Aug 6, 2023

How to Choose the Right Core HRMS for Your Organisation?

Manual HR processes can lead to errors and data inaccuracies, which can be costly and time-consuming. An HRMS can help improve data accuracy by automating data entry and providing real-time data. According to a survey by Software Advice, 86% of HR professionals say that using an HRMS has improved data accuracy.

Choosing the right Core HRMS for your organisation is crucial to ensure smooth HR processes and effective employee data management. It will save you time and money on non-revenue generating activities, so your business can focus on creating more value. On average, a core HR software like Moonworkers can save you 105 hours per month when managing your human capital. However, with so many options, deciding which one can take time and effort. In this blog post, we will guide you through selecting the right HR software for your organisation, highlighting the key factors to consider and the benefits of implementing a Core HRMS in your business.

Explanation of Core HRMS

Core HRMS stands for Core Human Resource Management System. It is a core HR software solution designed to provide organisations with an efficient way to manage their human resources data. This system helps organisations track employee information, manage recruitment and onboarding processes, track performance and attendance, and automate payroll processing. Some other useful HR functions include employee engagement tracking, benefits administration, and workforce planning.

Difference between HRMS and HRIS

HRIS stands for Human Resources Information System. It offers only one core HR function: storing and organising employees' employment details, payroll data and personal information, whereas an HMRS will provide additional functionalities to streamline HR processes. Both HRMS and HRIS are subcategories of the Human Resources Management System category.

Importance of choosing the suitable Core HRMS

Choosing the right Core HR software for your organisation is essential as it can help you to manage your staff more efficiently and streamline HR processes within the organisation. A well-chosen HR technology can provide the following:

  • an integrated platform for all HR-related activities,
  • making them easier to track and monitor,
  • helping organisations make better decisions when hiring,
  • training and developing their employees.

Additionally, a Core HRMS provides organisations with the data required to make informed decisions when evaluating their employee performance and can help ensure compliance with local regulations.

An HR software can help automate repetitive HR tasks, reduce paperwork, and minimise errors, leading to increased efficiency. According to a study by SHRM, companies that implemented HR technology reported a 17% increase in HR staff efficiency and a 22% reduction in time spent on administrative tasks.

Assessing your Organisation's HR Needs

Identifying HR pain points

One of the critical steps in selecting a suitable Core HRMS is identifying your organisation's HR pain points and needs. Analysing all areas of the HR process, including recruitment, onboarding, employee information management, payroll, and attendance tracking, will help you identify these pain points. Then assessing which features of a Core HRMS could help streamline and improve these processes. 

Determining HRMS requirements

Once you have identified the HR pain points and needs, the next step is to determine the specific features and HRMS requirements that your organisation needs. Although each business encounters different issues, self-service tools, document management, reporting and analytics capabilities, or mobile access are some of the most common necessities. After detailing your requirements, you can assess which HR solutions are available that meet these needs. When setting up your requirements, two crucial factors are whether you have an internal Human Resources Department and your company size. For example, suppose you own a small manufacturing business mainly employing hourly workers. In that case, you may weigh more on a system capable of streamlining your core HR processes, such as onboarding and contracting, rather than performance appraisal and employee engagement.

Involving stakeholders in the decision-making process

Once you have identified the HR needs and determined the HRMS requirements, involving stakeholders in the decision-making process is essential. This includes both senior management and those in charge of managing HR processes. Involving stakeholders in the selection process ensures everyone is on board with the chosen solution and can help identify potential issues or risks with implementing a Core HRMS.

Evaluating Core HRMS Features and Functionality

Core HRMS features checklist:

When evaluating Core HRMS solutions, you should consider a few key features, including: 

• Employee data management 

• Recruitment and onboarding processes 

• Performance tracking and evaluation 

• Payroll processing 

• Reporting and analytics capabilities 

• Mobile access 

Customisation options

Another vital factor to consider when evaluating HR software is the customisation options. Although rare, tailoring the system's processes and tools to meet an organisation's needs and requirements can become critical to some businesses with specific HR functions. Additionally, the system should be able to integrate with other HR systems and third-party applications, such as payroll solutions or time-tracking software. 

Integration capabilities

Integration capabilities are also necessary when evaluating Core HRMS solutions. This includes ensuring the system can integrate with existing business systems, such as payroll and time-tracking software. Additionally, the system should be able to connect with external sources, such as job boards or applicant tracking systems. For example, according to a survey by CareerBuilder, 82% of employers who use an applicant tracking system (a component of HRMS) said it had improved their hiring process and increased new hires' satisfaction.

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Reviewing Vendor Options

Researching vendors

After assessing Core HRMS solutions' features and customisation options, researching vendors should be the next step in selecting a suitable system. During this phase, analyse the vendor's reputation, and look at their customer reviews and their list of product features. Additionally, speaking with other organisations that have implemented similar solutions can help to identify potential issues or risks to consider.

Comparing vendor offerings

Once you have identified a few viable vendors, comparing their offerings is your next logical step. Assessing the vendor's customer service and support options, pricing structures, and level of scalability are some of the key points to look at. Additionally, if you are a newbie with HR systems or the solution seems complex, ensuring the vendor can provide timely and comprehensive training for the system is essential.

Assessing vendor support 

Next, you should assess the vendor's customer support and service offerings. During this process, you should understand their response times and how they handle customer enquiries and requests. Additionally, evaluating the vendor's security measures is essential to ensure data privacy and compliance with local regulations.

Cost and ROI 

Finally, evaluate the core HR software cost and potential return on investment (ROI). In addition to the licence or subscription fees, your company should assess the implementation and maintenance costs. Additionally, we recommend setting a matrix to evaluate the potential return of implementing a Core HRMS in terms of improved HR efficiency and effectiveness.

Making the Final Decision

Narrowing down the options

Once you have completed all the above steps, it is time to narrow down your options and decide. Consider which HR management solution offers the best combination of features, customisation options, scalability, and support vs its price.

Testing the system

Generally, HR software vendors offer a trial period. We recommend using it to test the system. Running a pilot project or demo of the Core HRMS is the best approach to ensure it meets all the requirements and runs smoothly. Additionally, having an experienced HR professional evaluate the system can help identify potential issues or risks.

Finalising the decision and implementation plan

Once the system has been tested and evaluated, it is time to decide. Once this has been done, an implementation plan should be created to ensure a smooth transition to the Core HRMS solution. This plan should include training staff on the new system, setting up user accounts, and migrating existing data. 


Choosing the right Core HRMS for your organisation is vital to ensure smooth and efficient HR management. By assessing your organisation's needs, evaluating features and functionality, researching vendors, and understanding the cost and potential ROI, you can ensure you select a Core HRMS that meets your organisation's requirements and budget.

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