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Human Capital Management System Development

Based on recent HR software market analysis, the global HR segment is projected to reach a $38.17 billion industry by 2027. Moreover, by 2024 the global ERP market is expected to cost $49,5 billion.

Design сustom Human Capital Management Software and enhance your employees’ efficiency.

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Types of HR Software & Typical Functonality Examples

Administrative HR Software
Employee Records
Payroll & Benefits Administration
Document Storage
Workforce Management Software
Absence & Attendance
Holiday Planning
Organisation Charting
Strategic HR Software
Applicant Tracking System (ATS)
Performance Management
Training & Development

As for the HR department, there’s a lot of paperwork, so managers should bear in mind myriads of different tasks that cannot be stored and processed by human’s memory span. Here’s the reason the HR team needs HRMS to improve their working process substantially.

Human Resource Management Software (HRMS) is a complete solution that operates over numerous management processes, including several recruitment management operations, handling the payroll, evaluating the performance of the employees, monitoring the delegation of the work, etc. It’s widely used to automate human resource management processes on both mid-sized companies and enterprises.

The most widely-used third-party services to integrate into HRMS:

For employers

  • Time & attendance tracking and scheduling

  • Payroll

  • Expense management

  • Performance review

  • Applicant tracking system

For job seekers

  • Employee engagement

  • Productivity

  • Benefits management

  • Compliance management

  • Learning management system

  • Compensation management

HRM Software Benefits

Maintaining pleasant working conditions

User-friendly working experience

Managing employee relationships

Reduced operating costs

Improved workflow and collaboration

Transparent data-tracking

Better information management

Increased efficiency

The Must-Have Features of HRM System

5 Components of HRMS


Core HR
Employee record keeping
Organizational charts
Self-service partals for employees
Workforce Management
Time tracking
Task and activity tracking
Leave management
Talent Management
Performance management
Compensation management
Career development
Succession planning
Recruitment ATS
Candidate sourcing
Candidate tracking
Hiring workflow management
Learning Management
Course creation and administration
Knowledge assessments
Core HR
Employee record keeping
Organizational charts
Self-service partals for employees
Workforce Management
Time tracking
Task and activity tracking
Leave management
Talent Management
Performance management
Compensation management
Career development
Succession planning
Recruitment ATS
Candidate sourcing
Candidate tracking
Hiring workflow management
Learning Management
Course creation and administration
Knowledge assessments

In general, the feature list of HRMS can be broken down into 5 main categories, so we’ll list them below to give you a framework and guide you through the rough points.

Core HR

Employee database

Probably, one of the cornerstones of human resource applications is the employee database, where each employee’s data is stored safely and securely. It often includes their social security numbers, past employment details and each worker’s contact information.

Benefits management

One more major component of any HRMS system is an ability to manage employee benefits, life insurance policies, healthcare programs and contributions. The software facilitates and processes this multi-layered benefits-related data and lets employees to enroll into the information via HRMS, minimizing errors.

Benefits Administration

Retirement Plans


Travel Compensation

Health Insurance

Paid Time Off (PTO)

Life Insurance


Payroll management features in an HRM software helps to handle financial planning, invoice management, employee salaries, tax payments, bonuses or awards, and healthcare deductions. According to HR budgeting and forecasting abilities, the system simplifies accurate budget processing, consolidates and centralizes financial operations for companies, who don’t already have the process managed.

For employers

  • Accounting

  • Budgeting

  • Forecasting

  • AP/AR Automation

  • Payroll

For job seekers

  • Compensation

  • Rewards

  • Salary Administration

  • Employee Recognition

Employee Information Management

Time and attendance management

If companies schedule shift workers manually, juggling dozens or even hundreds of different employees can be overwhelming. The time and attendance module of workforce management software allows hourly employees to clock in and clock out, tracking their working hours with different methods. The system collects time reports for billing purposes as well to ensure compliance with staffing needs.

  • Clock In/Out

  • Time Reporting

  • Time Tracking

  • Project Billing

  • Overtime Tracking

  • Workforce Scheduling

  • Paid Time Off (PTO)

  • Absence Management

  • Biometrics

  • Holidays Calendar

PTO tracking. To make the process of time off management hassle-free, this feature tracks each employee’s sick or paid time off accruals and use. Furthermore, managers can receive notifications for missed or accomplished work goals, alongside with the PTO.

Technical Features

Besides comprehensive functionality, there’s always a technical side of HCMS , that stands behind the smooth performance and is equally important. In most cases it includes standard technology-related aspects like deployment options and mobile functionality, or continued management options such as security, governance and user support. This vital part that goes beyond functional requirements is essential to consider when evaluating this category of features.

  • Compliance Management

  • Mobile Applications

  • Deployment Environments

  • Security

  • User Support

  • Maintenance

Employee Performance Management

HCM solutions should involve an internal database of employee profiles with personal information, job and salary history, banking and tax details, insurance plans, time off requests, disciplinary history, performance feedback or any other custom fields important and helpful for the company.

In their turn, HRIS systems offer a built-in employee self-service portal, letting staff to log in and view requested information as well as a knowledge base of informative documents

  • Employee Records and Database

  • Employee Self-Service Portal

  • Job History

  • Salary History

  • Disciplinary History

  • Insurance Plans

  • Banking and Tax Details

  • Time Off Used and Accrued

Talent Management

Going beyond the interview and onboarding phases, there’s a need to evaluate employees. With the robust talent management HR functionality, HRMS accomplishes this process on its behalf, based on the provided algorithm. Just for example, once hired, an employee will be added into the database and all his/her achievements will be tracked, collected and stored.

