Best Human Resource (HR) Software
HR management is one of the most voluminous and tedious tasks for a management team. But if you are looking to automate all the HR related manual tasks and the best HR software for your firm, then GoodFirms eases your search efforts by bringing you a list of best Human Resource Management Software. The primary feature of a human resources software aims at assisting you with the recruitment process. Those with AI-based features even assists you in accepting, segregating applications based on the set parameters. Not only that, HR management software helps you to keep details of the employees and automate the performance record with features like time tracking, attendance, payroll management, and much more. GoodFirms does thorough research to provide you with a list of the best HR software solutions.
- Buyer’s Guide for HR software
- What is HR Software?
- 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 before buying HR Software?
- What are the Industry-wise requirements of HR software?
- What are the essential things to keep in mind (Checklist) before purchasing HR software?
- What are the current Trends in HR?
- What is the Average Cost for buying HR software?
- What is the future of companies opting for HR software?
- Why refer to GoodFirms' list of top HR software?
What makes any company a great place to work? Hilton, Salesforce, and FedEx made into the list of fortune top 100 companies to work for in 2019. Hilton has an employee first policy, whereas Salesforce is spending $8.7 million to address issues of gender and the race-based pay gap. FedEx provided $200 million in employee compensation in 2019. These are some instances that display the affinity these companies have shown towards their human assets, and the human resource departments of these companies have played an important role in achieving such milestones.
The function of HR has changed in current times. According to Gartner Research (2019), HR is now tasked with leading the organization through digital transformation. Addressing people's requests and problems 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. This requires HR to deploy the best available technical tools and software suits to align and speed up their HR processes with the vision and mission of their corporations. The human resource software system can be a real game-changer in creating a balanced work environment for the workforce, where employees get ample opportunities to learn and grow.
This buyer’s guide for HR software is intended to provide human resource managers, HR personnel, HR generalists, HR specialists, users, businesses, and the software enthusiasts all the key essentials they must consider before setting their foot forward to buy an HR software for their organization. It analyzes all the major terms, types, focus areas, features, trends, and metrics that one should weigh upon thoroughly before initiating a buy on HR software.
- Based on Technical Differences
The cloud-based HR software is SaaS (Software as a Service) based software that allows users to access the software from anywhere using internet-enabled devices. The data is stored in the third-party cloud servers.
The on-premises human resource software is the one that gets installed on the connected computer systems of the organization, and it can be accessed through those computers only. The organizations that prefer keeping their data on their own servers and computer drives opt for on-premise HR software.
The open-source HR software allows users to customize the software to suit their needs. When organizations have to accommodate certain features in their HR systems that are unavailable with any vendor, then open-source HR software can opt. It allows organizations to customize, add, or delete features by changing the source code.
- Based on Area of Specialization
- Applicant tracking
This is recruitment focussed HR software that tracks job applications and candidates throughout the interview process. Such HR systems have features to view application on a centralized dashboard, automate sorting, search for required keywords in resumes, match percentage, etc.
- Compensation based
HR compensation software focuses on the management of the allowances allowed to employees in cash or other forms of benefits. Overtime, gratuity, incentives, commissions, bonuses, etc. fall into the compensation category.
- Employee Performance trackers
The performance focussed HR software offers a myriad of features to improve your employee appraisal process. It assists in taking 360-degree feedback. It also tracks target achievements by employees and keeps a record of reward points earned by them.
- Training and Development based
The training focused software comes with HR tools to manage employee onboarding, training, learning management, course building, etc.
- Talent based
This is an umbrella term that integrates recruitment, performance management, compensation, and learning and development. It has various HR tools and modules to manage human capital.
- Attendance tracking
This software assists the HR people to monitor and record the attendance of the employees accurately, and it can integrate with the biometrics and payroll software. It tracks leaves of all types, paid vacation or tours, etc.
HR payroll software takes care of payrolls (fixed and flexible), tax-calculations, time-off accruals, etc.
- HR investigation software
The HR investigation software helps HR managers to investigate harassment cases, and misconduct allegations in their organization. It has features to document the legal process, and it helps to 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. It possesses the minimum features that every company needs to carry its HR activities effectively.
