Why Your Business Needs a Human Resource Management Information System

Why your business needs an HRMIS system
– February 7, 2023

A Human Resource Management System is a software or application that stores employee information and supports various human resource functions.

Human Resource Management Information Systems, HRMIS, are used by various companies and organisations to store employee information. It is essential for companies to know how employees are performing and keep track of differences.

The main benefit of an HRMIS is reducing employee risk management. Risk management in simple terms would be to control the threats to an organisation’s employee workflow.

Given a scenario where employees’ payments and performance are not tracked, management of the employees becomes hard. Also, it reduces their productivity levels which in turn amounts to losses in a business. Every business should be able to track how their employees are performing.

It is best to know the benefits of an HRMIS by knowing the different modules and how they can benefit companies. Modules are unit components that make up a system designed for a specific function. They each have different benefits that include;

Application Tracking: Companies would want automated tracking of the applications they get. A company would wish to track the recruitment process from the time they call for applications until the selected candidate is hired.

This helps companies know how and why they can hire a particular candidate.

Applications can also be stored if a new position in a particular field arises again.

Tracking the application process eases decision-making when it comes to recruitment.

Performance management; Every company needs to track how employees are performing. A company can track the progress of employees based on their monthly, quarterly or annual KPIs. monitoring the employee’s KPIs has a more significant impact on the company. A company can also help employees track their personal goals by acting as accountability partners for the employees.

Tracking employee performance ascertains how fast company goals are being achieved.

It can also help companies know their best performers and how to award them.

This module helps companies make decisions in case some KPIs are not being made and how to achieve better performance of the employees.

Payroll management; When talking about an HRMIS, it is common to mistake it for this particular module. An HRMIS consists of much more than just payroll.

That being said, having an automatic payroll module benefits the company regarding record keeping.

Since data is stored and up to date, managers and decision-makers can track employee payment records in terms of salaries and allowances. Decisions can also be made in salary pay and advancements.

Employees can also track their salary status.

Leave management; This tracks the process in which employees apply and are assigned for leave. Many countries require that employees have a dedicated leave each year. As a human resource manager or employer, it is essential to note when your employees are on leave for any particular reason.

Employees can also use this module to apply for leave when need be.

Exit management; In case an employee is leaving the company for any reason; whether they quit, have been fired or are retiring, this information must be tracked.

Employees through this can apply for an exit and this information can be recorded.

Employers and management keep records of who left the company and why.

Management can also keep track of exits in each department. When many employees are exiting a particular department, management can find out why.


It is important to note that these modules and their benefits are not the only modules required in an HRMIS. The beauty of software is that it can be customised to anything that the company would like. There are many more modules in an HRMIS that can be of benefit to a company. The aim of all software designed in a business is to automate business processes to increase productivity.

If you would like to find out more about the modules and how beneficial they are to your company, Click here.

For the click here hyperlink, use a link to the ERP specific page on the pahappa website

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