An Essential Guide to Develop Human Resource Management Software

Guide to Develop HRMS

Human Resource Management is one of the most essential and primary assets in every organization, irrespective of industry and its size. Therefore, to streamline the HR management system, Human Resource Management Software secures its place in an organization. With the emergence of HRMS software development, the process of recruiting, training, and managing the staff has experienced a massive upheaval.

Although everyone in the organization considers this department very casually, the human resource team is responsible for carrying out small and easily manageable, yet significant, tasks like recruiting new employees, employee training management, retaining the existing employees, supervising, etc.

As a result, organizations look forward to implementing robust and feature-rich Human Resource Management Software to manage the entire process effortlessly. In fact, Human Resource Management Software (HRMS) aims to keep everyone in the loop, be it with remote working people or on-premises teams. The HRMS model can quickly help manage remote work in many ways.

Here, we are going to look at the different aspects of a well-structured Human Resource Management Software. Also, we will understand how as a business, you can leverage benefits and implement them to smoothen your management process.

What’s Human Resource Management Software?

HRMS, or Human Resource Management Software, allows mid and large-level organizations to automate their human resource management processes. HR software solutions give full control on complement management processes like recruitment, work delegation, performance evaluation, payroll management, etc. The HRMS software development company must provide a system that maintains all the relevant data and allows users to get any information from any location at any time. Therefore, it will save the effort and time of HR managers by eliminating the need for manual paperwork.

Since HR management software is designed to manage HR management, it offers a wide range of functionalities and features than other automated personnel recruitment software. HR software solutions give HR managers and staff the ability to work with both quantitative and qualitative personnel metrics. However, retaining valuable specialists in the organization is the primary goal of any HR management software.

While choosing the right Human Resource software, you should consider its key functionalities like an intuitive user interface for an amazing experience, integration with legacy apps and software solutions, scalability, and customer support.

What is the Need for HR Management Software Solutions?

Why HR Management Software Solutions

In this competitive market, companies are paying huge attention to the most important component of their field of business in order to increase revenue. The dematerialization of various tasks is an important aspect of the rapid development process, and the role of HR is no exception here.

In fact, a study suggests that many companies in the world have tried to implement the Human Resource Management Software for their management process. This improves their productivity, allowing HR managers to participate in the growth and success of an organization.

The ability of HR management software to solve the following difficulties defines its implementation:

Cost Management: With the utilization of Human Resource software, it decreases the effort and cost. Also, it optimizes the process and planning as well as helps execute software project successfully.

Efficient the Business Process: HR management solutions allow HR managers to manage various tasks like personnel solutions, employees’ records, payroll, etc. In addition, it also increases their efficiencies by allowing employees to access their personal information in the dashboard. So, the employees can fill in the required information.

Legal Compliance: It refers to the observance of legal requirements that govern employee-employer relationships. Moreover, users can resolve complex difficulties, employ flexible payroll management, and manage the flow of personnel documents.

Human Capital Improvement: It helps to enhance the skillset and facilitate the growth of a team.

Automate your HR intense activities to scale-up business operations

Types of Human Resource Software

In recent times, the role and responsibilities of an HR department are not restricted to a single or particular task. They have many tasks on their hands to complete: from candidate recruiting, onboarding process to employee performance.

Considering various tasks to perform, we have distinguished the Human Resource Management Software into three different categories.

Based on their functionalities and purposes, below are three major types:

   1.   Human Resource Information Software (HRIS)

   2.   Human Capital Management (HCM)

   3.   Human Resource Management Software (HRMS)

Human Resource Information Software

HRIS software offers a centralized repository of employee master data that HR managers require to complete the process of core human resources. It allows you to store, process, and manage employee personal information in one place.

Furthermore, HRIS software lets you manage various tasks such as candidate recruiting, application tracking, time and attendance, performance, and much more.

Functionalities of HRIS:

  • Master Data Management
  • Attendance Management
  • Workflows
  • Benefits Administration
  • Recruitment and Applicant Tracking
  • Report Analysis
  • Learning Management System
  • Performance Tracking

Human Capital Management

Human Capital Management monitors and manages the contribution of the employee towards the productivity of an organization. In a nutshell, HCM manages the organization’s employees.

HCM is categorized into three different parts: workforce acquisition, workplace management, and workforce optimization.

As a result, you can get the following benefits:

  • Hiring from the talent pool
  • Getting the required skillsets in the company’s workforce
  • Managing employees effectively
  • Increasing productivity

Functionalities of HCM:

  • Workforce Planning
  • Compensation Planning
  • Recruiting and Hiring
  • Onboarding and Training
  • Time Tracking and Attendance
  • Payroll Management
  • Performance Management
  • Workflow Management
  • Compliance
  • Employee Service and Self-service
  • Benefits Administration

Human Resource Management Software

HR management software integrates a wide range of applications like talent acquisition, benefits administration, compensation management, and performance management to provide a single, centralized picture of the organization’s staff.

