Eddy’s HR Mavericks Encyclopedia
The world's largest free encyclopedia of HR, with 700+ HR articles and podcasts.
Created by Eddy and our HR Mavericks community.
HR Software
In the last decade, the number of HR software products has increased exponentially. Some of these products provide more solutions than others. We understand that with so many options, it can be hard to sort through the good and the bad. That’s why our team has put together a list of HR software with some tips to help you find the best solution for your company.
What Is Human Resources (HR) Software?
HR software is any tool or product designed to digitally manage HR tasks and help HR teams achieve their goals. HR Software can be as simple as a spreadsheet or template, or as complex as an all-in-on HR + Payroll platform. The HR market is flooded with options and alternatives. Realistically there is no single perfect tool for every company—and this is great for companies because the number of options make it possible to find a solution that is best suited for your business. The downside is that the number of alternatives make finding that just-right solution a daunting task.
Eddy is a complete HR+Payroll solution that is specifically designed for small and medium sized businesses who value ease-of use, need strong integrations with other tools and systems, and want a tool built for the future. Eddy brings all employee information together into one place and automates repetitive tasks so HR managers can do more.
Types of HR software
HR software comes in many variations. A well-rounded HR software product will include or seamlessly integrate with tools that help in three primary areas: Core HR + Payroll, Hiring, and People & Growth.
To learn more about how these tools fit together into an HR tech stack, download our our guide: How to Build the ideal HR Tech stack: a complete guide for your business
When is the right time to add HR software?
The right time to add HR software is as-soon-as-possible. Especially for a small business. The reason for this is that the right software tools will help you stay compliant with all the various state and federal regulations—some of which you may not even be aware of. One example is a 30 employee company in the healthcare industry. The business owner we interviewed recognized that in that industry, documentation and organization are essential. He was flooded with onboarding paperwork to try to capture critical new hire information.
He explains: “My first challenge was I tried to find an automated onboarding process. I was having to manually chase after all those people that I just hired asking for their driver license, their I-9, their social security number, all these pieces of information. I had just a little shy of 20 tasks that I needed to do manually before I could schedule a new employee orientation.”
Consolidating HR Software
While it is advantageous to add HR software early, as your business grows it can also quickly become important to consolidate tools. If your HR software is fragmented into several systems for recruiting, onboarding, hiring, payroll, time & attendance, then moving to an all-in-one tool that can meet all these needs will reduce your workload significantly. Typically this consolidation process saves hours of work each week because it removes the need for duplicate data entry
8 Major Benefits of HR software
HR software can help your business in many ways. For some the primary benefit is to streamline processes that used to be a huge time waste. With the right software tools, businesses can postpone hiring additional staff thanks to the increased efficiency and better processes. Below we outline several key benefits of excellent HR software:
- Increased Efficiency: Automation of routine tasks such as data entry, payroll processing, and benefits administration reduces the need for manual intervention, speeding up processes and minimizing errors. Often a company hires its first HR manager at about 50 - 75 employees. HR tech can extend this window and allow a company to do more with fewer employees.
- Enhanced Compliance: Improving compliance lowers stress and brings better peace of mind. Compliance with employment laws and regulations is crucial for any business. Staying up-to-date with these regulations is not easy, but by automating updates and alerts, HR tech can reduce the risk of non-compliance and potential legal issues.
- Improved Recruitment Processes: Hiring tools (also known as an Applicant Tracking System) help streamline the recruiting processes. This can make a huge difference for a growing business. HR tech makes it easier to attract, evaluate, and hire top talent. An ATS can automate posting job openings, help you sort and organize applications, and communicate with candidates, making the recruitment process more efficient and effective.
- Better Data Management: HR has a lot of people data to manage. HR tech helps make it easier to store, access, and analyze employee data. This is crucial for everything from performance evaluations to strategic decision-making, as well as ensuring data security and privacy.
