HR Software

HR Software

Human resources management is the most challenging task for an organization. The ideal way to function best is to automate all the HR-related manual tasks with the best HR software. GoodFirms eases your search efforts by bringing you a list of the best Human Resource Management Software.

What is HR Software?

HR software is a set of tools designed to automate various HRM tasks for a company, manage its employees and processes, and ensure smooth functioning. Managing human resources is convenient with such tools that solve many issues, including process delays, manual errors, data updates, information sharing, and more. The best HR software solutions offer all tools to manage an organization’s complete set of human resource processes through one platform.

Why Is Human Resource Management Software Necessary?

Software for HR management is vital to maintain a healthy work environment in your organization. The software eases the day-to-day work for the company’s HR staff personnel and management. It also streamlines all human resource functions and thus results in happier employees. It saves time, surges productivity, helps reduce attrition, and enhances the image of a company.

Who Needs HR Management Systems?

Every organization or business, whether small or large, needs human resource management. Large companies have numerous human resource tasks, while smaller companies need to manage fewer of these tasks or functions more efficiently, but none can avoid human resource management.

Any negligence in human resource management can significantly cost a business. It can cause delays, errors, miscommunication, loss of data, and regulatory compliance issues. Such issues lead to employee dissatisfaction, toxic work culture, and even employee attrition; all these directly hamper a company’s growth. Thus, every company needs HR software systems to avert these problems and surge its business. A transition to software-based HR process management may consume time and money, but leveraging the right software tools proves profitable in the long run.

What Are the Benefits of HR Management Software?

The top HR systems provide all the necessary tools for managing a company’s HR functions, including talent acquisition/recruitment, employee data management, payroll management, administration, time and attendance tracking, grievance handling, and insights through analytics and reporting. These solutions help shrink process time for routine tasks, thereby allowing companies to focus more on complex tasks. Streamlined workflow and increased efficiency with HR management software use can ultimately result in cost reduction and enhanced profitability.

How to Choose the Best HR Solutions?

Selecting the right software for your business HR management needs is not an easy task. You need to ensure that the software offers all the necessary features that your company needs, it is easy to use, and has earned positive feedback from other users. Above all, the software you choose must be feasible for your business; it should fit in your budget and prove profitable with time.

GoodFirms has done comprehensive research to identify and summarize a list of top human resource management software. To choose the best, you can browse through the list, utilize filters, and explore each software’s details along with the prominent features, reviews, and pricing information.

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Buyer’s Guide

Buyer’s Guide for HR Software

This buyer’s guide for human resource management software intends to provide human resource managers, HR personnel, HR generalists, HR specialists, users, businesses, and software enthusiasts the essentials they must consider before setting their foot forward to buy HR software for their organization. It analyzes all the significant terms, focus areas, types, features, and pricing information that one must know before initiating a buy on HR solutions.

Why Is HR Management Important?

What makes a company an excellent workplace? In 2019, Hilton, Salesforce, and FedEx made it into Fortune Top 100 companies. Let’s see how!

Hilton is well-known for its employee-first policy. Salesforce has spent around $8.7 million to address statistical differences in pay and resolve gender and race-based pay gap issues and adjust salaries for 30,000 global employees. FedEx paid $200 million in employee compensation in 2019. These are some instances that display the affinity these companies have shown towards their human assets and how these companies’ human resource departments have played a remarkable role in achieving such milestones.

With time, there have been significant transformations in HR functions. According to Gartner research (2019), more than 80% of the CEOs are focused on leading the organizations through digital transformation. Addressing employee issues promptly, empowering employees with the inclusive work culture, and keeping the environment free of racial or gender-based discrimination are the current focus areas of HR for sustainable employee development. The HR department needs to deploy the best available technical tools and software to speed up their processes and align them with the company’s vision and mission.

What Is HR System?

Human resource (HR) software is a set of tools and applications to help the HR personnel manage their employee base and daily human resource tasks with enhanced efficiency.  It assists HR to track approvals and organize workflow. HR can also monitor and gauge the employee satisfaction level based on various metrics that the software-based HR systems can calculate and report.

