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.
List of The Best HR System | Human Resource Management System Software
List of The Best HR System | Human Resource Management System SoftwareFilter
- 1Empowerment Platform
Accomplish is a modern, unified human capital management (HCM) platform that assists HR leaders and global businesses in building a better workplace. Our easy-to-use HCM platform offers HR, payroll, time tracking, benefits, and compliance capabilities under a single application. It simplifies the complexity of HR and administrative processes faced by companies. Accomplish blends cutting-edge techn... read more about Accomplish EPThe easiest ben-admin solution ever used- Jaime Enoch Ortega
- 2HR Software for companies where people matter.
PeopleHR delivers an HR software administration solution for ambitious HR professionals working in small and mid-sized companies. Unlike manual or older systems that are frustrating to work with, the PeopleHR solution constructs insightful graphic reports, offers expert “follow me” guidance, and engages people on missions through high-impact tasks. ... read more about PeopleHRTime saver and most intuitive tool- Axis Web Art Pvt LtdVisit website15 Days$4.00/Month
- 3HR Software for Small & Medium BusinessesVisit website14 Days$1/Month
- 4Best Human Resource Management Software
Human Resources Software, HRMS, HRIS, HCM is an advanced solution that integrates the human resource management (HRM) of an organization with its information technology. It is a versatile mixture of certain vibrant apps and contemporary techniques that assist decrease the moment, energy and price of multiple company operations, in particular those linked to the HR department.... read more about NLET HR
- 5Your HR. Simplified!
Experience a paradigm shift where shift scheduling is concerned. No, it doesn't have to be tedious. You can simply create and edit shifts, then notify your employees with a click of a button. Everyone has access to their schedules from web as well as mobile apps. Android and iOS apps are available.... read more about CakeHRVisit website14 DaysContact Vendor
- 6HR software with heart.
BambooHR is a cloud-based system that is an intuitive, affordable way for growing companies to manage essential employee information in a personalized Human Resources Information System (HRIS). Its software sets HR free to do great work and be more strategic, which helps the entire organization do the same. ... read more about BambooHRGood- RaulVisit websiteAvailableContact Vendor
- 7Human Resources HR Software for Businesses
The Zenefits People Platform brings everything HR into one radically simple, single app. Our platform is designed to be comprehensive without being overly complex. It puts benefits, payroll and HR system access in the pockets and at the fingertips of employees. ... read more about ZenefitsZenefits works great for our team and is very helpful for what we need it to do- Tessa (Carroll) Wuertz, Director of Marketing & Agency Partnerships at efelle creativeVisit website14 Days$8.00/Month
- 8It’s time to tame the chaos of payroll, benefits, and HR.
Gusto’s mission is to create a world where work empowers a better life. By making complicated, impersonal business tasks simple and personal, Gusto is reimagining HR management, payroll system, and benefits for over 60,000 companies nationwide. ... read more about GustoThe best- Kim Beck, Senior Account Manager at SpokenHereVisit website30 Days$12.00/Month
- 9A complete on-premise human resource management system solution.
Sage HRMS helps in improving HR policies and make smart decisions with today’s most comprehensive, customizable HR software solutions for small and medium-sized businesses. Sage HRMS provides you with a complete solution for managing the entire employee life cycle. choose Sage HRMS. as your business grows and your needs evolve, select these HR software solutions to tackle your specific HR manage... read more about Sage HRMSOverall Experience: Good as HR and Payroll Software- Robert Stoubos, Founder and CEO at Odyssey New Media
- 10Let's Build a Better Workplace.
Namely is the HR software, Payroll software, and Benefits platform your employees will love. Finally, there’s human resource management software that employees actually use—built to fit your company culture. Manage all of your HR management data in one place, with personalized service to help your company get better, faster. ... read more about NamelyNamely - Great for HR, Payroll, and Employees- Shailesh Chaudhary, Digital Marketing Executive at Taction Software LLC
- 11Crafted to build a happier workforce.
We take care of your HR processes while you take care of your employees. From employee onboarding to attendance management and time tracking to appraisals, we&ve got it all covered. With useful integrations and easy-to-use interface, Zoho People will streamline your HR operations. ... read more about Zoho PeopleSoftware available at reasonable price- Joshua Maddux, CEO at 95VisualVisit website15 Days$1.00/Month
- 12We can start to measure change in months.
Workday was founded on a disruptive idea: to put people at the center of enterprise software. Now, over a decade later, we still deliver on that idea every day. Our core values give us a framework for leadership and daily decisions, and help us enjoy our time at work. Sounds so simple, but too often companies get caught up in politics, ivory-tower attitudes, and market mania instead of focusing on... read more about Workday
- 13Let us help you make a difference.
