| A Human Resource Management System (HRMS) is | | | | part of many employee compensation packages. A |
| an Enterprise Resource Planning (ERP) software | | | | Benefits Administration module enables organizations |
| application that specifically deals with personnel issues. | | | | to process employee participation in benefits programs |
| These systems are often integrated with other | | | | such as life and health insurance, profit sharing, stock |
| business applications such as finance. Over the years | | | | purchases, and retirement pensions. The best systems |
| managing an organization's human resources has | | | | provide detailed reports that help the organization |
| become more and more complicated. This key | | | | devise an attractive and yet relatively inexpensive |
| functional group must track employee data including | | | | benefits package for their employees. |
| education, job history, skills, and personal information. | | | | In good economic times organizations must constantly |
| For decades it has been virtually impossible for | | | | try to recruit new employees. Even if the company is |
| medium and large organizations to manage the wealth | | | | not presently hiring, it should gather resumes of |
| of human resources data effectively and efficiently | | | | qualified candidates so it can fill positions rapidly when |
| without using computers. In the past HRMS ran on | | | | the need arises. In the Internet world much of this |
| large, centralized mainframe computers. Now many of | | | | recruiting is done online. Online Recruiting has become |
| these systems are available on microcomputers. Let's | | | | a major Human Resources application. Talent |
| look at some of their typical components. | | | | Management systems, also known as Applicant |
| The Payroll module gathers data on employees' hours | | | | Tracking Systems, analyze the organization's current |
| worked and absences. Depending on its sophistication | | | | personnel usage and needs, identify qualified applicants |
| this module calculates taxes and other deductions and | | | | whether internal or external, and handle the actual |
| generates a series of employee paychecks, | | | | recruitment process. A major function of such |
| government checks, and multiple reports. It must apply | | | | systems is assuring compliance with Equal Opportunity |
| to the letter federal, state, and municipal tax regulations, | | | | Employment laws. |
| and a series of other technical documents including | | | | The preceding is by no means a complete list of |
| union and non-union contracts. Some payroll systems | | | | Human Resources modules. Other modules analyze |
| calculate and track overtime. Many of them | | | | employee production, track individual qualifications and |
| automatically deposit employee paychecks. Ideally data | | | | company training efforts, and provide general |
| coming from the payroll module feeds into financial | | | | management of the HR function. Interested companies |
| management systems and helps managers make | | | | may choose from a wide variety of off-the-shelf HR |
| financial decisions. | | | | systems. Many vendors are willing to make extensive |
| We all know that benefits are an increasingly important | | | | modifications to their computer systems, for a price. |