Development

Fintech

February 26, 2025

HRM Software Development: How To Build A Perfect HR Solution

HR process automation increases efficiency and reduces administrative costs. A successful business needs accounting and an integrated system that provides analytics, automation, and process transparency. That is why large and medium-sized enterprises invest in HRM solutions that help increase productivity and optimize internal processes.

However, the problem is that security issues, the company's knowledge base, etc., are accompanied by difficulties with the fragmentation of these processes in the human resource management system. Therefore, even the existing HR software can bring more inconveniences than benefits.

The Artkai team has over nine years of experience in HRM software development. We have helped many clients create new products and improve existing ones. A little later, we will discuss our successful projects, Cruitment, a SaaS platform for automating recruitment processes, and TestHub, a startup for assessing candidates, which have become effective solutions for improved communication and analytics in hiring.

Therefore, our many years of practical experience became the basis of this guide, which will be helpful for companies that want to improve and optimize internal and external work. Successful processes follow high results.

Benefits you can get if you build an HRM solution

Human resource management software should be designed to address the HR department's pain points and facilitate high-quality interactions with other specialists and candidates. Therefore, there is a need to also implement a functional one that provides specific advantages.

Next, we will review the benefits of the necessary functionality in HRM solutions:

Integrated Employee Data Management

This advantage in HR software is realized by creating a single database containing detailed information about employees. It also includes several areas:

HRIS with the storage of personal information, contracts, certificates, and job descriptions.
A document management system with digital files of company policies, employment contracts, and essential financial information and insurance.
Role-based access is implemented through specific scenarios according to each employee's job responsibilities.

Seamless Team Collaboration

This aspect of HR processes is one of the most essential benefits, as it involves the coordinated work of HR departments and their interaction with representatives of other structural parts of the company.

Let's look at the practical side of HR operations:

Built-in communication tools include internal chat, a feedback system, and integration with corporate messengers.
The Task Management System is critical for HR specialists, allowing them to control the stages of recruiting, onboarding, and employee assessment.
Workflow Automation provides for the automation of processes with the approval of applications for leave, sick leave, or time off.

Efficient Talent Acquisition

HR software modules related to the selection of specialists can significantly improve the recruitment process due to several important factors.This can lead to significantly higher performance management indicators in the interaction of most stages of the human resources management process, thanks to:

An ATS system can automatically track candidates through the hiring funnel.
AI-powered resume screening algorithms analyze candidates' resumes and recommend the most relevant ones.
Job Posting Integration with LinkedIn or Indeed to automatically publish job descriptions.
Interview Scheduling with integrated Google Calendar or Outlook calendars for meetings is especially convenient when the candidate can book the desired slot in the recruiter's calendar.

Payroll Management

Custom HR management software can automate the financial side of HR processes, which becomes necessary in payroll management.

This way, HR specialists can evaluate the tax, holidays, and sick leave and calculate payroll.

Real-Time Performance Tracking

Human resource management software provides a solid foundation for employee performance monitoring and analytics. An application accompanies this process:

Creation of a performance evaluation system based on KPIs and OKRs.
Functionality for collecting intra-team feedback and surveys from team leaders to employees and vice versa.
Custom Reporting & Dashboards with an individual dashboard for assessing team performance.

HRM software development is a multifunctional solution that covers routine work for specialists. Thus, it will allow for quality control of internal HR processes, and it will be available on a single web and mobile platform. Therefore, a well-structured human resource management system should ensure the high-quality integration of most processes and improve overall efficiency and personal management.

It is worthwhile to follow an important stage of product discovery to qualitatively determine the benefits that your business needs from HRM software development. Start with product discovery to clearly determine the key benefits your business can gain from HRM software. With the defined functionality, technological capabilities, and business goals, you can develop an efficient HR solution that meets your company’s needs.

Key types of HRM software

The diversity of human resource management software is driven by the need to optimize many aspects, from employee data management to talent development.

Therefore, let's look at the main categories of HR software that are tailored to specific needs.

