Types of Human Resources Software

There are different types of HR software, all of which are capable of performing a wide variety of HR tasks. Some HR platforms are quite comprehensive and act as an all-around human resource management system. On the other hand, some have more specialized HR features that can provide more industry-specific integrations.

HR tools can be used in two different ways; either locally hosted on existing infrastructure or deployed as a cloud-based service. Most providers of this software will offer a subscription-based service, often known as a SaaS solution, with different price tiers ranging in features.

HR tools can be used in two different ways; either locally hosted on existing infrastructure or deployed as a cloud-based service. Most providers of this software will offer a subscription-based service, often known as a SaaS solution, with different price tiers ranging in features.

Cloud-based software allows employees to access their own personal information, submit time-off requests for approval, and make changes to their profiles through the employee self-service function. As the solution is hosted on the service provider’s cloud service, all you need is an internet-capable device and a stable connection to access the HR system.

Client-server or premise-based HRMS solutions are normally more robust when compared to other options. This is mainly because client-server based software is installed on-premise and important documents and spreadsheets are stored locally.

On-premise HR systems are individually installed in company computers and operate within the organization’s local network. While premise-based HR solutions are inherently more secure, they can be difficult to manage and maintain due to ongoing maintenance and infrastructure.

There are three main types of HR software categorized by their functionality: core HR, workforce management, and strategic HR. When comparing the different types of HR platforms, it is crucial to identify and understand the key features of each of them. This will help you to decide which HR features fit your day-to-day needs.

Core HR

Core HR consists of three basic HR management functions. These are personnel management/tracking, benefits administration, and payroll.

Personnel management

Personnel management tracking collects and centralizes all employee data, including contact details, banking information, and salary rates. Making it easier for HR professionals to find employee information quickly. Some management tools also allow employees to manage their data through an employee self-service portal, which provides employees with their own customizable and user-friendly dashboards.

An employee management system can help improve employee engagement. It can automate the onboarding process for new employees, which is an efficient way to teach new hires day-to-day processes. This type of solution can also help with talent management by encouraging employees to reach their full potential. These HR functions will help refine the overall employee lifecycle.

Benefits management

Benefits management refers to employee benefits administrations and processing. This feature enables HR departments to process and manage a variety of employee benefits, including paid time off requests and approval, enrollment in medical and life insurance policies, and much more. It also provides information on ACA compliance and other necessary paperwork and reports related to risk management and regulatory compliance.

Benefits administration can add to the employee experience as this HR function can add to the employee experience, as this HR function ensures that employees are receiving support from their employers. A popular type of benefits administration platform is BambooHR, which is tailored more toward mid-sized and small businesses.

Payroll management

Payroll management helps users not only run payroll but also track employee salaries, bonuses, overtime pay, and more. Payroll software can also allow users to execute more specific tasks such as calculating withholding for taxes, inputting accurate worked hours, and setting up payroll processing automation.

A lot of payroll software solutions include additional features such as time tracking, new-hire reporting, and accounting integrations. Some popular HCM solutions that also run payroll are Paycor and ADP, which both also come with mobile app integration.

Workforce management

Workforce management is another category of HR software. As a human capital management (HCM) solution this type of HR solution can provide process automation so users can manage employees in a more effective way. Human capital management software can help with a wide range of operations, like the employee enrollment and recruitment process, performance management, and employee self-service.

A main feature of this HR software is attendance and time tracking. This HCM software capability gives employees a self-service portal to manage their working hours. It also provides managers with an all-in-one dashboard where they can monitor employee performance in real time. HCM solutions like Workday can also help users run payroll.

Another key feature is employee onboarding. The HR software can automate recruitment processes, saving managers time and giving new employees an easy way to find their onboarding materials. An improved onboarding process will positively affect the whole employee lifecycle.

HRIS

A human resources information system (HRIS) is an important HR software variation because it is a central repository for employee information. HRIS systems include a range of capabilities, including talent management and acquisition, benefits administration, and employee self-service. It’s also possible for users to integrate a learning management system (LMS) module with their HRIS solution so they can monitor employee performance and training.

Gusto’s system is a popular HRIS solution because of its comprehensive features. It helps users with processes such as onboarding, performance management, benefits administration, and integrations with other tools and software.

