HRMS Software System Features and Requirements Checklist

Is your current HR software falling behind as your team grows? Whether you’re embarking on a quest for a new HR solution or upgrading your existing software, a meticulously crafted requirements checklist is your compass for successful implementation.

Ready to take the next step in your software search but not sure where to start? We’ve created a thorough HR system requirements checklist, helping prioritize your essential HRMS software features.

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HRMS Software Features Checklist

Key takeaways:

• Identify your HRMS system needs and which key features to look for.
• Discover what makes each feature a must-have.
• Learn the first steps to kickstart your search for HRMS software features.
• Know what questions to ask for a successful HR software evaluation.

Key Features

We’ve onboarded over 100,000 users into our software selection platform. This has given us a wealth of insights into their usage patterns based on industry, company size and user persona. By leveraging this data, we’ve identified key requirements you should consider to minimize the risk of selecting the wrong software.

Our goal is to empower you to benefit from the collective experience of your peers who’ve embarked on the same journey before you.

When searching for an HR platform, here are the most important HRIS modules to look for:

1. Document Management

Your HR system’s document management is pivotal for staying compliant and storing documents like employee contracts and tax forms. It acts as a knowledge base encompassing:

• Automatic Tax Document Generation
• Company Policies and Employee Handbook
• Document Repository
• Document Access Control
• Audit Trails

My Documents UKG Pro Preview.

HR solutions should include a thorough employee profile directory, including:

• Personal information
• Job history
• Salary history
• Banking and tax details
• Insurance plans
• Time off requests
• Disciplinary history
• Performance feedback

This directory links to primary records, making it easier to track and generate reports.

Example of employee information dashboard. Source

This module also offers the following additional capabilities:

• Document Access Control: Ensure data security and restrict unauthorized access.
• Document Search and Sharing: Encourage self-reliance and facilitate a smooth flow of information within the organization.
• Document Updates and Printing: Keep the data and knowledge base up-to-date and build transparency.

To sum it up, an article by UKG Pro (one of the best HR products for document management, according to our Express app) explains:

• Document Access Control
• Document Search
• Document Sharing
• Document Updation and Printing
• Automatic Generation of Tax Documents
• Document Repository

2. Applicant Tracking and Recruiting

HRM software is pivotal in handling your human resource tasks throughout the employee lifecycle, starting with recruitment and hiring.

A resume provides key insights about a candidate, but your applicant tracking and recruiting process shape their first impression of your company. Preserving a positive reputation means providing a positive recruiting experience.

The candidate experience also influences post-hire retention and employee engagement.

Career Page Example.

A survey by CareerPlug found that 52% of candidates turned down job offers based on a bad experience during the hiring process. Fortunately, the right software offers automation and reminders to help you create a better hiring experience.

Automated features like resume screening and scheduling tools ease the hiring process for HR departments and help reduce wait times for candidates.

Post a job opening to multiple websites and social media channels and even use automation tools to craft a job description. As the applications start pouring in, the applicant tracking system (ATS) automatically accepts (and rejects) candidates based on your predetermined criteria.

Body Art Alliance’s HR manager, Maghen Evans explains:

I use the software for recruitment the most. I do really enjoy the ability to customize the candidate experience in the ATS through Paycom. They make it really simple to communicate with applicants from the initial contact all the way through offer and background screening.

Maghen EvansHuman Resources Manager, Body Art Alliance

• Talent Pool Search
• Recruitment Pipeline
• Mobile Recruiting
• Manage Recruitment Agencies
• AI Based Candidate Scoring
• Automated Job Posting
• Interview Management
• Employee Referral
• Career Pages Creation
• Career Portal

3. Employee Onboarding and Administration

Onboarding and administration give employees a first impression of their new job and the company as a whole.

In Qualtrics 2024 Employee Experience Trends, Dr. Cecelia Herbert explains,

Manual onboarding can be complicated and messy. The good news is with the right software on your side, it doesn’t have to be.