Human Resource Information Software (HRIS)

This type of HR software includes recruiting, candidate tracking, and performance management and may include:

Master Data Management with centralized, documented management of personal data of internal staff.
Attendance Management with automated time tracking and integrated biometric systems.
Customized Workflow with customizable processes to reduce routine work on administrative tasks.
Benefits Administration for managing social packages.
Report Analysis with HR analytics and customized reports to assess the effectiveness of HR operations.

Human Capital Management (HCM)

HCM is designed to provide performance management and monitor employees in the context of assessing their contribution to the company's overall productivity. The main goal of this type of HR software is to strategically develop human capital to improve and organically grow business results.

HCM has the following areas:

Talent acquisition and selection
Personnel management
Optimization of employee performance

This is implemented through the following functionalities:

Strategic planning with forecasting of staffing needs
Financial rewards management
Recruitment process
Onboarding development programs for new team members
Working time monitoring
Performance evaluation based on KPIs or compliance with strategic goals
Legal monitoring
A system of benefits for employees.

Human Resource Management Software (HRMS)

This HR software is a powerful tool for companies that must manage and centrally access all work-related aspects, including talent acquisition, performance management with HR workflow, and compensation administration.

HRMS functionality includes:

Employee Information Management, which is centralized management and editing of employee data.
Recruitment and Onboarding processes
Accounting for working time
Finance with the calculation of accounting, bonuses, and other compensations.
Essential Employee Services - integrated communication tools for HR teams and employees.
Feedback - a system with mechanisms for assessing employee satisfaction, collecting feedback, and conducting internal surveys.
MIS Reports with analytical and management documentation for HR processes.
Planning with the ability to build human resources management strategies.

Talent Management Systems (TMS)

A TMS is an integrated software platform for building a high-quality human resource management system, supporting key talent management processes, including recruitment, onboarding, performance management, learning and development, compensation management, and succession planning.

These processes and the technical capabilities that support them are typically delivered through software modules in HRM software development. The advantage is that software solutions of this type lend themselves to developing and implementing additional functionality as the product evolves.

The TMS system covers many problematic issues, such as:

Manual, time-consuming workflows for recruitment, onboarding, performance, training, compensation and succession
Lack of continuity between systems with different data warehouses
Suboptimal manager engagement
High rates of employee turnover
Low number of qualified candidates for open positions
Consistent oversight of compliance with corporate and regulatory labor laws.
Employee retention.

Learning Management System (LMS)

Depending on the type of LMS, the issue of HRM software development may remain open. For effective human resources management, it's worth knowing whether a SaaS LMS, Commercial LMS, or Integrated LMS is right for your business.

Nevertheless, the following functionality can be used when developing HR software of this type:

User management. It allows grouping employees and assigning tasks to individuals and groups.
Data reports. The LMS should guarantee employees the ability to track their progress, which is especially important for further evaluation and human capital management.
Knowledge assessment. This includes the development of assessment tools for a specific knowledge niche.
Centralized learning materials. The LMS should store learning materials securely for each employee. This approach will help to further develop the effectiveness of human resources management.
Course management. When a user can manage their progress in a course at a convenient time or has the opportunity to create a new one. For example, when it comes to people in management positions who are ready to transfer knowledge.

Choosing the right HRM solution depends on the company's business goals, scale, and specific HR processes. However, even if your company has an existing solution that is not delivering the expected results and is difficult to scale, it is worth updating or developing a customized solution.

To ensure that your updated solution retains all previous data and aligns with new business processes, App Modernization plays a crucial role in seamlessly integrating new functionalities while maintaining system integrity.

Step-by-step HRM development process

The HRM software development process requires an integrated approach based on the experience of development specialists and the client's expected business goals. Therefore, it is important for both parties to agree on all the details to ensure further process transparency. If your HR software development has a complete implementation strategy, this is already half the success.

For effective human resource management software implementation, it is worth following a business application development roadmap that outlines all stages, from discovery to support.

Step 1. Requirements Gathering

Before developing your HR software, you must define the functionality that will fit your HR processes. Also, at this stage, it is essential to do the following:

Identify the primary business goals and key HR processes that need to be automated.
Analyse the client's and HR specialists' requirements to form a clear product architecture.
Estimate the budget and resources for development.
Create a list of the main functions, such as ATS, Payroll, Performance Management, Employee Self-service, or others, depending on the needs.

