which is used in the organization right from headquarters of the office to the branches of the same company by connecting through a software which is commonly called as HRM Software.”

To understand how this HRM software works and how the company integrates its functions with the new HRM software, let’s dive deep into the waters of HRM and its software which is helping the companies grow, develop and build their companies without any mis-communication and mis-understandings to achieve their goals and targets.

What is HRMS?

HRMS is a software which is the technological introduction of HR services provided by any company. It is a set of software applications that is playing a major role in helping the HR department in carrying out their tasks and targets efficiently. The HRMS software is like the shadow of the HR department which is silently working in the background and not letting the HR professionals to underperform their duties. It is an additional helping hand to the HRM department which helps in every little single task. 

For e.g. It will start helping in the process of hiring to get the employee onboard to store all the details of the employee and also store the information of their performances based on the inputs given by the manager.  With the help of HRMS, the HR executives can shift their attention from the basic manual tasks to the other important tasks like the team member development and strategic decision-making. 

History of Human Resource Management Systems (HRMS)

It was in the early 1970s that the HRMS took birth and welcomed itself into the world of HRM functions. It was the period when evolution of the HR functions were going on in full swing and this software came into existence during that period through the help of mainframe computers. The mainframe computers were used back then to automate salary pays. 

Since the 1970s after the automation of the payroll, the HRMS software has seen many changes since then. Over the years it has seen inclusion of many HR functions which this particular carries out over the years and now the HR department can work effortlessly after knowing that they have this AI based software which is helping them by completing all the basic paperwork digitally. 

Earlier the HRMS software focused only on the automation of payroll and time tracking but now with the advanced HRMS software, there are other functions that have been in-corporated in the software and those features are benefits administrations, compliance reporting, recruitment tools, etc. 

The introduction of cloud computing in the 1900s and the betterment of cloud computing by the 2010s has helped in the further transformation of the services. This has helped the companies now to enable online recruitment, making data driven decisions and also it gives access to the functions of the HR department from any part of the world and this is applicable for all the companies whether small or big.

Purpose of HRMS System and its Importance

The main purpose of the HRMS system and software is to streamline workflows, ease the workflow of the people management tasks for HR teams, provide help in the employment cycle and ease their workload. HR software in India is used in accordance to improve the employee relations and experience at every stage of the employment straight from recruitment to retirement. Therefore the purpose of the HRMS system is that of providing intuitive tools and seamless processes, it helps in improving efficiency and also ensures that there is a positive work culture and environment for all the employees.

Now let’s read about the importance of the HRMS system:

There are many reasons behind why the HRMS system proves to be helpful and important for any size of the company. This software helps the company in building their workforce, takes administrative burden off the shoulder of the HR department and also helps them in managing employee strategies and document key HR data in a single location and also help in enhancing communications with the employees. Here are five reasons why an organisation should in-corporate HRM software in India , their respective companies:

• Empower Your Workforce: With the help of the HRM software, the employees can get an upper hand in managing their own work details, attendance records, time spent in doing other tasks, apply for leave, raise doubts or queries if any and many other things. The employees can enjoy these facilities on the go with the help of the mobile application. This helps in giving the employees freedom of completing their tasks on time and completing the tasks according to their timelines. This also has an added benefit of showing trust on the employees by the company and keeping perfect transparency between the employees.
• Simplifies Administrative Work: When the HR departments does work manually which is related to the administrative related work, it increases the work pressure on the HR department. This then leads to the HR department being less focused on other important decisions like that of strategic planning to provide proper training and development of the employees, to enhance the workforce management. Thus to simplify and ease the work of the HR department, the organisations have decided on to integrate their softwares with the HRMS software which will help in automating many decisions and tasks.
• Improves People Management: The HRMS software once introduced in the company can ease many department’s work laid. The employees and the top management in the company can work in harmony and have a convenient and tailored working experience. The main feature of HRMS is that of people management analytics. It helps the company and the employers to have an insight on their employees through the details that have been uploaded on the software app. The employers also get an opportunity to know which department is facing the highest retention rates and what is the reason behind the employees leaving the company. The gaps that are faced by the company in providing the best results and experiences to their employees can also be overcome.
• Centralize your essential data: The HRM department in any company is responsible for saving and knowing all the important information about the employees and the employer safely and securely. However safety and security again means a crazy amount of paperwork and folder work; but now there is no need to worry as this huge data can be saved now efficiently and effectively with full security in the HRMS software. The software has an amazing security patch which helps the HR department in saving all the information safely and securely in their databases.
• Enhances Communication: Communication plays the biggest role in the relation of the employee and the employer. Clear and effective communication helps in maintaining a transparent and positive relation while a communication full of misunderstanding and non-transparency gives rise to unsatisfied and strained relations between both the parties.  The HRMS software in India helps the employees of the company to maintain internal communication with their heads and start a discussion any time of the day. There are options of live feed and discussion which can be initiated by the employee when they want to discuss any strategy or decisions.