- Workforce Management HR software
The workforce management HR software manages elements such as employee attendance, absence records, holiday requests, multiple shifts, and work structure. Some workforce management software features may overlap with features of administrative HR software.
- Strategic HR software
Strategic HR software takes in hand the tasks of performance management, training and development, and recruiting top talent. It assists HR in increasing employee satisfaction. It is a part of strategic planning that caters to the long-term well-being of the organizations.
HR software provides your HR team with tools and metrics that can be used to gauge the overall progress of your organization in terms of the employee turnover rate, employee progress rate, attrition control, and recruitment analysis. An HR software also helps to speed up HR work, reduce human errors, and simplify hiring processes. Apart from all this, below are some other significant reasons why do you need an HR system:
- Increasing productivity: HR managers can automate tasks related to screening, tracking, and sending mails to the candidates with the help of HR software. This enables the HR team to focus on core objectives.
- Saving time: HR systems have an option that enables HR managers to delegate certain tasks to employees through the self-service feature. Employees can raise a lot of requests on their own without contacting HR and those requests can be processed automatically. It saves a considerable amount of time for the HR personnel
- Increasing employee trust: When requests, queries, and sanctions are through a digitally automated process, the employees are more likely to trust the organization in terms of solving their issues. As everything is recorded and documented in real-time, employees know that HR people won't be able to refute or contradict anything later. This also makes HR more responsible and exact in their dealings with the employees.
- Ensuring regulatory compliance: The human resource ministry of every nation frequently asks the corporates to submit various information types related to their workforce. Sometimes such requests are very specific and also on an urgent basis. For example, if HR ministry wants the corporates to submit the details of all employees below the age of 40 years who have not submitted their tax proofs, then HR people will have to search, segregate and classify through loads of paperwork to fetch such information. But with the HR system in place, they just have to filter the information with a few clicks and download the same in PDF, excel format.
- Safeguarding valuable data: HR people have records of employee's personal details, academic and professional data, bank information, tax information, and also copies of various identity proofs. Many fraudulent companies or scammers may want to steal the employee data for employee poaching or for committing financial fraud by stealing such sensitive data. The password-protected layered security of HR software is difficult to breach than the paper documents in the offices.
- HR system assists in all operations of the HR personnel, such as:
- Staffing & Recruitment
- Training & Development
- Wage & Salary Administration
- Work Culture & Environment
- Security & Welfare Activities
- Employer & Employee Relation
- Records & Statistics
- Promotion & Transfer
- Integration & Separation
- Retirement & Retrenchment
- Legal Compliance & Government Reporting
With so many areas where the HR system can help to streamline work, the HR manager is significantly relieved of work pressure and therefore, can focus more on strategic planning.
- HR software provides real-time information about all employees and related data: HR people are the get to go people for all departments of an organization when it comes to seeking information about employees. The HR software can provide HR real-time information about the current status of all employees.
- The decrease in compliance-related issue: Organizations that deploy HR software see an influx of all valuable information regarding current company laws, regulations, and compliance requirements. This helps the HR to cater well to all legal compliance required. Many HR software come with a compliance aid feature that gets automatically updated whenever local laws are changed.
- Save Costs: In the long-term, an efficient system such as the HR system saves a significant amount of money for the organizations. It saves a lot of paperwork. It monitors employees’ Key performance indicators that help organizations to carve out new strategies and modifications if required.
- Employee Retention: The seamless and viable operations of the HR department will ultimately translate into increased employee retention. A positive experience at work will increase the rate of employee retention and will lead to greater employee engagement.
- 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
- Payroll: This feature of HR software manages the payroll of the workforce. Doing salary calculations and pay-checks are the most error-prone zones of HR work that requires meticulous execution on their part. The software comes power-packed with tools to do:
- Salary calculations
- Bonus Calculations
- Pay-check Calculations
- Tax Calculations
- Time and attendance: Time and attendance management function of the HR software system works in collaboration with a time tracker and biometrics device. It takes care of the time and attendance related elements such as:
- 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. HR portal can be accessed by the workforce with the employee login feature to accomplish certain tasks on their own. Employees get the freedom to access their documents, training modules, company policies, benefits, progress records, etc. There are many tasks that can be done via employee self-service method:
- 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 can track the performance of the employees through a centralized dashboard. This feature allows HR to design, customize, and share survey forms, self-appraisal forms, and feedback forms with the employees. It also presents valuable metrics to analyze employee progress.
