When you purchase through links on our site, we may earn an affiliate commission.Heres how it works.
Human resource management is the bedrock of every organization, both small and large.
HR software is usually versatile, allowing HR teams to perform various functions from a single platform.
TechRadar created this content as part of a paid partnership with Employment Hero.
The contents of this article are entirely independent and solely reflect the editorial opinion of TechRadar.
What is HR software?
They are digital platforms that help organizations streamline their HR-related tasks.
These platforms allow HR teams to increase their efficiency in managing employees.
Most businesses these days use one form of HR software or the other.
The few still using manual processes are also migrating towards HR software.
HR software can be cloud-based or on-premise.
Why is HR software important for businesses?
Weve mentioned the HR team being the bedrock of every company.
No matter how skilled employees are, they wont function effectively and achieve common goals without sufficient management.
HR software makes it easier for companies to organize employees and ensure their needs are met.
Its only when this occurs that employees work effectively to achieve the companys goals.
Types of HR software
HR software comes in different forms.
For example, the software for handling payroll might not be the same for managing employee time-ins and time-outs.
The software for conducting employee surveys might not be the same for storing employee information.
Management: HCM tools allow companies to manage their employees work schedules and outputs.
Examples include tracking employees' timing and attendance to ensure they fulfil their work terms.
The tool also allows managers to provide performance assessments and reviews that HR departments can monitor.
Optimization: HCM tools help companies get the best out of their employees.
Human Resource Management System (HRMS)
HRMS is the most complex jot down of HR software.
It combines both the functions of HCM and HRIS into one platform.
Automating payroll is one of the major functions of a human resource management system.
Benefits of HR software
1.
It reduces errors
Manual processes are cumbersome and often produce errors.
Imagine if HR departments were to calculate and distribute employee pay by hand.
Given the complexities involved, theyll likely make several mistakes and anger employees.
Effective documentation
Documentation is a critical function for HR departments.
However, HR software tools allow companies to store and retrieve documents digitally.
Continuous feedback
Feedback is paramount in every organization.
Companies must communicate with employees and vice versa.
Employees also need to communicate with themselves effectively.
Software tools enable HR departments to conduct wide surveys about an organization.
This way, employees can provide honest feedback, including anonymized ones, about the organization and its management.
Leaders can view and sort the feedback and consider them to improve workplace satisfaction.
Regulatory compliance
Companies are heavily regulated.
They must comply with many laws regarding payroll, taxes, anti-discrimination, dissemination of sensitive information, etc.
Its virtually impossible for large companies to keep track of these regulations manually.
But, HR software tools are built with these regulations in mind, empowering companies to comply easily.
Endeavour to choose HR tools that your company can afford in the long run.
You dont want to run into problems later because the budget cant pay for all the HR software tools.
This pricing structure makes it easy for companies to estimate and forecast their costs.
Large organizations can negotiate custom deals with HR software providers and snag bulk discounts compared to the typical price.
The interface should be uncluttered, and features should be arranged neatly.
This way, the HR staff and the companys employees can easily navigate the features.
A platform with an overtly complicated interface can cause costly mistakes.
Third-party integration
No tool can give you all the features you want.
However, theres always the possibility of third-party integration to get extra features.
Your HR tools should preferably have extensive third-party integration capabilities.
This will help your organization manage employees better and foster seamless collaboration.
Support and training
Any good HR software vendor must offer suitable support and training to customers.
HR systems can be difficult to set up initially, and you may need help with that.
You should be able to ask questions about your HR tool and get correct answers.
Security
Security is paramount for HR software tools because they often contain sensitive documents.
You dont want someone stealing employees personal information and abusing it for monetary gain.
Ensure any HR software provider you patronize has a good reputation regarding security.
Workday: A cloud-based human capital management system designed for large enterprises.
This platform is famous for its ease of use and extensive feature set, but its pricey.
Rippling: An innovative system that combines HR, finance, and IT management into one platform.