Paycor is known for delivering modern, intuitive recruiting, HR management and online payroll solutions, but what makes us legendary is our singular focus on helping business leaders, entrepreneurs and HR professionals make a real difference in their organizations. Paycor’s personalized support and user-friendly, scalable technology streamlines every aspect of people management, giving our clien... read more about PaycorGood not great- David Pustinger
- 14All of HR in one place.
BerniePortal is an all-in-one HR software solution for small and mid-sized employers. With BerniePortal, administrators can save time, simplify HR and improve compliance for the full employee lifecycle.... read more about BerniePortalNice software and great support- Virginia Berry, Assistant Manager at Marketing Werks
- 15Integrated Online HR Software for End-to-End Human Resource Management.
SutiHR is a robust online HR Software solution that provides powerful tools for every part of the HR cycle from recruitment to separation. Advanced analytics and dashboards that are easy to use simplify decision-making at different stages of the HR management process. ... read more about SutiHRVisit websiteN/A$4.00/Month
- 16Global HR management software simplified.
Cezanne’s configurable online HR software gives you everything you need to make human resources management system simpler and more effective, whatever the size of your organization. From core HR administration and absence management to employee development, performance management, online recruitment and more, you’ll benefit from the latest Cloud technologies and a host of smart features that w... read more about Cezanne HR
- 17The smart HR software for growing businesses
Freshteam helps you manage your hiring, onboarding, time-off, employee data, and HR workflows in one place. It is an applicant tracking system software for recruiters. With Freshteam, recruiters can source, interview, and hire candidates for their company. Great recruiters know how to find great candidates. It's all the other things they need help with. Things like scheduling interviews and debrie... read more about FreshteamGreat!- Marty Balkema, COO at Augusto
- 18Online Payroll and HR Software Solution
Paycom provides user-friendly HR and payroll technology to enhance the entire employee life cycle, all in a single software. Our comprehensive software is unique because it’s truly everything you need — from hire to retire — in one system to empower your entire organization. Through our self-service app, employees can easily request time off, clock in and out, access their paystubs and more,... read more about PaycomModerate- Shadab Khan, Digital Marketing Expert at SynergyTop, LLC
- 19One unified platform for your entire workforce.
The Kronos Workforce Ready suite combines the power of workforce management and human capital management (HCM) in one unified cloud platform to help you manage your entire workforce from pre-hire to retire — whether they’re salaried, hourly, full time, or part-time.... read more about Kronos WorkforceWorkforce Ready- Keshav Jha, Senior Research Analyst at Delta Partners
- 20Small business payroll & HR.
OnPay is a simple, modern and affordable payroll, benefits and HR software solution for small businesses. Payroll software features include unlimited pay runs, direct deposit, tax payments and filings made for you - accuracy is guaranteed, integration with your favourite accounting products such as QuickBooks Online and Xero, as well as first-in-class client service by phone, e-mail or chat. ... read more about OnPayVisit website30 Days$36.00/Month
- 21HR SOLUTIONS FOR THE PEOPLE WHO MATTER
TriNet provides small and medium size businesses (SMBs) with full-service HR solutions tailored by industry. To free SMBs from HR complexities, TriNet offers access to human capital expertise, benefits, risk mitigation and compliance, payroll and real-time technology. From Main Street to Wall Street, TriNet empowers SMBs to focus on what matters most—growing their business.... read more about TriNetTriNet Feedback- Barbara Keihm, Director, Talent Management & Operations at Premier Logic
- 22Empowering people, driving business results.
Human Resources is much more than administration and compliance. It’s about helping your employees to be more successful, and ultimately growing your business. From recruitment to retirement, ADP Workforce Now can help you do just that. ... read more about ADP Workforce NowWorkforce Now is Great!- Matthew Bernstein, Senior Account Executive at Intersection Co.
- 23HR Software Solutions & Payroll for Human Capital Management
Ultimate provides human capital management solutions designed to improve the employee experience by putting people first—HR management, payroll system, talent, time and scheduling, engagement surveys, HR service delivery, and more. UltiPro helps simplify and improve work experiences for all employees. Organizations can easily manage global people data and processes with UltiPro and ensure their ... read more about UltiProUltimately flexible- Dena Torres, HR Generalist at The Wasserstrom Company
- 24Sales CRM tailored for staffing and consulting businesses.
