Are you in the process of expanding your workforce and finding your current HR softwarefalling short? Whether you’re embarking on a quest for a new HR solution or upgrading your existing HRIS modules, a meticulously crafted requirements checklist is your compass for successful implementation.

Are you ready to take the next step in your software search but unsure where to start? We’ve created a thorough HR system requirements checklist, helping you prioritize your must-have HRMS software features and requirements.

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Article Roadmap

• Determining Your HRMS System Needs
• Key Features
  • Document Management
  • Applicant Tracking and Recruiting
  • Employee Onboarding and Administration
  • Performance Management
  • Benefits Management
  • Compensation Management
  • Time and Attendance Management
  • Learning and Professional Development
  • Employee Engagement
  • Employee Self-Service
  • Payroll Management
  • Succession Management
  • Reporting and Dashboard
  • Workforce Management
• Next Steps

Also, explore our free Jumpstart Platform for detailed insights into the features provided by various solutions in the market.

Determining Your HRMS System Needs

Identifying your business requirements and defining long-term and short-term objectives is critical when selecting the best HR solution.

Consider the following key factors:

• HR administrators deal with a multitude of responsibilities. Using HRIS modules 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.
• Giving employees more control over their information, performance analytics and learning management saves time and boosts 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.

Get our HR Software Requirements Template

Key Features

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

1. Document Management

Your HR system’s document management is pivotal for compliance, 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

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 tracking and generating reports easier.

This module also offers the following additional capabilities:

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

2. Applicant Tracking and Recruiting

HRM software is pivotal in handling all your human resource tasks seamlessly across the employee lifecycle, beginning with recruitment and hiring. While job seekers might feel like they’re in the hot seat, preserving a positive reputation means employers must provide a positive recruiting experience. The candidate experience also influences post-hire retention and employee engagement.

Automated features like resume screening and scheduling tools streamline 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 predetermined criteria as the applications start pouring in.

• Talent Pool Search
• Recruitment Pipeline
• Automated Job Posting
• Interview Management
• Employee Referral
• Creation of Career Pages
• Career Portal

Get our HR Software Requirements Template

3. Employee Onboarding and Administration

Onboarding and administration give employees a first impression of their new job and the company as a whole. In fact, 69% of employees are likelier to stay with a company for three years if they experience a great onboarding process..

An HR management solution ensures new hires start on the right note — with about 20% of employees leaving after their first 45 days. This requirement provides new hires with relevant information and acquaints them with the tools and techniques to enhance performance from the get-go, increasing the likelihood they will be more engaging in their role.

4. Performance Management

According to SHRM, the primary purposes of performance management are employee decision-making and employee development. Human resource management software with a robust performance management module 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

Performance assessments provide information on employee productivity and customer satisfaction. These assessments provide automated feedback, or HR departments can base their reviews on the analysis provided by the software.

Depending on the system, employee performance feedback may be visible to the workforce via a dashboard or some other interface, eliminating the need to notify employees via email or schedule time-consuming performance review meetings.

5. Benefits Management

Employee benefits attract and retain employees while boosting employee satisfaction and supporting workplace loyalty. So, managing employee benefits, including healthcare and 401k contributions, is an essential capability. This module facilitates the workflow and information for benefits.

Additionally, having this module:

• Lets employees enroll in benefits independently, reducing errors and extraneous work.
• Supports employee retention and job satisfaction
• Ensures compliance with laws and regulations relevant to employee benefits

7. Time and Attendance Management

HR systems offer scheduling and attendance tracking, ensuring compliance with staffing needs. This HRIS module helps:

• Schedule employees across departments, locations and projects
• Reduce time theft like buddy punching
• Enhance payroll accuracy
• Increase accountability

Many platforms alert employees about schedule updates or inadequate staffing, reducing scheduling conflicts.

Paper timesheets are more vulnerable to fraud and human error. Missing or incorrect time punches can cost your business roughly $78,700 per 1,000 employees yearly. Fortunately, electronic timesheets make payroll and time tracking run smoother. Time off management handles paid time off accrual and uses like disability leave and maternity/parental leave.

• Absence Management
• Blackout Dates
• Calendar View
• Expense Management
• Leave Request Analysis Dashboard
• Overtime Tracking and Alerts
• Time-Off Approvals
• Timesheet Reports
• Timesheets Management
• Time-tracking Methods

8. Learning Management

Training and learning courses are vital to keeping your workforce up-to-date. According to the 2023 Workplace Learning Report, 93 percent of organizations are concerned about employee retention, and the number one way to improve retention is by “providing learning opportunities.”