An example of employee onboarding and administration.

An HR management solution ensures new hires start on the right note — 42% of people who quit their jobs felt like their leave was preventable. By addressing challenges early on, you can create a supportive environment that fosters retention.

This HRMS feature gives new hires important information and helps them learn the tools and skills they need to do well from the start, making it more likely that they will be engaged in their job.

When asked If you had to change your HR software to something new, what’s the first thing you would consider? Evans said:

Implementation time and assistance. We’ve switched HRIS systems 3 times since I’ve been with my current company. It makes a world of difference when the incoming HRIS and outgoing. HRIS have collaborative onboarding and offboarding implementation teams.

Maghen EvansHuman Resources Manager, Body Art Alliance

4. Performance Management

According to Lattice, the primary purposes of performance management are to enhance organizational success by supporting employee development, aligning individual goals with company objectives and recognizing achievements.

With a robust performance management module, human resource management software evaluates employees beyond the interview process.

Performance management helps:

• Track key performance indicators (KPIs)
• Ensure fair, transparent performance reviews with predefined criteria
• Generate reports and analytics to make data-driven decisions
• Detect training opportunities
• Ensure goal management
• Clarify expectations

An employee performance tracker. Source

Performance assessments shed light on how well employees are doing their jobs and how satisfied customers are. These assessments can provide automatic feedback, or HR departments can use the analysis from the software to help with their reviews.

According to SelectHub’s Principal Research Analyst, Jaisri Narasimman,

Comprehensive performance management tools that track employee metrics are vital for correlating engagement levels with productivity, enabling data-driven decisions.

Jaisri NarasimmanPrincipal Research Analyst, SelectHub

Depending on the system, employees can see their performance feedback on a dashboard or another interface. This way, there’s no need to send emails or set up lengthy performance review meetings.

According to our research team, tools that help employees set and track personal and team goals are essential for aligning their objectives with the organization’s mission.

5. Benefits Management

Employee benefits attract and retain employees. This feature locks in employee satisfaction while supporting workplace loyalty. So, managing employee benefits, including healthcare and 401k contributions, is an essential capability. This module makes it easier to handle the workflow and info about benefits.

Additionally, having this module:

• Lets employees enroll in benefits independently, reducing errors and extraneous work.
• Automates reminders for open enrollment periods (I consider this a major plus, seeing as I’ve forgotten enrollment dates myself before)
• Supports employee retention and job satisfaction
• Ensures compliance with laws and regulations relevant to employee benefits
• Streamlines communication about benefits updates and changes, keeping everyone in the loop

Benefits management ADP. Source

7. Time and Attendance Management

Before GPS, people relied on paper maps to navigate unfamiliar places. While maps aren’t totally obsolete, there’s no denying the convenience and accuracy of a GPS. Similarly, having software that tracks time for you instead of writing it down the old-school way is a must-have.

For example, Inspire Communities runs over 40 locations, which made it essential for them to have a centralized system to manage and report employee time. Before switching to ClickTime, they used an Excel template that employees had to fill out, sign, and send in by email or fax. This slow, cumbersome process delayed payroll for days, so they decided to switch to software.

CFO Krista Snelling noted, “ClickTime cut out three full days of work a month.”

HR systems also provide scheduling and attendance tracking, easing compliance with staffing needs. This HRMS feature helps:

• Schedule employees across departments, locations and projects
• Better communication between managers and employees regarding shift changes and availability.
• Reduce time theft like buddy punching
• Enhance payroll accuracy
• Increase accountability
• Ensure compliance with labor regulations regarding working hours, overtime and breaks.

Most time and attendance platforms alert employees about schedule changes or staff shortages, reducing scheduling conflicts.

A look into attendance management. Source

According to QGenda, a cloud-based physician scheduling system, missing or incorrect employee time can cost a staggering $71,705 annually for every 1,000 employees.

