Best HR Software

Finding the best HR software is not easy because there are numerous options available. From applicant tracking systems (ATS) and payroll software to onboarding, performance management, and employee engagement tools, each serves a different purpose, caters to various business needs, and so on. 

In this buyer’s guide, we’ll help you determine the top features to look for, the popular categories, and how to choose the right one for your specific needs. 

Human resources (HR) software is a digital solution designed to help organizations manage and streamline workforce-related tasks. These platforms offer comprehensive features, assisting in sourcing, hiring, employee onboarding, and talent development. With proper selection and implementation, businesses can leverage these tools to optimize their processes for enhanced productivity. 

With so many options available, understanding the different types of HR software can simplify your research process and help you make an informed decision. Here’s a breakdown of the key categories: 

• Human Resource Information System (HRIS): An HRIS serves as the central hub for all HR functions, making it easier to manage employee data, payroll, benefits, and compliance. It’s an essential tool for companies looking to streamline day-to-day HR operations 
• Human Capital Management (HCM) Software: For medium to large-sized enterprises focused on long-term workforce planning, HCM software goes beyond the basics by integrating talent management and advanced analytics. They choose HCM platforms to align their HR strategies with broader business goals 
• Applicant Tracking System (ATS): Recruiting the right talent can be time-consuming, but an ATS simplifies the process by automating job postings, resume screening, interview scheduling, and candidate tracking. These systems help recruiters save time, allowing them to focus on hiring the best candidates 
• Payroll And Benefits Management Software: For businesses that need a dedicated payroll solution, payroll software ensures timely salary processing, tax compliance, and direct deposits. Many of these platforms also handle benefits administration that includes retirement plans and insurance management 
• Performance Management Software: Tracking employee performance is crucial for business success. Performance management tools help set goals, gather feedback, and conduct appraisals, ensuring employees receive the guidance they need to grow. These platforms also provide insights into productivity trends and career development  
• Employee Engagement Software: A motivated workforce leads to higher retention and productivity. Engagement platforms help businesses track employee satisfaction through surveys, feedback mechanisms, recognition programs, and workplace culture analytics 
• Workforce Management Software: With HR playing a more strategic role in business planning, these tools provide valuable insights into workforce trends, employee turnover, hiring efficiency, and productivity. This helps HR teams make informed decisions that drive company growth 

Different software offers unique features to address various business challenges. However, below are some foundational and essential functionalities that you’ll find across some of the best HR platforms: 

AI-Powered Automation 

Artificial intelligence (AI) is revolutionizing all fields, and HR is no exception. Whether it’s a big name in HR technology or a startup, almost all vendors incorporate AI in their solutions. This integration often comes in smart chatbots that provide accurate information on the spot and assist in processing HR automation. 

Predictive Analytics 

Software with predictive analytics has the capability to utilize existing company data for forecasting workforce trends, staffing requirements, estimating payroll costs, and more. These insights help businesses strategize things in advance, ensuring they have enough resources and people in place to navigate the changing business landscape. 

Scheduling 

Though it’s a seemingly simple function, scheduling is crucial in streamlining HR processes. Almost all software options come with powerful scheduling tools like interview schedulers, shift schedulers, and meeting schedulers. These features empower managers to schedule work shifts and meetings so they don’t have to worry about missing any of these tasks. 

Mobile Accessibility 

In a survey, 62% of employees said they believe mobile devices help them be more productive. It’s not a surprise, as accessing information and performing certain tasks on mobiles is way faster and more convenient. That’s also the reason why more and more software vendors are focusing on making their platforms mobile-friendly.  

Many HR software come with employee self-service tools that enable them to access pay stubs, apply for leaves, and update personal information, all from within their mobile apps. 

Compliance Support 

Built-in compliance support has never been so important, especially with businesses expanding into new geographies. Reputable software comes with tools and services designed to help organizations stay compliant with regulations like payroll, labor, and recruiting. They achieve this by enabling users to access important forms like I-9s and W-2s from within the application and providing direct support from compliance experts. 

Third-Party Integrations 

No matter how extensive a solution is, there will always be some features or areas that it doesn’t cover. That’s what integrations are there for. These integrations allow a business to integrate the platform with its existing tech stack, further enhancing its capabilities. 

For example, if a company is purchasing recruiting software, it might want to look for one that supports integration with its project management software, such as Slack software or Jira software. This will help them automatically communicate and update information across multiple channels, saving them time and reducing errors. 

Choosing the best human resource management system (HRMS) for your organization requires careful assessment of your business needs. Here’s a list of factors that you should consider when choosing your software: 

Functionalities 

You should have a proper understanding of the needed features and tools. The best thing to do is to sit with stakeholders for different departments, such as finance and recruiting departments. These departments must collaborate with each other on a daily basis, which means involving them in the decision-making process will help you select software that will complement their workflows and foster inter-department communication. 

Number Of Employees 

Considering the number of employees you currently have and the number of employees you plan to onboard in the future is crucial when choosing software. Companies with smaller staff might just need simple software with limited functionalities. On the other hand, bigger corporations and rapidly growing businesses will require a platform that could be scaled to cater to a bigger employee headcount. 

Budget 

HR software comes with varied pricing plans and payment methods, including monthly, quarterly, and annual billing options. You should choose software that’s affordable and offers a billing plan that suits your cash flow to ensure timely payments without any delays. 

Company Goals 

Businesses are ever-evolving, expanding to new regions, launching new product lines, and hiring talent from new regions. This demands HR software to be flexible and adaptable to changing needs. That’s why it’s important to get software that not only fulfills your current goals but also has the capability to support your organization’s predicted growth and plans. 

User Experience 

Having software with good user experience goes a long way, as you won’t have to constantly conduct training on how to use it effectively. You should always choose intuitive software on the front end, which offers in-depth customization on the back end. Such software will help you tailor processes to your unique workflows while maintaining usability. 

Some of the most notable benefits you’ll experience with the best human resources software are: 

• Process Automation: Significantly reduces manual tasks with automations for payroll calculations, leave tracking, employee monitoring, and benefits management 
• Enhanced Compliance: Helps organizations stay compliant with local and international regulations by offering tools like violation alerts, policy updates, and compliance reminders 
• Better Hiring: Automates tasks like interview scheduling, resume parsing, and candidate screening, saving recruiting teams time to focus on evaluating candidates effectively 
• Data-Backed Decisions: These tools come with a variety of data visualization tools, which enable managers to visualize data with proper context and suggest practical improvements 
• Cost Reduction: Automated tasks and streamlined processes result in better efficiency, allowing businesses to be more effective

It's not a one size fits all when it comes to software. Even the best HR solutions are not ideal for all use cases. Here’s a list of top software for specific industries and sectors: 

• Manufacturing: Manufacturing businesses need software that is excellent at managing the workforce and handling compliance in multiple states. Platforms like ClearCompany and isolved HCM offer reliable tools for payroll, compliance, and employee management, ensuring maximum productivity and adherence to local laws. 
• Retail: Retail businesses, whether small or large, need to manage employees in multiple shifts. Solutions like RUN Powered By ADP and Zenefits offer comprehensive features aimed at streamlining tasks like shift scheduling, enabling business owners to focus more on operations. 
• Healthcare: Medical institutions and businesses operating in the healthcare industry must adhere to compliance and always ensure the availability of medical staff. Platforms like Rippling HR and Gusto HR software ensure compliance with healthcare regulations, help manage employees and even track worked hours. This ensures that organizations always provide top healthcare services to their patients.