What is Human Resources (HR) Software?
Today’s HR software market is flooded with so many different products that it can be difficult to define what HR software is. There are software products that digitize document signing, others that automate payroll, keep time, or track recruiting, and many more. There is even software solely dedicated to making sure different HR software systems integrate with each other.
So how do you define HR software? HR software is a broad category of software products designed to help HR professionals do their jobs more efficiently. They automate tasks and turn traditionally paper-based processes into electronic processes.
The Benefits of Using HR Software
There are many benefits to HR software systems. Overall, which benefits you receive will depend on which HR software system you purchase.
- Increased Efficiency. Time is valuable. With HR management software, you’ll have more time to focus on company culture, retention, recruitment, and employee development.
- Fewer Errors. The more you leave to software to calculate or adjust, the less you leave to human error. HR management software will be able to automatically keep time for hourly employees, make tax adjustments, or change benefit elections.
- Less Compliance Worries, More Strategy! A solid HR software system can help you automate compliance efforts with intelligent reporting, analytics, and record-keeping features.
- Improved HR Morale. Let’s face it, HR is overworked. This reality has made for some pretty funny memes, but there’s nothing fun about being stuck at the office on a Friday evening. Reducing your office’s workload will help reduce stress and increase morale.
Different Types of HR Software
The HR software market has grown exponentially in the last decade. In fact, according to Grand View Research, the HR software market value is now reaching $10 Billion USD. So, if you can think of an HR problem you typically face, there’s probably software that can help.
Applicant Tracking System (ATS)
ATS software electronically tracks the recruitment and hiring process, all the way from posting a new job to hiring. It creates a central hub for all recruitment recordkeeping and communication.
Benefits Administration Software
Benefits management software helps businesses organize and manage benefits for their employees. This can include 401K retirement plans, other retirement plans, paid time off and medical and dental insurance.
Electronic Signature Software
Electronic signature software, or e-signature software, enables companies to securely create and accept electronic signatures for important documents.
Employee Directory Software
Employee directory software provides an electronic directory of all employee contact information, including their department, job title, location, email, and of course, their name.
Employee Document Management Software
Employee document management software creates a secure electronic location for sensitive employee documents that would usually exist in a file cabinet.
With onboarding software, employees can upload their signed onboarding documents, complete their onboarding training, and track their onboarding progress all from their computer.
Paid Time Off Management Software
Paid time off management software is just like benefits management software, except it only helps with paid time off tracking and management.
Payroll software automates the payroll process. It calculates deductions and taxes, handles payment and direct deposit and sometimes includes timekeeping capabilities.
Time Tracking Software
Time tracking software electronically tracks hours worked for hourly employees.
Training Tracking Software
Training tracking software helps HR departments track the progress and completion of employee training.
Integration software’s sole purpose is to help all of your HR software tools communicate with each other and share data.
All-In-One Human Resources Software
All-in-one HR software is software that has many types of HR software applications to manage multiple aspects of human resources. Although capabilities vary, these software tools will cover, at minimum, the basic administrative aspects of human resources management.
What to Look for in an All-in-One Platform
1. The Platform Should Cover All of Your Major Administrative Tasks
Any all-in-one software should include tools to manage all major administrative tasks:
- People Management
- Paid Time Off
- Training Tracking
2. Look for a Focus on User Experience
You can purchase the most powerful all-in-one HR software with every capability imaginable. But if it’s too hard to use, you won’t be getting your money’s worth. Complicated software usually leads to more questions, employees not filing their paperwork correctly (or at all) and disgruntled co-workers.
If you’re on the hunt for an HR software system, search for one that is easy to learn and use. This is often called the user experience (UX), and top HR software companies will have invested in their UX design.
3. All-in-one HR Software Should Emphasize Data Security
An all-in-one HR software should have solid security features to protect company information. Why? Because regardless of your role within HR, information security is always important. Although it’s nice to have all of your HR management information in one place, you’re also exposing more information to potential security risks.
4. Look for Custom Reporting Features
Great all-in-one HR management software will not only collect data for you, it will also give you the ability to answer important strategic HR questions and analyze any trends related to your workforce through its reporting capabilities.
For example, you may want to see what your total compensation is per department, how many employees completed their yearly training in a particular quarter, or what your turnover rate is for entry-level positions. This kind of reporting should be easily accessible through your HR software system.
The Top 3 All-in-One HR Software of 2021
Eddy HR is a full-service HR software management system that provides hiring, onboarding, people management, paid time off (PTO), payroll, time tracking and training tracking solutions for small to medium-sized companies. We’re focused on providing the best one-stop solution for HR with the best user experience. And, because we know our clients are on the go, we’re designing the Eddy HR phone application.
Why we like it: We truly believe we’re the best because, unlike so many of our current competitors, we’ve invested in creating software that is powerful, user-friendly and intuitive. With our software, you’ll spend less time rummaging through clerical duties and more time executing your HR strategy.
Rippling is an HR management and IT software system that provides multiple HR management solutions, including payroll, benefits, time tracking, training tracking and recruitment. Rippling focuses on increasing information security.
Why we like it: We like Rippling because it addresses the basic administrative HR needs, and because of its application management and integration features. With Rippling, you can integrate your HR software with other team-related apps, like Zoom or Slack.
Paycom provides HR management solutions for the most important administrative HR tasks, including recruiting, payroll, people management, time tracking and talent management.
Why we like it: We like Paycom because it provides employee training through its Paycom learning platform. However, it’s important to note that capability is a double-edged sword since you’ll be limited to using only Paycom’s training for your workforce. If you’re in a specialized industry or if you want more flexibility in your training, Paycom’s full-service package may be limiting.
How to Pick the Software that’s Right for You
Choosing your new HR management software is an exciting process, but you want to make sure you choose the best software for your company. When you’re searching for new software, keep the following in mind:
1. Consider Your Company Size
If you’re running a small company or a family company, you won’t want to pay for software designed for large or global companies. For example, Workday is one of the biggest HR management software companies on the market. Although powerful, Workday is geared toward large companies. If your company has a small workforce, Workday probably isn’t the right software for you.
2. Go with an All-in-One HR Management Software
Given that Eddy HR is an all-in-one software, it’s no surprise that this is our advice. Here at Eddy, we created an all-in-one solution because we understand the frustrations HR offices have when they can’t get data to integrate, they need to train employees in multiple software applications, or when they realize they’re paying way more on multiple subscriptions.
Our advice is to choose an all-in-one HR management software solution because it’s a better product. Plain and simple.
3. Take a Tour
Most software companies let you take a tour of their product either via a demo or temporary access. Before signing anything, make sure they let you see what their project can do. A demo won’t just help you confirm it has the capabilities you need, it will also give you an opportunity to evaluate the user experience.
4. Choose Your Budget
As with any new expenses, you’ll have to determine how much you can invest. If you choose to go with multiple HR software systems, remember that every system you purchase will most likely be subscription-based. This means you’ll have multiple charges a month for each system. The pricing for most HR software systems is based on how many employees your company has.