Software-based HR systems are also known as Human Resources Management Systems (HRMS), Human Resources Information Systems (HRIS), Human Capital Management (HCM), and Talent Management Systems (TMS). According to Statista, the global human resource management software or HCM applications market size was valued at USD 26 billion in 2018 and will grow to USD 29.5 billion by 2023.

With high-end standardization, streamlining, and automation of HR activities, technology companies such as SAP (Systems, Applications, Products), are reshaping HR management in organizations. Moving a step further, Artificial Intelligence (AI) and Machine Learning (ML) have now made it possible to leverage virtual HR assistants or HR bots for human resource management. The human resource software system can be a real game-changer in creating a balanced work environment for the workforce and providing employees ample opportunities to learn and grow.

What Are the Different Types of HR Software?

There are numerous types of HR tools available that serve different purposes. It is possible to get specific software tools for a particular HR function; for example, Oorwin is one of the best recruiting software. The comprehensive HR systems unify multiple tools to perform different HR functions into one platform to help businesses synchronize all human resource activities; for example, PeopleHR offers all HR generalist functions. 

HR solutions are of numerous types, but we can broadly classify these based on technical differences, areas of specialization, and functional differences, as given below.

Based on Deployment Options


The cloud-based HR software is a SaaS (Software as a Service) based solution that allows users to access the software from anywhere using internet-enabled devices. The data lies on third-party cloud servers.


The on-premise human resource software gets installed on the internal servers of the organization. Organizations that do not wish to pay cloud rentals, or prefer in-house solutions to third-party platforms, opt for on-premise HR solutions.


When organizations need comprehensive customization of HR systems to accommodate specific features unavailable with any vendor, open-source HR applications can help access, view, and modify the software source code.

Based on Areas of Specialization

Applicant Tracking

The recruitment-focused HR management software that tracks job applications and candidates throughout the interview process is called applicant tracking or recruitment software. These have features to view applications on a centralized dashboard, automate sorting, search for required keywords in resumes, match percentages, interview scheduling, etc.


HR payroll software takes care of payrolls (fixed and flexible), tax-calculations, time-off accruals, etc. It also focuses on managing the compensations and allowances or benefits given to employees, including overtime, gratuity, incentives, commissions, bonuses, etc.

Employee Performance Tracking

The performance focussed human resources software offers a variety of features to improve your employee appraisal process. It assists in taking 360-degree feedback.

Training and Development

The training focused software comes with HR tools to manage employee onboarding, training, learning management, course building, etc.

Talent Management

Talent acquisition and management software integrate various HR tools and modules to manage human capital, including recruitment, performance management, training and development, and compensation and benefits. 

Time and Attendance Management

This software helps the HR people monitor and record employees’ time logs, attendance, and leaves accurately. It can integrate with the biometric system and payroll software.

HR Investigation Management

The HR investigation software helps HR managers to investigate harassment and misconduct allegations in the organization. It has features to manage the legal documentation requirements and helps keep the investigation process on track.

Based on Functional Differences

Administrative HR software

The administrative human resource management software focuses on employee management, employee benefits, and maintenance of employee records. It also has features to manage payroll and document storage.

Workforce Management HR software

The workforce management HR system software manages elements such as employee attendance, absence records, holiday requests, hours at work, multiple shifts, and work structure. Some workforce management software features may overlap with the features of administrative HRM software.

Strategic HR software

Strategic HR management solutions revolve around the company's well-being, long-term business goals, and employee management. It focuses on enhancing employee satisfaction.

Why Do You Need HR Software?

As discussed, HR management software helps speed up HR work, reduce human errors, and simplify hiring processes. It provides your HR team with tools to gauge your organization’s overall progress, such as employee turnover rate, employee progress rate, attrition control, and recruitment analysis. It thus streamlines the overall human resource management process of an organization to improve employer and employee relationships and create a healthy work culture.

HR management systems assist in all HR operations to include:

  • Staffing and recruitment
  • Joining and relieving
  • Training and development
  • Payroll management
  • Welfare activities
  • Promotions and transfers
  • Retirement and retrenchment
  • Legal compliance and reporting

What Are the Benefits of Using HR Software?

