Your HRMS requirements guide and features list

HRMS technology spans a wide spectrum, from basic HR functionalities to advanced platforms.  Identifying your HR system requirements is crucial in selecting the right system for your organization.

This 2021 HRIS project report found that companies, on average, spend $8,750 per user of their system - that's a lot of money to spend on a system. Especially if you're selecting one for the first time, which according to report data, is the case for more than 50% of organizations sourcing a new system are doing so for the first time.

This guide is designed to help you navigate the essential stages of HRMS requirements gathering and understand the key HRM software features necessary for your organization.

We’ll cover:

• In-depth HRMS requirements gathering
• Core HRMS features and what they do 
• Advanced features

Core HRMS Features List

Here are the most critical HR management software features you should expect in a modern system:

• Recruitment: Automates internal form filling, authorization processes, job posting, and applicant tracking. Some systems may include initial candidate screening and social media features for building talent pools.
• Onboarding: Simplifies induction by introducing new hires and efficiently handling setup tasks like logins and access passes.
• Performance management: Tracks and automates appraisals, objectives, targets and performance feedback.
• Workforce management: A scheduling feature that adjusts workforce deployment in real time according to business needs.
• Time and attendance: Monitors employee attendance and time-related data through time clocks, biometric systems and more. This feature often integrates with payroll.
• Absence and leave management: Manages paid time off, vacations, sick leave and other forms of absence, with automated approval and tracking.
• Learning and development: Provides tools for training activity booking, individual training plans, and follow-up evaluations.
• Talent management: 
• Manages succession planning and talent pipelines for critical roles.
• Analytics: Offers insights through dashboards, automated data gathering, real-time reporting and predictive analytics to support strategic HR decisions.

Payroll is often an integral part of many HRMS platforms but is sometimes offered as an add-on module depending on your system configuration.

HRMS requirements gathering – finding out what you need

The task of putting together a list of HRMS features should not be underestimated. Whether you end up with the right system for your organization or not depends heavily on this early investigative phase of the project. In a nutshell, requirements gathering has three basic stages:

1. Look at what you have

It’s a cliché but it’s true: you may know where you’re going but before you can work out how to get there you have to know where you are right now. In HRMS terms, this means referencing two things: first, your strategic goals, and second, your current HR operation.

• Business context:  Identify current business priorities (e.g., expansion, consolidation) and map them to your HR needs. Ask yourself how the available HRMS technology can support these. Any HRMS feature that does not contribute to your business is, at best, a nice-to-have; at worst, an irrelevancy.
• HR review: Evaluate your current HR processes to identify inefficiencies, workarounds, or areas where manual processes (e.g., spreadsheets) still dominate.

A detailed audit of your current HR operations will help pinpoint what HR system features are most needed. The key actions here are:

1. Creating a map of current HR processes to identify bottlenecks in efficiency
2. Identifying paper-based HR processes and shortcomings of existing HR systems
3. Identifying key operational challenges you aim to solve with the new HRMS system

2. Gather input about what you want

Consult your key HRMS stakeholders. A stakeholder is defined by their degree of interest or influence over the project. The most common stakeholder groups are:

• Operational HR staff: HR professionals who work with the system daily will have the most practical insights. Ask them about current system pain points and opportunities for improvement.
• HR Leadership and C-suite Executives:  HR leaders and executives provide strategic direction and budgetary oversight. Between them, they probably have the ultimate power over your project and expect to see valuable and measurable organizational benefits. Fail to consult (or convince) this group and the project won’t get off the ground. 
• Managers and employees: Input from day-to-day system users, especially on self-service features.
• Non-office staff: Mobile access is critical for remote or field staff. Understand their needs for accessing the system on the go.
• Specialist staff: Departments like Payroll and IT may have specific technical and operational requirements.
• External stakeholders: Ensure HRMS hiring features improve processes for both job applicants and the organization. For example, your goods and services have an obvious potential effect on customers, and the quality of those goods and services depends on the employees providing them. How will your HRMS support and improve the delivery of goods and services?

Engaging with stakeholders is a critical part of the HRMS requirements-gathering process. As for exactly how you choose to conduct that engagement, consider the following influence/interest categories:

• High influence, high interest – must be fully engaged and have their needs satisfied (e.g. C-suite and senior executives with responsibilities connected to HR and people management).
• High influence, low interest – should be kept satisfied, but bear in mind that they will probably have little to do with your project (e.g. C-suite members not directly related to HR or operations, such as marketing or sales).
• Low influence, high interest – usually those who will be day-to-day users of the HRMS; as such most of the bugs and teething troubles may be identified and addressed with their input and help (e.g. HR administrators, low to middle management). 
• Low influence, low interest – should be kept informed but otherwise, little time should be spent here (‘shopfloor’ employees, though arguably unimpacted by a new HRMS).

Document the input, prioritize needs, and align these with your HR software requirements

3. Be specific about the technical requirements

Aside from the functional aspects, be clear about your requirements from a technical perspective. Key considerations include:

• Preferred delivery platform: Cloud, on-premises, or hybrid?
• Mobile access: Web apps or native apps for iOS/Android?
• Language and currency requirements (if any)
• Integration with existing systems: Ensure compatibility with accounting, payroll and other enterprise systems.
• Regulatory compliance: Does your organization need specific features to comply with local or industry regulations?
• Number of users and personnel records: Ensure the system can scale with your organization’s growth.

For more detail, check out our free HRMS selection checklist

Core HRMS features list

When talking to stakeholders about potential HRMS functionality, it’s wise not to leave the questions too open. Far better to present people with details of options that actually exist on the market; otherwise you’re likely to collate all the input and find you’re tasked with searching for the HR technology equivalent of a chocolate-covered unicorn!

What follows is a summary of the core, ‘everyday’ features or modules that can be found in most HRMS solutions. Of course, each one will be unique, but that’s what software demos are for…

Advanced HRMS features list

Some HR system features are more advanced and may be optional depending on your specific business needs:

For more insight into HRMS features and requirements gathering try our free report: 52 features to look for in your next HRMS

A final thought- common pitfalls to avoid in your HRMS project

The above material is a one-stop starter shop for collating the functional requirements for your next HRMS. However, it’s worth being aware of a couple of classic pitfalls that could blow your project off course:

• Insufficient consultation: Don’t limit input to just senior executives or HR. Get input from a broad range of stakeholders, especially those who will use the system regularly.
• Overreliance on vendor materials: While vendor resources are helpful, they often don’t consider the unique needs of your organization. Always prioritize your business's specific needs. For unbiased, expert advice on HRMS and HRIS solutions, be sure to sign up for our newsletter. If you absolutely need some third-party help, consider retaining an independent HRMS consultant for their expertise and input.