- 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 employee base up-to-date about new professional developments in their fields. This feature helps HR to manage the employee training and development process. Training and development modules are introduced and integrated via this software. HR can upload their own tailored courses. HR can track the progress of the employees in the enrolled courses.
- Certificate management
- eLearning modules
- Assessment tools
- Workshop integration
- HR analytics and reports: The HR analytics processes data to come up with reports about the important aspects of the HR mechanism. The reports provide statistics that help HR to build an insight about the current functioning of the organization in relation to the human resource. 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: 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
- 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
- Document Manager: HR managers generate an overwhelming amount of documents on a daily basis. These documents need to be preserved for future references. This is where the document manager feature comes into the picture. It is a kind of vault where HR managers can keep their documents safe. It is also used to:
- Upload documents
- Grant and control access to documents
- Organize the files
- Share files
- 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. These requests have to be solved on a person to person basis.
- Employee Questions
- Conflict resolution
- Status of requests
- Reply to queries
- Other Features
The robotic process automation is used to automate repetitive manual HR tasks. Many elements of activities, such as employee orientation program, relieving process, recruitment, etc. are repetitive and have to be done with all employees. Such tasks are automated by HR software.
- GPS and mobile tracking
Many jobs require companies to track the exact location of their employees. People in field jobs, sales, and marketing employees are often tracked for various reasons. This feature helps HR in doing so.
- User Support
Software vendors provide user support for the installation of the software after installation support and customer issues.
- HR software for Large and medium-sized Corporations
Large corporations with several hundred employees have to evolve standard practices and streamlined processes when it comes to managing their huge employee base. HR software has features that cater to all their needs, particularly the employee benefits. An HR software can be used to mitigate payroll, time and attendance and training issues related to the large pool of workers.
- HR software for Small Businesses
The core business workflow of small businesses can be somewhat similar to their larger counterparts. But the need and complexity of their business is very different from the 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 should deploy HR software that is scalable with their progress.
- HR software for Startups
Startups are more prone to the scrutiny of law. The very fact that they have not dealt more with the prevailing labor laws and the employee welfare laws make them vulnerable to strict legal penalties. A single unhappy and angered employee can cause startups a great deal of loss in legal suits. 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 HR software.
- HR software for service industries such as IT, Hospitality, Banks, Education Sector, and Hospitals:
The biggest issues in hospitals and hospitality are regarding the scheduling of staff, in banks the discontent of the employees, in IT attrition, and in the education sector the recruitment of qualified staff. All such issues can be addressed by using the HR software.
- HR software for Government Agencies and Nonprofits Organizations
Government agencies should house HR software for the onboarding process of new employees. The attrition rate is almost negligible when it comes to government jobs, but mostly government jobs have longer probation periods as government jobs are more secure, employees are very relaxed and might show some resistance to training. HR software can help to train the newly recruited staff.
- HR software for Retail Businesses
Employees are the first faces of the organization in retail businesses. If the right people were not hired in the first place, it could cause irreparable damage to the reputation and business of the retail organization. Secondly, retail businesses often see a sudden surge in demand and customer footfalls seasonally. An HR software can help mitigate the above two issues by assisting in hiring the right people for the job and secondly helping in predicting the seasonal demand of employees by its analysis of the previous season.
- HR software for Manufacturing
Manufacturing is totally dependent on the productivity of labor. The biggest issues in manufacturing are employee strikes. HR software can assist in managing the labor issues by quick disbursals of employee benefits, tracking shifts and labor hours, and managing payrolls accurately.
- You should decide what type of HR system is required for your company and whether you need basic, professional, or enterprise-level plans to manage your needs.
- Compare the vendors on the basis of the features and services they are providing. Check prices in each category. Keep in mind the vendor background. Ask questions such as- How long has the vendor been in the market?
