Top 5 Human Resources Management Software in 2020

Every business needs HR management software if it is employing personnel.

Human resources software covers a wide scope of processes, from recruitment, hiring, orientation, and evaluation, to remuneration, benefits administration, performance management, and employee relations. In the past, HR staff manually performed all these activities.

Today, HR management software has enabled businesses to have an efficient and automated HR process. Thus, employers are able to be responsible for their employees’ well-being, while complying with workforce laws and regulations.

Top 5 HR Management Software

Human resources software enables organizations to perform important functions and activities related to the attraction, retention, and/or management of employees and related HR data. Some of the benefits include improvement of the HR team’s efficiency and improvement of employee experience. It can save money in staffing costs or allow the redeployment of staff to other projects. These top HR software management solutions will help business owners make better decisions, allowing them to find, analyze, and generate reports on employee data, as well as improve their regulatory compliance requirements.

HR Software Categories

Advances in automation and cloud technology have transformed HR management software to a modern online business system more responsive to how users want to interact with it, including specialty or best-of-breed applications aside from the general HR functionality. It is also characterized with more self-service modules that allow employees to use it on their own, to view and manage their own data. This enables HR staff to spend less time on admin tasks and spend more time on recruiting, employee performance, and company culture.

Human Resources Information Systems – HRIS is a general term that encompasses many distinct types of HR software. It can also be referred to as Human Resources Management System (HRMS), Human Capital Management System (HCMS), and other names depending on the HR software company. But basically, it is a multi-function system that stores individual employee data, manages payroll and benefits administration, and manages the company’s regulatory and legal employment requirements. HRIS software helps streamline and automate payroll, time and attendance, and benefits management. Features usually included are payroll, time tracking, employee scheduling, benefits management, and self-service employee portals.

Applicant Tracking System and Recruiting Software – These two types of specialty HR software are similar in function but different in scale. They both focus on attracting and hiring potentially stellar employees. Applicant Tracking System (ATS) software is utilized by organizations with a need for employee lifecycle tracking. Features of this software include performance management and employee engagement on top of the usual job board, resume, interview and onboarding. Recruiting Software is built to handle bulk and continuous recruiting efforts by recruiting agencies and large companies.

Learning Management Systems – LMS or e-learning systems are utilized to track an employee’s education, certifications, qualifications, and skills. It is also used to provide or connect an employee to materials and courses available to further develop their skills. Some LMS are part of an ATS. They can be self-hosted by the company or be available by subscription from ready-made learning content providers/platforms.

Performance Management Software – HR professionals, managers and employees use Performance Management Software to help assess employee skills, set goals for performance, and track improvements over time. It can also be used to coach employees, organize, and track performance appraisals on a specific period. This tool is usually integrated with an LMS and Employee Engagement software.

Employee Engagement – This software is utilized by companies to improve employee sentiment and increase individual or team engagement. It measures current engagement levels while also providing feedback and coaching. It uses a combination of survey tools, followup workflows, gamification, and analytics. The software can be a standalone system, a feature in an HRIS, or an integrated tool that works in tandem with other HR software systems.

Current HR Software Trends:

Artificial Intelligence and Machine Learning – As the HR market grows and tries to incorporate new technology, HR software shows a variety of trends that include AI and machine learning. AI companies are building tools to help HR professionals, especially in recruiting, onboarding, and creating more intelligent pulse surveys.

Team Management vs Talent Management – In terms of management, organizations are increasingly focusing on managing teams of employees rather than individual talent. This focus is associated with team-goal setting and business organization. Recruiting managers are also now looking at how well candidates can work with their team.

Cloud Technology Adoption – Although not really new, movement of HR systems to cloud happened slower than expected. SMBs were quicker to adopt to cloud-based systems, while larger companies with greater volumes and more complex format of employee data took more time to migrate from their legacy systems.

Specialty Systems vs Integrated Systems – Similar to the reasons for cloud adoption, smaller companies preferred specialized or separate HR platforms rather than full suite HRIS. The usual reason is due to finances, but other reasons include difficulty of implementing a larger HRIS and more time needed to complete and onboard HR staff. On the other hand, it is easier to switch from one specialty or best-of-breed platform to another, or to add as needed when company growth requires such.

Company Branding and Culture – Companies are using HR systems to help promote positive company cultures. Through the software, it is easier to push for professional development, e-learning, wellness benefits, and other programs that tackle harmful workplace culture.

Conclusion

Human resources software is the most important and valuable resource of a business. It is therefore important for a company to know its HR goals and needs, set up a detailed plan, and assess the available solutions before coming to a conclusion. Many of today’s HR software are modular in nature and allow users to customize their implementation according to their requirements. An organization with the right HR management software is capable of covering the entire hire-to-retire process.

Jose Maria Delos Santos

Jose Maria Delos Santos

Jose is a subject matter expert and member of the writing team for Project-Management.com and Bridge24. He has written hundreds of articles including project management software reviews, books reviews, training site reviews, and general articles related to the project management industry.

1 Response

  1. Super helpful post! I think Zoho people is a must in the industry!

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