HRMS – Human Resource Management Software Development Cost & Features

Every business enterprise- big or small primarily deals with its most important asset, i.e. its human resources. Consequently, Human Resource Management Software is common to all kinds of organizations. Nowadays, the process of recruiting, training, and managing the workforce has undergone a colossal transformation with HRMS software. Thus, tech ventures are investing in HRM Software development, whereas businesses are also developing custom HRMS software development for smooth human resource management

Technology has not left any aspect of the business arena untouched, and the human resource department is no exception to it. This is one department that is taken for granted by all the employees associated with the organization. The HR department is driven into small and easily manageable units, each one responsible for carrying out a particular task, such as recruiting new staff, training the existing workforce, retaining employees, supervising, etc. Now, to manage the entire process, business organizations require robust and competent Human Resource Management Software (HRMS) that effortlessly compiles all workforce management systems to augment business efficiency.

In this post, we will have a look at the various aspects of a well-designed Human Resource Management Software Development Process and understand how it can benefit your business along with the involved cost structure.

But before, here is a brief summary for you to take a quick review of the blog.

Summary for Quick Glance

Human Resource Management System (HRMS) is the division where businesses give exposure to the candidates with the right skills by recruiting, screening, and training them to have mutual benefit for both the employees and companies. It plays a vital role in reinforcing the predefined culture of the organization with the right onboard employees.

The market growth clearly states that the organization, employees, and candidates care about the HR tools to make better decisions. This will identify the current trends of industry, areas which need improvements, and the satisfaction levels of the employees.

This blog will strengthen your knowledge of areas in human resource management, its benefits, attire with important features, popular apps with the technology stack required.

Summing up every functionality together with the final price to develop a similar HRMS tool like the popular ones would lie around $15k-$25k.

Market Stats of HRMS Software Development

With the advancement in trending technologies like AI and predictive analytics, the industry has surged the demand for intelligent hiring resource management tools. More organizations believe in the fact to adopt a  flexible system.

Let’s understand more about it with the latest market stats;

• The size of the worldwide human resource management market was estimated at USD 21.69 billion in 2022, and it is projected to increase at a CAGR of 12.7% from 2023 to 2030.
• Observing the trends, many top leading companies take part to have their own HRMS software. Their names are Randstad, Adecco, and Manpower with a revenue hold of more than 20 B euros.
• According to Statista, the Randstad held top 6% of the HR services industry in 2020 with a market size of 373 B euros.
•  In 2022, the staffing services market was worth almost 325 billion euros, up from 275 billion euros in the previous year.
• Glassdoor, a leading review-based company, claimed that 51% of job hunters prefer to find a job with an online listing. This demand for the HRMS systems.
• Some of the popular HR applications are Workday, Harvest, and Zoho Recruit.

While in the COVID-19 fall, the working scenario of the companies has changed, and people are likely to prefer work-from-home options. Hence, this triggers the market players to provide R&D activities in HRM solutions to support the remote working model.

What is the need for Human Resource Management Software?

A Human Resource Management Software is a competent solution that offers complete control of all aspects of the management process including Recruitment Management, Payroll Management, Performance Evaluation, Work Delegation, etc. The HR software development company needs to deliver a solution that stores all the necessary data that helps in retrieving any piece of information from any place at any time. The software eliminates the need for maintaining the humongous amount of paperwork, saving a lot of effort and time for the HR managers and HR departments.

Read Also: Features for Robust HR Payroll System Development

What is an HRM Mobile Application?

Well, as it generally happens, HR managers are usually on the go. Therefore, having a competent HRM mobile app that enables them to access the complete software from their smartphone is crucially important. These apps offer adequate flexibility and the required level of access to the software, enabling managers to concentrate on their relative fields.

Let’s have a look at some of the most pronounced benefits of HRM Apps.

• Worker Directory – Apps will have complete worker profiles along with all the other relevant details. The managers can even check the current location of the employees and assign them important tasks.
• Learning –  Mobile apps are a great source for employee learning and training as they offer engaging content in the form of videos, MCQs, surveys, etc. that the employees can read and share with other members.
• Recruiting –  A recruiting app is one of the most effective ways to attract your business’s best talent. You can easily collect all their information and keep them engaged through the taxing hiring process.
• Greater flexibility- Mobile apps provide an increased level of flexibility by allowing HR managers to control and direct employees from any place. They can assign roles, delegate work, and communicate with the staff members while on the go.
• Improved engagement- Employee learning apps boost engagement by offering employees an interactive way of learning through videos, games, and other embedded content. It facilitates easy learning by making training modules more interesting.