With so many areas where the HR system can help streamline work, the HR manager is significantly relieved of work pressure and can focus more on strategic planning. The HR department serves as the point-of-contact for all departments of an organization to seek information about employees.

Here are the top benefits of using HR management software.

Improve efficiency

Automation of the routine HR tasks through HR or HRMS software reduces paperwork and eliminates human error. It helps save time and gain speed. Thus, it improves the overall efficiency of core HR processes.

Realtime access and updates

HR management software allows real-time access and updates of employee data. This makes it easy for the HR personnel to provide the required information to all departments as needed quickly, thus benefiting all departments.

Elimination of human error

Accuracy is the main requirement for HR departments as they handle the most sensitive data of the company. Software-based HR management solutions eliminate human error and improve overall accuracy in various HR data and processes.

Privacy and data security

Software-based HR systems reduce the need for staff to manage the company’s sensitive and confidential data. The software stores data securely, allowing access to a few authorized personnel only, thus ensuring greater privacy and data security.

Increase productivity

HR personnel can automate routine, repetitive recruitment tasks such as screening, tracking, and sending emails to the candidates with human resources software. This enables the HR team to focus on core objectives.

Save costs

In the long-term, an efficient HR system saves a significant amount of money for the organizations by reducing manual and paperwork, speeding up all the processes, reducing personnel requirements, and enhancing productivity.

Employee retention

Streamlined HR processes translate into healthy work culture, happier employees, and enhanced employee engagement ultimately resulting in better employee retention.

Earn employee trust

When employee requests, queries, and sanctions are through a digitally automated process, they are more likely to trust the organization to solve their issues. As everything is recorded and documented in real-time, employees feel more secure.

Work from home

Working from home is the new norm. The human resource software allows HR personnel to access, update, and share all the data on one platform. It is thus possible to work from home without hassles.

Ensure regulatory compliance

Regulatory authorities frequently seek various information from the companies to ensure compliance to all the statutory norms. With the HR system in place, the HR staff gets a systematic approach and a safe central platform to keep all data. Thus, it is easy to ensure compliance and instantly provide whatever data the compliance authorities need.

What Are the Features to Look for Before Buying HR Software?

All software-based HR systems offer different tools and features, but the right HR or HRMS software solution must have the core features listed below.

Core features of HR solutions

Employee Database

HR systems software enables storing all employee-related information in a centralized repository. It comes with search capabilities to see records of all current and former employees.  The below types of records are available in the employee database:

  • Role and designation of employees
  • Date of joining
  • Personal information, biodata, resume, etc.
  • Employee history
  • Job profile information
  • Status of job - part-time, full-time, or contractual
  • Employee documents, ID proofs

Document Management

HR managers generate an overwhelming number of documents daily, and these need to be preserved for future references. The document manager feature helps HR personnel to:

  • Upload documents
  • Grant and control access to documents
  • Organize the files
  • Share files


Salary calculations and pay-checks are the most error-prone zones of HR work that require meticulous execution. The payroll feature of the human resource solutions comes power-packed with tools for:

  • Salary calculations
  • Bonus calculations
  • Pay-check calculations
  • Tax calculations

Time and Attendance

The time and attendance management function of the HR software application works in collaboration with a time tracker and biometrics device. It takes care of the time and attendance related elements such as:

  • Check-in/check-out
  • Time logs
  • Absence information
  • Late arrivals
  • Paid time-off
  • Holidays and vacations
  • Leave count

Employee Self-Service

HR can save a lot of valuable time due to the employee self-service feature. It helps employees access some parts of the HR portal through the employee login feature to view their documents, pay-slips, training modules, company policies, benefits, progress records, etc. It allows employees to:

  • Access to the personal information database
  • Download personal data
  • Raise requests
  • Payroll information
  • Access to company announcements and digital notice board
  • Raise requests such as time change,  leave,  and compensation
  • Travel reimbursements

Performance Review

HR software’s performance review feature helps HR staff design and share customized self-appraisal forms, survey forms, and feedback forms with the employees and track their performance through a centralized dashboard. It offers:

