HR software automates how companies conduct business with relation to employee management, training and e-learning, performance management, and recruiting and on-boarding. HR professionals benefit from HR software systems by providing a more structured and process oriented approach to completing administrative tasks in a repeatable and scalable manner. Every employee that is added to an organization requires management of information, analysis of data, and ongoing updates as progression throughout the company occurs. As there are many responsibilities within HR departments, there are many solutions captured within the HR software category such as Human Resources Management System (HRMS), Human Resources Information System (HRIS) and Human Capital Management (HCM) software.
Human resource software solutions are labeled with a variety of names; the most commonly used are HRIS, core HR, HCM software, and HRMS (also known as HR management suites).
HRIS software is a broad term that includes the variety of HR systems that focuses on managing employee time and attendance, payroll, and benefits administration. HCM expands HRIS features by including recruiting, talent management, and onboarding and offboarding. HRMS, meanwhile, combines HRIS and HCM features with the addition of labor management and more. Check out this rundown of these HR solutions with a focus on how HRIS helps to streamline HR processes.
HR software helps HR personnel automate many necessary tasks, such as maintaining employee records, time tracking, and benefits, which allows HR professionals to focus on recruiting efforts, employee performance and engagement, corporate wellness, company culture, and so on. These human management tools can be purchased and implemented as on-premise or cloud-based software.
HR software systems provide HR departments and personnel with a more structured and process-oriented approach to managing administrative tasks in a repeatable and scalable manner. Employees access HR software solutions to help them with employee onboarding, training, benefits, and more. Meanwhile, companies, from small businesses to large corporations, experience overall bottom-line benefits, as these tools help to free HR managers and personnel time to focus on hiring the right people, onboarding them efficiently and effectively, and maintaining employee morale through various HR tech-based initiatives.
HR software is divided into many categories that cover solutions ranging from benefits administration to workforce management software. The following is an overview of the HR categories and subcategories:
Benefits administration software – Organizations use benefits administration software systems to administer and manage benefits packages. This HR solution is accessible by employees via a dedicated employee portal in which they can choose from the benefit plans provided by their employers.
Core HR software – Human resource teams employ company-wide core HR solutions to create a centralized database through which employee data, including payroll and benefits data, can be accessed and maintained.
Corporate wellness software – Businesses use these HR solutions to manage company-wide wellness programs that help employees incorporate and maintain healthy lifestyle choices.
Employee scheduling software – HR personnel use this HR tool to automate and manage employee schedules.
Freelance platforms – These platforms help companies find freelancers for projects or positions that do not need full-time status. These solutions provide portals in which companies can post positions and freelancers can create profiles that display their pertinent skills and experience.
HR analytics software – HR personnel use these HR software solutions to collect and analyze business data to help optimize productivity. These solutions monitor employee performance to help companies predict productivity and optimize workforce management.
HR management suites – Companies use these HR systems to manage recruiting and human resource management. These products often offer separate modules for each division of HR management, including recruiting, training eLearning, and core HR. These tools can be purchased as needed and work together to provide an inclusive HR solution.
Sales compensation software – Companies employ these HR tools to manage and customize sales commission and incentives payments. These solutions are often employed by administration, accounting, and sales teams and integrate with other sales tools.
Staffing software – Recruiting and staffing agencies use these HR solutions to source active and passive candidates on behalf of companies that hire them to manage their recruiting efforts.
Talent management software – This HR software provides company-wide workforce oversight solutions. Features include career management, compensation management, employee engagement, employee recognition, performance management, recruiting software, and training eLearning software. Please note that recruiting and training eLearning categories are divided into subcategories.
Career management software – Organizations use these talent management solutions to help their employees manage their career development. Career management solutions integrate with other HR tools to provide HR personnel and employee self-service solutions.
Compensation management software – Businesses employ these talent management solutions to manage employee compensation packages, including creating internal compensation policies and bonus structures.
Employee engagement software – These talent management solutions help organizations use pulse surveys to collect feedback about employees and company satisfaction. In addition, employee engagement software helps companies use feedback to implement corporate wellness initiatives and recognize employees.
Employee recognition software – HR professionals and managers use these talent management tools to set standards for employee rewards, as well as monitor employee progress toward hitting the stated goals. These tools provide solutions that complement, and at times integrate with, employee engagement tools.
Performance management system – Companies use these talent management solutions to identify and create employee performance standards that management can use to evaluate employee job performance. These performance solutions often incorporate 360-degree feedback tools that managers and employees can use to rate each other.
Recruiting software – These talent management solutions include pre-employment screening, which covers background check, pre-employment screening, and reference check solutions; recruiting automation; talent acquisition suites (which include ATS, employee onboarding, and recruitment marketing); and video interviewing tools.
Pre-employment screening software – These recruiting solutions provide company hiring solutions that are categorized as background check, pre-employment testing, and reference check software solutions.
Background check software – Businesses use these pre-employment screenings to conduct employment, criminal, credit, and driving history checks on job candidates.
Pre-employment testing software – HR managers use these pre-employment screening solutions to perform pre-employment testing, which assesses candidates for knowledge, skills, culture fit, and more.
Reference check software – HR personnel and hiring managers use these pre-employment screening solutions to streamline the process of checking candidate references.