Therefore, HRMS can generate automated feedback, or HR departments can base their own reviews on the analysis provided by the software. Depending on the system, employee performance feedback may be visible to the other colleagues via a dashboard or some other kind of interface. This digitalized approach eliminates the need to notify employees of any evaluations via email or engage in time-consuming performance review meetings.

  • Employee Performance

  • Behavioral Tests

  • Competency Tests

  • Key Performance Indicators (KPI)

  • Reviews and Feedback

Recruitment or Applicant Tracking System

With its comprehensive architecture, HCM software can be pretty useful for managing all human resource responsibilities throughout the employee lifecycle, beginning, of course, with recruitment and hiring. Human capital management software can completely facilitate and simplify the hiring process and minimize the part of manual work for HR departments with automated HR system features, from posting a vacancy to multiple websites and social media channels to generating a job description.

  • Job Requisitions

  • Job Descriptions

  • Job Board Posting

  • Social Recruiting

  • Applicant Evaluation

  • Applicant Tracking System (ATS)

  • Candidate Pre-Screening

  • Auto-Response

  • Job Offer Extension

  • Background Check

  • Onboarding

  • Branded Company Job Site

Learning & Professional Development

Training, professional development and learning courses are vital to keeping your workforce up-to-date and extending their expertise. A learning management module can significantly buff up your HRM platform, possessing integrations with educational resources or specialized options for uploading customized educational materials to the software. Keeping track of what certifications your employees hold makes you aware of what new areas of expertise and niches are available to your staff.

  • Learning Course Administration

  • Professional Certification Management

  • Test and Training Customization

  • Multimedia Learning Materials

  • Content Standardization

  • Performance Management

Stages of a Custom HRMS Development

These steps listed below will help you arrange the development processes of the HRM software and align them with your requirements:

hr software development services

Negotiation: determine the gaps you can fill in with the HRMS to improve current workflows

human capital management

Scoping and planning: think out your goals and objectives

human resource management system software

Leveraging a software development partner: hire the right dedicated team

software for human resource management

Conceiving the end-goal: develop a vision of your final solution

Mapping the scope: draft working process working closely with your software development vendor

Technical development itself: deliver in small working parts

digital transformation in HR
Let’s straighten things out starting with definitions…

First of all, we have to point out that employees-related issues are usually regulated by a dedicated department using a threefold strategic approach: HRM, HCM and HTM.

hr digital transformation

Human Capital Management

hrm development

Human Talent Management

employee portal

Human Resources Management

Managing the payment, attendance, accounting of a workforce are the most integral duties of a human resource department. By means of an HRM software, your company can streamline this essential HR functionality and make sure all employees are properly compensated. Numerous business areas, including salary administration, bonus programs, commissions, and stock and long-term incentive management can be easily managed and digitalized by various modules.

HR Software Types: Is There Any Difference in HR Systems?

There is a wide range of human resource management solutions and products that cover the needs of HRM, HCM and HTM approaches, combining or excluding some features. All HR software can be covered by the derivative terms – human resources information systems (HRIS) or human resource management systems (HRMS).

HCMS=HRIS stands for Human Capital Management or Human Resource Information System, a most common type of enterprise software that helps companies manage their workforce through recruitment, data entry, data tracking, onboarding, training, and performance management.

HCM systems possess extended functionality that is very useful for the HR department, since they need to know whether the staff feels comfortable, how they are efficient in doing their job and so on.

By means of this system the company’s staff manages payroll, tracks employee time worked, manages benefits administration, measures the effectiveness of employees, finds and hires new staff, and much more.

HRMS (Human Resource Management System) can also be referred to as HRIS, since both types of options operate core HR functionalities, including management, payroll, accounting functions, attendance, benefits and reporting.

Besides, HRMS boasts more advanced functionality, such as capital management capabilities, onboarding and succession planning.

Recruiting / ATS
Core HR
Benefit Admin / OE
Absence Management
Position Control
Salary Planning
Time & Labor


HRM stands for human resource management system that is widely used for covering the needs of HRM, HCM, HTM and turning their tasks into digital.

Indeed, most of these tasks overlap, such as recruiting, learning and development, workforce planning and so on. Bearing in mind this statement, we have to conclude the solutions for each approach have no hard distinction in provided functionality. It is often more about focus areas and goals customers want to meet before custom software development.

If standing on the verge of HRMS development, follow this actionable algorithm to achieve impeccable performance:

1) Concept development phase

2) UI/UX design

3) Project estimation

4) Technical development stage

5) Quality assurance

6) Platform support

Large-scale projects are usually charged on the T&M basis. That means we estimate projected time required for technical development and provide you with the cost. Here’s the estimate of our internal recruitment software looks like. The average price for an app with basic functionality starts from $40,000, however the final bill will depend on the feature-set you need.

Taking into account global trends of telecommuting, gig economy, employee experience, real-time learning, entrepreneurs face the challenge of rethinking their operational processes, redefining the workplace and the way companies seek and secure talent.

HRMS expand your horizons with faster, more comprehensive reachout, better sourcing and candidate vetting tools, more attractive career pages and adverts, more engaging and efficient hiring and onboarding funnel, a digital roadmap for recruiters, collaborative tools for all decision-makers to redesign the HR department according to the leading, game-changing trends and technologies.


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