What is HR Software?
HR software is a type of business software that helps to manage employee information and organizational data. HR software systems assist with many human resources functions, automating time-consuming manual tasks and keeping information and processes orderly and smooth.
In addition to saving time, HR software can assist with HR processes which will allow for better planning, budget management, and decision making.
The software makes it possible to see, for example, how many employees are needed at certain times of year based on historical data so that recruitment resources can be allocated and mobilized accordingly. There are a myriad of other instances that a company may benefit from relying on software rather than faulty and disorganized paper records.
Types of HR Software
There are many different types of HR software that can perform a variety of HR tasks. Some solutions are comprehensive, encompassing most or all of the functions of HR management. Other solutions offer assistance with only one or two HR tasks.
Still other solutions are flexible and offer help with core HR administrative tasks like managing a database, with the option to add modules that can assist with things like time and attendance tracking and self-service as desired.
HR software includes, but is not limited to:
- Human Resources Information Systems (HRIS)
- Human Resources Management Systems (HRMS)
- Human Capital Management (HCM)
- Applicant Tracking Systems (ATS)
- Learning Management Systems (LMS)
- Payroll Software
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On-Premises HR Software
On-premises HR software is software that is installed on individual computers and operates within a small network within an organization. The software can only be accessed and used from the computers that it has been installed on. While this may be secure and lower in cost than cloud-based software, it is difficult to update and inconvenient for most organizations.
Cloud Based HR Software
Most HR software that is used in organizations today is cloud based, so it can be accessed from computers that have internet access with the right access codes or logins.
Mobile accessibility is also becoming prevalent, which allows HR software to be accessed from any device, including mobile phones, tablets, desktops, and laptops. This type of access is especially convenient for mobile workforces, but can also allow employees in any industry to access their own personal information and make changes if self-service options are in place.
HR Software Features
HR software features can vary from system to system, but often include:
- Employee information database
- Payroll systems
- Applicant tracking systems
- Recruitment functionality
- Self-service portals
- Performance management options
- Social HR feeds
- Benefits management
- Project tracking and goal setting
- Development assistance
- Compliance data and assistance
- Employee lifecycle management
Benefits of HR Software
The benefits of HR software can vary widely depending on the type of software that’s selected and the details of the company that has acquired the software, but the main advantage that is shared among most is the labor time that is saved doing mundane administrative tasks. This time can be redirected towards more lucrative or productive tasks that help to better the organization.
Depending on the software that’s selected and the way in which it is used, companies may see a decrease in errors with the elimination of double data entry and an improvement in organization with the introduction of electronic records. Additionally, there may be space and cost savings due to minimized use of paper, paper clips, ink, and associated supplies.
Beyond these wide-ranging benefits, companies may see benefits that stem from the specific type of software or modules that were chosen, like an improvement in succession planning and employee development after implementing a robust learning management system.
Companies that select an all-encompassing HR software solution may see a number of benefits that occur across several areas of the organization. Processes may be streamlined and it may be easier to cross reference data pertaining to different elements of HR that were siloed before implementing a comprehensive system.
Payroll is often the biggest organizational expense, so managing it effectively using HR software can save time and trouble while helping to avoid employee dissatisfaction caused by errors.
Integrating time and attendance software and scheduling with payroll functions can help a company to better control labor costs, overtime, and compliance issues like number of hours worked by minors. Analytics based on these types of integrations can enable better real-time decision making and planning.
Employee and manager self-service functionality can help to improve communications while boosting autonomy within the company. This is becoming a popular HR software module, particularly when the feature is mobile optimized.
Allowing employees to access information and schedules, submit changes and time-off requests, and even take charge over their own development and training can improve satisfaction and productivity while saving management time. Allowing managers to perform tasks and address time-off requests and other issues while on the go can improve operations and make for more timely actions.
Recruitment is becoming more employee-centric and digitized, so using HR software to help with recruitment can assist with attracting top talent. HR software often integrates with top job boards and social media sites to post jobs where the best employee candidates will see them. HR software may also assist with the interviewing and onboarding processes for more streamlined hiring.
HR software can change the way that a company works from the inside, so it is very important that a company select the solution that matches the company best. HR software should fit with company culture and help to promote the ideals and visions that the company holds highest.
Find Your Ideal HR Software
If you have decided that HR software is right for your company, we can help you get started with the selection process. You can call or email to receive advice and suggestions from our experts or you can browse through our extensive database of HR software solutions to begin researching for yourself.
Authored by: Dave Rietsema