Fortunately, electronic timesheets make payroll and time tracking run smoother. Additionally, time off management handles paid time off accrual, including disability and maternity/paternity parental leave.

8. Learning Management

Qualtrics surveyed about 37,000 employees, including different age ranges, experience levels, industries and locations globally. When taking a closer look at employee preferences, the report explains:

The key to continued growth (and ultimately securing employees over facing high turnover) lies in your learning management.

Training and learning courses are vital to keeping your workforce up-to-date. The 2024 Workplace Learning Report reveals that 90% of organizations are concerned about employee retention (and credit-providing learning opportunities as the number one retention strategy).

LMS Training Preview Cornerstone.

A learning management system (LMS) that’s part of a human resources management platform typically includes preloaded educational resources and lets you upload customized materials.

Some HR solutions also connect to external systems to provide course content, like LinkedIn Learning or Udemy.

The benefits of learning management systems include:

• Tracking employee certifications to minimize staffing and planning issues.
• Streamlining training for new hires
• Providing personalized training
• Ensure continued learning for current employees (great for engagement)
• Managing employee goals
• Identifying skill gaps

Get our HR Software Requirements Template

9. Employee Engagement

Without employee engagement, your workplace would be disjointed and unmotivated. High turnover rates would create a revolving door of hiring and training.

Fortunately, an HR management solution helps gauge current engagement and foster a healthy work environment with capabilities for communication, feedback and employee well-being.

Employee engagement tools can help detect issues and adapt before it’s too late, protecting your productivity from coming to a screeching halt.

For example, according to a case study by AssessTeam, a business consulting firm with over 250 employees was struggling to retain employees. In the last 10 months, they noticed a big spike in employee turnover, which was starting to disrupt their operations and raise concerns about employee satisfaction.

To tackle this challenge, the firm decided to try employee engagement surveys. They conducted surveys every four months, which helped them get a sense of how employees were doing and see how new initiatives were working out. This led to a 30% decrease in employee turnover within three months.

Additional ideas for enhancing employee engagement include:

• Offering continued learning opportunities
• Creating a platform for positive recognition
• Opening communication, like using an instant messaging platform
• Organizing workplace events, even virtual parties via Google Meet or Zoom

10. Employee Self-Service

When employees can handle things on their own, they tend to feel more confident in their roles, which saves managers time on routine admin tasks. As a key HRIS feature, employee self-service lets employees access and update their information, ensuring that the database information is accurate.

Self-service features in HR software play a crucial role in empowering employees. According to Narasimman,

Self-service portals can significantly enhance employee satisfaction, empower employees to take charge of their HR-related tasks, and streamline HR processes, ultimately leading to a more engaged and productive workforce.”

Jaisri NarasimmanPrincipal Research Analyst, SelectHub

Plus, implementing self-service HR capabilities can lead to significant cost savings by cutting down on how much HR employees need to be involved in routine tasks.

Integrated communication tools within these platforms support collaboration and information sharing between employees and HR.

Employee self-service example.

The self-service technology market is projected to grow at a CAGR of over 10% from 2024 to 2032. This growth is all about making things easier for customers, keeping up with changing consumer habits and embracing new technology.

Solutions like interactive kiosks and mobile apps let customers handle things on their own, which boosts efficiency in various industries.

These platforms provide access to important documents like W2s, pay stubs and payroll details. This feature ties back to employee engagement because ESS portals serve as hubs for coworkers to connect and keep teams aligned with notifications and updates.

• Benefits Election and Enrollment
• Expense Requests
• Internal Job Submission
• Leave Requests
• Pay Stub Access
• Personal Details

11. Payroll Management

Payroll management handles financial records, automates calculations, manages deductions and issues paychecks, ensuring everything is accurate and compliant with tax rules.

It tracks salaries, incentives, benefits, bonuses, deductions and net pay. HR solutions simplify financial workflows and payroll processes.

A snapshot of payroll management.