Oorwin, a San Francisco based SaaS platform offers a diverse suite of products across Recruitment, Sales, and HR to foster productivity and growth for staffing agencies and consulting companies. Built upon nearly a decade of research and experience, Oorwin is poised to change the traditional practices of hiring, sales, and customer experience with its ease of use and simplicity. Oorwin is a unique... read more about OorwinExcellent UI- Ashwin Kumar
- 25An end to end People Management Platform
peopleHum is an end-to-end people management platform that helps organisations make intelligent people decisions. With new-age HR tech features such as Resume Parsing, Selection Probability Score, People Analytics, Performance Management Metrics, Leave Management, and more, peopleHum is the one-stop solution for all business needs.... read more about peopleHumBest HCM platform- moksha BajpaiVisit website14 DaysContact Vendor
- 26Convenient People Management
LinesPay is a web based, comprehensive, and flexible human resources and payroll management software in Bangladesh. It replaces paper- based, time consuming and error- prone manual HR/Payroll methods with user- friendly interface. The software can be customized as per client needs and offers end-to-end integration of HR functions with payroll and Service Modules to manage employee profiles, bene... read more about LinesPayA blessing in the eager world of HRM!- Mahathir Mohiuddin
- 27Powerful Integrated HCM Solutions
Start Anywhere. Add Anytime. Ascentis industry-leading a-la carte full suite human capital management (HCM) technology platform and workforce management solutions are supported by an ongoing commitment to delivering an unsurpassed client experience. Ascentis technology modules work independently or together to meet the needs of each client, wherever they are in the HCM journey.... read more about AscentisExcellent HCM Software for Small to Mid-Size Companies- Karen Halladay SPHR, SHRM-SCP, CCP, CTM
- 28Making HR Management More Easy And Secure!
HR Pearls, India's most trusted HR and Payroll Software, where you get a user-friendly software that helps in an instant and hassle-free management of payroll operations. Here are the four pillars of HR Pearls, that helps an organization for better and effortless HR & payroll management. 1. Payroll Management System (PMS) 2. Compliance Management System (CMS) 3. Human Resource Management ... read more about HR Pearlsbest platform ever- Jigyasa GoelVisit website1 DaysContact Vendor
- 29One HR Software.
An intelligent enterprise-ready HCM suite that automates HR processes, simplifies human interactions and delivers actionable insights to build better workplaces. We believe that we are India’s first HRMS company that has successfully developed an HR product that mimics the way humans work to get more done efficiently & faster. Inbox-for-HR is a tech-savvy and bold-new approach to human resource ... read more about HR-One
- 30Personalized HR Software That Brings Your Employees Together
OrangeHRM aims to be the world’s leading HRM solution for small and medium-sized enterprises (SMEs) by providing a flexible and easy to use HRM system affordable for any company worldwide. The project was started during fall 2005 and the first beta release was made in January 2006. Today OrangeHRM has users worldwide enjoying a free, stable, and highly usable HRM solution. ... read more about OrangeHRMPerfect Software for Managing different Task- Prafull Satasiya, Chief Executive Officer at SpecScaleVisit website30 DaysContact Vendor
- 31Exceptional Talent. Exceptional Results.
ClearCompany is an award-winning Talent Management Software provider and the only HR software provider that unifies Recruiting, Onboarding, Performance Management, and Goal Tracking. Their suite of software solutions includes Applicant Tracking System, Paperless Onboarding, Performance Management, and Talent Operating System. ... read more about ClearCompany
- 32Human capital management made better.
Dayforce HCM is a cloud-based platform for workforce management, payroll and tax, analytics, benefits, document management, talent management, and HR management. It is a single app that provides companies complete access to real-time data across all aspects of human capital management (HCM). ... read more about Dayforce HCM
- 33Focus on your business. We'll focus on the rest.Visit websiteN/A$79.00/Month
- 34All-in-one business management solution.
KPI.com is a cloud-based enterprise resource planning (ERP) suite designed for businesses in professional services, construction, manufacturing and nonprofit industries. Our dedicated stand-alone apps that also work as a suite is a real deal for growing companies. You will be able to handle any major function, job, task or project, serve customers, be productive at work and make smart business dec... read more about kpi.com
- 35Recruit. Manage. Connect. Inspire.
Vibe HCM makes it easy for companies to not only automate HR transactions but also engage with all their employees through one unified platform. We partner with talent-driven businesses to elevate how they connect, manage, engage, and inspire. Vibe HCM platform delivers HR, Talent, Recruiting, Onboarding, Engagement, Analytics and Payroll. ... read more about Vibe HCM
- 36The World's Easiest Recruiting Software
Recooty is an all-in-one recruitment software which helps organisation in building their great teams. It optimises recruiting right from the initial stage and streamlining to the very end of the hiring process. Features: One click job posting on multiple job boards, branded careers page, candidate tracking and management, talent pool, interview scheduling and more. The best part is, every job ... read more about RecootyVisit website15 Days$29/Month
- 38Find, track and hire talent.