  • Inbuilt survey forms
  • Self-appraisal mechanism
  • 360-degree feedback

Applicants Tracking

The HR system has features to track job applicants. It can filter data, screen applications, and sort candidates.  It can automate the recruitment workflow. Other features in this category include:

  • Job postings
  • Job board Integrations
  • Candidate database
  • Background checks
  • Interview management
  • Onboarding (orientation program)

Learning Management

Organizations work hard to keep their employees up-to-date about new professional developments in their fields. Learning management feature helps HR manage training and development. HR can create and upload their tailored courses and track the employees’ progress in the enrolled courses. It allows:

  • Certificate management
  • eLearning modules
  • Assessment tools
  • Workshop integration

Analytics and Reporting

The HR analytics processes data to come up with reports about the crucial aspects of the HR mechanism. The reports provide statistics that help gain insights into the organization’s overall human resource management. HR can understand the below metrics:

  • Employee turnover rate (Employees who left/Average number of employeesx100)
  • Hiring vs. attrition trends
  • Employee tasks completion rate
  • Filters to find employee information reports

Employee Benefits

The HR system facilitates employee benefits processes. For instance, it keeps a record of group insurance and the medical policies of the employees. It allows employees to enroll in various schemes for their welfare, such as:

  • Insurance
  • Welfare activities
  • Gratuity
  • Medical check-ups

Asset Management

It assists the HR people to keep accurate records of the assets and other items allocated to the employees, such as:

  • Assets given to employees (Car, phone, Computers)
  • Loans given to employees
  • Advances given to employees

Case Management

Employees raise a lot of individual questions and requests from time to time. The case management feature of human resource software lets the employees register their requests and questions on the portal. The feature allows:

  • Employee questions
  • Conflict resolution
  • Problem-solving
  • Status of requests
  • Reply to queries

GPS and Mobile Tracking

Many jobs require companies to track their employees’ location; for example, people in field jobs, sales, and marketing are tracked for various reasons. This feature helps HR in doing so.

Apart from the software features listed above, you need to ensure that the software vendor provides customer support during and post-installation.

How Does HR Management Software Benefit Different Industries?

Every company needs human resource management, and thus, HR management software too. The benefits of HR management software in various industries are as below:

HR Software for Large and Medium-Sized Companies

Large corporations with several hundred employees need to have standard practices and streamlined processes to manage data volumes. HR management software has features that cater to all their needs, employee benefits in particular. HR solutions can automate and simplify payroll, time and attendance, and training issues for such organizations with too many employees.

HR Software for Small Businesses

The core business workflow of small businesses can be somewhat similar to their larger counterparts. But the needs and complexity of their business are very different from large organizations.  Initially, a software that automates HR tasks, stores information securely, integrates payrolls, and helps in compliance management would suffice for them.  Small businesses need to deploy HR systems software that supports scalability.

HR Software for Startups

Startups are more prone to the scrutiny of law as they lack experience and do not have proper HR management systems in place. Startups should deploy human resource software to make themselves fully compliant with all legal formalities. Also, startups are more likely to perform well if they have proper technology at the place and every document ready in the vault of human resource management software.

HR Software for Service Industries Such as IT, Hospitality, Banks, Education Sector, and Hospitals

The crucial HR issues are staff scheduling in the hospitality industry, employee discontent in banks, attrition in the IT industry, and recruitment of qualified staff in the education sector. Software-based HR solutions help address all such issues. 

HR Software for Government Agencies and Nonprofit Organizations

The government agencies must ensure proper documentation of every HR process. As the attrition is low in this sector, the employees need to be kept up-to-date through regular training programs. HR management software can help maintain perfect documentation and train the newly recruited and existing staff.

HR Software for Retail Businesses

Employees create or mar the company’s reputation and business in the retail industry. Secondly, retail businesses often see a sudden surge in demand and customer footfalls seasonally. The HR application can help mitigate the above issues by predicting employees’ seasonal demand based on past data and hiring the right people for the job.