- Keep the cost factor in mind before buying HR software. Carefully consider the implementation costs, training costs, maintenance costs, and hardware costs (if applied) in mind. The thumb rule is that the Return on Investment (ROI) should be greater than the overall expenditure on the software.
- Schedule a demo or use the free trial version first to understand what exactly you will be served and whether it will suffice your needs or not. Schedule a demo for your employees too. Make sure they will be comfortable using the software without difficulty.
- Check what options are available for- Training integration, branding, compliance, reporting, and payroll.
- HR software is a one-time investment for organizations that wish their employee base to sail into a positive trajectory. The software should be scalable with your growing employee base.
- Check if customization options are available with your HR system or not.
- Shift to Artificial Intelligence and machine learning
Using artificial intelligence combined with technologies such as Augmented reality and Virtual reality to improve the recruitment and onboard experience of employees has become a trend with larger corporations. Machine learning is used to implement HR processes easily.
- Employee Autonomy
Employees are being given flexible hours, work from home options, choice of selecting projects, etc. to create unparalleled job satisfaction in them.
- Use of HR analytics
With high-end standardization, streamlining, and automation of HR activities, technology companies such as SAP (Systems, Applications, Products), are changing the way HR is handled in organizations.
- Data Insights for decisions
HR managers are relying on data generated metrics of HR systems to make wise, calculated, and informed decisions.
- Upskilling the workforce through training and technical assistance
HR is constantly striving to make their workforce productive through a focus on:
- Quality of recruitment
- Using people analytics for making agile teams
- Optimum use of the hired employees
- Upskilling human resources through training and technical assistance
- Rise of the contingent workforce
HR managers are hiring contractual workers, freelancers, on-call experts, and independent professionals to meet workforce demand. The current regime has turned in favor of the non-traditional workforce.
The costs of HR software also depend on a large number of factors such as:
- Features it offers
- Whether it is a cloud-based or on-premise software
- Number of admins it allows
- Number of employees that it needs to manage
- Quality of service offered
- The interface and experience it provides to the HR personnel
These variations can significantly alter the costs and estimations of the software.
The average cost for buying an HR management software with enterprise version benefits is somewhere around $ 10 per employee per month. Apart from this, some vendors may charge for installation and training.
We have derived these cost approximations by analyzing the average costs of the top HR software that are listed on the GoodFirms page. For example, the popular software like Zoho People basic plan will cost around $1 (per month per employee), Zenefits Growth plan will cost you around $14 (per month per employee), and PeopleHR elite plan will cost you around $ 10 (per month per employee). Apart from the per employee per month plans, a full-fledged software installation of software such as Gen Desktop Payroll Software will cost you around $215 a year.
The employee experience still occupying the number one spot in the gig economy requires the HR managers to stay abreast of new technological practices in the HR field. But contrary to the requirement, only 9% of Chief Human Resources Officers (CHROs) agree that their organization is prepared for the future of work. So, it is high time that all organizations and their HR departments should gear up for the future of the work.
In the future, the real game changers will be the HR software integrated with wearable devices to monitor workplace health and track employee data. With everything automated, the HR professionals will act more as the guiding force rather than the executive force as they are today. In all possible scenarios, the software will be the pivot of every HR action. An impactful Employee ROI will depend largely on reliable and robust human resource software. HR specialists adopting technologies such as the HRIS system, big data, and analytics will be well-positioned to cater to the needs of the millennials and the Generation Z workforce.
You might randomly search for the HR software on the internet and find many software vendors that claim to provide HR management services, but knowing the authenticity and accurate categorization of that software is not easy. GoodFirms, on the other hand, has researched, categorized, and listed the top HR system based on their exact features and merits. GoodFirms researches with a focus on the effective surveys of the software giants worldwide. It applies stringent analysis policy, and currently, it has a whopping database of above 9000 software services with 15K unbiased reviews of verified users. The research team at GoodFirms has invested significant working hours in analyzing a number of software applications before finalizing the HR software list. All software that made into the final list had to go through a series of checks that prove their worthiness. Users are advised to go through the list and apply filters based on pricing models, devices supported, deployment criteria, available support, etc. to find the HR software that will best suit their needs.