The HR System Requirements Checklist You Must Know

HR software is crucial for managing employee data within the company. However, choosing the right HR software for your company can be challenging. Therefore, it is essential to build an HR system requirements checklist and understand the different software features and modules available to address the problem.

HRIS is a centralized system to track your company’s human resources activities, including employee demographics, attendance hours, benefits, policies, gratuity, loans, and advances.

In addition, HR professionals use an HRIS to streamline the procedures. This blog will present an HRIS requirements checklist to help you understand how the features of an HRIS can benefit your company.

HRIS Requirements Checklist

The HR system requirements checklist includes the following features and modules:

Core HR

The core HR module is one of the essential modules responsible for handling employees’ information. Many of the functions in the HR system, such as security and reporting, are housed in the HR module.

Core HR functionality includes a centralized database to store the data. Some of the other features are as follows:

Document & Employee Record Management

Employee demographics are stored and handled by this module. The data can be entered, including employee name, address, emergency contacts, contact information, salary, banking and taxing details, insurance plans, and designation. 

It is essential to note whether HR software offers a facility to create custom fields to track information specific to the organization. 

An employee self-service portal is a part of the core HR, letting the employees log in, view information, and track their performance and working hours. 

Time & Attendance 

Keeping track of attendance manually is tiring. However, HR software takes care of all the tedious work and automatically integrates attendance system with other features. For example, the time and attendance module integrate with the biometric system to record employee attendance. It also captures working hours on a timesheet, late arrivals, early lefts, and durations.

It is also essential to check whether the HR system can configure all the absence types, such as relaxations and leaves used by the company. Include report scheduler, and timesheets to display the required information, including total absences and relaxations.

It should integrate with a mobile application to ease employees’ and managers’ ability to track the data from anywhere. It should include a clock-in and clock-out feature where employees can log in once they start their shift and log out when they are done. 

The time and attendance module should also feature the ‘request’ option where an employee can put a request for leave or relaxation for approval by the higher authority. Also, with the ‘request’ feature, employees can put in a request to HR professionals and managers when they forget to punch in.

Recruitment or ATS

The recruiting software includes the entire procedure of finding and hiring new employees. This module is available in most software, but it is vital to check whether it includes all the essential features like applicant tracking system to assist HR professionals in streamlining the hiring process. 

The module should include a job bank with job descriptions, experience, and qualifications. Features reports and custom groups to track candidates for the required job. With the integration between recruitment management software and HRMS, it gets easy to manage your candidates and to hire proceedings all in one go.

It is vital to consider that the HR software should handle everything from the salary breakup to an approval chain for the requisition and interview process. It should also send support for the entire offer process, including sending offers. 

The recruitment module should include turn-on the talent hunt in-house feature, which notifies your employees on the internal platform, including job descriptions. They will also know whom to recommend for the job.

Performance Management 

Human resource management software with a performance management module continues to evaluate the performance of employees for better performance. 

Performance management should provide information on employee productivity, certifications, courses the employee opts for, and more. The software can also provide automated feedback, or HR departments can rely on its analysis in reviewing the employees.

The employees can also keep track of their performance via the employee self-service portal. This module can also integrate with the compensation, successions, and benefits. 

Onboarding 

HRMS ensures that new hires start on the right note. To enhance performance, they provide new hires with relevant information and tools.

The HR onboarding module should include a simple process to move new hires from recruiting to onboarding. Employees get the idea before their first day, and new hires get access to all the necessary paperwork and task lists.

Dashboard

The dashboard is one of the essential parts of HR software. It includes standard reports to meet most needs, the graphs to provide all the necessary information.  The dashboard module should allow the building of custom reports and scheduling reports.

Training & Development 

The training and development module makes the administrative tasks of scheduling and running courses easy and quick. In addition, it reinforces a learning culture in the company. It may also be pre-loaded with educational content and offer options to upload customized materials.

The module should have a facility to integrate with the third party to license the online courses. In addition, it should auto-assign courses based on pre-configured rules and keep track of all the employees’ certifications. 

Employee Engagement

A company’s employee engagement strategy is crucial for maintaining employee loyalty and connection. Therefore, an employee engagement module should incorporate the ability to facilitate communication. 

Now the companies’ major focus is on employee retention. Therefore, the employee engagement module must incorporate the well-being programs of employees to promote a healthy workplace environment. 

Payroll Management

The most important module is payroll management. Most HR software doesn’t have built-in payroll management. Most HR software offers to integrate with other payroll providers. It is essential to check whether the HR software has a payroll management system. 

The payroll management system should integrate with the core HR system, attendance and time, performance management, and compensations and benefits. 

The payroll system must include employee access to pay statements and other tax-related forms, automatic tax filing and Withholding, Provident Fund Calculations, tax deduction adjustments, and EOBI and Social Security computations.

Compensations, Benefits, Loans & Advances

The HR software must have the facility for the employees to request loans and advances. Once approved, the team will make the necessary arrangements for the employee. The employee or managers can view their requests in the inbox. 

Compensation management is necessary to get it right. Compensation systems need eligibility rules, budgets that prevent managers from overspending, workflows, and approval processes that can restrict managers from overspending.

Compliance Management 

The HR system is configured to meet all the country-specific government compliance requirements. It also handles non-employee data, such as contractor information.  

Compliance can take two aspects Payroll tax compliance and Data Protection Regulation for processing employee data. The system should be secure and allow users to view or edit their data. Therefore, it is vital to prioritize cybersecurity from the start of the deployment process. 

Tax Compliance 

Tax calculations can be complex, and not following laws and regulations can get you into legal trouble. HR software makes this process easy and customizable by generating compliance forms.

Integration Facility

The real-time display of data reduces the time-consuming double-entry of information because data is always synchronized. For example, the changes made in the employee’s insurance plan in the payroll system should be updated in all the records. 

Conclusion

Companies must have an HR system that works smoothly and efficiently. The HR automation software streamlines the procedures. 

One of the first steps in acquiring a new HRM system is to evaluate your company’s needs. Clearly understanding what you need makes choosing and eliminating vendors much more manageable.  This blog presented the HR system requirements checklist that helps choose the right HR software to streamline the process.