For Artkai specialists, requirements gathering typically begins with the Artkai Discovery & Scoping Session TM. This session takes minimal time but allows for clear prioritization, stakeholder alignment, and a solid foundation for design and development. This assures our clients that the final product will align with the company’s business expectations and HR needs.

Step 2. Design

The more detailed your team is at this stage, the more valuable the subsequent business logic and HRM software development will be. The tasks of the UX design team at this stage include:

Building the user journey. This step is about planning the screens that users will need to achieve their goals.
Planning and arrangement of information. This step involves building a flowchart or mind map (site or app map).
Low-fidelity wireframes. Creating very rough drafts of the interface
High-quality prototypes. Developing more detailed, gridded, and typographic, but still black-and-white drafts of the interface functionality and making it clickable.

From our experience, we have optimized the design process by creating a unique synchronization mechanism between designers and front-end developers at the design stage.

This will allow us to check the design from the technical implementation side. As a result, we significantly reduce the time for analysis at the front-end development stage.

Step 3. Development

At this stage, the technology stack and its practical implementation are key. HRM software development is a rather complex and multifaceted process that involves several technical specialists. The choice of technologies depends on business goals, platform scale, security requirements, and plans for further scaling.

Below, we'll look at the leading technology stack that can be used for HR software, but it is variable depending on the specifics of your business:

Backend

Programming languages: C#, TypeScript, Java, Python, Go, or PHP
Frameworks: .NET, Node.js, Spring, Django

Frontend

Programming languages: JavaScript, TypeScript
Frameworks: React.js, Vue.js, Angular.
React Native, Flutter (Dart) or SWIFT and Kotlin can be used for mobile development.

Our team optimizes project timelines by scheduling work so that frontend and backend teams work in parallel. This speeds up the development process and reduces the delivery time of the finished product.

*Your technical team makes the final choice. It must adequately apply the technologies during development to ensure that the product works correctly for all parties.

Step 4. Testing and Quality Assurance

To ensure that HRM software development is stable and correct in operation, you need to test it using several vital tests thoroughly:

Functional testing to check the operation of the leading HR functions.
Performance testing to assess the system's performance under high loads.
Security testing with analysis and verification of personal data protection in accordance with GDPR and HIPAA.
User Acceptance Testing with real users to check usability in various scenarios.

This part is essential to identifying potential problems and inaccuracies in HR software, as there is a direct interaction between human resources management, human capital management, and human resources.

Step 5. Deployment and Integration

After successful testing, the system is deployed to the client's servers or cloud platforms such as AWS, Azure, or Google Cloud. The main tasks at this stage are:

Integration with the existing IT infrastructure of the human resource management system.
Training HR teams on how to work with the new platform.
Performance monitoring is based on employees' practical testing.

At this stage, the main focus is on the HR department, which will directly work with the human resource management system's main functionality.

Step 6. Support and Maintenance

An HRM system needs constant support and updates even after a successful launch.

This should be provided through:

Bug fixes and security updates.
Expansion of functionality
Continuous performance optimization and integration updates.

Changes in legislation also affect the data use policy in software solutions, so it is worth systematically monitoring this process from the legal side.

Top features to include in your HR management software

The set of functionalities for successful software solutions is a tricky task, as it will directly affect the performance management processes of the workforce and other business processes.

That's why engaging tech consulting services at the planning stage is essential for defining the optimal functionality, technology stack, and architectural solutions, ensuring a strong foundation for your HRM software.

So, the main functionality that can be applied in various HR processes:

Employee Records. Provides storage of information about employees, including contact details. Automates the management of personal files. Allows HR specialists to access all the necessary employee information in one click quickly.
Payroll Management. It calculates salaries, bonuses, taxes, insurance premiums, and other payments. Integrates with time and attendance modules. It helps the HR department to minimize errors in payroll calculations.
Recruitment and Onboarding. Automates the hiring process, including collecting and processing resumes and sorting candidates by experience and skills. It can be implemented by creating job ads and managing applications and documents. Simplifies the onboarding process for new employees.
Training Management. Supports the organization of online courses, workshops, and certifications. Tracks the learning progress of each employee. Allows companies to invest in staff training.
Performance Analysis. It can be used by applying KPIs, OKRs, and 360-degree feedback. Building an automatic system of employee performance with subsequent evaluation.

