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Last updated: Oct 11th 2024
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Human resources (HR) software helps businesses manage employee-related tasks—from hiring to offboarding. This type of software automates administrative tasks, including employee onboarding, time and attendance tracking, leave management, performance management, and benefits administration, allowing HR professionals to focus more on strategic initiatives, such as talent management and employee relations.
HR management software often includes self-service portals, which help staff members access personal records and manage their professional information without requiring expert intervention. These tools also help businesses comply with labor laws and regulations.
HR management: Automates day-to-day tasks, such as employee onboarding and performance evaluation, to simplify workload for HR professionals. HR management typically includes recruitment and onboarding, benefits administration, performance management, attendance tracking, and compliance management.
Employee database: Offers a centralized repository for storing and managing all employee data, including personal details, job history, performance evaluations, and payroll information. The feature also enhances data security by controlling access and maintaining audit trails.
Reporting and analytics: Generates detailed reports on various aspects of workforce management, such as employee performance, turnover rates, and recruitment metrics. This feature helps HR teams identify patterns, forecast future staffing needs, and measure the effectiveness of HR campaigns.
Simplifies recruitment processes: HR management software can automate several recruitment tasks, such as posting job advertisements, sorting through resumes, scheduling interviews, and sending offer letters to candidates. This reduces the administrative burden on recruitment professionals, speeds up hiring cycles, and enhances the overall efficiency of the recruitment process.
Facilitates performance management: HR tools can automate key processes involved in evaluating and improving employee performance. They offer features such as goal setting, performance reviews, evaluation templates, and development planning. This allows managers to set clear, measurable objectives for employees and track their progress in real time, ensuring alignment with organizational goals.
Enhances data organization: HR teams can leverage HR tools to centralize employee records and related information in a single, easily accessible platform. This aids efficient management of documents, such as contracts, resumes, and performance, reducing the risk of duplications or data loss. Additionally, it ensures quick retrieval during audits or when making informed HR decisions.
Limited customization: Every organization has unique requirements and recruitment processes. If the HR software solution is too rigid or generic, it may fail to provide effective solutions for managing employee data, benefits administration, and recruitment procedures, leading to inefficiency in operations.
Poor user interface: A poor HR software user interface can lead to confusion and inefficiency. If the software isn't intuitive or easy to use, employees and HR professionals alike may struggle to accomplish tasks efficiently. This could result in wasted time, frustration, and inaccuracies in data entry.
Data privacy risks: Human resources software stores sensitive employee data, including personal information and financial details. If the system does not have adequate security measures in place or is vulnerable to breaches, it can pose serious data privacy risks. Unauthorized access can lead to misuse of information, causing legal liabilities for businesses and potential harm to employees' privacy rights.
Most human resources software products are priced on a “per user, per month” basis, and entry-level pricing plans can range from $2 to $9.80+*. An enterprise product will often be priced higher but will include additional features such as employee self-service portals, succession planning, AI-powered predictive analytics, resume screening, talent management, advanced analytics, priority support, project management capabilities, and more.
*The pricing included is for the entry-level/lowest-priced offerings found on vendor websites as of June 28, 2024.
Human resources management software allows professionals to manage employees and personnel-related tasks. This type of software can have multiple use cases based on the data fed into the system and the features leveraged. Some of these use-cases are:
Employee payroll management: HR systems can automate complex tasks, such as salary calculations, tax deductions, and compliance with regulatory requirements. Some HR platforms integrate with time and attendance systems to capture working hours and leave. They can generate payslips, handle direct deposits, and maintain a comprehensive record of payroll transactions. Additionally, HR software provides tools for managing employee benefits and deductions, ensuring compliance with labor laws, and producing detailed payroll reports.
Data reporting: HR software solutions centralize and organize vast amounts of employee and organizational data, making it easily accessible for analysis purposes. These tools can generate reports on various HR metrics, such as employee performance, turnover rates, and compensation trends. They also often include customizable templates and visualization options, enabling HR professionals to create custom, easy-to-understand reports.
Employee collaboration: HR systems offer tools to enhance communication, knowledge sharing, and teamwork across the organization. They typically include features, such as employee directories, instant messaging, team calendars, dashboards, and document sharing to enable employees to connect with colleagues, share documents, and collaborate on projects in real time.
Human resources management tools integrate with various solutions to enhance functionality. We analyzed thousands of reviews from HR software users to identify the products users frequently mentioned as integrations:
Slack is a collaboration tool that integrates with human resource management software to enhance communication and collaboration across teams and within the organization. This integration allows employees to access HR services, such as requesting time off, accessing policies, and receiving notifications, directly through Slack channels.
Google Calendar is a scheduling software solution that integrates with human resource software to help users schedule and manage meetings, interviews, training sessions, and other HR-related events directly through their calendars.
QuickBooks Online is an accounting software solution that integrates with human resources software to automate payroll and financial data management. This integration ensures accurate financial reporting and compliance with tax regulations.
Microsoft Outlook is an email management platform that integrates with human resources software to help HR teams manage employee communications, such as recruitment updates and policy notifications directly from Outlook. It enables automated synchronization of calendar events and email correspondence related to HR activities.
Greenhouse is an applicant tracking system that integrates with human resource software to simplify candidate management and onboarding. This integration allows HR teams to transfer candidate data, interview feedback, and hiring decisions between Greenhouse and HR systems.
We identified these integrations mentioned most often in verified reviews of human resources software published on GetApp within the past two years (as of June 28, 2024).
Assess the performance review capabilities: Performance review capabilities are critical in human resource management software as they help HR professionals track and evaluate employee performance over time. Features such as goal setting, feedback forms, periodic performance reviews, ratings, and 360-degree feedback in the best HR software allow managers to identify individual employee strengths and areas for improvement, provide feedback, and set goals accordingly.
Check the employee self-service options: The best HR software empowers employees to manage their personal information, benefits, and leave requests independently. While evaluating potential HR solutions, make sure that the software allows employees to submit time-off requests, view payroll details, enroll in employee benefits, participate in reviews, and engage in training in a self-service manner—all without direct assistance from HR personnel.
Consider the recruitment and onboarding features: The recruitment and onboarding features in a HR tool may include job requisition management, interview scheduling, applicant tracking, candidate management, and onboarding workflows. These can simplify recruitment processes for HR teams while ensuring a smooth transition for newcomers to adapt quickly to their roles.
Sources
Products evaluated for the pricing calculation were taken from GetApp’s human resources software directory. The pricing ranges exclude freemium versions of the products. The features highlighted were identified based on their relevance and the percentage of products in GetApp's directory that offer them.
Disclaimer
This human resources software buyers guide was authored by GetApp's content team. We develop our guides using the author's expertise, insights from 2M+ unique user reviews, and our proprietary data science algorithms to identify trends in user sentiment, preferences, and priorities. Some text was generated with assistance from artificial intelligence tools.