HR Software for the Manufacturing Industry

Manufacturing is dependent on labor productivity, and the most significant issue in manufacturing is employee strikes. Software-based HR applications can help manage the labor issues by quick disbursals of employee benefits, tracking shifts and labor hours, and managing payrolls accurately.

What Are the Essential Things to Keep in Mind Before Purchasing HR Management Software?

A software-based HR system is an investment for organizations that can reap huge benefits in the long run if chosen rightly. Before you decide to buy HR management software for your company, you must ensure that it is feasible and meets your company’s needs. The software should be scalable to support the growing employee base. It must also fit within your budget and prove profitable. The checklist below can help you make the right decision.

  • Analyze what type of HR system your company requires and whether you need the basic plan or higher (professional or enterprise-level) plans.
  • Compare the product and vendors based on the features and services they are providing.
  • Confirm that the vendor has previously deployed the software for one or more companies of the same industry as yours.
  • Check the vendor background and feedback from other customers and find out how long the vendor has been in the market?
  • Carefully analyze various costs involved to include the implementation costs, training costs, maintenance costs, hardware costs, etc. The thumb rule is that the Return on Investment (ROI) should be greater than the software’s overall expenditure.
  • Shortlist a few software solutions that satisfy all the requirements discussed above. Make sure that the shortlisted ones fit within your budget.
  • Schedule a demo or use the free trial version (if available) first to understand what exactly you will get and whether it will suffice your needs or not. Involve your employees too in the demo or free trial sessions. Make sure they are comfortable using the software.
  • After analyzing your employees’ comfort level with the software, discuss their capabilities and limitations with the vendor, and ask the vendor what kind of user training they offer.
  • Discuss with the vendor the customizations (if any) that you would need in the software. Also, ask them about the costs of customization.

How Much Does the HR Management Software Cost?

The costs of HR solutions depend on a large number of factors. The parameters that significantly alter the pricing of the software are as below.

Features it offers

Software vendors offer only the basic features in their starter plans. If your company needs advanced features, you need to check the higher-priced plans.

Comprehensive solution or function-specific modules

Another critical factor that decides the costing of HR applications is whether it is a comprehensive solution that covers all essential HR functions or just a function-specific module. Comprehensive solutions include all modules in one platform and cost higher.

Cloud-based or on-premise

On-premise HR solutions typically follow a perpetual licensing model, and cloud-based HR management software offers a subscription-based monthly-payment pricing model.

Number of employees

HR management software vendors offer pricing plans based on cost-per-employee per month. Thus, companies with fewer employees will incur lower costs. 

Quality of customer support offered

Customer support availability also decides the cost of HR solutions. Vendors offer different packages with varying customer service hours and charge accordingly.

Costs of customization, implementation, user training

There can be additional costs for customized features, implementation, integrations needed with your existing system, and user training.

We have analyzed the costs of the top HR software listed on GoodFirms.  The average cost for buying an HR management software with enterprise version benefits is around $10 per employee per month. Apart from this, some vendors may charge for installation and training. For example, the basic plan of Zoho People, a popular HR solution, will cost around $1 (per month per employee) and Zenefits Growth plan will cost you $14 (per month per employee). A full-fledged installation of Gen Desktop Payroll Software will cost you around $215 a year.

Why Refer to GoodFirms' List of Top HR Management Software?

On searching for HR or HRMS software on the internet, you may find many software vendors that claim to provide HR management solutions, but these may not always be authentic. We at GoodFirms have a whopping database of above 60k services and software companies listed with more than 30K unbiased reviews of verified users.

GoodFirms has researched, categorized, and summarized the top HR systems based on their features and merits. All software that made it to the final list had to go through a series of checks that prove their worthiness. You can leverage this list and apply filters based on pricing models, devices supported, deployment criteria, available support, etc., and find the best HR solution for your company.

Frequently Asked Questions

  • What Is Human Resource Management Software? Is It Different From HRMS?

    Human resource management is among the most significant functions for any organization or business. Software solutions that offer tools to automate and simplify various human resource management functions are called HR management software or HRMS. These help the human resource department acquire, store, analyze, and distribute information among all stakeholders.

