HR Software

Human Resources (HR) software is a centralized suite of tools for managing workforce needs like benefits administration, payroll, recruiting, culture management, and more. HR software is also called Human Resources Management System (HRMS), Human Resources Information System (HRIS), and Human Capital Management (HCM). These systems combine various systems, features, and functionalities to support companies in streamlined, efficient practices when it comes to managing human resources

HRMS is a set of centralized tools for managing payroll, benefits, training, talent acquisition, time & attendance, and training in one centralized, efficient system. 

Human Resources Management Systems (HRMS) are used to streamline and centralize HR practices, activities, and processes into a single system. HRMS solutions can help a business gain insight into their HR processes while providing tools to properly manage all employee lifecycle needs and ensure compliance with tax and labor laws, and managing employee lifecycles. 

The most common features in HR software include:

• Centralized Employee Data
• Benefits Administration
• Payroll Management
• PTO Requests & Automation
• Self-Service Tools
• Reporting & Analytics
• Talent Management
• Recruiting, Hiring, and Onboarding
• Culture Management
• Performance Reviews

Many HR systems include payroll tools in their suites of features and functions. While HR software is mostly designed around the needs of employees like PTO, benefits, onboarding, and talent acquisition, many of the modern HR software systems also provide tools to manage, track, and process payroll for employees within the system as well. 

The main reason that most companies need an HR system is to save time, automate employee time off, PTO, and training processes and tasks, and improve productivity. 

The top things you will need from an HR system are:

• Self-service access and tools
• Intuitive dashboards, modules, and features for benefits, payroll, recruiting, performance management and PTO
• Insightful reporting and analytics 
• Employee feedback tools like performance reviews and surveys
• Communication channels and access for employees
• Documentation Storage for employee handbooks, benefits explanation, and other documents needed regularly when onboarding new employees or managing existing talent
• Automation and workflow management

The main HR functions include: 

• Human resources management and planning
• Recruiting, hiring, and onboarding
• Employee performance reviews
• Ongoing training and career development
• Bonuses, incentives, and rewards.

The main types of HR software are HRIS, HRMS and HCM. Each type of HR software has a unique feature offering and focuses on key HR functions needed. Depending on what features and tools your business needs for managing human resources, one type of HR software may work better than the others.  

An HR system should include:

• HR Management 
• Recruiting, Applicant Tracking, Hiring, and Onboarding
• Talent Acquisition
• Benefits Administration
• Time & Attendance
• PTO and Leave
• Training and Career Development
• Payroll

The benefits of Human Resources (HR) software include:

• Automated processes such as PTO tracking, benefits administration, and training
• Improved HR processes such as time tracking, sick leave, payroll, and expense tracking
• Reduced operational costs and Increased productivity
• Improved employee morale and satisfaction
• Increased insight into employees and HR practices
• Better employee document storage and organization
• Eased tax compliance and adherence to labor laws

Those who use Human Resources (HR) software include:

• Small business owners or executives
• HR executives
• HR admins
• Team Managers
• Employees 
• Job Applicants

The challenges with Human Resources (HR) software can include issues such as:

• Centralizing all HR tools needed into a singular, easy to use system
• Properly tracking PTO, medical leave, and other time-off requests 
• Scheduling issues
• Ensuring correct administration of benefits for eligible employees
• Correctly processing payroll every pay period
• Securely storing employee forms, handbooks, and other documentation

You can use the following checklist to help you determine how to buy the best HR software for your business.

• Focus on business needs and growth goals driving the decision to get a new or upgraded HR system.
• Plan for data migration, implementation costs, IT involvement, and any downtime that may impact ongoing employee payroll, benefits, and career development.
• Make a plan to support user adoption through training.
• Understand the HR processes you’re looking to streamline and automate.
• Don’t skip the product demos offered by HR software vendors to show features and functionality.
• Understand reporting and analytics needs for HR and people management.

The top Human Resources (HR) software trends include:

• More tools available to support remote work and teams
• Increased adoption of cloud-based HR software 
• Increased focus on employee health and wellness (mental and physical)
• More opportunities for employer branding
• Enhanced recruiting processes and experiences for HR professionals and applicants
• Improved tools for employee training and career development
• Enhanced reporting, analytics, and AI
• Improved data security and privacy