Key HRMS Software Features?

A perfect and go to HRMS software should have the following features which will help the company in integrating their systems with this software. So before choosing any HRMS software, you should look out for the following features:

• Centralized Database: Through the HRMS software, the company is able to store all the information related to the employees that is their attendance, work records, salary details, incentive building, etc. in one place. Earlier the HR department was to maintain folder after folders for storing basic details about the employee physically which is a nightmare because imagine being surrounded by paper all round. Sounds terrifying right? This is where these HRMS software come into picture and help the HR departments in maintaining all the necessary details in one place.
• Employee Self-service: Imagine the HR department being always crowded by employees throughout the day for various reasons and queries. Sounds terrifying right? Now if we say that there is a HRMS software that helps in building a system where the employees can login through their credentials and have an app that is based on the system of self-service. If the employees are introduced to such a system, the HR Department will have a relief from continuous questioning and queries and will be able to focus on important things in life.
• Talent Management: Earlier it was difficult for the HR department to handle and maintain the talented employees in the company or to even hire a talented workforce for better results. However, after the introduction of the HRMS software, this task has become a little easy as it helps the HR department in storing all the data of the employees and candidates together in a single place and now the HR department can compare the details of the candidates together and see which employee is a better choice for the company. Hence helping the company and the HR department in recruiting Talented employees.
• Recruiting: Recruiting is the special feature that is important and needed for the hr department as that is the common basic function of the department. Now when this feature is clubbed and made useful for the HR department, it helps the internal HR department along with the external third party agencies who help in getting prospective candidate’s profiles for scheduling an interview with the company.
• Onboarding and offboarding: These functions are not the most fun part of the employee lifecycle. Both of these functions are important when an employee is joining or leaving or is being terminated or laid off from his services. Earlier to the introduction of HRMS software, the companies especially their HR department had to undergo numerous paperwork at both the times of employee cycle. However, from the time of introduction of HRMS software, these tasks have become easier for the HR department as they do not need to have a run with paperwork all around the place. The HRMS software generates the paperwork for hiring and offboarding of the employees along with offering the option of having e-signature too.
• Payroll and compensation management: Before the introduction of the HRMS software, the HR department used to manually handle all the salary related work and functions which would in some cases lead to errors and mis-calculations. However, after the compliance with HRMS software, the functions of payroll have become automated and easy. The HRMS software now makes work easier for the HR as they do not need to look into the administrative work of the company. This helps them in looking into more important matters and the software also helps them in automating all of these tasks easily and error free.
• Benefits administration: employee’s salary and other benefits go hand in hand when an employee joins the company. It is the sole responsibility of the HR department to look after the regular paychecks and also look after the incentives and benefits that an employee has agreed for. Since the introduction of HRMS, these job roles are taken over by the software and it ensures that there are regular payments of salary and incentives to the employees.
• Time tracking: In many companies, they still follow the rule of time tracking and pay their employees based on these standards. So if you are one of those companies that still believes in paying employees based on hours worked and spent completing a project, then you should definitely look for this feature before integrating your systems with the software chosen by you for handling basic HRMS functions. 
• Employee Scheduling: Along with time scheduling, the companies also should have employee scheduling applications or software as well as it will help them in knowing the availability of the employees. This HRMS software is highly applicable for those departments or companies who have direct contact with the customers on a daily basis and their main motto is to serve the customers. So it is very important for them to have a software which along with other functions provides them with this particular feature which will help them in scheduling their employees leaves, availability and shifts properly.
• Performance Management: Performance management is very crucial for the employers to know how their employees are performing and what are the areas of improvement. Earlier to the software introduction, the employers would have to do this activity manually meaning they had to conduct one to one meetings with their employees and then evaluate their current performance with their previous months or years performance. However, after the introduction of the HRMS software, the HR department and the employer can now look into the details of the employee in a single click.
• Learning and Development: With the help of the HRMS software, the HR department can identify the needs and spaces where the employees can improve their performances and  achieve their targets more efficiently. Earlier to detect the problem of training and development for the employees was difficult but now it is easy with the help of the HRMS software. Hence the companies can integrate their softwares with this feature and help the employees to perform better and efficiently.
• Employee Engagement: Employee engagement is very important for a company because if the employees do not interact with the employers or with their colleagues, it can lead to having isolated work places where the employees do not have any professional or inter-personal friendly relations. Apart from these interactions, the employees also need to know the areas where they lack skills and talents, this will lead to the company having a set way of providing training and development to the employees. This whole process gets easier when there is an AI assistant who is delivering you with all the details of the employees and their areas of lacking skills and talents.
• Workforce analytics: In a world where the whole business works on data related decisions, it is important for the companies to have a software which helps them in analyzing and knowing the details of the employees. It can be related to their attendance, work records, daily updates on tasks they are performing, etc. This helps the company in tracking and knowing KPIs and recording them in charts. So if you are thinking of moving ahead with merging your HR activities with HRMS software, then you should look for the features that help your HR department in tracking and storing information all in one place.
• Compliance: Compliance is a term that is used to check whether the company is following all the legal rules and regulations laid down by the company or not. Therefore HRMS software is essential for the HR department to keep a check on the compliance policy of the company and also to know if there is any ignorance or issue with the company following certain rules and regulations laid down by the Indian government. 