Remote, a global Employee Of Record (EOR) software, recently shared its State of Payroll Report, which includes insights from 1,352 HR decision-makers and 2,539 employees across the UK, US, Germany, France, and the Netherlands.

Here are some key takeaways:

• Over half of employees have run into payroll errors in the past two years.
• More than 60% of those surveyed experienced financial stress due to late payments caused by these errors.
• Human error was the number one cause of payroll issues, accounting for 29.5% of mistakes.
• A solid 71% of HR decision-makers said their payroll accuracy improved after outsourcing.

Payroll errors (big and small) happen. When they do, fix times can vary, putting stress on your employees and your business’s reputation.

Opting for HRMS software supports your payroll process and has your back if anything is incorrect. Other benefits of payroll management are:

• Ensuring accurate payroll calculations
• Providing automated tax filing
• Reducing human error
• Easing the navigation of complex or changing compliance regulations
• Automating and accessing tax forms
• Detecting issues promptly with alerts

12. Succession Management

Game of Thrones would’ve had a far less dramatic ending if Daenerys had a succession plan in place. Effective succession management ensures smoother leadership transitions and stabilizes daily operations during major changes.

Whether it’s due to retirement, a merger, or unexpected departures, this HRIS module helps identify high-performing employees to fill executive roles and develop a realistic plan for your organization.

Succession preferences dashboard. Source

According to our research team, conducting exit and stay interviews provides invaluable insights into employee experiences and helps identify factors influencing engagement.

Survive leadership vacuums, protect workplace morale and ensure the replacements are suitable with succession management.

• Succession Planning
• Talent Insights Dashboard
• Talent Matrix
• Talent Pool
• Talent Reviews View
• Nine Box Grid

Get our HR Software Requirements Template

13. Reporting and Dashboard

The feature provides a visual overview of key metrics and data insights. With clear forecasts and data at your fingertips, decision-making becomes more efficient and less intimidating.

The process gets even smoother when all your needed data is in a centralized dashboard. It saves time searching for details and helps find productivity bottlenecks.

An admin dashboard. Source

Reporting and dashboards help with:

• Recruitment Analytics: Dashboards make it easy to see how your recruitment efforts perform. They can show important metrics like how long it takes to fill positions, where your best candidates are coming from and the quality of those candidates. This helps you fine-tune your hiring strategies.
• Workforce Planning: Dashboards visualize workforce demographics and trends, helping plan for future hiring needs and identifying skills gaps.
• Compensation Analysis: Reports on salary and benefits support HR in ensuring pay equity and competitiveness in the job market.
• Compliance Monitoring: Generate reports to ensure compliance with labor laws and regulations.

On the topic of compliance, many businesses have landed in hot water with OSHA. For example, in 2022, Amazon faced 14 record-keeping violations.

Accurate reporting is pivotal to meeting OSHA requirements (ensuring your team is protected and avoiding fines or citations). Also, if an incident does happen, having detailed reports facilitates quick and effective responses.

• AI-Based Dashboard View
• Charts and Visualizations
• Custom Filters
• Custom Reports
• Dashboard Builder
• Pre-Built Dashboard
• Pre-Built Reports
• Report Export
• Report Scheduling

14. Workforce Management

A successful business relies on productive workforce management. HR solutions help streamline operations and productivity while ensuring proper staffing and minimizing labor costs.

A labor cost analysis dashboard. Source

Get valuable data and analytics on:

• Workforce performance
• Attendance patterns
• Historical data
• Skill gaps
• Goals and objectives

It empowers HR management to make informed decisions about staffing, resource allocation and workforce development, contributing to strategic planning.

For example, In 2016, Diebold bought Wincor Nixdorf, which left them with two different HR systems: Oracle E-Business Suite and SAP. This complicated effectively accessing employee data and managing HR processes. The company wanted to make workforce management simpler (especially considering they operated in 62 countries).

