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What is an HRM system and why is it worth implementing?
An HRM system supports recruitment, assessment, competency development, and staffing planning, and, depending on the chosen solution, also ongoing employee management. It combines data from these areas, automates repetitive tasks, and provides the information needed by managers and management. A well-tailored solution reduces time spent on administration and helps better plan team development.
Recruitment, employee evaluations, training planning, and competency development require up-to-date data and ongoing collaboration between HR and managers. If an organization manages these processes in separate spreadsheets, documents, and messages, it's difficult to track progress, compare results, and plan staffing needs. Therefore, it's worth implementing a human resources management system in which all involved work with the same data, and tasks and responsibilities are clearly defined.
Table of contents
What is an HRM system and why is it worth implementing?
An HRM system – what is it and how does it differ from HR software?
How does an HRM system work?
Employee data and records
Working time, absences, and business trips
HR, payroll, and employee benefits
Employee recruitment, onboarding, and departure
Assessments, training, and competency development
Employee and manager self-service
Reports and data exchange with other systems
What HRM systems are available on the Polish market?
Typical HRM systems
Ready-made applications to support HR
Is it worth implementing an HRM system?
How to implement an HRM system?
Summary
FAQ
An HRM system – what is it and how does it differ from HR software?
An HRM system (Human Resource Management System) is software that supports human resources management, from recruitment and onboarding to assessments, training, competency development, and workforce planning. It collects data used in these processes, automates selected tasks and workflows, and facilitates collaboration between the HR department, managers, and employees. It can also support career path planning and personnel data analysis.
HR systems are a broad term for software supporting employee management. They can encompass day-to-day administration, recruitment, assessment, training, and personnel analysis. HRM systems focus on processes related to employee acquisition, assessment, and development, as well as the use of data in workforce planning and personnel decision-making.
In practice, the line between these concepts is blurry, and vendors use different names for their solutions. Therefore, before choosing a system, it's worth checking not so much its name but its available features, integration options, and the range of supported processes.
Table 1. Comparison of HR and payroll systems, HR, and HRM. This division is arbitrary, as the names and scopes of the systems used by vendors partially overlap. Source: prepared by the authors.
| Area | Human resources and payroll system | HR system | HRM system |
| Main applications | Formal employment and billing management. | Process management throughout the entire employment cycle. | Employee acquisition, assessment, and development, and staffing planning. |
| Typical features | Employee documentation, payroll, timesheets, absences, and billing. | HR functions, self-service, recruitment, development, and reporting (depending on the system's scope). | Recruitment, employee onboarding, assessments, competencies, training, career paths, and workforce planning. |
| Nature of support | Administrative and billing. | Administrative and operational, and depending on the scope, also developmental and analytical. | Operational, developmental, and analytical. |
| Data utilization | Employment records and settlement preparation. | Ongoing process management and employee data reporting. | Analysis of competencies, performance, and staffing needs, as well as support for personnel decisions. |
| Managers' role | Usually limited to data needed for time and payroll processing. | Approving applications, scheduling work, and accessing team information. | Participating in recruitment, assessments, development planning, and competency management. |
| Relationship with HR and payroll | Managing HR and payroll processes as the primary area of responsibility. | May include HR and payroll functions or work with a separate solution. | Usually utilizes HR data and connects it with recruitment, development, and analytical processes. |
How does an HRM system work?
The scope of an HRM system depends on the selected modules and the organization's needs. It can include employee records, working time, and payroll, as well as recruitment, assessments, training, and competency development.
Employee data and records
The HR department can store personal data, employment information, contracts, annexes, qualifications, and other HR documents in the system. An electronic employee file facilitates managing access to documents and monitoring their retention dates, medical examinations, occupational health and safety training, and periodic contracts.
Working time, absences, and business trips
Employees record working time and submit leave requests, while managers create schedules and approve absences. The system can also handle remote work and business trips, retrieve data from time trackers, and transfer it to payroll.
HR, payroll, and employee benefits
If the solution includes HR and payroll modules, it also supports payroll calculation, civil law contract settlement, and the preparation of documents for the Social Insurance Institution (ZUS) and the tax office. It can also manage bonuses, Employee Benefits Fund benefits, allowances, subsidies, and employee loans.
Employee recruitment, onboarding, and departure
The system allows, among other things, the publication of job offers, the collection of candidate documents, and the subsequent stages of the recruitment process. After hiring, it supports the preparation of documents, position assignments, and onboarding tasks, and upon termination, it supports the completion of formalities and the return of entrusted equipment.
Assessments, training, and competency development
The system allows you to create assessment sheets, competency catalogs, training plans, and development paths. The collected data helps identify training needs, plan promotions, and track changes in the qualifications of individuals and entire teams.
Employee and manager self-service
Employees can submit applications, check rosters, download documents and pay slips, and update their data. Managers approve team matters, monitor absences, and access the information needed for work planning without requiring the HR department's involvement.
Reports and data exchange with other systems
Reports can include work time, absences, qualifications, training, and HR processes. Integration with HR and payroll systems, ERP, time tracking, and other applications reduces manual re-entry of the same information.
JWhat HRM systems are available on the Polish market?