The HR team is available on the go, no matter how busy they are. With an HRMS mobile application, it becomes easier for them to coordinate with their colleagues and the management. If you are looking forward to building strong HR management software to help your HR team have a sigh of relief, you surely are at the right place.

Benefits of Human Resource Management Software

Before you start looking for human resource management solutions development services, understand what the benefits of taking help from technology are. It is important that when you decide to build a HRM software solution for your business, it deals with all the problems that your business may face in the course of time.  Some of the advantages of integrating human resource management software with your business are:

Digitized Employee Database

The foremost function of HR software is to electronically store all employee information that can be easily managed and retrieved at the time of need. This improves the organization’s overall productivity by eradicating the need to maintain countless files with detailed workforce information. Additionally, the software is governed by robust security practices that ensure all the data is completely secure.

Payroll System

HRM software development ensures an automated payroll system that diminishes the need for outsourcing payroll to a third-party provider. The payroll system can be easily linked to employee information, time, and attendance tracking software. This helps in accurately calculating employee salaries and other benefits without any chances of error.

Read Also: Features & Functionalities of Lab Information Management Software – LIMS

Employee Self-Help Portals

Employee Self-Help Portals empower your employees by allowing them to access and maintain their own information and keep it well-updated, for instance, any change in address, marital status, etc. This largely streamlines communication and saves the HR managers a lot of time and effort for other significant operations.

Performance Management

HRM software allows HR managers to monitor the performance of each employee and obtain a clear picture of their strengths and exemplary skills. This management is especially helpful in offering special training to employees, reviewing appraisals, giving bonuses, and improving the overall productivity of the company.

Stress-free Workforce Management

With robust human resource management software development in action, there is no need for maintaining lengthy spreadsheets and assigning tasks to the employees via email. The HRM software helps in performing all significant operations on a single platform, including assigning work tasks, evaluating progress, reviewing employee performance, and even rewarding them.

Recruiting Systems

HRM software efficiently manages thousands of application forms and helps managers in locating the most promising talent. Connecting the system to the employee database can later help in quickly converting the information from the application form into an employee file without any hassle.

These are just a few advantages that one would get when taking your HR department to the digital domain. Along with this, human resource management applications play a significant role in business management and help you grow.

If you are looking forward to hiring a software development team to get HRMS Software Development solution for yourself, all you need to do is make sure that they include given important features in your solution.

Key Performance Indicators (KPIs) for HRMS Software’s seamless functioning

Intelligent automated systems that can automate the operations across various organizations in the coming year.

In the coming years, intelligent automated systems help enterprises so that they can carry out regular tasks more effectively and deliver the end-to-end customer experience in roleplay.

An HRMS software tool functionalizes the fast process to place on board. Let’s see how KPIs (key performance indicators) help the organization in dealing with the current scenarios. This is the cloud-based record software for the company that utters full security with two-way authentication.

• Using such a tool, if you can give job stability to the employees, then this helps to maximize the retention rate of the employees. So it is important for both the employee and the organization.
• This KPI tool helps to reduce the hiring time of the employees up to 90%. They will take the leaves only when needed.
• HRMS tool monitors the job openings and keeps them gauged in interactive activities. Promotions and attractive activities keep their minds more active and productive.

Types of Human Resource Management Software

When talking about the HR department, their task is never restricted to a single domain. They have a plethora of tasks that are to be accomplished and looked after. Considering the tasks that they need to cover, there could be various features that we can integrate with your software. Custom Software Development team can deliver solutions that are designed to match your standards.

Depending upon the features integrated into the software, it can be classified into the following types:

1. Core Operations HRM Software: This is the most common type of software used by organizations that are based on three significant aspects of employee management, which include basic workforce tracking, payroll administration, and benefits management. This is based on basic functionality yet eases the dreariest and most taxing jobs of an organization.

2. Strategic HRM Software: This type of HRM software is most commonly used by employment agencies as it focuses on offering the best recruitment features. It provides onboarding features along with talent management, online training modules, and other tools that help in applicant tracking and recruitment.

3. End-to-end Workforce Management HRM Software: As the name suggests, this software comes with almost all features of employee management, such as recruiting, onboarding, performance tracking, payroll management, benefits administration, etc. They help the HR managers store all employee information and turning it into operable intelligence that improves the company’s efficiency.

Popular SaaS-Based HRMS Software in the Real-World

The HRMS system is based on SaaS, which hit the big revenues of top companies like Oracle, CloudPay, and Jobvite. These highly customizable systems give flexible options to organizations without any hidden charge.

It contains some of cutting-edge features like workforce analytics, HR compliance management tools, process design control, giving an additional edge to the SaaS HR service offerings and many others.

For any company, HR is an important tool to credit a talented staff as the core part.
It widens the road to an exceptional HR experience.

