Answering the 5 Most Asked Questions on HRM Software

HRM software have continued to develop over the years to a point they provide a lot of benefits and ease to your business. As these software continue to add features, there have been a lot of questions asked about them. So today we answer 5 of the most asked question on HRM Software!

1. Which feature of HRM software helps in giving performance review?

HRM software these days incorporate various features to evaluate performance. There are loads of criterion that HRM software generates analytics upon that helps you make decisions about whether you are making the most of your workforce.

One of the upsides of HRM software is that it helps you evaluate each employee. You can take feedback from team leaders and add private notes for all your employees. So that at the end of an evaluation cycle, you have all the observations stored in a place.

You can assign tasks and deadlines for teams through the HRM software and see if the deadlines are being met.

HRM software enables you to track employee leaves and absence. You can judge whether all of your staff members are following the company schedule and leave policies. You can make announcements based on that analytics in case you want to change these policies.

You can get reports based on your company demographics. For example the salary range of employees, average age and gender of your team members, etc. This lets you judge performance from innovative viewpoints and evaluate accordingly.

2. Why does a business need an HRM software?

HRM software helps you make your HRM functions smarter and faster. The main role of HRM software is to help your HR team work efficiently.

There are some key benefits you get when getting HRM software for your company:

  1. Performance Evaluation– As mentioned above, HRM software generates analytics that helps you assess the performance of your team.
  2. Payroll management– HRM software makes the function of managing payrolls extremely fast. You can add all the salary and benefits information to the employee details. You can even set reminders to follow up on increments or other payment-related deadlines.
  3. Recruitment- Recruitment is the first step to build a great HR team. HRM software helps create candidate profile. So you can match the requirements for a specific vacancy. It makes the application process much easier too. Candidates can take only tests and thus save time and space. You can even provide online training through the HRM software.
  4. Location Management– If your organization operates from a number of locations, this feature is really helpful. It lets you manage all the employees from different branches in a single virtual space.
  5. Employee Dashboard– The employees have their own personal dashboard where they can organize work. They can even operate in teams and share information. This helps improve communication within the entire organization.
  6. Designation Management– You can see the number of employees working per department. You can decide if a department is overstaffed/understaffed or has a new vacancy.
  7. Leave Management– HRM software is a single platform where you can keep all the details on employee leaves, schedules, and holidays so that you can plan accordingly.

3. What kind of HRM software is suitable for small businesses?

Many HRM software are designed specifically to business sizes. Some HRM software provide free services in case your total employee number is less than 5.

Open source HRM software helps you save the cost of basic HRM software features. You can then customize the software with plugins specific to your needs.

Even if your business is small right now, it can always grow in size. So the best time to start using an HRM software is from the very beginning. That way you get to have all your data stored and sorted from the start.

You can make use of free trials that most companies offer and judge through that which features work best for you. Some software let you make your own custom plans that are cost-effective with good options for HRM in a small business.

4. How does monthly system work in HRM software payroll management?

HRM software has an employee listing feature in its software. This feature enables you to store all the payment information in a place. You can also add tax deductions, expenses, and increments for each employee.

In case you pay or hire employees on a monthly basis, you can set a schedule for the payment date. Reminders enable you to know the exact date a payment is due.

The attendance management system lets you see if any employee has worked overtime or is on unpaid leave. At the end of the month, you get generated reports that make the overall payroll management system much less time consuming and efficient.

5. How to use HRM software across various branches of an organization?

The location management feature is the best option for HRM across various branches.

You can easily input all your branch details in the HRM platform. After that, you can list all the employees of a specific branch.

Custom groups are easy to create through HRM software. All the branch managers can communicate through this feature and stay updated.

The HR dashboard can be simply updated whenever an employee is posted to another branch. Therefore you can keep track of how many employees are there in a particular branch location.

The software is a common platform throughout all your branches and can help to make employees from all the branches cooperate. Therefore HRM through multiple branches becomes very well-organized.


These questions are often frequently asked because each of them are very valid. However, there are certain myths too that surround the HRM software technology. So be careful to not fall for them! Read our next article where we debunk myths related to HRM software.