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Human Resources Management System: how managers use it
We explain what the Human Resources Management System is used for and what types exist for your company. Discover more here!
Marcos Lopez
HR Consultant
13 of February, 2025
A significant part of any organization’s success depends on efficient management of its HR. Employees are a company’s most valuable asset, so it is necessary to provide them with all the resources they need for their productivity. Implementing a Human Resources Management System can optimize this big workload.
These systems not only simplify and automate administrative tasks, but they also provide valuable insights that can improve decision-making and optimize HR management.
What is a Human Resources Management System
A Human Resources Management System or HRMS is a software that helps manage all tasks related to personnel. It digitally automates most of these tasks to streamline them.
Main features:
- Process automation: reduces administrative burden by automating repetitive tasks.
- Centralized access: provides centralized access to all employee information, improving organization and data availability.
- Data analysis: facilitates the collection and analysis of data to support informed decision making.
- Security: ensures the protection of sensitive data through robust security measures.
It is designed so that all HR functions can be performed from the same application, centralizing them. Not only does it make it easier to carry out, but it can also provide a plus in the selection and hiring of new employees, time tracking and attendance, payroll administration, training, etc.
It is designed to increase work productivity and take a great deal of routine workload off the HR department. Thus, they can spend a large part of their time on the most important aspects of their work.
Depending on the needs of each organization and their resources, they can hire human resources management to administer a single part of the company, or the pack to streamline all human resources processes.
Types of Human Resources Management
A human resources management system is composed of many tools, each of which has a function. That’s why a company can get software that includes them all or just the ones they are interested in.
1. Recruitment
The specific functions of each HR management system for recruitment depend on the contracted tool. Therefore, you must make sure of the functions contained in the one you choose. In general, this human resources program allows automating the phases of selection and recruitment of personnel on the same platform.
The goal is for only the most prepared people with the most suitable profile for the job offered to reach the end of the process. To do this, it usually offers several services:
- Publish offers via multiposting.
- Create databases with applicant information.
- Facilitate communication with applicants or automate certain notifications.
- Conduct small interviews and evaluations.
- Filter resumes with relation to the criteria demanded by the company.
- Test candidates with novel tools such as psychometric tests or scorecards.
Usage by managers:
- Talent identification: managers can use the system to quickly identify the most qualified candidates.
- Progress tracking: allows managers to track each candidate’s progress throughout the selection process.
- Objective evaluations: facilitates the implementation of objective evaluations by standardizing evaluation criteria.
2. Human Resources Database
It is used to store, organize and handle employee-related information in a simple way. All this in a secure way and following confidentiality rules. In particular, it is used to:
- Store employee data. The system allows the record to be kept up to date with data from their time of hire to their daily entry and exit times.
- Trainings. The software saves the training and development activities carried out by each employee. This allows their progress to be evaluated.
- Manage documents. To organize all paperwork based on several metrics such as type of work contract, training certification, among others.
- Process incentives and benefits. The records of each employee’s work help calculate the incentives they should receive. They also serve to administer the benefits offered such as health insurance, retirement plans, etc.
- Employee portal. Workers can view their data and request vacations or communicate with HR, among other actions.
Usage by managers:
- Access to relevant information: managers can quickly access relevant information about their teams, improving decision making.
- Performance tracking: allows managers to continuously track their employees’ performance and development.
- Planning and organization: facilitates more effective human resources planning and organization.
3. Performance Evaluation
It is focused on performance evaluation and analyzing the performance of each of the employees. Its objective is to increase the talent of the staff, finding out the potential of each of the components and their deficiencies. Thus, you can boost the first ones until they become the best in that area and solve the second ones.
In this way, it is easier to determine objectives, follow achievements, conduct periodic evaluations, and provide constructive feedback. It also makes it easier to recognize whether a person possesses the competencies and skills required for each job.
Usage by managers:
- Objective evaluation: managers can carry out objective evaluations based on quantifiable data and clear criteria.
- Talent development: It identifies areas for improvement and develops action plans for talent development.
- Recognition and reward: helps recognize and reward employees for their good performance.
Based on the evaluation results, the system helps design personalized development plans for each employee. Additionally, the results of the evaluations can be used to make strategic decisions.
4. Training and Development
It is designed to plan, implement, and manage training and development programs to improve the skills and competencies of staff. To know exactly what training the staff needs, the Human Resources management to evaluate performance is the ideal tool.
The bulk of this personnel management software is the design of training programs. It includes the search or creation of courses and training activities, scheduling to find the optimal time, and recording participants and attendance.
Usage by managers:
- Identification of training needs: It helps identify training and development needs of employees.
- Progress tracking: It allows managers to follow the progress of employees in training programs.
- Career development: It facilitates career development planning and professional growth.
In addition, it also allows HR reports with the impact of training and tracks it. The results obtained will serve to improve this area of the company.
5. Time Control
It is very useful for managing everything related to time control and work times. By entering basic employee data, it helps you compose rotating shifts every week automatically.
Usage by managers:
- Resource optimization: It helps optimize resource allocation and manage work time better.
- Productivity tracking: It allows managers to follow and analyze the productivity of their teams.
- Absence Management: It facilitates the management of permits, absences, and vacations, ensuring that there is always enough staff available.
On the other hand, it saves the entry and exit times of each of them. This facilitates the calculation of the salary and the vacations that correspond to each one. In addition, through the employee portal they can request vacations, report medical absences, receive notifications, etc.
What is a Human Resources Management System used for
As we have seen, managers will be able to use the software in one way or another for HR management. Taking all of the above into account, it can be deduced that they usually use these systems to:
- Manage the information of the personnel under their charge.
- Follow the performance of their workers.
- See time control records, administer permits and time off requests, and ensure that time policies are met.
- Efficiently distribute tasks within their team.
- Share important information, announcements, and updates.
- Identify opportunities for professional development.
- Make strategic decisions for their group.
What are the main trends in human resources management?
As a Human Resources manager or team manager, it is very important that you know the main trends in Human Resources management today. These reflect a focus on technology, employee well-being, and adaptation to new forms of work. Some of the most notable are:
Digitalization and automation: the use of software and technological tools to automate administrative tasks (such as payroll or time clocking).
Remote and hybrid work: remote work has become a permanent option.
Well-being and mental health: a focus on balancing work and personal life.
People analytics: using data to improve HR decision-making.
Continuous training and reskilling: training employees in new skills and fostering personal development.
Diversity and inclusion: a growing interest in promoting equality and creating an inclusive environment.
Employee experience: increased focus on employee satisfaction and motivation.
Why use Sesame HR as your Human Resources management system?
Now that you know what a human resources management system is and understand its importance for companies today, I recommend you check out Sesame HR software.
This centralized HR platform allows you to handle all of the tasks mentioned above in a digital, simple way—saving time and reducing errors. Some of its main advantages are:
- Automated time tracking: complies with Spain’s time tracking regulations, featuring an easy-to-use digital clock-in system.
- Shift and schedule management: organizes shifts efficiently, improving planning and reducing errors.
- Absence and vacation management: centralizes requests and approvals, facilitating control and transparency.
- Reports and analytics: provides real-time data on employee productivity and attendance.
- User experience: offers an intuitive interface for both employees and managers.
Remember, Sesame HR not only helps automate repetitive tasks but also optimizes talent management and enhances organizational efficiency. If you’d like to see for yourself, sign up and request a free 14-day trial to take your company’s HR management to the next level.
Need help?
I'm Marcos López, HR consultant at Sesame HR. Book a meeting with my team to help you.