GLOSSARY | HR tech | 5 MIN READ

What is HR Software?

HR software is a digital solution designed to assist HR professionals in managing people throughout the employment lifecycle. HR software offers tools for:

  • Streamlining administrative work 
  • Organizing people data 
  • Data sharing and collaboration 
  • Giving real-time feedback on pressing issues 
  • Facilitating an aesthetic, user-friendly online community

HR software can be on-premise or cloud-based. In addition, some SaaS HR software offers an all-inclusive platform, while other systems such as an HRIS, Applicant Tracking System, or payroll software, provide more specific services.

<< Choose the best HR software for your organization >>

Types of HR software

While some types of HR software can be a general solution for all HR needs, there are also other types which are more specialized. 

Here are a few common types of HR management software:

  • Human resources information systems. An HRIS stores all the data of an HR department. It contains vital information on employees, along with their pay, benefits, attendance, leave allowance, and performance. It helps with the day-to-day running of all core HR services, including recruitment, management, and legal compliance. 
  • Human resources management systems. HRMS is often used as another name for an HRIS, but there is a difference between the two. HRIS is focused more on storing information, while an HRMS specializes in managing information and employees.
  • Human capital management. HCM software offers similar features to HRIS, but also includes more in-depth tools for reporting, analytics, and employee performance.
  • Applicant tracking systems. ATS are more specialized, focusing on making the recruitment and hiring process easier. It can help sort through the large amounts of applications, so you can find the perfect candidates.
  • Payroll software helps automate and manage payroll, as well as assisting with adhering to tax laws and financial regulations. 
  • Onboarding software helps create a positive, consistent, and efficient onboarding experience for new hires, along with managing all the associated paperwork. 
  • Performance management systems. PMS specialize in assessing the performance of employees. It can give managers insights into how they can help their teams work effectively.  
  • Learning management systems. LMS software is designed to manage employee training and development. It can automate training assignments, track employee progress, and generate reports once employees complete their training.

Features of HR software

Software for HR comes with a variety of useful features that can make the work of the HR department much easier. It’s able to help with:

What are the benefits of HR software?

Due to the increase in tech automation, HR leaders must be ready to work hand in hand with HR automation software. Using HR software, HR leaders can:

  • Improve recruitment practices
  • Save time by automating manual processes
  • Nurture a positive, holistic work experience
  • Keep employee data secure
  • Provide competitive salaries
  • Make accurate, data-based decisions
  • Support and maintain an engaged and effective workforce
  • Manage remote teams

How to choose the right HR software for your business

With so many SaaS HR software options available, it can be difficult to know how to choose the best HR software for your business. But there are a few things that you can keep in mind to make the process much easier.

It’s important to consider your specific HR needs and identify which software features are essential for your business. 

But just as the features of HR software vary, so does the price. Think about your budget when evaluating your software options. Keep in mind that some software providers charge per employee, while others charge a flat fee.

If you already use other software systems in your business, it’s worth considering how well the HR software will integrate with them. This can save you a lot of time, money, and headaches. 

And as with any purchasing decision, it’s helpful to read customer reviews for each software option. This can give you insights into the user experience, and help you identify any potential issues.

That way, you can find the best option for your business. 

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How to implement HR software successfully

Perhaps a company is preparing to choose its first HR software or looking to upgrade. HR leaders can incorporate the following steps to promote smooth software integration.

  • Design a plan. Pause before jumping headfirst into the HR software market. A grocery shopper needs to make a list before entering the supermarket. The same applies to HR software shopping. Take the time to outline the company’s needs and objectives. Write a timeline with realistic expectations that makes room for setbacks. Document the overall goals and short-term milestones. Incorporate a budget based on the service and vendor, and consider all possible implementation costs.
  • Garner stakeholder support. To successfully launch a new HR software, stakeholders must support it—from employees and managers to stockholders and senior executives. Informing, educating, and training people in advance enables them to feel more confident and prepared to adapt to the changes. HR can also target select individuals who can serve as ambassadors to encourage others to learn the new software system.  
  • Minimize disruption. When transferring to a new HR software, aim to integrate it seamlessly with the current system. Gradually switching over can minimize stress and confusion.
  • Test out the software. Assemble groups of individual contributors, managers, and HR professionals. Different positions offer different perspectives. A variety of feedback can help HR and IT make adjustments so the software can function smoothly for everyone. 
  • Provide continuous support. After launching the HR software, the process is not over. Carve out time to help people, whether during lunch breaks or morning work hours—so they can ask pressing questions regarding the new system.

Why should HR software be a part of modern HR strategy?

The tech-based world of work is constantly changing, so contemporary HR strategy must be dynamic. Using HR software, modern HR leaders can maintain agile, cutting-edge practices to support an engaged workforce, wise business practices, and a thriving organization.