- Scalability: As your business grows, your HR needs become more complex. A scalable HR tech stack can grow with the business, adapting to changing needs without the need to replace the entire system. This makes it easier and more cost-effective to manage growth.
- Improved Employee Experience: Modern HR tools can enhance the employee experience by making HR processes, like onboarding, benefits enrollment, and performance reviews, more transparent and user-friendly. This can lead to increased employee engagement and satisfaction.
- Analytics and Reporting: Advanced HR technologies provide analytics and reporting capabilities that can give insights into various aspects of HR like employee performance, compensation trends, and turnover rates. These insights can inform strategic decisions and help optimize HR policies and practices.
- Better Communication: Many HR systems include tools that facilitate better communication between management and staff, such as employee self-service portals, mobile access, and social collaboration tools. This helps in keeping everyone informed and engaged, regardless of their location.
Moving to good software saves time and brings order to chaos, but HR professionals say the value goes further. An HR manager at one 500 employee company interviewed says “The money we pay for Eddy frees up my time so that projects that we have been talking about for two years are actually happening now—more strategic moves are happening.”
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 record-keeping and communication. A good ATS will not only allow you to post a job and distribute it to the world’s most active job boards, but it will also help you organize your candidate pools, communicate with candidates, collaborate with your team on hiring decisions, and ultimately hire an outstanding candidate.
- 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. When an employee signs a document, they do so electronically, and that document is automatically placed in a secure location where both you and the employee have access to it. Electronic signature software allows you to easily send out any of your documents for employee signatures at any time. For example, when you update the employee handbook, you don't have to distribute physical copies to each employee. Simply use your software to email it out, collect signatures, and store those signed copies.
- Employee Directory Software Any problems with employee recognition, communication, or information can be solved with a great employee directory. Employee directory software provides an electronic directory of all employee contact information, including their department, job title, location, email, and of course, their name. An employee directory also contains images so you can put faces with names.As a bonus, employee directories are searchable, so you don’t need to scroll endlessly trying to find the person you’re looking for.
- Employee Document Management Software If you’re storing documents in a filing cabinet then you risk them being stolen, lost, or damaged. If there’s a fire or flood in your office building, you can kiss those documents goodbye. Storing documents with HR software eliminates many of these risks.Employee document management software creates a secure electronic location for sensitive employee documents that would usually exist in a file cabinet.
- Onboarding Software With the help of onboarding software, you’ll be able to create consistent, replicable experiences for each of your new hires. Using templates, you’ll quickly be able to assign tasks, both to the new hire and to members of your internal team. 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 (PTO) tracking and management. The thing about PTO is most companies have their own unique way of doing it. When equipped with the right software, you’ll be able to customize a plan for your company. You’ll have total control over the inputs and information that goes into your PTO policy. After a policy is created, you simply need to add employees to that policy and then the rules for the policy will automatically begin to be applied.
- Payroll Software Payroll software automates the payroll process. It takes all the inputs to an employee’s pay calculation (includes their W-4 information, their salary, taxes, and other deductions) and outputs the correct dollar amount that is then transferred to the employee’s bank account. Things like taxes, payroll deductions, and benefit costs are automatically deducted. All state and federal taxes are properly applied, and at the end of the year, all employees are sent a W-2 form to help them complete their individual tax filings.
- Time Tracking Software Time tracking software electronically tracks hours worked for hourly employees. It keeps track of all the time punches made by an employee and returns a detailed report at the end of each pay period. Many time tracking software products allow you to use geo-location or IP address filters to ensure that your employees can only clock in while in the office or at another designated location. Unique employee portals with password-protected information can protect against buddy-punching or other nefarious activity.
- Training Tracking Software Many jobs require employees to go through specific training, earn certifications, or get licensed. These may be simple enough to track for one or two people, but once your company grows and you’ve got dozens or even hundreds of expirations to track, it can be extremely overwhelming.Training tracking software helps HR departments track the progress and completion of employee training. It remind you when a training needs to be renewed or when a certification is about to expire. It also notifies employees of licenses they need to have in order to work. Perhaps most importantly, training tracking software can store all the documents, certificates, badges, and paperwork that accompanies these certifications so that you never lose track of the proof of completion.
