Blog A comprehensive guide to choosing the right HR management tool

A comprehensive guide to choosing the right HR management tool


HR management practices are always changing to conform with the constantly evolving technology and workplace culture. The workplace of today is global and remote, with the workforce demanding streamlined and smooth working processes. HR management systems automate and streamline time-consuming processes and routine tasks. Efficient HR management tools empower HR teams as well as employees. Employees are most precious assets of every company, but also represent the most significant cost. The right HR management solution can help organizations to balance this act.


What is a HRMS?

HRMS stands for human resource management system. It’s a type of software designed to manage and automate a company's human resources operations. The main purpose of an HRMS is to streamline HR processes, making them more efficient and less time-consuming.


Key functions of an HRMS can include:

  • Employee database: Maintaining a comprehensive, up-to-date record of all employees' information.
  • Recruitment and onboarding: Facilitating the recruitment process, from posting job advertisements to onboarding new hires.
  • Time and attendance: Tracking employee work hours, leave, overtime, and absences.
  • Payroll management: Integrating with the payroll system to manage employee compensation, benefits, taxes, and other deductions.
  • Performance management: Enabling performance reviews, tracking employee goals, and managing feedback.
  • Learning and development: Providing tools for employee training, skill development, and career progression.
  • Reporting and analytics: Providing insights into various HR metrics to inform decision-making.
  • Compliance: Assisting in maintaining compliance with labor laws and other regulatory requirements.


In summary, an HRMS serves as a centralized platform where all HR-related tasks can be executed. By automating many routine tasks, an HRMS frees up HR professionals to focus on strategic activities such as talent management, succession planning, and organizational development. Read more about the benefits of HRMS here.


Understanding business needs

Understanding the business needs related to a human resource management system (HRMS) involves recognizing the challenges and inefficiencies inherent in manual HR processes, and the benefits an HRMS can offer. Here are key reasons why businesses may need an HRMS:


  • Efficiency: An HRMS can automate many routine tasks. This includes automating recruitment, onboarding, payroll, benefits administration, performance reviews, and more.
  • Data management: HRMS provides a centralized database for storing and managing all employee-related information, ensuring data accuracy and accessibility.
  • Compliance: With constantly changing labor laws and regulations, an HRMS can assist in maintaining compliance, reducing the risk of non-compliance penalties.
  • Reporting and analytics: An HRMS offers reporting capabilities and data analytics, providing valuable insights into workforce trends, performance, turnover, and more. This can inform strategic decision-making and improve HR practices.
  • Employee experience: With features like employee self-service portals, learning and development modules, and performance feedback systems, an HRMS can significantly enhance the employee’s experience.
  • Scalability: As businesses grow, HR tasks become more complex and time-consuming. An HRMS can easily scale to accommodate increased HR demands.
  • Cost savings: By reducing the time spent on manual HR tasks and improving efficiency, an HRMS can result in significant cost savings over time.


Understanding these business needs is crucial when considering the implementation of an HRMS. It's important to select a system that aligns with the organization's specific needs and goals, ensuring the maximum return on investment.


12 questions to test if your company is a suitable candidate for HR software

If you're considering implementing a new HR software in your company, it's important to assess your company's current and future needs. Here are some test questions that can guide your decision-making process:


  1. What HR processes are currently time-consuming and could benefit from automation?
  2. Do you have difficulty tracking and managing employee data?
  3. Is your current system of managing payroll, benefits, and leave efficient and accurate?
  4. Are you struggling with compliance to labor laws and regulations?
  5. How effective is your current recruitment and onboarding process?
  6. Are you able to track and manage employee performance effectively?
  7. Is your current method of handling employee grievances and issues efficient?
  8. Do you have difficulty managing training and development programs for employees?
  9. Are you able to generate useful HR analytics and reports?
  10. Do you see your company scaling in the near future, and if so, can your current HR system handle that growth?
  11. Do your employees find it easy to access and update their personal information, apply for leaves, view pay slips, etc.?
  12. Are you satisfied with the level of data security provided by your current HR system?


The answers to these questions can highlight the gaps in your current HR processes and indicate whether a new HR software could be beneficial. Remember, the goal of implementing HR software should be to streamline processes, enhance efficiency, and make life easier for both the HR team and the employees.


Why you should invest in a cloud based HRMS

Most technology investments meet or exceed expectations for HR managers, with cloud services proving to be especially valuable. Learn more here.  Increasing adoption of cloud technologies such as Software as a Service (SaaS) is expected to be a key driver for the HR software industry growth. 


If you are still weighing up whether or not to invest your capital in HRMS, consider the following:

  • Cost savings: Cloud-based HR systems require low, if any, upfront cost with forecastable incremental cost on a monthly subscription basis.
  • Productivity: Cloud-based HR systems can lead to significant reduction in time spent on administrative HR tasks by automating repetitive processes and tasks, thus improving productivity significantly.
  • Scalability: As businesses grow, so do their HR operations, and managing remote and disperse teams can be challenging. Cloud based HR solution are scalable as per company needs. If you company shrinks, you can change the subscription or tools you use. Vault ERP is a cloud based, scalable modular ERP system offering scalability and customizations. Lean more.
  • Data security: All employee data is stored securely in one place, protected with certain access rights, ensuring compliance with data protection laws.