Applicant tracking system

The applicant tracking system (ATS) is a function that provides you with a centralized database of potential new employees. It allows recruiters to store applicant data and manage employment applications throughout the entire recruitment process. This module comes with features that enable you to monitor applicant status, track potential candidates, and integrate with other HR software solutions.

Several HR software solutions also provide job application forms and recruitment and onboarding templates. This simplifies the applicant tracking process, as there is no extensive paperwork or spreadsheets to look through. Making it easier for recruitment and talent management teams to find information.

How to Choose the Best Human Resource Software

Human resources (HR) software systems are designed to make the management process of a diverse and growing workforce more efficient. This type of management software solution helps with the automation of a number of key functions for HR departments, managers, and large or small businesses.

These solutions are ideal for businesses of all sizes; however, you need to consider which features you need your HR platform to have. It’s important to think about whether you need any business or industry-specific add-ons, how the software is being deployed, and how scalable it needs to be.

Consider your HR goals and objectives

When choosing a particular software for your business, you should consider what goals and objectives can be fulfilled by using HR software. You may need to use industry-specific software to help with certain business processes or an all-in-one solution that covers every aspect of your HR needs.

When deciding on goals and objectives and how the HR software can help your business, consider factors such as current and potential growth, how the software can increase employee engagement, and what budget constraints are in place.

Consider the deployment method

When choosing the product, you should choose software that incorporates the existing infrastructure and capabilities of your business. For a small or mid-sized business, using a cloud-based solution can be ideal, as it will include all of the features that you need without having to pay a high price.

A large business may need a best-in-breed solution, which can either be deployed via a cloud-based service or integrated into its existing infrastructure. These will include the advanced features needed to successfully manage a larger employee base and give greater control over monitoring employee performance.

If you operate in a specific industry, you may need to consider software with more specific features that are tailored to your particular needs. This type of software can include onboarding automation, customizable dashboards, and performance review capabilities.

Other specifications that should be included in your human resource software include security, accompanying mobile apps, user support, and maintenance. The software should secure sensitive information and data in the platform. Data should also be accessible on mobile platforms and should be backed by capable support teams for easier deployment within the company.

Benefits of Using Human Resource Software

Modern human resource management systems have become more robust and are capable of providing a wide variety of tools and applications to help managers and HR personnel take on more tasks and responsibilities without sacrificing workflow efficiency.

Access to employee data

Business owners know that the more people they employ in their business, the harder it gets to keep track of all their personal information. HR software allows users to easily store, manage, and view a wide variety of information related to HR management, employee performance, compliance status, and more.

The software solution will serve as a central database for all relevant information related to HR. If you’ve opted for a cloud-based software system, you can easily access the data through a web browser or mobile device. Both employers and employees will have specific logins to gain access to their individual dashboards.

Employee access to the platform gives them greater autonomy over their HR processes and ensures that your business’s HR practices remain transparent to everyone in your business.

Increased HR productivity

HR departments deal with multiple processes that involve a variety of administrative responsibilities, including the management of employee records, onboarding, and payroll. With conventional means, these HR processes can be time-consuming. Having an HR software solution can automate many of those processes without sacrificing the integrity of employee data and compliance information.

Additionally, HR software solutions can provide automation for important processes, minimizing the risk of human error and discrepancies.

Enhanced data protection and compliance

Ensuring the security of sensitive employee data is one of the main concerns of HR management systems, especially with businesses having to be more vigilant with GDPR regulations.

For HR departments to be able to effectively manage employees, payroll, and other core HR responsibilities, the HR software solution has to provide secure data access to users without sacrificing convenience and ease of use.

Best-in-class HR software platforms are able to provide secure data access and also allow users to monitor employee access and downloads of sensitive documents like bank statements, employee profiles, and social security details. For example, the popular employee management solution Rippling includes strict access controls and security monitoring, so users can easily protect their sensitive information.

Custom reports

Most solutions offer custom reporting features that allow managers to easily report and analyze employee information from large amounts of company data.

Instead of users having to manually deduce information from spreadsheets, the HR software can provide templates and automated reporting functions to simplify the reporting process.

Human resource management systems are equipped with the tools and functions to help management, as well as employees, perform at their full potential. It can be used by businesses of all sizes across multiple industries to boost workforce productivity, improve employee experience, and streamline various aspects of their HR processes.

Common Features of Human Resources (HR) Software