- 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.
How to choose the best HR Software for your business
When choosing the best HR software for your business the first question is what do you aim to achieve? Common goals include improving employee satisfaction, streamlining operations, or reducing costs. Getting clear about what are the most important problems you are solving will help you to prioritize these needs.
The HR software market is flooded with alternatives and options. In the end there is no single perfect tool for every company. You will need to distinguish between 'must-have' and 'nice-to-have' features. This will help in allocating your budget more effectively.
A modern HR platform should encompass several critical qualities to effectively meet the needs of today's dynamic business environments. Here are the top essential qualities:
Integrations: A modern HR platform must be able to seamlessly integrate with other tools and systems you use. These could include payroll, Point-of-sale software, benefit providers, or other third-party applications. This integration is crucial for ensuring data consistency, reducing redundancy, and facilitating a unified approach to managing employee information across various departments.
Easy to use: Your HR software platform should not make you crazy, and should be so easy to use that you are not constantly fielding calls from employees with questions on how to use the software. Look for an intuitive and easy-to-navigate design that works for all tech skill levels. This will give you higher adoption rates, which is kind of the goal when you need to automate processes.
Built for the future: As your business grows it makes sense that your HR needs will evolve. A modern HR platform needs to be scalable, supporting a company as it expands in size or adjusts its operations. This includes being able to handle increasing amounts of data, more complex organizational structures, and a greater variety of HR tasks and processes.
Comprehensive Analytics and Reporting Tools: The ability to analyze and report on HR data is essential for strategic decision-making. Modern HR platforms should offer robust analytics capabilities that allow users to track key performance indicators (KPIs), identify trends, and make data-driven decisions to improve workforce management and planning.
Mobile Functionality and Accessibility: In today’s mobile-first world, a modern HR platform should be accessible across different devices, including smartphones and tablets. This ensures that employees and managers can access important information and perform HR tasks on the go, promoting greater flexibility and connectivity within the workforce.
These qualities make an HR platform not only a tool for managing day-to-day HR activities but also a strategic asset that can drive organizational success through better data management, improved employee engagement, and enhanced operational efficiency.
Popular HR Software Options
1. Eddy—a complete HR+Payroll solution that is specifically designed for small and medium sized businesses who value ease-of use, need strong integrations with other tools and systems, and want a tool built for the future. Eddy brings all employee information together into one place and automates repetitive tasks so HR managers can do more.
2. Gusto—Gusto is ideally situated for small businesses (under ~10 employees) who are most interested in just running payroll.
>>Read more: Eddy vs. Gusto
3. ADP Workforce Now—A robust solution that scales well for businesses as they grow. It offers comprehensive payroll services, HR management, compliance, and benefits administration.
4. Paychex—Suitable for SMBs looking for extensive support and services, including payroll, HR, retirement, and insurance services. Paychex also offers a dedicated HR professional with some of its plans.
5. QuickBooks Payroll—Often used by SMBs that already use QuickBooks for accounting. It integrates seamlessly, offering automated payroll, tax calculations, and filings.
6. BambooHR—Known for its human resource information system (HRIS) capabilities, BambooHR also offers payroll solutions. It's a good fit for companies needing strong HR functionality alongside payroll processing.
>>Read more: Eddy vs. BambooHR
7. Rippling - Rippling combines IT software along with payroll, benefits, and HR into a single platform, which can be helpful to larger companies.
Each of these platforms has its unique strengths, and the best choice for a particular business will depend on specific requirements such as company size, budget, and the level of integration needed with other systems. While you explore your options, take advantage of any free trial available to see which HR software best fits your business needs.
Topics
Eddy
Eddy is the all-in-one HR tool built with you in mind. The robust features and ease of use will benefit your company both inside and outside your HR team.
