HRMS Solutions: 7 Ways to Help Your Business Grow

If you’re considering a new Human Resources Management System (HRMS) platform, you’re not alone, according to new research from Sapient Insights.

According to the 27th Annual HR Systems Survey Report, 10% of respondents said their company has already decided to invest in a new HRMS in 2025 — and another 8% said they plan to make an HRMS change in 2025 and have started the request-for-proposal process.

Why the uptick in interest? Many company leaders have prioritized tech spending — and HRMS platforms provide companies with distinct benefits, notably saving money while tracking performance and eliminating redundant HR tasks.

So, whether you’re looking to implement an HRMS in your business or trying to make a business case for an upgrade in the coming year, here are seven ways an HRMS platform will help your business.

1. Accelerate Your Hiring Process

In a competitive hiring market, attracting top talent requires a streamlined process. This is because HR and hiring managers are juggling multiple tasks: crafting compelling job listings, fielding a high volume of applications, identifying best-fit candidates, and facilitating smooth interviewing and onboarding experiences.

An HRMS can help you create job listings and source top talent by analyzing resumes by keyword, and it can also assist by automating some of the paper-based processes to make onboarding easier for you and your team if that employee is hired. This feature is amplified when you integrate your HRMS with an applicant tracking system, which helps you dig deep into employee analytics, solve hiring bottlenecks and discover who needs hiring help in your company.

2. Retain Your Best Employees

Retaining employees is often a matter of engaging them.

Engaged employees perform better because they feel like they’re a part of a team, enjoy the work they do and want to learn more about it to improve themselves and their performance.

HRMS solutions boost employee engagement by providing a way for employees to continue their education with training and development programs. Many HRMS options have an e-learning feature with courses that employees can complete at their own pace.  

Training and development opportunities often outrank monetary benefits in employee satisfaction surveys. Giving your team chances to grow and learn with the company not only keeps them around longer but also builds loyalty. Plus, better training means more skilled and confident employees — a win-win for everyone.

3. Automate Repetitive HR Tasks

If you’re always bogged down handling repetitive tasks and routine administrative work, you certainly won’t have much time to focus on more in-depth projects like improving employee experience and closing skills gaps.

So what tasks can be automated with HRMS?

• Payroll. Track and automate payments, maintain records, calculate taxes and withholdings, and safely manage direct deposit information. Employees can even access their paystubs electronically.
• Benefits. Automatically update and track benefits such as insurance, PTO, 401(k)s and FMLA leave.
• Timekeeping. Monitor employee attendance, track hours and overtime, create timesheets and maintain time clocks.

HRMS vendors offer modules like these to automate repetitive and time-consuming tasks. When tasks are repetitive, errors become more likely — and even mistakes can be costly. Automating these processes improves record accuracy, prevents duplicate entries, and reduces errors overall, saving time and money.

4. Save Time With an Employee Portal

You may have employees who work from home or in a different office location. Enabling them to access an employee self-service portal to change their address, request PTO, see 401(k) rates, or link to any insurance or other benefits saves a lot of time for the employee, their manager and the HR department.

It’s not just for offsite employees, either. Even on-site workers can find answers to many of their questions simply by accessing this information. For instance, they could check their pay rates, vacation accrual balances, sick leave totals, or upcoming pay schedules.

Additionally, if your company uses HRMS to track employee KPIs, employees can monitor performance metrics ahead of any sort of performance review meetings.  

5. Improve Employee Performance

We all know that the mere thought of a performance review is enough to strike dread into the hearts of workers and managers alike. But what if you could alleviate the stress, have accurate job performance data and know that you and your employee (or manager) are on the same page before the meeting even occurs?

HRMS allows employees to track their progress in the employee self-service portal. They can develop their professional goals and make adjustments and improvements to their work based on this data.

Managers have access to this same information, and with it, they can make suggestions, give more accurate feedback and assist employees with goal planning. Management can even recognize an employee’s achievements before the meeting or in between meetings, enabling them to reward good work – which is essential to better performance and productivity.

HR’s Compliance Toolkit: Stay Ahead of Changing Federal and State Regulations

6. Secure Employees Data

Employers are responsible for employee data security and staying in compliance with evolving data privacy regulations can be daunting. HRMS solutions can help by providing features that ensure compliance with regulations like the California Consumer Privacy Act. These features can include tools for managing user access controls, data encryption and streamlining data subject access requests.

Although an HRMS isn’t a substitute for a comprehensive data security strategy, a well-chosen HRMS can significantly reduce the risk of data breaches and help you manage employee data responsibly.

7. Go Paperless

Here’s how an HRMS can help you go paperless and reduce office clutter:

• Signatures and approvals on contracts can be done within an HRMS
• Digital records are safely maintained by the HRMS vendor on their servers, and
• Payroll can be sent via direct deposit instead of paper checks.

Finding an HRMS for Your Business

HRMS solutions can help your business grow by attracting and retaining staff, freeing up time for strategic tasks and helping to improve employee performance.

Investing in the right HRMS for your business needs is the most important factor, so make a checklist of what you need. Then, check out Best HR Tech Vendors for Small Businesses in 2025 to research which HR tech tools best align with your company’s needs.

If you’re interested in seeing all that HRMS has to offer, take a peek at our definitive guide
to HRMS to learn more.