1. Zoho People – HRM Management Platform

With the help of Zoho People’s extensive human resource (HR) solutions, HR professionals can manage their workforce, keep up with personnel databases, and oversee benefit plans. Zoho People is a cloud-based HRMS platform. The HR staff can easily perform complicated HR activities with the help of this simple yet complete HR software.

2. Harvest Time and Expense Tracker

It is one of the best time-tracking platforms for HR teams, where more than 50k companies prepare regular invoices to track the time and reports. Send the notifications on time to alert the employees. This useful app can easily sync with the alongside projects in real-time. Your employees can just sign in with a web browser to access all of the functionalities.

Harvest gives a free trial usage for 30 days, more than that, you have to pay for continuing services. Get the pulse of your business today with the harvest.

3. Gusto

Gusto is a one-stop HR cliche for small companies and startups, maybe a little thin for larger organizations. The business will get the best employee portal for their organizations with an excellent user interface and experience. The relevance of the time tracking feature is the add-on for the companies.

Some other vital features include multiple account tracking, payroll add-ons, onboarding customizations, and fetching the database and records so that the employees manage their records. Gusto gives their clients the best in-price portal with a basic price of $39 per month.

4. BambooHR

It is best to support a simplified HRMS tool for businesses. This software manages the payroll, workforce, track performance, vacation tracking, sick leaves, etc.

This HR software collects useful information about the employees throughout its life cycle to attain valuable things.

There are integrations with the social media platform. The organizations can give access to other employees without being afraid of any factual errors.

Some of the crucial features disposed of in this integration tool are hiring, onboarding, developing the right culture, securing the database, preparing the compensation, creating reports, and cashing the insights of team members. To welcome the top people on board.

The process to Develop Human Resource Management Software

After you have decided upon the type of HRM software you require for your business and have outlined the precise list of features that will be included, it’s time to move on to the HRMS software development process.

It is important to closely monitor the development process to make sure that all the following stages are well taken care of

• Strategy
• Market Research & Analysis
• Wire-framing & Designing
• Development
• Testing
• Launch & Maintenance

Important Features of Human Resource Management Software

For any Custom Application Development firm that you hire, they would surely include the features they find important. You need to affirm that the HRMS software features that you want to include in your solution are enlisted and clearly communicated to the development team.

Some of the dominant features that can help you build an HRMS that eases down your HR’s responsibility and helps them focus on more important tasks are:

HRMS Software Features for HR Department Features

• Payroll– This feature helps in tracking employee salaries, bonuses, provident funds, health and medical deductions, and issuing paychecks.
• Employee records- This includes the employee’s general data along with all the medical insurance and taxing information It also stores his job history, performance evaluation, awards, and certifications.
• Training Management- This allows you to offer remote learning as well as live training to the employees.
• Talent Management- Especially used in tech-driven organizations, this feature allows HR managers to offer online training to their employees so that they can augment their skills and contribute more to the company’s value.
• Benefits Management- This is one of the most important human resource management system features to be included in your product. It offers complete information on the benefits provided to the employees.
• Compensation Management- This allows managers to reward their top-performing employees with bonuses based on the value they bring to the company.
• Performance Tracking- Employees can review other fellow workers or get reviewed by them. This enables HR managers to gather quick insights into the employee’s work performance.
• Document Management- This allows for managing all the employee documents by their name or type of document. They can be easily converted to PDF or any other format for use in other applications.
• Onboarding- Onboarding makes it easy for new recruits to get acquainted with the company’s regulations as well as find all the necessary information regarding the company or the employer on a single platform.

When a new employee is brought inside the new funnel of the organization, the HR team takes care of their nice onboarding process. The HRMS software setup includes a corporate communication tool, briefing the intro email, adding new employees to the corporate mailing list, welcoming them to the meetings, introducing them to the new environment and rules, group chats, and many others.

Read Also: Hiring and Recruiting Redefined: How Artificial Intelligence and Machine Learning Help in Building Employee Force

HRM Software Features Features for Employees

For the employees they get easy access to the tool to accept and reject the task and other important notifications.