    HR applications are commonly known as Human Resource Management System (HRMS), Human Resource Information System (HRIS), and Human Capital Management (HCM) solutions. All these are different names given to the software-based HR solutions, with the most popular being HRMS.

  • What Functions Does the HR System Software Perform?

    The software for HRM provides a central platform for all HR functions. It enables numerous HRM tasks such as payroll management, recruitment, employee joining and relieving, employee database management, employee benefits management, leave management, performance management, data security, grievance handling, employee retention management, administration, and reporting/analytics. HR management software executes complex, repetitive tasks in much less time, eliminates human error, boosts productivity and helps organizations achieve employee satisfaction.

  • How Do Companies Benefit From HR Management Software?

    HRMS or software-based HR systems help companies streamline workflow, improve efficiency, enhance productivity, and upsurge profits. Here are the other benefits of HR solutions.

    • Automation
    • Timesaving
    • Elimination of human error
    • Reduced costs
    • Secure payroll and payment processing
    • Task scheduling, notifications, and reminders
    • Instant and real-time data update
    • Regulatory compliance
    • Insights for decision making, data analytics, and reporting
    • Boost in organizational performance
    • Employee satisfaction and retention
  • What Are the Core Features of HR Software?

    Different types of HR systems software are available in the market. Some HR solutions or HRMS offer specialized functions, for example, recruitment software. Other comprehensive solutions provide all necessary human resource management system modules and features for companies’ complete HR management. These features include:

    • Job posting and applicant tracking
    • Employee database management
    • Benefits management
    • Onboarding
    • Time and attendance management
    • Payroll management
    • Recruiting/hiring process management
    • Reporting and analytics
    • Self-service portal
    • Performance management
  • How Long Does It Take to Implement HR Management Software?

    The implementation time for human resource software ranges from 3 weeks to 8 weeks depending upon the solution’s complexity and integrations needed with your existing system. Apart from this, you must also consider the time spent in user training that also depends on the type of software and your personnel’s capabilities.

  • What Is the Best HR Software?

    The HR solution that suits another company well may not be the best for you. Thus, it is essential to analyze your specific needs in terms of HR functions. You can leverage the list of top HR software compiled by GoodFirms that summarizes the features, reviews, and pricing of different HR solutions available in the market. This list will help you find the best HR software solutions for your company.

  • What Are the Factors That Influence the Pricing of Human Resource Management Systems?

    The significant factors affecting the pricing of HRM software are:

    • Whether it is a comprehensive solution or serves a specific HR function
    • Number of employees covered
    • Features it offers
    • Whether it is a cloud-based or on-premise software

    Comprehensive HR solutions are complex, heavy applications that may cost higher. Cloud-based solutions generally charge on a per-month basis, while on-premise solutions can have one-time costs. Customized or advanced features cost much higher than the basic set of features that the vendors offer.

  • What Is the Cost of HR Software?

    Small organizations generally need the basic features and modules, and the starter plans for most of the popular HR solutions suit them. Larger organizations require a common platform to manage core HR functions, recruitment, and complex features like business intelligence. Software vendors cover all these features in their higher-priced plans.  Besides, customization for unique features that your company may need costs extra.

    You can get reasonable HR solutions for your company in the range of $4 to $10 per user per month. For example, PeopleHR costs $4 per employee per month for the basic package and $8 per employee per month for the Elite version, including all essential HR functions, recruitment, performance management, automated workflow, and Artificial Intelligence aided insights. Another popular human resource management software Vultus costs $8 per user per month and focuses mainly on comprehensive recruitment features.

  • What Hidden Costs Should One Look for in HR Solutions?

    Before you buy the HR application for your company, you must check with the vendor about hidden costs. These may include:

    • Installation charges and data migration
    • System upgrades and maintenance
    • User training
    • Customer support
    • Customization
  • Are There Any Free HR Software Solutions Available?

    Yes, there are many free HR management software alternatives available for companies with budget constraints and cannot afford costly human resource management solutions. Please refer to our blog on the best free and open-source human resource software tools.

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