Functionality of HRM systems

According to materials of Forrester Research, the modern integrated HRM systems contain six main functional units which are responsible for payroll, accounting of employees, recruiting, talent management, performance management and training and also interaction of users with a system.

Forrester Research, 2012

If earlier experts of Forrester selected three main levels in HRM - user, operational and strategic, then in 2012 they significantly reviewed the scheme of mainframes HRM systems. Now six blocks are grouped a little in other principle, being the user level, the level of development of personnel and also level of basic transactions.

Below the specified levels are considered in detail:

User level

Means of the user interaction

• Interaction of employees with a system
• Interaction of managers with a system
• Interaction of temporary employees in a system
• Means of communication and content
• Reports and analysis

Level of development of personnel

Performance management and talents

• Performance management of employees
• Planning of success
• Management of competences
• Training management
• Management of career promotion

Management of compensation process

• Structuring salary
• Formation not of monetary compensations
• Payments of bonuses

Management of recruiting process

• Planning of hiring of personnel
• Exposure of vacancies
• Processing of requests of applicants
• Adaptation of new employees

Level of basic transactions

Human resource management

• Control of working time
• Analysis of working time
• Control of overtime

Basic transaction processes

• Record and data storage about employees
• Management of benefits
• Payroll
• Management of positions
• Observance of statutory and regulatory requirements

Apparently from the provided scheme, development of management tools a human capital where talent management, employee development and their training and also management of efficiency of personnel belongs, paid radical attention to understanding that there is a HRM system. Today similar tools are considered as an integral part of the HRM platforms provided by large vendors.

The scheme of Forrester Research is given in the original below.

Forrester Research, 2012

The most demanded functions

According to^[1] for 2012, in respect of the choice of functionality of HRM systems the serious shift for benefit of management tools a human capital really was outlined.

Top of 20 most demanded HRM functions of systems

TEC, 2012

The most demanded functional units of personnel management systems are given on the chart below. As it appears from it, along with direct manipulation by employees (demands - nearly 70%), on the second place, advancing payroll (45%) performance management of employees (53%) follows. For comparison, analytic functions are approximately in the middle of rating (a little more than 30%), and, apparently, such demanded block of functions as management of compensations was the least demanded (about 4%).

According to forecasts^[2] for 2012 and further, in the next three years three functional areas of HRM will show the maximum gain: analytics and planning of use of labor power (142%), social HRM tools (81%) and delivery of services (57%). Also large role will be played by implementation of planning tools of success and development of career and also talent management.

The most demanded HRM functions in 2012-2015

CedarCrestone, 2012

Analytics and planning of workflow: vendors will respond to need of users for more advanced means of the analysis and planning of workflow. For example, the Peoplefluent company for this purpose purchased the developer of the analytical Aquire tools. The companies will gradually approach understanding of what measurements they will need to analyze and for what solution of business challenges. They also should solve a problem of data integration of HRM systems and management systems for talents at least with financial data from other sources.

The social HRM tools become an integral part of platforms of personnel management. Such tools allow the organizations to improve and simplify use of systems for end users, and use of social tools in the field of personnel management can be the widest.

Delivery of services means that vendors should work seriously over interfaces of solutions for final employees and HR managers. The impossibility of end users to master work with a system often is the reason for replacement of the HRM platform. More effective user experience can be provided not only at the expense of social tools as it was already told above, but also mobile functions.

Notes