Large enterprises today need their HR function to support a wide span of activities, from traditional tasks like administering benefits to improving employee experience, and managing performance and talent strategies for a hybrid workforce. Choosing the right enabling systems is key to the success of HR in delivering on its business priorities.
Human resources management systems (HRMS) can manage the entirety of HR’s needs, though functionality is increasingly being built in the cloud in human capital management systems (HCMS), which are synonymous with HRMS in terms of functionality.
Getting Started With Your HRMS Search
HRMS or HCMS suites typically offer functionality to facilitate HR administration (organization, access to job and employee data), service management (policies and procedures retrieval) and workforce management (absence, time and attendance tracking and scheduling).
These solutions also elevate and advance HR function key performance indicators (KPIs) and outcomes as they relate to attracting, developing, engaging and retaining employees. This is especially important given the increasing expectations among employees and candidates for inclusive, equitable, optimized, always-on and consumer-like experiences in all enterprise interactions.
Prioritize these 11 requirements before evaluating HRMS or HCMS solutions
Ultimately, each enterprise tech buying team must decide what is essential for their own use case. To do that, rank your team’s requirements as high, medium or low depending on how essential they are to aligning HR’s priorities with enterprise outcomes and objectives.
Gartner research finds that these 11 functional requirements or capabilities are typically ranked “high” or “medium” priority for HR teams shopping for HRMS or HCMS solutions.
No. 1: Absence management
Does the solution deliver and manage a comprehensive view of absence, including sick days, paid time off and vacation? Your HCMS or HRMS solution should offer an intuitive submission and approvals system for managing employee absences.
Does the solution allow users to create an employee database and employee profiles, and maintain rosters of employees with important, relevant information about each worker, including contract information and salary?
No. 3: Performance management
Can HR fully manage the performance review process through the solution, tracking employee progress over time against defined and documented performance goals?
Does the solution provide easy-to-understand, friendly interfaces with intuitive designs that facilitate user engagement?
No. 5: Self-service processes
Can employees submit and manage administrative tasks such as requesting time off, updating personal information and amending payroll information?
No. 6: Compensation management
Does the solution analyze compensation trends and help the enterprise optimize spend based on internal and external market factors?
Does the solution allow employees to enroll in requested and approved company benefits packages? Does it track usage and costs of those packages?
No. 8: Employee onboarding
Can the suite walk new employees through paperwork and required training, helping them to successfully onboard and start work?
No. 9: Learning management
Does it allow creation of employee learning and development curricula, and track employee progress through relevant e-learning courses?
Will it calculate wages and salaries, run payroll, distribute funds, and generate payroll tax forms?
No. 11: Succession planning
Can it compare employee skills to the organization’s needs and build a roster of internal candidates to replace people as they leave?