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Top 5 Benefits of HR Software: Examples of Leading Solutions Explained

Category: B2B News

What are the top benefits of HR software? HR software can help your HR department achieve its goals and objectives through streamlining administrative processes and leveraging their tasks such as the recruitment, training, and maintenance of your workforce. Generally, the solution helps improve HR productivity and efficiency.

In this article, you’ll have a clear picture of the benefits of HR software in your company. You’ll also go through the fundamentals of this software category. Here’s the breakdown of what you’ll get:

  1. Definition of HR software
  2. Benefits of HR software
  3. Examples of HR software

Benefits of HR Software

Do you find it hard to look and identify the right candidates to hire? Don’t worry, you’re not alone. In fact, worrying about this aspect is not misplaced as so much money is at stake in having new hires.

Hiring a new employee is not cheap. In a press release by ULTATEL’s CEO Amr Ibrahim, it’s revealed that SMBs can spend up to $7,645 in the hiring process for a new employee from recruitment, screening, and training. With that, it’s crucial to ensure each new hire is worth it. But the challenges faced by HR teams don’t stop there, though.

A survey of HR managers on which aspect of their work is most challenging. (Source: Robert Half)

According to a survey via Robert Half, 36% of HR managers reveal identifying and hiring the right candidate tops the most difficult part of their work. The next aspect, voted with 26%, is terminating employees. Finally, handling benefits and perks programs and guaranteeing equity on internal and external compensation comes next with 23% and 14%, respectively.

With today’s technological advancements, there are tools available to help streamline and solve these challenges in your HR’s workflows. Built specifically for HR teams, an HR software assists managing your workforce with an array of benefits.

HR Software Explained

Before delving into the benefits of HR software platforms, let’s have HR software explained first. Also often referred to as Human Resources Information Systems (HRIS) and Human Resources Management Systems (HRMS), it’s a software built for streamlining and automating your Human Capital Management (HCM) processes in one database.

The HR technology landscape is crowded with various solutions due to the continually changing functions of HR departments. Despite this, many of these systems don’t face direct competition as they tightly target a broad range of niches. For a start, HR software systems come in both integrated suites and best-of-breed platforms.

The purpose of HR software solutions come in various specialties (for instance, administration, benefits, employee management, learning management, performance management, recruiting, talent management, training, and workforce management). You may read this article on what is HR management software for an in-depth discussion of its definition, features, and benefits, among others.

Meanwhile, here’s an overview of some of an HR software’s main categories:

  1. HR Administration. This is where the three traditional pillars of HRM (payroll, time and attendance, and benefits) are automated and streamlined.
  2. Talent Management System. This is a more targeted database and location specifically for recruitment, employee retention efforts, and employee development.
  3. Learning Management System. This is designed for determining an employee’s education, skills, and qualifications and developing them with available courses and materials.

BambooHR’s dashboard shows you recent activity updates in real time.

Key Features of an HR Software

No two HR software system is alike. Each product offers their own features and capabilities. However, there are key features you have to look at, such as:

  1. Performance evaluation
  2. Time tracking
  3. Attendance management
  4. Applicant tracking
  5. Recruiting
  6. Payroll management
  7. Reporting and analytics
  8. Learning management
  9. Self-service
  10. Benefits administration

5 Benefits of HR Software

HR managers face numerous responsibilities and tasks in their daily workflows. Twenty-one percent of an HR manager’s time is spent on meetings with business partners and senior staff according to Total Jobs. Other tasks that consume their time include employee relations and engagement with 15.3% and meeting with employees with 13.6%.

Those three tasks require ten times more of an HR manager’s time compared to low-priority tasks such as employee engagement (2.6%), redundancy management (1.5%) and onboarding and instructions (1.1%). In order to free up their time to focus on their high-priority tasks, an HR software helps in various HR-related processes.

After having HR software explained, let’s proceed with the HR software benefits:

1. Overseeing your employees

Maintaining and keeping your staff is crucial. While recruiting is necessary to grow your talent pool, growing and developing your current staff is more cost-effective, especially since they’re already familiar with your company’s policies and workflows.

An HR software allows you to keep track of every aspect that’s required to plot your employee’s career development plan. This includes gathering information about their performance on training courses, keeping a record of each employee’s points for development, and conducting appraisals regularly.

You can also assure that the data from appraisals are stored properly including details on the topics you’ve covered, the goals you set, and the feedback received. This improves your employee’s morale by giving them objectives to aim for and making them feel engaged with your company.

Sample features:

  1. Employee documents database. This lets you save all your employee documents in the system.
  2. Appraisal management. Handling the appraisal process from scheduling meetings to storing reviews of the employee’s performance and feedback.
  3. Applicant tracking. Streamlines how you find the right people and choose the best candidates.

2. Monitoring leaves and absences

At times when your employees suddenly have to request leaves for holidays or sickness absences, you wouldn’t want to be caught off-guard and entangled with messy, time-consuming email trails. This can significantly disrupt your workflows and productivity.

As one of the most time-consuming aspects for HR managers, a good HR solution can help you efficiently manage absences and leaves. It simplifies and automates the way you plan for the holidays, keep track of each employee’s remaining leaves, calculate pro-rate entitlement, and handle holiday requests.

Sample features:

  1. Absence management. Overview of an employee’s absences, leaves and training to handle employee calendar efficiently and effectively.
  2. Payroll management. Exporting adjustments to the employee’s payroll to the systems.
  3. Company calendar. An overview of upcoming company holidays, employees who are out of the office, upcoming birthdays, and events, among others.

3. Seeing data at a glance

Out-of-date and inadequate information makes decision-making difficult. For instance, a position with high turnover needs you to oversee the amount of training the employee gets and their performance. Getting in touch with their line managers is also vital.