• Recruitment- Recruitment is known to be the most crucial factor for the organization to add on valuable assets. Another important HRM software feature is recruitment management.
  The whole process involves matching the right candidate for the interview, placing the vacancy relevant to it, job onboard, interviewing the candidates, and finally welcoming them into the company. A recruitment module helps in compiling a robust database of talent that can add to the company’s value. The HR tool helps the organization with hiring the right candidate. Evaluate the candidate’s performance, track their status, schedule the interviews, prepare the reports for future discourse.
• Timesheet – This helps the HR managers in knowing the time spent by the employees on various projects. Also, it helps to see if there is any loophole in the work strategy or how employees can work on their productivity.
• Reporting & Analytics- This is an important feature that helps you to evaluate the performance of each employee individually and of the company as a whole. This enables you to detect the areas for improvement.
• Time Clock & Attendance-This feature helps in marking the daily attendance of the employees as well as in keeping a check on their leaves. Booking, tracking, and approving any leave form can also be managed with this. Talking about human resource management software features it becomes quite important that the attendance of the team is clearly marked.
• Employee self-help portal-Employee self-help portal enables the employees to handle their own records and make changes to the information to make sure it is accurate and up-to-date. They can also submit leave applications, communicate with other employees and view their working schedule easily with this feature.
• Centralized HR Data- All the data is centralized in an interactive database that makes retrieving information extremely straightforward. Any change made in one document is reflected across the board, ensuring the information is always up-to-date.

With these HR system features, you can at least help your HR team to automate their working style and earn a great amount. As the team focuses on the growth strategy, it is important that they save time over other tasks. With HRMS software, the team can automate a lot of tasks and thus can focus on more important tasks.

Required Tech Stack For HRMS Software Development

If we look at the current scenarios, there are various programming languages, and the frameworks work as cohesion for the quality of the HRMS Software Development. However, hiring resource management software demands the quality and the authenticity of the resources.

So, it is always advisable to choose the right technical perspective stack for the long-term sustainability of the HRMS Software.

The right tech stack comprises the app functioning and aligns with the structure;

• Frontend: HTML5, CSS, JS, Ajax, React Native, jQuery.
• Backend: Ruby On Rails, Node.js, Python, React, Elixir
• Database handler server; MongoDB, PostGre.
• A caching system to handle the backlogs.
• Web Server: Apache web server, Amazon AWS.
• Real-Analytics; Google Analytics, Zoho Analytics.
• Cloud Storage solution: Kissflow hr cloud
• Icims talent acquisition

Required Team Structure for HRMS Software Development

For developing a robust and feature-rich Human Resource Management Software, you need to get in touch with a professional and experienced software development agency that boasts a team of expert technicians. It should clearly apprehend your business requirements and then propose customized software with all the necessary features and a concrete timeline.

• Project Manager-  A capable project manager should possess astute managerial skills. He should have a solution-oriented and positive approach towards all obstacles.
• Developers- Android App Developers, iOS App Developers, Web Developers, Front-end Developers, Back-end Developers
• Designers– Graphic Designers, UI/UX Designers
• Testers- A shrewd team of testers and accomplished Quality Assurance experts for extending a pleasant user experience
• System Admin
• Quality Analyst

These are the key people who define how your business solution is developed. We make sure that you get to connect with them and share your expectations so that the product that is delivered to you is exactly what you want on your screen.

The cost of human resource management software development is mostly influenced by the team composition and the features that you have asked for.

The Cost of HRMS Software Development

How much does it cost to develop an HRM System software?

Pricing is one of the most crucial aspects of software development. Every business wants to know the budget and pricing of custom Human Resource Management software development. First of all, the HRMS software price largely depends upon the number and type of features incorporated into the software. The number of features will result in expensive software. Also, the cost differs across the world and each company sets its own rate that primarily depends upon two factors- the quality of work and the location.

We have done comparative research and enlisted some of the most popular areas along with their labor costs per hour.

• U.S.-based developers: $50 to $250 per hour
• Eastern Europe-based developers:  $30 to $150 per hour
• India-based developers: $10 to $80 per hour

Clearly, India is the most feasible country for software development that offers skilled labor at the most affordable Human Resource Management System Development cost . But again, there are various other factors that control the cost of development.  With the clearance, the final cost to create the human resource management software is estimated to reach $15k-$25k.

Conclusion

Given the efficiency and usefulness of HRM software, it is no wonder that most business enterprises are looking to integrate it into their everyday working operations.  HRMS software development price in India is quite affordable, considering the features and functionalities that are included in your solution. If you are looking for a reliable team that can help you take your business to the zenith, then you are at the right stop.

Our team at Octal IT Solution ensures that you have been a part of the Human Resource Management Software Development development process since the inception of the product. We understand making investment decisions is quite difficult, and our software development team ensures you do not regret your decision. The team composition also influences the Human Resource Management Software Development cost.

With one-stop solutions, we make sure you can easily get a product that would make it easier for you to manage your HR department. The benefits of managing multifarious tasks such as payroll, performance evaluation, onboarding, attendance, etc. help enhance companies’ productivity. Therefore, if you plan to invest significantly in implementing HRM software, now is the time.

Frequently Asked Questions