HRMS Software – Journey from Spreadsheet to People Analytics

Human Resource (HR) management is an essential aspect of running any organization.

With the rise of technology, many organizations have started using spreadsheets for HR management.

However, spreadsheets come with limitations that can hinder effective HR management.

HRMS software is a comprehensive software application designed to manage all aspects of human resources, including recruitment, payroll, benefits administration, time and attendance, performance management, and more.

The software provides a centralized database for employee data, which eliminates the need for multiple spreadsheets, reduces manual data entry errors, and ensures data accuracy.

Additionally, HRMS software can generate reports and analytics, which can help organizations make informed decisions about their workforce.

In this blog post, we’ll discuss why HRMS software is a better alternative to spreadsheets and how it can help organizations improve their people analytics and HR management.

hr service ad

The problem with spreadsheets

While spreadsheets are easy to use and readily available, they have their limitations.

One of the biggest problems with spreadsheets is that they are prone to errors, especially when dealing with large amounts of data.

Additionally, it can be difficult to track changes made to spreadsheets, which can lead to confusion and errors.

Spreadsheets can also be time-consuming to update and maintain, especially when dealing with multiple spreadsheets or when there are multiple people involved in the management process.

Finally, spreadsheets don’t provide the advanced functionality needed to conduct in-depth people analytics, which can limit an organization’s ability to make informed decisions.

One of the biggest challenges with a spreadsheet is data security and data backups, if the file gets corrupted you will end up losing all your important data.

The benefits of HRMS software

HRMS (Human Resource Management System) software is an integrated software system that helps organizations manage their HR processes and data more effectively.

HRMS software provides a range of benefits, including:

Reduced errors and increased accuracy: HRMS software automates many HR processes, reducing the risk of human error and increasing the accuracy of data.

HRMS also provides the comparison of past data records which helps to improve accuracy.

Better data management: HRMS software allows organizations to store and manage all their HR data in one central location, making it easier to access and analyze.

You can store all your previous data in HRMS and it helps you manage your entire employee data better.

Improved efficiency: HRMS software automates many time-consuming HR processes, freeing up HR staff to focus on more strategic tasks.

Most of the administrative tasks of multiple entries, manual process of reminders, and updates to employees are done automatically in HRMS which helps to save a lot of time for your HR team.

Advanced people analytics: HRMS software provides advanced analytics tools that can help organizations make data-driven decisions about their workforce.

You can track your total time to recruit people, offer-to-join ratio, per-employee hiring cost, attrition analysis, payroll cost, employee productivity, and many more parameters.

How to select the right HRMS software

Selecting the right Human Resource Management System (HRMS) software can be a daunting task, as there are many options available in the market.

However, choosing the right HRMS software is essential to ensure that your organization’s HR processes are streamlined, efficient, and compliant with regulatory requirements.

Here are some factors to consider when selecting the right HRMS software:

Business needs: Start by identifying the HR processes that need to be automated, and then select an HRMS software that meets those requirements.

Determine what features and functionality are needed, such as recruiting, payroll, benefits administration, time and attendance, performance management, and analytics.

Scalability: Consider whether the HRMS software can scale with your organization’s growth.

Ensure that the software can handle a growing number of employees, features, and data requirements.

Integration: Ensure that the HRMS software can integrate with other systems and applications used by your organization, such as accounting or ERP systems.

Integration ensures that data is consistent across all systems, reducing manual data entry errors.

User-friendly interface: The software should be easy to use, with a user-friendly interface that allows HR staff to access and manage data quickly.

Security: HRMS software should be secure and protect sensitive employee data.

Ensure that the software meets all security and compliance requirements, its data security process, and database back policy.

Support and training: Ensure that the vendor provides adequate support and training for your staff to ensure that they can use the software effectively.

Pricing: Consider the total cost of ownership, including licensing fees, implementation, training, and ongoing support costs.

It is important to ensure that the software fits within the budget of your organization.

Other factors to consider when selecting HRMS software include ease of use, functionality, compatibility with other systems, and support services.

It’s also important to evaluate the vendor’s reputation and track record to ensure that they are a reliable and trustworthy provider.

Implementing HRMS software

Implementing HRMS software can be a complex process, but with the right approach, it can be a smooth transition.

The first step is to prepare the organization for the change by communicating the benefits of the new system and providing training to employees who will be using the system.

Next, it’s important to ensure that the organization’s HR data is clean and accurate before transferring it to the new system.

The HRMS software vendor should be able to provide guidance on how to do this.

Finally, it’s important to monitor the implementation process and address any issues that arise.

The vendor should provide support during the implementation process and beyond.

Using HRMS software for people analytics

One of the most significant benefits of HRMS software is its ability to provide advanced people analytics.

HRMS software provides a range of analytics tools that can help organizations make data-driven decisions about their workforce.

This includes tools for analyzing employee performance, identifying skill gaps, and predicting future workforce needs.

Human Resource Management System (HRMS) software can provide valuable insights into people analytics.

People analytics is the practice of using data to inform HR decisions, such as recruitment, retention, and employee development.

Here are some ways HRMS software can be used for people analytics:

Recruitment: HRMS software can provide insights into the effectiveness of recruitment strategies by tracking metrics such as time to fill, cost per hire, and quality of hire.

These metrics can help organizations identify the most effective recruitment sources and improve their recruitment strategies.

Performance management: HRMS software can track employee performance metrics such as goal attainment, performance ratings, and feedback.

This data can be used to identify top performers, track performance trends, and inform performance improvement plans.

Employee engagement: HRMS software can track employee engagement metrics such as employee satisfaction, turnover rates, and absenteeism.

This data can be used to identify areas where employee engagement can be improved and to develop retention strategies.

Training and development: HRMS software can track employee training and development data, including training completion rates and the effectiveness of training programs.

This data can be used to identify areas where additional training is needed and to develop employee development plans.

Diversity, equity, and inclusion (DEI): HRMS software can track diversity metrics such as gender, race, and ethnicity.

This data can be used to identify areas where DEI initiatives can be improved and to track progress toward DEI goals.

Predictive analytics: HRMS software can be used to develop predictive analytics models that can forecast future HR outcomes, such as turnover rates or employee satisfaction levels.

This data can be used to inform HR strategies and develop proactive solutions to potential HR issues.

HRMS software can also provide insights into employee productivity, job satisfaction, and turnover rates, which can help organizations identify areas for improvement and take action to address them.


While moving from a spreadsheet to HRMS software can be a significant change for an organization, the benefits of making the transition far outweigh the initial challenges.

The transition can lead to improved data accuracy, increased efficiency, and more streamlined HR processes.

Additionally, HRMS software can help organizations better manage compliance requirements, reduce costs, and improve employee engagement.

virtual hr ad