The right steps to choosing the right human resources management system for your company

Choosing the right human resource management system (HRMS) is a critical decision that can greatly affect your organization's efficiency and productivity. Learn about the top 10 HMRS solutions in 2022 here. Following the key steps below will help you to make the right choice:

  1. Identify your needs: Start by conducting a thorough analysis of your HR processes to identify which areas need improvement or automation. This could include recruitment, payroll, performance management, or other.
  2. Set clear objectives: Once you've identified your needs, set clear goals for what you want to achieve with the HRMS. These objectives will guide your selection process.
  3. Research potential vendors: Begin researching HRMS vendors that meet your needs. Consider their reputation, reviews, and whether they offer comprehensive support and training.
  4. Evaluate key features: Assess the features of each HRMS in line with your needs. Consider capabilities like data management, recruitment and onboarding features, time and attendance tracking, benefits administration, performance management, and more.
  5. Consider user-friendliness and integration: A good HRMS should be easy to use and integrate seamlessly with other systems in your organization. Look for intuitive interfaces and compatibility with your existing software.
  6. Take advantage of demos and trials: Most vendors offer demos or trial periods. Use these to test the HRMS's functionality and ease of use. This step can provide valuable insights into whether the system is a good fit for your organization.
  7. Check security measures: Data security is critical in HR. Ensure that the HRMS has robust security measures to protect sensitive employee information.
  8. Review customer support: Good customer support is essential for troubleshooting and assistance. Check the vendor's support hours, the communication channels they use, and their responsiveness.
  9. Calculate costs: Besides the initial cost of the software, consider other costs like implementation, training, and maintenance. Ensure the HRMS fits within your budget without compromising essential features.
  10. Make a decision: After thorough research and evaluation, choose the HRMS that best aligns with your needs, objectives, and budget.


Remember, the right HRMS can streamline your HR processes, saving you time and resources. However, this decision shouldn't be rushed. Take your time to ensure you select the best system for your organization by evaluating HR management tools.


Evaluating HR management tools

Evaluating HR management tools is a crucial process to ensure that the chosen system meets your business needs, enhances efficiency, and provides value for money. Here are the main factors to consider:

  • Ease of use: The HRMS should have a user-friendly interface that's easy to navigate even for non-tech-savvy users. It should simplify processes rather than complicate them.
  • Integration capabilities: The system should seamlessly integrate with your existing software and systems like payroll, benefits, CRM, etc. This ensures smooth data transfer and reduces redundant tasks.
  • Scalability: The HR tool should be able to grow with your business. Whether you're hiring more employees or expanding to new locations, the system should be able to adapt and scale.
  • Feature set: The tool should have all the features you need for effective HR management. These could include employee database management, recruitment and onboarding functionalities, time and attendance tracking, performance management, etc.
  • Security: Data security is paramount in HR management. The tool should adhere to stringent data security standards to protect sensitive employee information.
  • Customization: Each business has unique needs, and the tool should allow for customization to meet these requirements. Whether it's custom reporting or specific workflows, the tool should be adaptable.
  • Customer support: Efficient customer support is crucial for troubleshooting and resolving issues quickly. Check the vendor's support services, response time, and availability.
  • Cost: Evaluate the pricing structure of the tool. This includes initial purchase cost, implementation costs, and any recurring fees. Consider whether the tool provides value for its cost.
  • Vendor reputation: Check the reputation of the vendor in the market. Look at reviews, ratings, and testimonials from other users. This can give you insights into the reliability of the tool and the vendor. Rare Crew is one of the top HR solution providers on the market – read the testimonials here.
  • Test run/demo: Finally, before finalizing, take a test run or demo of the system. This can help you gauge its functionality, ease of use, and whether it fits your needs.


Remember, the evaluation process may take time, but choosing the right tool can significantly enhance your HR processes and contribute to organizational efficiency and growth. Vault ERP can help you manage your HR operations in 8 key ways. Find out how.


When you compare vendors, why not consider Vault ERP? With Vault ERP, all modules can be customized to reflect your needs and preferences. You can select modules that match your current and future needs, such as:

  • Time tracking: Ensures transparent billing and increased productivity.
  • Personnel: Provides a centralized and secure personnel data vault.
  • Payroll: Enables straightforward automated payroll management, ensures confidentiality and data protection.
  • Skills: Helps to improve efficiency in skill deployment and improve HR decision-making.
  • Leave management: Automates and streamlines time off requests, saving a significant amount of time
  • Opinion polls: Give your employees a voice on company’s matters and collect valuable feedback.
  • Recruitment: Connect the dots from job posting to hiring by streamlining processes and automation.
  • Ideas: Empower your workforce and collect innovative ideas in the ideas vault.
  • Onboarding: Enhance each new employee’s experience by automating onboarding tasks and communications.
  • Evaluations: Conduct and track the performance of your workforce with an easy rating system.
  • Checklists: Create checklists for repetitive HR processes to ensure consistency and efficiency.
  • KPIs: Get a real-time overview of all KPIs and create reports for strategic decisions making.


What’s next?

Choosing the right HR management tool can be revolutionary for your HR operations. By understanding your unique needs, evaluating key features, and thoroughly testing potential tools, you can ensure you make an informed decision and pick the software that’s right for you.

If Vault ERP seems like it might be a good fit for your organization, learn more about what we offer on our website or book a demo today.



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