Human resource software is a digital tool that helps HR professionals manage daily HR functions and better meet the HR goals of a business.
While different types of HR technology exist, most are cloud-based software that easily integrate with other data management programs.
What is HR software?
Human resource management software (HRMS) is a SaaS product that helps both big and small businesses streamline HR processes, including onboarding, payroll, and tracking workflow.
As a digital solution, the software helps HR staff make the most of their time and efforts.
Digital HR management software systems make the HR department’s jobs easier while improving processes, ensuring compliance, and reducing the risk of human error.
HR systems typically fall into two types of software options.
On-premises HR software - installed on an individual computer and operates within a small network
Cloud-based HR software - accessible by any device with internet access and the login details (useful for mobile app use)
HR software monitors important metrics and streamlines tasks in a manager’s workday, combining various HR tools in a single place.
What does HR software do?
HR software automates administrative tasks and keeps company information organized and orderly.
It’s possible to purchase software focused on an individual task, such as managing employee data, or a more inclusive package that fulfills various core HR functions in real-time.
Standard HR software functions include:
- Safely store and organize employee data
- Create employee workflows
- Employee self-service time tracking
- Keep track of employee training
- Report and offer insight on employee engagement
- Automate onboarding of new employees and offboarding
- Third-party integration to optimize administrative tasks
- Maintain an audit trail for all HR data changes
- Monitor PTO, sick leave, and absence management
- Store current and historical salary data
- Payroll calculations and tracking
- Manage employee performance reviews
- Manage benefits administration
- Applicant tracking for job boards, new hires
Software with a self-service portal allows both employees and employers to connect. Self-service functionality improves communication between employees and managers, sharing information and real-time data.
Of the HR software modules, self-service software shares access to information, schedules, time-off requests, and more. Usually mobile optimized, the software boosts employee satisfaction and improves autonomy by letting them take charge of their own development, training, and schedule.
Examples of HR software
Different HR software tools exist to fulfill different functions. The best HR software for your business will depend on your needs.
Consider the following types of HR software as a starting point.
Human Resources Information Systems (HRIS)
HRIS software plays a role in data management for various HR functions, including recruitment, tracking applicants, storing employee information, and managing payroll. HRIS is also used for maintaining compliance. Although HRIS is standalone software, it’s designed to integrate with other applications.
Human Resources Management Systems (HRMS)
HRMS is an automated solution that involves both IT and HR management technology. As a step up from HRIS, HRMS helps monitor employee satisfaction, job satisfaction, business analytics, and more.
Human Capital Management (HCM)
HCM software monitors employee skills, certifications, training levels, and performance management to optimize human capital benefits. HCM software offers insight into the productivity of a workforce through talent management.
Applicant Tracking Systems (ATS)
ATS helps the HR team streamline the hiring process from beginning to end. Some functions include posting vacancies on job boards, storing data, screening applicant resumes, and ensuring a smooth onboarding experience.
Payroll software automates the payroll process, ensuring employees are paid an accurate figure on the correct date. When managing global payroll, these software solutions are especially useful, helping to monitor paid time off, hours worked, and more.
Benefits of having HR software
The list of HR software benefits is expansive, helping human resources departments streamline processes and save time during workforce management in various ways.
Major benefits of user-friendly HR software include;
- Save time on repetitive, low-impact administrative tasks through automation
- Give HR professionals more time for productive, strategic tasks and decision-making
- Reduce human error during manual processes
- Improve the organization of documents, employee data, and more
- Provide a cycle for continuous feedback, helping improve employee experience and efficiency of HR tasks
- Gain accurate insights from robust analytics
- Implement improvements in succession planning
- Remain compliant, especially when working with international workers
- Improve employee lifecycle by keeping track of all developments and meeting all HR needs
These benefits are amplified when the HR software solution integrates with other business tools, ensuring that all company information is stored in a centralized and accessible space.
Streamline HR tasks on a robust platform
At Deel, we offer a comprehensive software solution that effectively meets all HR needs. By providing a world-class experience for your business and international team, we offer a way to streamline HR admin, including onboarding, payroll, and compliance.
Hire, pay and manage your global team with Deel, and free up your time to focus on business growth and strategic tasks. Request a demo today.