An HR system collects data and lets you access it anytime and anywhere you need it. The data is available at a glance and you can view and retrieve them with only a few clicks. This enables you to deeply drill into the analytics of the data which are relevant in identifying trends and spotting problems. It’s a feasible solution that relieves you from the mess of having a paper-based system with file cabinets and information that’s difficult to reiterate and extract from memory.

Sample features:

  1. Training record. Scheduling and monitoring training to employees by HR and line managers.
  2. HR reporting. This helps you gain HR insights and create detailed reports.
  3. Audit trails. This enables you to monitor data changes by who, what, and when.

Zoho People’s performance tab shows you each employee’s skill set, goals, feedback, and self-appraisal.

4. Securing data management

In a typical setup, your sensitive employee data are stored in your office’s filing cabinets. But is it really safe? There is little to no assurance that everyone who can access these files is authorized. But by storing these vital data in the cloud through your HR system, you can prevent unauthorized people from getting their hands (and eyes) on information they’re not allowed to see.

It also gives you full visibility on who viewed what information and when. Since it’s saved on your computer or mobile device, you won’t risk your files from physical catastrophes such as fire or flood. Additionally, it enables you to have a paper-free office as you no longer have to print documents, policies, handbooks, and training manuals.

Sample features:

  1. Access permissions. Line managers and finance departments, among others, are given permission to access to the system to reduce your HR’s workload and ensure the right employee or department gets direct access to their data.
  2. Employee Self-service. Employees can request for holidays and leaves and update their personal details with permission.
  3. Security. User authentication, data encryption, and user authorization are only some of the features that an HR system has to ensure data is not accessed by unauthorized personnel.

5. Saving time and improving productivity

Admin tasks are some of the most time-consuming tasks an HR manager does. Some of these include holiday booking and approval, holiday allowance calculation, sickness recording and monitoring, employee data updating, objective logging, training monitoring, and expense logging and approval, among others.

Automation through HR systems reduces the time and effort it takes to complete each task. When you receive a holiday request from an employee, you no longer have to go through spreadsheets to look for the complete information on the employee’s request status. It helps you be more efficient and productive with your work management regardless of the number of employees you handle.

Sample features:

  1. Email alerts. Instant notifications for edits, approvals, requests, and status updates to ensure information is up-to-date.
  2. Reminders. Setting reminders for big events (birthdays, new hires, appraisals, and probation reviews, among others) for automatic notifications.
  3. Task checklist. Tracking to-dos and scheduling time to ensure everything that needs to be done is accomplished.
Freshteam dashboard

Freshteam suggests qualified candidates for a specific role/position based on your company’s own talent pool.

Examples of HR Software

The purpose of HR software greatly varies due to the variety of workflows of HR departments from one company to the next. Based on overall functionality, we listed the leading and most popular examples of HR software solutions we recommend you to check out. For more options, you may also read this top 20 HR software solutions.

  1. BambooHR. Bamboo HR, one of the most popular HR management solutions, is an online Human Resources Information System (HRIS) that prioritizes you to focus on your people and not on paperwork. It’s an intuitive, easy-to-use cloud-based tool that enables you to create user groups, customize tabs, fields, and tables, track benefits, time-off, and training, and integrate with third-party applications for payroll and applicant tracking. This all-in-one HR solution is built and priced for SMEs. The vendor offers an attractive free trial plan. Simply sign up for a BambooHR free trial here.
  2. Zoho People. This HR system gives you a simple and efficient 360-degree solution for handling HR processes such as employee onboarding, appraisals and time tracking, and attendance management, among others. It centralizes employee data and helps you save time with its self-serve features where employees can update personal details, record skill sets, and check in or out. It has a complete array of features that are scalable for SMEs. The best way to evaluate the features is for you to try them. You can easily sign up for a Zoho People free trial here.
  3. Freshteam. It’s a software that specializes in its applicant tracking system for the recruitment process. For organizations looking for a one-stop shop for their hiring needs, this solution is for you. It gathers data in one place regarding your hiring pipeline including emails, resumes, notes, and feedbacks. It also has a candidate database and a collaborative hiring model to ensure you maintain an active talent pool and get an inclusive experience when choosing candidates. If you want to try the features at no cost you can easily do so when you sign up for a Freshteam free trial here.
  4. ClearCompany. An HR solution for talent acquisition and management that unifies key HR processes. Its main features include tracking recruitment, onboarding new hires, aligning team objectives, managing employee performance, and engaging A-players. It does so by taking into account your company’s vision and mission as well as considering your administrative needs. Its pricing scheme is flexible to your organization’s requirements.
  5. Workday. Workday, one of the popular examples of HR software systems, is positioned as a cloud ERP alternative for your HR and finance management processes. Through combining both functions, the app creates a unified, single system for leveraging business performance. Workday’s Human Capital Management (HCM) software is packed with tools for people-related tasks such as visibility on employee performance and management of leaves, absences, and pay, among others. This software is designed for mid-sized businesses and large enterprises.
  6. OpenElevator. It is an HR software that focuses on hiring employees that are highly motivated and engaged. The developers of the software strive to prevent businesses from hiring indifferent employees as it believes that hiring highly engaged employees translate to a higher rate of productivity and better performance for the entire team. To achieve this, OpenElevator uses matching techniques employed by dating websites to ensure compatibility of hired talents with the company culture and his/her manager’s personality and values. The software comes with a dashboard that allows for easy criteria-based filtering and sorting, shortlisting, and rejecting of applicants.

By Louie Andre

B2B & SaaS market analyst and senior writer for FinancesOnline. He is most interested in project management solutions, believing all businesses are a work in progress. No stranger to small business hiccups and drama, having been involved in a few internet startups. Prior to his for-profit ventures, he has had managed corporate communications for a Kansas City-based Children International unit.

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