What Are the Common Functions of HRMS Systems?

HRMS Systems are a range of functions that are commonly carried out by the HR department of many companies. There are many functions and tasks that are automated by the HR department and provide valuable insights on the workforce of the company. These functions are explained as follows:

• Recruitment and Hiring: The main function of the HR department is recruiting and hiring. They carry out the function of posting job requirements, candidate tracking and applicant tracking systems. These functions are used by the HR department to have a deserving and talented workforce.
• Payroll Management: The main function of the HR department also includes this activity in which they manage payroll of all the employees in the company. They handle the salary calculations and also the activity of the direct deposit. They are the ones who automate the credit of the salary to the employees account by keeping in account all the details and information about the employees from leaves to half days to extra time, the HR department looks after everything.
• Time and Attendance Tracking: The HR department also looks into tracking the time when the employees come in and out of the office. They also track the leaves taken by an employee. This means that the HR department keeps a tab on the employees entry and exit times as there are some specific timings that have to be followed by the employees. Hence, the HR department is important for maintaining the decorum of the company.
• Benefits Administration: The HR department has many roles and responsibilities that it needs to be fulfilled and looked for after the company management. They look after the employees’ betterment like benefits enrollment and benefits communications.  This function helps the company in retaining their employees and attracting new talents.
• Performance Management: With the introduction of the HRMS system in the companies, the HR departments have it easy to track the performance of the employees and give them reviews and feedback based on their performance and also tell them about the areas that need improvement and provide them with training and development programs.
• Onboarding and Offboarding: The HR department in the company helps with the hiring process in the company by providing the interviewer panel with information about new candidates who are eligible for the hiring process and then later on help with the onboarding tasks.
• Learning and Development: HRMS software helps the HR department in knowing and gaining the information on how many employees lack certain skills and talents and what would be the effective way to provide them with courses that will help them in training and development. After the HR department figures out the gaps in skills and talent, they provide training modules and learning analytics for the employees.
• Reporting and Analytics: The HR department with the help of HRMS software can have data visualization which will help them in gaining insights about the trends and patterns that have been followed by the other companies. There are custom reports also generated by the HR department which can be changed and modified according to the needs of the company.
• The other functions of HRMS software: Apart from the above mentioned activities and roles, the HRMS software also helps the employees in having self service meaning they can keep a tab on their own work personally without the interference of the seniors and managers. It helps in planning in advance for a change in workforce by analyzing the trends and changes in future. The other feature that helps the HR department is that of seeing whether there is compliance with the legal rules and regulations set in India by the company.

How Can an HRMS Software Benefit an Organization?

There are various activities and features in a HRMS software that is proved to be advantageous to the organizations that have integrated their systems with this software. There are many manual activities that now have been automated by the HRMS software and they have seemed to have reduced the work of the HR department. Let’s take a look into the features that have been beneficial for the organisations using HRMS software:

• The HRMS software helps in the automation of processes and helps in enhancing the efficiency of the HR department as they can focus on more strategic decisions as the other tasks like payroll, incentive calculation, etc have been automated now.
• With the HRMS software, the companies can have a benefit of storing all the information that is related to employees in a single place thus improving data management of the company.
• HRMS software, once integrated with the technology of the office, provides employees with self-service facilities, which means that the employees can have access to their own work tasks, update their schedules and also update their attendance and time in and out through a single app. This helps in increasing employee experience.
• As most of the processes have been improved and automated, it has helped the company in cost reduction as there is less paperwork which indirectly contributes to having less printed materials.
• As HRMS software has been introduced in the company, it does not mean that the employee’s data is at risk. With the introduction of the HRMS system in the office, the employees have been given guarantee about the robust security features.
• With the integration of HRMS software, it now helps the HR department in knowing whether the company is following the legal rules and regulations in the companies act and employment act.
• Through HRMS software, there is easy tracking of the setting goals, progress tracking and also providing feedback to the employees if needed.
• As the software is AI based in today’s business world, the HRMS software very easily detects the needs that are needed in future and what would be the trends that will be followed. Hence it gives an opportunity for the company management to streamline their recruitment and onboarding process well in advance.
• HRMS helps the company in keeping their employees busy by providing them with easier tools for communication, feedback and recognition which helps them in enhancing employee morale and engagement.
• With the help of HRMS software, the companies can have an improved way of reporting and analytics as there will be data-driven insights into HR operations.

