HR management software has become an indispensable asset in almost every corporate environment. Even small and medium businesses are letting go of the idea that HR systems are the costly, fancy additions they don’t really need, as the long term gain of leveraging HR technology saves much beyond the limit of what they’d spend to get a product.
There is no unified definition of HR management software that could cover all advanced aspects of this technology, but by default, it compiles all recruitment and workforce management systems used to improve business efficiency. The purpose of HR management software is to combine different human resource and administration processes in a centralized location, from where the manager can also assign tasks, monitor and evaluate progress, and reward the best performers in the team. Basically, HR software takes you a step ahead in improving decision making, and does so on a lite, competitive price.
How does HR management software work? Despite of the HR products arena being one of the most diverse software landscapes, almost all HRIS packages come down to a defined set of management goals. They usually cover:
Most of the time, HR systems are packed with custom roles and permissions, and offer a user-friendly interface that doesn’t take time to learn.
How to choose a solid HR system for your company? The process won’t be easy, as you’ll be offered apps of all categories, starting with simple spreadsheet management and ending with fully-featured enterprise-level workforce governance. Beyond answering the definition of HR management software, we listed all important all aspects and details to keep in mind. In this article we will will discuss:
While there are hundreds of various HR software solutions available on the market some of them are well known and trusted, so it’s advisable to start your research with those. Below we’ve listed some of the leading solutions worth checking out:
One of the market’s most popular and comprehensive HR suites, BambooHR offers a unique Applicant Tracking System that administers all aspects of the employee’s life cycle and provides the necessary personnel visibility. Equipped with a modern and sleek interface, not only will HR personnel find the system engaging, but it’ll also make it easier for them to manage a particularly large workforce. Moreover, this HR system’s support to robust integration with other business management apps coupled with its open API makes it easy to extend its functionalities to include reporting, expense tracking, and more.
Gusto HR is a Human Capital Management (HCM) solution that features all the essential functionalities for handling the workforce – from onboarding to performance management. It’s also packed with industry-grade admin tools for payroll, benefits, PTO, and compliance management. Gusto’s main target users are the upstart, small, and developing businesses in the US seeking a platform that can cover their end-to-end HR needs.
A leader in collaboration and communication, monday.com synchronizes all the information and consolidates them under a single, easy-to-access hub. The platform also provides HR personnel with a clear and visual view of every job recruitment they currently have in order to see at a glance where each of the candidates stands. Moreover, the system is equipped with graphs that provide an overview of every employee’s performance; allowing managers to set goals and give feedback to each.
While mainly a payroll solution, OnPay also offers robust HR-related functionality for small businesses. For instance, it helps HR with their document processes by providing them with templates of contracts and sending them out for signatures. Furthermore, OnPay provides employees with a visual org chart that details the company’s structure and employee roster that shows the up-to-date contact information of every worker.
CakeHR is a versatile HR management solution that can help businesses of various kinds to effectively and efficiently manage their employees. It has features for different areas of human capital management including recruitment, scheduling, spending, performance report, and more. Also, being a cloud-based solution and the ability to integrate with communication software like Slack makes connecting with other employees a lot easier.
Paycor is a user-friendly Human Capital Management software loaded with a broad array of solutions for recruitment, human resource, and payroll. Considered as an all-in-one system, this platform brings all employee-related information in a single location. It’s good for small to medium scale business use.
Freshteam is a simple yet intuitive, feature-rich solution that allows professionals in the human resources industry to find top-notch talents for their organizations and retain them. It brings applicant tracking tools and recruitment solutions into one convenient platform. All can be acquired at a moderate price.
SoGoSurvey is an online survey platform that allows its users to gather actionable insights. It sports a drag-and-drop interface and a plethora of tools for creating and conducting surveys. With a variety of available features, this solution caters to the needs of a wide range of industries including but not limited to financial services and government organizations.
Toast Payroll is a team management and payroll system developed specifically for restaurants. It sync’s with your POS, provides tools that help businesses ensure that they remain compliant with the regulations, and offers a centralized hub for HR and payroll. It does not provide a fixed price so you’ll need to contact the vendor for a custom plan that fits your requirements and your budget.
Recruiterbox is a feature-packed, user-friendly Applicant Tracking System (ATS) designed for small and medium-sized businesses. Its tools make the typically complicated hiring process simple and most of the features are customizable to fit your HR needs. It also features an open API, allowing users to integrate the solution into their key business systems.
You’ve learnt what is HR management software, but what are its uses? HR software streamlines workforce management processes, and is thus able to make the most of your team’s potential. It is applicable in all business settings to streamline recruitment, screening, hiring, and evaluation, and works particularly fine for talent finders and recruitment agencies that connect talented professionals with their future employers. Even among beginner teams, HR helps develop healthy management habits, as it puts in place detailed performance evaluation unlike any similar system.
Which are the main advantages of HR management software?
We’ve defined what is HR management software, let’s now take a look at its different types. In order to categorize any system, we need to understand how does an HR management software work, and which operations it was developed to complete. This is the standardized way to divide and classify HR systems, other than their pricing, available deployment method, integrations, and similar criteria.
Depending on the features of an HR management software, it can fall under any of the following criteria:
Core operations HR systems
Most HR systems belong exactly to the core operations category, as it fuses the three fundamental pillars of employee management: personnel tracking, benefits administration, and payroll management. Automating such functions is the very basic functionality required by any business, and yet one of the most tedious parts of manual workforce management about to be eliminated.
Strategic HR systems
Strategic HR management systems pay more attention to hiring, and help the user attract and cultivate talent, and provide the best possible onboarding for employees. These systems usually come with corporate learning management kits, applicants tracking and recruiting tools and retention mechanisms, and are predominantly purchased by employment agencies and professional recruiters.
End-to-end workforce management kits
These software tools help schedule and monitor workforce once hirees are inserted in the system, and do a pretty good job evaluating their performance. They track time, expenses, and attendance, comply with all applicable labor laws and standards, and integrate with an array of accounting and BI tools to help turn HR data into operable intelligence. More often than rare, workforce management vendors offer premium packages that cover all three types of HR functionality.
We’ve answered the question what is HR management software earlier in the article, now let’s look at its main features. In order to understand a system’s performance in detail, we’re going to give a look to the main features offered by all popular HR vendors. Keep in mind, however, that most popular HR systems nowadays are packed with brand new widgets and extraordinary functionalities that give them a competitive edge against other vendors. The need for those, as expected, will depend on your industry and the type of team you’re governing.
Here are the HR features you should be looking for:
The cost of HR management software depends on the features that are included in different plans, as well as deployment and access to support. Some programs limit the number of recorded employee entries for basic plans, while in other all premium functionality is available for little to no payment. Here are the enterprise pricing options available:
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