Other Related Terms
Eddy’s HR Mavericks Encyclopedia
HR Software
In the last decade, the number of HR software products has increased exponentially. Some of these products provide more solutions than others. We understand that with so many options, it can be hard to sort through the good and the bad. That’s why our team has put together a list of HR software with some tips to help you find the best solution for your company.
What Is Human Resources (HR) Software?
HR software is any tool or product designed to digitally manage HR tasks and help HR teams achieve their goals. HR Software can be as simple as a spreadsheet or template, or as complex as an all-in-on HR + Payroll platform. The HR market is flooded with options and alternatives. Realistically there is no single perfect tool for every company—and this is great for companies because the number of options make it possible to find a solution that is best suited for your business. The downside is that the number of alternatives make finding that just-right solution a daunting task.
Eddy is a complete HR+Payroll solution that is specifically designed for small and medium sized businesses who value ease-of use, need strong integrations with other tools and systems, and want a tool built for the future. Eddy brings all employee information together into one place and automates repetitive tasks so HR managers can do more.
Types of HR software
HR software comes in many variations. A well-rounded HR software product will include or seamlessly integrate with tools that help in three primary areas: Core HR + Payroll, Hiring, and People & Growth.
To learn more about how these tools fit together into an HR tech stack, download our our guide: How to Build the ideal HR Tech stack: a complete guide for your business
When is the right time to add HR software?
The right time to add HR software is as-soon-as-possible. Especially for a small business. The reason for this is that the right software tools will help you stay compliant with all the various state and federal regulations—some of which you may not even be aware of. One example is a 30 employee company in the healthcare industry. The business owner we interviewed recognized that in that industry, documentation and organization are essential. He was flooded with onboarding paperwork to try to capture critical new hire information.
He explains: “My first challenge was I tried to find an automated onboarding process. I was having to manually chase after all those people that I just hired asking for their driver license, their I-9, their social security number, all these pieces of information. I had just a little shy of 20 tasks that I needed to do manually before I could schedule a new employee orientation.”
Consolidating HR Software
While it is advantageous to add HR software early, as your business grows it can also quickly become important to consolidate tools. If your HR software is fragmented into several systems for recruiting, onboarding, hiring, payroll, time & attendance, then moving to an all-in-one tool that can meet all these needs will reduce your workload significantly. Typically this consolidation process saves hours of work each week because it removes the need for duplicate data entry
8 Major Benefits of HR software
HR software can help your business in many ways. For some the primary benefit is to streamline processes that used to be a huge time waste. With the right software tools, businesses can postpone hiring additional staff thanks to the increased efficiency and better processes. Below we outline several key benefits of excellent HR software:
- Increased Efficiency: Automation of routine tasks such as data entry, payroll processing, and benefits administration reduces the need for manual intervention, speeding up processes and minimizing errors. Often a company hires its first HR manager at about 50 - 75 employees. HR tech can extend this window and allow a company to do more with fewer employees.
- Enhanced Compliance: Improving compliance lowers stress and brings better peace of mind. Compliance with employment laws and regulations is crucial for any business. Staying up-to-date with these regulations is not easy, but by automating updates and alerts, HR tech can reduce the risk of non-compliance and potential legal issues.
- Improved Recruitment Processes: Hiring tools (also known as an Applicant Tracking System) help streamline the recruiting processes. This can make a huge difference for a growing business. HR tech makes it easier to attract, evaluate, and hire top talent. An ATS can automate posting job openings, help you sort and organize applications, and communicate with candidates, making the recruitment process more efficient and effective.
- Better Data Management: HR has a lot of people data to manage. HR tech helps make it easier to store, access, and analyze employee data. This is crucial for everything from performance evaluations to strategic decision-making, as well as ensuring data security and privacy.
- Scalability: As your business grows, your HR needs become more complex. A scalable HR tech stack can grow with the business, adapting to changing needs without the need to replace the entire system. This makes it easier and more cost-effective to manage growth.