Modernized HRMS Solutions for flawless Human Resource Management cover all the important factors of an HRIS. Also, it includes the capabilities of HCM. Payroll and Time & Labor Management (TLM) are two major characteristics of HRMS.

Functionalities of HRMS:

  • Employee Information Management
  • Recruitment and Onboarding
  • Leave Policy and Transaction Management
  • Tracking Time and Attendance
  • Salary Changes and Increment Calculations
  • Payroll Processing and Salary Disbursement
  • Communication and Basic Employee Services
  • Employee Engagement
  • Statutory Compliance
  • MIS Reports
  • Performance Appraisal and Promotions
  • Succession Planning

Benefits of an HR Management Software

Benefits of an HR Management Software

Every organization tries to implement modern tools and technologies to make its services effective and seamless in a technology-driven world. Therefore, many companies have leveraged the advantages of Human Resource Management Software. However, the companies which have not implemented the HR software solutions may likely face difficulties in their management process. So, it’s important to take advantage of software implementation.

Below are some of the major advantages your organization can get by integrating Human Resource Management Software.

Centralized Database

The primary advantage of HR management software is that it stores all the databases of employees in one place. So, you can easily manage and retrieve data whenever it’s required. This enhances the overall performance of an organization.

Furthermore, it also manages multiple records and files of employees. You can sort out anything as per your requirement. Human Resource software also offers a strong security feature that ensures that all the data is kept secure and safe in the database.

Payroll Management

Another advantage that comes in the list is the payroll management system. It allows you to stop using a third-party payroll service provider. Hence, you can easily manage the payroll system within your organization.

The payroll system is linked to the activities of your employees. This way, it collects the data of employees’ arrival and departure timings, leaves, extra working hours, and many more. Also, it allows you to track the attendance of every individual employee without any manual errors. So, you can easily calculate the attendance of every employee. This way, you can get accurate information without the risk of human error.

Employee Dashboard

HR resource software offers a personal dashboard to every employee. Here, the employees can enter their information and maintain their records without any interruption. In the employee’s dashboard, they can also update their data, albeit any minor updates like phone number or address.

This entire process can save the efforts and time of human resource teams.

Performance Management

HR software solutions allow the team of HR to analyze the performance of every employee individually. They can easily monitor the strength and skills of the employees.

Furthermore, the management can train their employees based on their skills and review their performance. Eventually, it will enhance the performance of the company.

Hassle-free Management

Human Resource Management Software adheres to the security protocols and policies. Therefore, an HR team can manage and handle all the tasks without any worry of security breaches.

With the implementation of HR software solutions, HR managers don’t have to maintain paperwork and spreadsheets. This way, they can get rid of lengthy emails. This software solution can manage all the significant tasks of yours.

Seamless Recruitment

Human Resource Management Software offers various features and functionalities for an organization. Hence, one more advantage you can consider is the seamless recruitment process.

The HR management software allows you to manage numerous forms and applications during the recruitment phase. This way, HR managers can easily find the right and talented employees for their company.

Develop a feature-rich HRMS to enhance employee experience

Integrating employee applications can make it much easier to convert an employee’s database to an employee file, which can then be used for all of the selection. You can achieve this without any difficulty.

Well, these are some of the advantages an organization would get while going for HRMS software development. In addition, it will help you grow in this competitive world.

Important Features of Human Resource Management Software

Features of Human Resource Management Software

If you go for HRMS software development, any custom software development company you hire would surely include the important features. The given significant features will ease down the process and responsibility of HR managers. This way, they can focus on more important tasks.

Employee Records

Employee records consist of various information about the employees, including medical insurance, attendance, and tax information. It also stores and manages employees’ personal information, previous job data, performance, awards, and recognition.

Payroll Management

HR Management Software allows you to manage the employee salary, bonus, provident funds, tax deduction, health insurance, and paychecks-related issues.

It calculates each employee’s paycheck properly and effectively since it is integrated with time tracking and scheduling software. This ensures transparency in the system.

Recruitment and Onboarding

Recruitment is an important process in an organization. Therefore, HR software solutions offer a recruitment and onboarding module that helps compile and manage resumes and job applications based on the candidate’s skills/experience required for an opening.

This also helps in creating ads, managing applications and documents. It reduces the burden from the HR manager’s shoulder and brings the best talent to the company. In addition, it also smoothens the onboarding process by acquainting new recruits with company rules and policies.

Training Management

Organizations have to constantly upgrade their talent pool by re-skilling their staff through remote learning and live training. Here, HRMS enables employees to gain technical and business skills in order to compete in an evolving market.

Performance Analysis

Using this module, a senior employee can review their teammate’s (junior) performance. This way, an HR team can analyze their employee’s work performance, skills, and ability.

Attendance Management

The attendance management module allows HR managers to track the attendance (punch-in, punch-out) of employees. They can also track their leaves, arrival, and leaving time.

