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Your guide to human resources management systems

What is a human resources management system (HRMS)? 

Human resources management systems are software applications that automate and manage key HR activities, such as onboarding, rostering, leave management and payroll.

They provide a modern, efficient alternative to cumbersome manual processes and allow both employees and employers to manage HR responsibilities securely and offsite as well as in the office. 

How does an HRMS work?

Employee self-service (ESS) portal 

An HRMS gives employees access to a personalised dashboard populated with their personal records. Through a self-service portal, employees can check leave balances, request time off and see payroll information, which means they don’t have to request this information from others in the company. 

Leave management

Monitor and track leave requests without the risk of human error, missed requests or processing delays affecting pay entitlements. This feature empowers employees to manage their own leave balance while having visibility of any blackout periods that affect them. 

Onboarding and offboarding

Give a great first impression with a tailored, digital onboarding experience. An HRMS allows new starters to input their own information into the system. This helps to speed up the onboarding process and reduce errors. Once onboarding is complete, your new hire is in your system ready for you to process their pay. 


An HRMS automates the entire payroll process. The software calculates, reports on and pays salaries and wages, entitlements, deductions and super contributions


Creating compliant rosters that meet everyone’s requirements can be very challenging. Human resources management systems can auto-create and manage rosters, taking into account each employee’s skills and availability, and alerting staff to any roster changes that affect them.

10 reasons to use an HRMS

1. Boost efficiency and productivity.

Low-value, repetitive tasks are a huge waste of time. With an HRMS, staff can automate those pesky manual processes and provide a central space to access employee data. Employees can take control of their personal information, pay and leave allowances, enabling HR to focus on strategic work. 

2. Reduce costs.

Paper-based filing systems are archaic and costly. An HRMS provides a far more efficient and cost-effective way to store and manage data, and automated workflows and approval processes reduce the need for staff involvement at every touchpoint.

3. Streamline payroll.

An HRMS ensures employers pay staff on time and correctly. Not only does this feature lead to a more positive employee experience, but automated payroll processes and reporting also helps employers remain compliant and maintain accurate records.

4. Increase compliance.

It’s hard to keep up with changing government regulations if you’re going it alone, but an HRMS makes it easy. The software automatically ensures you’re up-to-date with the latest tax rates and labour laws and notifies you if there’s a chance you might be breaching Award compliance with your rosters, for example. 

5. Secure data.

Employers must store employee data safely and securely. An HRMS adheres to the latest privacy laws to ensure companies store every piece of information correctly. Security is a priority for all human resources management systems, and most offer encryption and role-based access as standard. 

6. Enhance communication between managers and employees. 

Communication is key to a well-performing business. Human resources management systems foster more productive communication between managers and their team as they have fewer day-to-day HR issues to deal with. 

7. Access real-time data.

An HRMS stores employee data in one central database, which means authorised users can access real-time data easily. This process is much more efficient than traditional methods that rely on multiple spreadsheets, expense apps and paper records. Storing data in one place enables better, faster decision-making and provides a transparent view of every activity at all times.   

8. Improve recruiting efforts.

Disjointed recruitment processes leave everyone confused. An HRMS can help streamline the process and make it a better experience for the employer and candidate alike. 

9. Gain more visibility.

Real-time data, up-to-date records and a transparent overview of every HR process create more visibility and control across the entire company. At the click of a button, you’ll be able to get data insights too, such as employee turnover rates, sick days and more. 

10. Raise retention rates.

The insights you get from an HRMS helps you identify where you can do things better This is particularly important when it comes to retaining top talent. Knowing what employees want and need and being able to provide it in a seamless, enjoyable way is the key to strengthening employee satisfaction and productivity and, ultimately, ensuring they stick around. 

Manage employees with MYOB

MYOB is a business management platform that caters for a business’ 6 core workflows: Employees, Projects, Customers, Suppliers, Finance, Accounting and Tax. 

With MYOB, you can have the HRMS that’s right for you without having to pay for features and functionality that you don’t want or need. For example, you can start with payroll only and add on workforce management capabilities as your business grows.

Built in the cloud, you pay for what you need today but can scale your platform and add on new modules and capabilities across all 6 workflows as your requirements change. 

Lighten the load of managing employees and run your entire business off one integrated platform. At MYOB, we have you covered.

Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.

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