- Improved Employee Experience: Modern HR tools can enhance the employee experience by making HR processes, like onboarding, benefits enrollment, and performance reviews, more transparent and user-friendly. This can lead to increased employee engagement and satisfaction.
- Analytics and Reporting: Advanced HR technologies provide analytics and reporting capabilities that can give insights into various aspects of HR like employee performance, compensation trends, and turnover rates. These insights can inform strategic decisions and help optimize HR policies and practices.
- Better Communication: Many HR systems include tools that facilitate better communication between management and staff, such as employee self-service portals, mobile access, and social collaboration tools. This helps in keeping everyone informed and engaged, regardless of their location.
Moving to good software saves time and brings order to chaos, but HR professionals say the value goes further. An HR manager at one 500 employee company interviewed says “The money we pay for Eddy frees up my time so that projects that we have been talking about for two years are actually happening now—more strategic moves are happening.”
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 record-keeping and communication. A good ATS will not only allow you to post a job and distribute it to the world’s most active job boards, but it will also help you organize your candidate pools, communicate with candidates, collaborate with your team on hiring decisions, and ultimately hire an outstanding candidate.
- 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. When an employee signs a document, they do so electronically, and that document is automatically placed in a secure location where both you and the employee have access to it. Electronic signature software allows you to easily send out any of your documents for employee signatures at any time. For example, when you update the employee handbook, you don't have to distribute physical copies to each employee. Simply use your software to email it out, collect signatures, and store those signed copies.
- Employee Directory Software Any problems with employee recognition, communication, or information can be solved with a great employee directory. Employee directory software provides an electronic directory of all employee contact information, including their department, job title, location, email, and of course, their name. An employee directory also contains images so you can put faces with names.As a bonus, employee directories are searchable, so you don’t need to scroll endlessly trying to find the person you’re looking for.
- Employee Document Management Software If you’re storing documents in a filing cabinet then you risk them being stolen, lost, or damaged. If there’s a fire or flood in your office building, you can kiss those documents goodbye. Storing documents with HR software eliminates many of these risks.Employee document management software creates a secure electronic location for sensitive employee documents that would usually exist in a file cabinet.
- Onboarding Software With the help of onboarding software, you’ll be able to create consistent, replicable experiences for each of your new hires. Using templates, you’ll quickly be able to assign tasks, both to the new hire and to members of your internal team. 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 (PTO) tracking and management. The thing about PTO is most companies have their own unique way of doing it. When equipped with the right software, you’ll be able to customize a plan for your company. You’ll have total control over the inputs and information that goes into your PTO policy. After a policy is created, you simply need to add employees to that policy and then the rules for the policy will automatically begin to be applied.
- Payroll Software Payroll software automates the payroll process. It takes all the inputs to an employee’s pay calculation (includes their W-4 information, their salary, taxes, and other deductions) and outputs the correct dollar amount that is then transferred to the employee’s bank account. Things like taxes, payroll deductions, and benefit costs are automatically deducted. All state and federal taxes are properly applied, and at the end of the year, all employees are sent a W-2 form to help them complete their individual tax filings.
- Time Tracking Software Time tracking software electronically tracks hours worked for hourly employees. It keeps track of all the time punches made by an employee and returns a detailed report at the end of each pay period. Many time tracking software products allow you to use geo-location or IP address filters to ensure that your employees can only clock in while in the office or at another designated location. Unique employee portals with password-protected information can protect against buddy-punching or other nefarious activity.
- Training Tracking Software Many jobs require employees to go through specific training, earn certifications, or get licensed. These may be simple enough to track for one or two people, but once your company grows and you’ve got dozens or even hundreds of expirations to track, it can be extremely overwhelming.Training tracking software helps HR departments track the progress and completion of employee training. It remind you when a training needs to be renewed or when a certification is about to expire. It also notifies employees of licenses they need to have in order to work. Perhaps most importantly, training tracking software can store all the documents, certificates, badges, and paperwork that accompanies these certifications so that you never lose track of the proof of completion.