Recruiting automation software – These recruiting solutions let businesses streamline and automate the process of finding active and passive candidates. HR professionals, recruiters, and hiring managers use recruiting automation to build their candidate pipelines, often integrating these solutions with ATS and CRM software systems.
Talent acquisition suites – These recruiting solutions are divided into applicant tracking system (ATS) software, onboarding software, and recruitment marketing platforms.
Applicant tracking system (ATS) – This talent acquisition suite solution help companies administer recruiting by managing candidates by providing job postings, resume screening, and communication solutions.
Onboarding software – Companies use these talent acquisition suites to manage the onboarding process of new employees by providing tracking and communications tools.
Recruitment marketing platforms – This talent acquisition suite provides recruiting departments with tools for employer branding, job opening promotion, candidate relationship management solutions, and social recruiting solutions.
Video interviewing software – Companies employ these recruiting solutions to engage, interview, and hire remote candidates in an efficient manner.
Training eLearning software – HR department semploy this talent management solution to provide company-wide training solutions that include corporate LMS, course authoring, and training management system.
Corporate LMS – Companies employ these training eLearning solutions to manage employee training efforts in a centralized database.
Course authoring – This training eLearning solution helps companies create interactive educational multimedia for employees.
Training management system – This training eLearning solution is used by training companies and learning and development departments to manage all training initiatives.
Time tracking – This HR system helps companies and employees track, report, and analyze all time spent on projects. Time tracking can track employees automatically or they can be put in charge of manually tracking their time.
Workforce management – This HR solution provides company-wide HR management tools that include employee schedules, PTO, time-off requests, and more. Workforce management tools integrate with core HR solutions and can be implemented as a part of HR management software or as a standalone product.
HR technology is constantly evolving as the industry moves away from paper-based manual tasks and embraces automated tools. From advances in AI to implementing VR throughout the hiring process, here are the HR trends that are currently changing the face of HR.
Artificial intelligence – AI-based applications and analytics are improving the recruiting process; one example is AI-powered chats, which help with candidate sourcing and recruiting. AI, alongside machine learning and natural language processing, are also showing up in other HR solutions including job interviews, corporate wellness, and employee assistance programs
Blockchain – HR software is starting to use blockchain technology to compile all employee information in a secure and accessible database, automate data-based operations, and provide HR-based fraud protection and cybersecurity.
Employee engagement – With positions such as people scientists, chief people officers, and VP of people, companies are doubling down on their efforts to get to know and support their employees, thereby increasing retention and improving recruiting and hiring efforts.
Experience matters – Hiring managers, recruiters, and HR managers are increasingly focused on employee and candidate experience. To hire and retain the best candidates for the job, HR teams are focusing their attention on the experience of the candidate and employee and using tools that focus on employee engagement, employee recognition, candidate experience, and corporate wellness.
Increased harassment awareness and protocol – Tech vendors are beginning to offer whistleblower hotlines and other harassment reporting technology that will remove a company’s HR department from the process altogether.
Internet of things – Cell phones provide the baseline of IoT throughout HR by allowing employees flexible workspace options, while improving employee engagement and performance management solutions.
In addition, companies are implementing health and fitness initiatives that use trackers that link to corporate wellness initiatives. Meanwhile, a growing number of industries are using employee wearables that can track workers’ movements to report and measure injuries.
Machine learning HR – Applicant tracking and assessment, career development, and enterprise management are just a few of the buzzwords associated with machine learning in HR. Machine learning involves the study of learning from and making predictions based on data, and HR departments are implementing these systems to determine factors such as candidates’ potential attrition. These tools use data to help determine applicant success, potential career development paths, and the ideal sizes for team and department growth.
Major players make waves – In 2017, Google added a search engine API that can be added to job boards to improve search capabilities, job posting lists in google search results, and a free ATS. Meanwhile, Facebook added a jobs function that updates daily verified, open jobs.
Reviews – Performance management solutions will help HR departments and managers facilitate a culture of continual feedback instead of an annual performance review. HR departments are focusing on real time performance management to keep employees and managers constantly updated on progress and areas for improvement.
VR and AR – HR software will continue to implement and expand AR/VR software for interviewing, training, and training management systems, to name a few. VR tours of the office, for example, can give candidates a tour of the office and immerse them into the company culture during the hiring or onboarding process.
HR services providers offer businesses a variety of HR solutions including benefits administration services, health and safety providers, HR consulting providers, training and development companies, and payroll services providers.
Benefits administration services providers equip businesses with outsourced HR solutions focused on employee benefits including insurance, pensions, retirement, and more.
Health & safety providers help businesses inspect, review, create, and follow safety policies in the workplace.
HR consulting providers assist businesses in creating, implementing, managing, and improving HR services and departments.
Payroll services providers often employee HR payroll software to help businesses calculate employee pay and manage tax processes.
Training & development companies help companies implement training and development courses onsite and/or online.
Staffing services providers equip companies with staffing solutions including job boards, on-demand staffing providers, recruitment agencies, and staffing agencies providers.
Job boards provide businesses with databases to post job listings in a central hub that can be accessed by job seekers.
On-demand staffing providers are used by businesses when they are looking to hire temporary workers shift by shift.
Recruitment agencies help organizations find qualified passive or active candidates for open positions.
Staffing agencies providers are used by businesses to streamline the tasks of recruiting new candidates for open positions.