A learning management system (LMS) included in a human resources management platform is usually pre-loaded with educational resources and offers options to upload customized materials.

Some HR solutions also tie into external systems to help provide course content.

The benefits of learning management systems include:

• Tracking employee certifications to minimize staffing and planning issues.
• Streamlining training for new hires and providing personalized training
• Provide continued learning for current employees
• Managing employee goals
• Identifying skill gaps

Get our HR Software Requirements Template

9. Employee Engagement

Employee engagement is crucial for maintaining an employee’s connection and loyalty. An HR management solution helps foster a healthy work environment with capabilities for communication, timely feedback and employee well-being.

• Artificial Intelligence in Survey Analysis
• Employee Comments Analysis
• Heatmap
• Survey Generation and Distribution

Low engagement has different forms. It’s not always to spot the warning signs. A newer type of low engagement called quiet quitting can be challenging to recognize because while employees still show up to work, they choose to do the bare minimum, according to BetterUp.

Gallup revealed in 2022, 18% of part-time and full-time employees were actively disengaged. Additional ways you can boost employee engagement include:

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

10. Employee Self-Service

Self-reliant employees are typically more confident in their responsibilities, saving managers time on routine administration. As a key HRIS module, employee self-service lets employees access and update their information, ensuring that the database information is accurate.

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

Employee self-service (ESS) platforms provide workers access to important documents like W2s, paystubs and payroll details. Earlier, we touched on employee engagement and having employee self-service helps increase employee engagement because ESS portals have hubs where coworkers can connect. ESS also helps keep teams on the same page with notifications and updates.

If you want to learn more about ESS, check out our article on 7 Ways Employee Self-Service Can Help Your Company.

11. Payroll Management

Payroll management helps administer accurate financial records of employees. It keeps track of their details — salaries, incentives, benefits, bonuses, deductions and net pay. HR solutions streamline financial workflows and simplify payroll processes for the employer.

• Advance Salary Processing
• Automated Tax Filing
• Custom Earning Codes
• Lifetime Accounts
• Multiple Payment Options
• Overtime Pay
• Pay Previews
• Payroll Reporting
• Pay Stubs Creation
• Workers’ Compensation

According to an Eyquest analysis in 2022, the average business had at least 15 payroll corrections for every pay period. The amount of time it takes to fix payroll errors can vary, putting you at risk for delays that hurt your budget and reputation.

Opting for HRMS software supports your payroll process, like providing automated tax filing. Here are some of the other benefits of payroll management:

• Ensure accurate payroll calculations
• Reduce human error
• Navigate compliance regulations
• Automate and access tax forms
• Detect issues promptly with alerts

12. Succession Management

Succession management impacts the future of your business. Every evolving business needs a succession plan. This HRIS module helps identify and select high-performing employees to replace existing executives when they quit or retire. You can create a realistic plan for the future of your business and employees.

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

If you’re passing the torch, having a succession plan means analyzing current employees’ skills, noting potential candidates for job replacements and creating a training agenda, including mentoring early on.

Avoid leadership vacuums, protect workplace morale and ensure the replacements are suitable via succession management.

Get our HR Software Requirements Template

13. Reporting and Dashboard

Actionable forecasts and data allow HR leaders and admins to make well-informed decisions quickly. The process becomes even more efficient when all requisite data is available in a centralized dashboard, saving time finding information and streamlining key insights like detecting productivity bottlenecks.

• 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

The core of a successful business is workforce productivity. HR solutions streamline workforce operations to optimize employee productivity, ensure adequate staffing and minimize labor costs.

• Budget Planning
• Color-Coded View
• Mobile Scheduling
• Project Tracking
• Task Management
• Workforce Forecasting
• Workforce Modelling
• Workforce Scheduling
• Workforce Scheduling Alerts

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 overall strategic planning.

Get our HR Software Requirements Template

Next Steps

Regardless of your business size or industry, having a human resource management system isn’t just helpful — it’s essential for streamlining your HR operations.

HRMS automates HR processes, from payroll to time tracking, increasing efficiency. Beyond basic modules, modern businesses benefit immensely from advanced features like learning systems, in-depth performance analytics and integrated accounting capabilities.

Deciding which advanced features to use can be overwhelming, especially when they all offer prominent benefits. However, carefully evaluating your business requirements is a great first step in making finding a new HRMS less intimidating.

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

Which HRMS software features are most important to your business? Let us know in the comments!