- 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.
How to choose the best HR Software for your business
When choosing the best HR software for your business the first question is what do you aim to achieve? Common goals include improving employee satisfaction, streamlining operations, or reducing costs. Getting clear about what are the most important problems you are solving will help you to prioritize these needs.
The HR software market is flooded with alternatives and options. In the end there is no single perfect tool for every company. You will need to distinguish between 'must-have' and 'nice-to-have' features. This will help in allocating your budget more effectively.
A modern HR platform should encompass several critical qualities to effectively meet the needs of today's dynamic business environments. Here are the top essential qualities:
Integrations: A modern HR platform must be able to seamlessly integrate with other tools and systems you use. These could include payroll, Point-of-sale software, benefit providers, or other third-party applications. This integration is crucial for ensuring data consistency, reducing redundancy, and facilitating a unified approach to managing employee information across various departments.
Easy to use: Your HR software platform should not make you crazy, and should be so easy to use that you are not constantly fielding calls from employees with questions on how to use the software. Look for an intuitive and easy-to-navigate design that works for all tech skill levels. This will give you higher adoption rates, which is kind of the goal when you need to automate processes.
Built for the future: As your business grows it makes sense that your HR needs will evolve. A modern HR platform needs to be scalable, supporting a company as it expands in size or adjusts its operations. This includes being able to handle increasing amounts of data, more complex organizational structures, and a greater variety of HR tasks and processes.
Comprehensive Analytics and Reporting Tools: The ability to analyze and report on HR data is essential for strategic decision-making. Modern HR platforms should offer robust analytics capabilities that allow users to track key performance indicators (KPIs), identify trends, and make data-driven decisions to improve workforce management and planning.
Mobile Functionality and Accessibility: In today’s mobile-first world, a modern HR platform should be accessible across different devices, including smartphones and tablets. This ensures that employees and managers can access important information and perform HR tasks on the go, promoting greater flexibility and connectivity within the workforce.
These qualities make an HR platform not only a tool for managing day-to-day HR activities but also a strategic asset that can drive organizational success through better data management, improved employee engagement, and enhanced operational efficiency.
Popular HR Software Options
1. Eddy—a complete HR+Payroll solution that is specifically designed for small and medium sized businesses who value ease-of use, need strong integrations with other tools and systems, and want a tool built for the future. Eddy brings all employee information together into one place and automates repetitive tasks so HR managers can do more.
2. Gusto—Gusto is ideally situated for small businesses (under ~10 employees) who are most interested in just running payroll.
>>Read more: Eddy vs. Gusto
3. ADP Workforce Now—A robust solution that scales well for businesses as they grow. It offers comprehensive payroll services, HR management, compliance, and benefits administration.
4. Paychex—Suitable for SMBs looking for extensive support and services, including payroll, HR, retirement, and insurance services. Paychex also offers a dedicated HR professional with some of its plans.
5. QuickBooks Payroll—Often used by SMBs that already use QuickBooks for accounting. It integrates seamlessly, offering automated payroll, tax calculations, and filings.
6. BambooHR—Known for its human resource information system (HRIS) capabilities, BambooHR also offers payroll solutions. It's a good fit for companies needing strong HR functionality alongside payroll processing.
>>Read more: Eddy vs. BambooHR
7. Rippling - Rippling combines IT software along with payroll, benefits, and HR into a single platform, which can be helpful to larger companies.
Each of these platforms has its unique strengths, and the best choice for a particular business will depend on specific requirements such as company size, budget, and the level of integration needed with other systems. While you explore your options, take advantage of any free trial available to see which HR software best fits your business needs.
Topics
Eddy
Eddy is the all-in-one HR tool built with you in mind. The robust features and ease of use will benefit your company both inside and outside your HR team.
Other Related Terms
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