They turned to Oracle HCM Cloud. The result? Instead of taking three weeks to get workforce reports, it went down to five minutes (also easing decision-making). About 96% of service requests could be handled directly by employees, which helped reduce the workload on HR admins.

Determining Your HRMS System Needs

When searching for the best HR solution, figuring out your business needs and setting short-term and long-term goals is crucial to paving the way.

Consider the following key factors:

HR administrators juggle a multitude of responsibilities. Using features for task automation and streamlining processes lets HR administrators prioritize strategic decision-making while fostering employee skill development.

Poor communication at work affects your bottom line, impacting turnover, delaying decision-making and continuing unresolved conflicts between coworkers. A shared platform is key to efficient workplace communication, especially for remote and hybrid teams.

Solutions must provide actionable insights from employee performance, turnover and relevant data trends for facilitating effective decision-making.

Blockbuster’s downfall came from its failure to adapt and outdated methods. By not analyzing market trends and customer preferences, they missed opportunities to innovate and improve their service. In contrast, Netflix saw an opportunity to fit customer demands better and crafted a more convenient, user-friendly model.

Giving employees more control over their information, performance analytics and learning management saves time and boosts accountability.

In 2019, Microsoft rolled out its MyAnalytics tool, giving employees a peek into their work habits and productivity. With access to performance data, employees can spot areas to improve and set personal goals (helping boost accountability).

The HRMS solution should facilitate accurate record-keeping, generate compliance reports and support audit trails, ensuring compliance with local, state and federal labor laws.

Your chosen solution needs scalability, ensuring it can support changing needs as your business grows.

For detailed insights into the features provided by various solutions in the market, check out our free Jumpstart Platform.

Tips for Evaluating HRMS Software

• Define Your Needs: Before diving into the sea of options, take a moment to sit down with your HR team and outline what you really need. Consider specific functions like recruitment, payroll and performance management. Knowing your must-haves will help you narrow down your choices and avoid opting for more flashy features you don’t necessarily need.
• Determine Your Budget Range: Don’t only look at the product’s sticker price. Identify any ongoing costs, like maintenance and training, and build those into your budget.
• Create a Scorecard: Start by evaluating each vendor according to the criteria that matter most to your business. This helps identify the vendor that best aligns with your unique wants and needs. As tempting as a pros and cons list can be, consider using our Express App platform to more easily compare up to five products (each scored based on your selected requirements).
• Try Before You Buy: Request demos and take advantage of trial periods. This hands-on experience will give you a feel for the user interface and whether it suits your team’s workflow. Plus, it’s a great way to spot any potential dealbreakers early on.

Additionally, check out our Lean Selection methodology for guidance on identifying the top two or three options that best fit your business requirements.

On the topic of dealbreakers when considering HR software, Evans expressed:

Digital onboarding, intuitive reporting, talent management, time management, document management and compliance management. These are all integral to an efficient and effective HRIS.

We’ve changed our software a few times. When we’ve had a really effective implementation team with our new partners, the transition has been much easier.

When we haven’t had effective implementation teams, it has taken a significant amount of leg work from our internal team, which isn’t easy if you’re a mid-sized company with a smaller People and Culture department.

Maghen EvansHuman Resources Manager, Body Art Alliance

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FAQs

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Next Steps

Having an HR management system is like having a shield, protecting your business from mistakes that happen through manual processes instead of automation.

Advanced features like learning systems, in-depth performance analytics and integrated accounting capabilities provide immense benefits like automating training, getting a clearer picture of strengths and weaknesses, and syncing all your financial data in one place, so you can focus on scaling your business.

Choosing the right HRMS software features can feel overwhelming with so many great options. The key is carefully evaluating your business requirements.

Feeling lost in the sea of HRMS products and features? Our HRMS requirements template is an excellent place to start. Just pick your top features and see which products match best. Good luck!

Which HRMS features are at the top of your list? Let us know in the comments!

SME Contributors