The Polish market offers both standalone HRM systems and comprehensive HR and payroll solutions equipped with recruitment, assessment, training, and competency management features. These include Comarch and Teta systems, which can be tailored and configured to suit the size of the organization and the scope of its HR processes.
Typical HRM systems
One such solution is Comarch HRM – a web and mobile application that works with the HR and payroll modules of Comarch ERP systems. It supports work time planning and recording, leave, absences, business trips, and remote work, as well as recruitment, employee assessments, training, and qualification management. It complements the HR and payroll system with selected HR processes and self-service – employees can, among other things, submit applications and check their data, and managers can approve team matters. Integration ensures the exchange of information between the application and the HR and payroll modules.
OPTeam also offers solutions from the Teta family. Teta HR combines HR and payroll with both hard and soft HR processes, including recruitment, timesheets, training, and benefits. It is complemented by Teta ME, which enables employees and managers to manage HR matters remotely.
Ready-made applications to support HR
Another way to digitize HR processes is to use a low-code platform, which allows you to create applications tailored to your organization's procedures. An example of such a solution is nAxiom, with its ready-made nAxiom HR application suite. It includes features such as electronic employee files, leave requests, business trips, time tracking, bonuses and employee benefits from the Employee Benefits Fund, employee onboarding and termination, evaluations, and competency development.
An organization can deploy only the necessary applications, customize document workflows, rules, and approval paths, and add additional processes over time. Integration with the HR and payroll system allows for automatic data transfer between solutions. nAxiom HR can therefore complement existing software or create an environment that supports selected HRM processes in line with the organization's workflow.
Is it worth implementing an HRM system?
An HRM system brings the greatest benefits to organizations that manage HR processes across multiple, disconnected systems, repeatedly enter the same data, or want to better plan employee development. However, the scale of the benefits depends on how well the solution is tailored to actual needs and how it is implemented correctly.
- More efficient employee service. Employees can handle current matters more quickly and more easily obtain necessary information, while managers do not need to involve the HR department in every decision. This shortens application processing time and reduces the number of questions directed to HR specialists.
- Easier processing of repetitive matters. Automated application workflows, reminders, document generation, and data transfer between processes reduce administrative tasks. Instead of routine processing, the HR department focuses on developing competencies and planning staffing needs.
- Consistent employee data. Information on employment, absences, training, assessments, and competencies is available in interconnected processes. Eliminating the need to repeatedly enter the same data reduces the risk of discrepancies and facilitates the preparation of reliable reports.
- Greater control over process flow. The system displays application status, examination and training dates, recruitment stages, and assessment completion. Specific approval paths and reminders reduce the risk of delays, missed deadlines, and omissions.
- Improved employee development planning. Data on qualifications, assessments, and training help identify development needs, select training opportunities, and plan promotions and internal recruitment. The organization can more accurately utilize available competencies within teams and identify gaps earlier.
- A better basis for personnel decisions. Reports on work time, absences, recruitment, training, and competencies support hiring planning, team staffing, and employee development.
- Expandable solutions. Modular systems and low-code applications can be expanded with additional features, integrated with other tools, and adapted to organizational changes. The organization doesn't have to immediately implement the full scope or replace the entire solution as new needs arise.
- Support for compliance and employee data protection. Permission management, transaction history, deadline control, and electronic document storage help reduce the risk of unauthorized access, missing documentation, and missed deadlines. However, their effectiveness depends on the system configuration, adopted procedures, and proper access management.
How to implement an HRM system?
Launching an HRM system is just one stage of implementation. Before doing so, you need to identify the organization's needs, prepare data, configure the solution, connect it to existing tools, and train users.
Therefore, it's worth starting by choosing a partner who will manage the project, from system selection to its maintenance and further development.
The implementation process consists of:
- analysis of HR needs and processes,
- selection of the solution and implementation scope,
- configuration of the system, modules, and applications,
- data preparation and migration,
- integration with other systems,
- testing,
- user training,
- system launch,
- technical support, and further development.
Summary
System HRM wspiera procesy od rekrutacji i wdrożenia pracownika, po oceny, szkolenia, rozwój kompetencji i planowanie zatrudnienia. Ułatwia dostęp do danych, skraca obsługę powtarzalnych spraw i pomaga menedżerom lepiej organizować pracę zespołów. Organizacja może wdrożyć gotowy system, np. Comarch HRM czy oprogramowanie Teta HR i Teta ME albo zbudować własne rozwiązanie na platformie low-code, np. wykorzystać gotowe aplikacje nAxiom HR. O powodzeniu projektu decydują trafny dobór narzędzia, integracja z używanymi systemami i dobre przygotowanie wdrożenia.
FAQ
1. What does the acronym HRM mean?
HRM stands for human resources management. The term Human Resources Management System refers to software that supports these processes, including recruitment, assessment, employee development, and work organization.
2. What are the basic functions of an HRM system?
The basic functions of an HRM system include recruitment, employee onboarding, assessment, training, competency management, time recording and billing, absence and request management, and report preparation.
3. What does an HRM system enable employees and managers to do?
The system allows employees to independently manage selected matters, such as submitting applications and downloading documents. Managers approve team matters and use the data needed for work planning, competency development, and human capital management. Each employee's access level depends on their role and assigned permissions.