Workable is more than an applicant tracking system, it’s recruiting software designed to help you hire better as a team. Putting people at the heart of recruiting, it’s all the hiring tools you need, in one place. Less email, less admin. ... read more about Workable
- 39Most advanced HR Software
Open HRMS is an open source HR software that envisions building a happier workforce. Open Human Resource Management Software takes care of all your HR processes while you take care of your employees. From onboarding and attendance management to time tracking and appraisals, Open HRMS has got it all covered. The most advanced Open Source HR Management software works well for both small and large s... read more about Open HRMS
- 40Most trusted HR software to manage your workflow flawless
Introducing Corbuz HRMS, an amazing HR Software to manage your workforce in a simple way. Manage all your HR administrative actions from a central location. Search employees, set favourites, view organization trees and analyze attrition reports - all from a single dashboard. Corbuz allows employees to update their personal data, skill sets, check-in/out, etc. The next level Managers can access all... read more about Corbuz
- 41Powerful But A Simple Way to Manage Your Company and People.
- 42All-in-one HR management for modern companies
Odoo HR allows you to centralize all your information and successfully manage your employees, recruitment, evaluations, vacations, and attendances from the same place. Recruit top talent, create weekly/monthly timesheets with optional attendance tracking and oversee all important information for each department at a glance. ... read more about Odoo HRVisit website15 Days$12.00/Month
- 43Sentrifugo is a FREE and powerful Human Resource Management System.
Sentrifugo is a FREE and powerful Human Resource Management System that can be easily configured to meet your organizational needs. It offers HR resource modules with exceptional features and an intuitive interface. It's easy to set up, configure, and use. It can be easily configured to meet your organizational needs.... read more about Sentrifugo
- 44A comprehensive Human Resource and talent management Software Solution.
The Baraza HCM solution tightly integrates the human resources management and payroll processes, and helps your organization’s HR department comply with industry best practices. Our solution provides functionalities for the entire human capital lifecycle from employee hiring to retiring. It provides users with the following business benefits.... read more about Baraza HCM
- 45A fully managed cloud-hosted HR database platform.
- 46Cloud Based HR Software
CuteHR is a saas focused hr software for small and medium-sized business for handling all HR activities in an organization. CuteHR is a saas focused hr software for small and medium-sized business for handling all HR activities in an organisation. It comes with a lot of features in a single dashboard like Attendance, leave management, time tracker, ATS, payroll, invoice, project management, report... read more about Cutehr
- 47Payroll & HR Software For Free.
Kredily is a world class HRM and Payroll Software to manage your complete HR processes through intuitive and easy to use apps for Leave, Attendance, Employee Engagement, and Payroll. We use Machine Learning and Artificial Intelligence to automate 70% of HR Tasks. We take care of your HR tasks so that you focus on your Business and important HR Decisions. ... read more about Kredily
- 48Free online leave management system.
HR.my comes with a flexible payroll management feature. You could track employee salary changes easily with the Salary Adjustment feature. Meanwhile, you may also generate monthly payslips that will be accessible to your employees via their Employee Web Accounts.... read more about HR.my
- 49Bring all your HR into one, easy-to-use place.
HR and payroll managers with a cloud platform that makes employing people much easier. Employment Hero aims to become the employment platform of choice for employers and employees in Australia and beyond, By providing free, easy-to-use HR software that employers love to use, and access to far greater benefits for all employees. Our cloud-based HR platform combines HR software, financial services, ... read more about Employment Hero HR
- 50Integrated CRM, Project Management & HR platform.
Our visual sales pipeline prompts you to take action, remain organized and stay in control of the complex sales process.Easily customize your sales pipeline, filters, contacts and deals to suit any type of sales process.Keep track of hours worked, improve your team's productivity and your bottom line. ... read more about TeamwaveVisit website7 Days$39.00/Month
- Buyer’s Guide for HR Software
- Why Is HR Management Important?
- What Is HR System?
- What Are the Different Types of HR Software?
- Why Do You Need HR Software?
- What Are the Benefits of Using HR Software?
- What Are the Features to Look for Before Buying HR Software?
- How Does HR Management Software Benefit Different Industries?
- What Are the Essential Things to Keep in Mind Before Purchasing HR Management Software?
- How Much Does the HR Management Software Cost?
- Why Refer to GoodFirms' List of Top HR Management Software?
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
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.
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 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.
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.
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.
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.
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
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
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:
- Time logs
- Absence information
- Late arrivals
- Paid time-off
- Holidays and vacations
- Leave count
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
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
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)
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
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:
- Welfare activities
- Medical check-ups
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
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
- 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.