Who Uses HRMS Software?

HRMS Software is used by many companies and HR professionals in today’s world. They have been using this software to manage company employee data, payroll, benefits, recruitment process, onboarding and onboarding, etc. Since the recruiters have been using this software, they have been seeing immense benefits of this software as everything is centralized for the employers and the employees too. Let’s read further about who are using these softwares properly:

1. HR Professionals: The HRMS software is used by the HR departments of many companies and they mainly use it for handling employee data, payroll benefits, talent retention, etc.
2. Recruiters: the HR professionals or the third party apps like LinkedIN, Naukri.com, etc use the HRMS software to post about job openings, nurturing and sourcing candidates and also be a mediator between the company and employees to schedule interviews.
3. Managers: The Managers use this software to track their employee’s progress, team structure, track employee’s time and absence and also approve their leaves. This software has helped the managers immensely as everything in detail is in front of them.
4. Employees: Once given access to the employees with their usernames and password, it has become easy for the employees to track their own progress, attendance and even track their own commitments and goals. This helps the employee to keep a check on their career advancements.
5. Candidates: HRMS software is like an application that can be used by the job seekers too. They use this software to search for jobs which are suitable for their profile.

What are the Future Emerging Trends in HRMS?

In recent times, there has been an immense enhancement in all the fields of business. Technology has taken the front seat in every business activity. One of them is the HR department. HRMS is also a software that has been made in order to help the HR department in their tasks and goals. There has been an interesting change in the functions of HRMS. Let’s read further about the emerging trends in HRMS:

1. AI and Automation: AI is being widely used in every section of HRM like screening of candidates, onboarding of candidates, etc. It also helps in the improvement of the employee experience by suggesting training and development programs for the employees. It is a big help for the HR department by automating basic tasks and letting them focus on strategic operations and decisions.
2. Remote and Hybrid Work: After Covid tims, offices have opted for hybrid mode of working. This has now increased the need of a software that provides a central space for both the employees and the employers so that there is perfect balance in communication and work progress.
3. Employee Well-being and DEI: The HRMS software is now being used to track and manage employee well-being and also decide on the programs that are useful in the mental health support and flexible work schedules. It also helps the employers in knowing DEI amongst the employees.
4. Data-Driven Decision Making: HRMS Software provides the HR department with data and the analysis of the recent and future trends in the field of HR and help the HR department in taking strategic decisions and making changes in the HR policies and practices. The analysis also consists of employee demographics, performance data and engagement metrics.
5. Upskilling and Reskilling: HRMS software is also used widely for managing learning and development programs that will help the employees in enhancing their skills and talents. This also helps in enhancing employee satisfaction because through these programs, they feel that the company takes well care of them and supports their career development.

How to find the right HRMS for you

Since now you have got an idea and information on what HRMS software is and How it can be used in different organisations and industries; the bigger question that now pops up is How will you identify which HRMS software is the best software for you? Let me take you through a ride where you will get to know the facts which you should take into consideration for choosing the right HRMS in India for your organisation.

Before choosing the right HRMS for your organisation, go through these points and then finalise.

• Define your needs: First most comes the task of identifying the HR challenges, then set the expectations from the HR department as well as the company goals,thirdly take into account your workforce and then evaluate your existing processes.
• Research HRMS Options: There are many companies in the market who are providing HRMS services and software. So based on your needs and services, shortlist a few vendors who you think match your preference. After shortlisting the vendors always check their reviews and ratings on their official website or on Google for a better judgement. After that look for your organisational needs which means whether it needs a cloud-based or on-premise HRMS solutions.
• Evaluate and Select: After all the above factors are checked, you can ask them for product demo, budget calculations, integration with your current systems, then check the scalability of the HRMS software meaning check for future growth, then check for security and safety of information and then take your final decisions which will include all the above factors and reasonings and then ask for a free trial before paying and finalising.
• Implementation and Support: After buying and finalising the HRMS Software, look for how well the HRMS software is integrating with the current software and how well is it accepted by the employees and then ensure that the vendor who is providing you with these services readily provides support and assistance.

Doinsights – HR Made Easy

DoInsights is a HRM and CRM Software that is built with the modern day AI and will help you in taking charge of your company. This software will help you in checking all the details of your organisation, keeping a track of the projects that are at present being worked on and also you will get real time updates on employees availability and non-availability. One thing with DoInsights is guaranteed that once you have this software integrated with your systems, you do not need to worry about anything as all the details about the employees and project will be one click away.

To connect with DoInsights and to know more about this HRM and CRM software, contact us.t a replacement tool, it is a true partner in your transformation of HR function. Deep automation, powerful analytics, and most user-friendly interfaces enable your teams to focus on what really matters-people.