Document Management

Here, in this module, you can save and manage all the documents of employees. It also offers a filter and sort by options. You can also convert all your documents into various formats like PDF.

Project Management

Every employee and HR manager can see the time duration they have spent on a particular project. Projects and timesheets can be managed very easily.

Report and Analysis

Report and analysis modules display the performance of each employee individually for their projects. This enables you to evaluate the performance and areas for improvement.

HRMS Security Integration

HRMS Security Integration

While using HR management software, it’s required to maintain a high level of protection and security as it consists of employees’ personal information. Therefore, it’s mandatory to protect sensitive data and uphold a positive culture.

Hence, integrating security features in your Human Resource software must be on your top priority list.

While some specific industries may have customized security requirements, you (as a customer) should insist on:

Role-based Access

HR teams should have a super admin right for every good reason. Every employee in the organization should be able to perform their respective tasks according to their position. Therefore, every user will be able to access the HRMS as per their defined role.

Data Encryption

All the transition and stored data in HRMS should be in an encrypted format.

System Segmentation

The HR management software is designed in such a way that a particular role-based employee should only perform certain tasks. Some organizations have implemented security rules within the HR department to allow HR managers access to only the portions of the workforce they serve. Executive payrolls are frequently segregated into different accounting entities to secure that information.


There should be defined criteria for the password to prevent unauthorized access, such as alphanumeric, one-word capital, length, specific time for a reset, and more.

Two-factor Authentication

As an additional security level, mobile devices’ usage has made it easier to implement two-factor authentication technology.

How Much Does It Cost to Develop an HR Management Software?

Cost to Develop an HR Management Software

HRMS software development cost is one of the crucial factors for any customer. Every business wants to build effective software that comes under their budget. But before we actually know the pricing of development, let me clarify that it completely depends on various factors, such as the complexity of software, features, location of an outsourced software development company, and many more.

Here, let’s consider an average industry rate, which is around $50 per hour for a developer. So, if we consider the below-given features to integrate into your HRMS, let’s figure out the final development cost (approx.).

1) Recruitment Module

  • Job creation
  • Profile creation
  • Job posting on various platforms and websites
  • Interview scheduling
  • Candidate assessment
  • Sharing CVs

With the integration of these features, the development cost of the recruitment module would be around 26,000 USD to 29,000 USD.

2) Onboarding Module

  • Onboard task creation
  • Assigning tasks to employees
  • Task tracking
  • Task dashboard

With the integration of these features, the development cost of the onboarding module would be around 23,000 USD to 26,000 USD.

3) Performance Tracking Module

  • Performance and goal tracking
  • Performance review and feedback
  • Report generation and analysis

With the integration of these features, the development cost of the performance tracking module would be around 12,000 USD to 13,000 USD.

4) Benefits Management Module

  • Adding benefit plans
  • Sharing benefit plans with employees
  • Report generation
  • Statistics dashboard

With the integration of these features, the development cost of the benefits management module would be around 12,000 USD to 13,500 USD.

5) Payroll Module

  • Payroll management (tracking, managing, updating)
  • Attendance management (punch-in, punch-out, sick leaves, long break)
  • Work hours tracking
  • Compensation and benefit plans
  • Payroll notifications
  • Generation of payment reports and paychecks
  • Payroll dashboard for employees

With the integration of these features, the development cost of the payroll module would be around 24,500 USD to 26,300 USD.

6) Training Module

  • Scheduling and tracking training
  • Events calendar
  • Document management
  • Application system for training

With the integration of these features, the development cost of the training module would be around 12,500 USD to 15,500 USD.

In addition, we have figured out the development cost in different locations.

  • A developer in a US-based software development company would cost around 50 USD to 250 USD per hour.
  • A developer in an Eastern Europe-based software development company would cost around 50 USD to 250 USD per hour.
  • A developer in an India-based software development company would charge around 10 USD to 80 USD per hour.

As we can clearly see, India is the most budget-friendly country for any software development. However, you will find an efficient and skilled team of developers at the most affordable cost. But then again, the cost of development depends on various factors.

Is the cost of the HRMS System turning you down?


With the efficient and useful features of Human Resource Management Software, it’s no wonder that every organization will implement into their working operations. If you have a budget constraint and are looking for effective HR software solutions, India is the right place to find an outsourcing software development company for your requirements. With great talent and an experienced pool of developers, Radixweb- a top-notch software development company, can easily offer modernized HRMS solutions that would make it easier for you to manage your HR department.

Our technical team will analyze your business requirements to offer the best software solutions available in the market. Therefore, if you plan to invest significantly in implementing HR management software, now is the time. Contact us to develop custom software for your organization.

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Sarrah Pitaliya is a senior digital marketing manager at Radixweb to precisely navigate strategy for growth, build marketing capabilities, align the organization around customer experience and mentor teams about new digital, social, mobile channels and customer opportunities. Apart from work, she is a fitness freak and coffee connoisseur.