Thus, such an approach to the definition of functionality will help distinguish your product from competitors. The introduction of new, unique features will primarily build high-quality internal processes. Also, it is essential to emphasize that applying these functions in practice should be accompanied by ease of use for human resources management.

How HR management software built for our clients boosted their business

The Case of Cruitment, a SaaS HR Platform

Cruitment is a SaaS platform that automates recruitment and HR management processes for small and medium-sized companies. This universal human resource management software aims to improve the quality of HR departments.

The main strategic requirements that the Cruitment software solution for internal specialists will address are effective candidate search, communication processes, and analytics. These indicators will provide a solid basis for internal specialists to decide about new employees.

Vulnerabilities of the project to human resource software development:

Fragmented recruitment process. Due to the variety of tools, companies used them irrelevantly to find candidates, which led to an inappropriate search and complicated further processes.
Lack of a unified environment for HR teams —Different businesses needed a single place to use the platform to manage processes such as job posting, candidate communication, and analytics.
Automation of HR processes — For many professionals, manual tracking of candidates, sending out letters, and managing interviews was inefficient.
Communication complexity — Companies needed a unified communication system to exchange messages and feedback between different departments, recruiters, and candidates.
Lack of analytics — HR specialists needed to create new tools based on real indicators of the hiring process.

After 6 months of cooperation, the Artkai team managed to solve several problems:

For the recruiter side

Flexible recruiting pipeline customized to the processes of a particular team and company with smoothness at all stages.
Kanban board built according to all UI/UX principles.
The pin function prioritizes tasks and focuses on the most important ones.
Customisable analytical reports
Customisable notifications with information about new applications.

For the candidate

The candidate's priority is the speed of application and clarity of requirements. That's why Cruitment offers:

A user-friendly search engine sorting positions that will match skills and expectations.
Quick CV submission by filling in the required information in simple steps.
Viewing the history of responses to get feedback from recruiters.
As a result, the Cruitment platform has become an effective solution for many professionals, bringing the expected positive results.
Optimised hiring time—To find a candidate, the HR team has now increased the operational speed of closing vacancies several times.
Increased productivity of HR teams - specialists managed internal processes and stages in one centralized environment
Transparency of processes—The analytical module helped companies improve resource management and identify weaknesses in recruitment.
Improved communication—candidates received timely feedback, and the speed of the recruitment process increased for specialists.

The platform has become an ideal solution for many companies, as evidenced by a threefold increase in the candidate pool. It also doubled the number of accepted offers and reduced CPA (cost per applicant) by an average of 1.5 times among recruitment teams.

TestHub

TestHub is a Norwegian startup founded by entrepreneur Jens Martinsen, who wanted to create an automated candidate screening platform to increase objectivity and reduce bias in the hiring process. With a limited budget, he turned to our team to develop the product's first version.

Artkai's approach

Discovery Workshop: The Artkai team held online meetings with Jens to gather requirements and document the idea. The result was a detailed project backlog covering all stages of product development.
Proof of Concept (PoC): Given the limited budget and timeframe, it was decided to create a working prototype that would demonstrate the main user journey.

Results and achievements:

Thanks to the created PoC, TestHub was able to attract the first paid corporate client for a pilot launch.
Funding and acceleration: The PoC allowed TestHub to conduct user tests, get feedback, and confirm the platform's functionality. This contributed to the startup's successful acceptance into the Katapult Accelerator and attracted €80,000 in funding.

This approach helped us clearly define the requirements, identify potential weaknesses, and present an actual prototype to investors and customers. As a result, we received positive feedback from our customer and further developed their product successfully. It should be noted that even a limited budget is not an obstacle if both parties agree on a common action plan.

Wrapping Up

The development of HRM software allows businesses to automate key HR processes, increase the efficiency of personnel management, and improve the interaction between the HR department, employees, and management.

An HRM solution must consider your needs, expectations, and previous experience to be truly effective. Our team is ready to help you implement a software solution to improve your company's key performance indicators and ratings.