What Is HR Software?

HR Software: What Is It?

HR software is any type of tech system that is developed with human resources in mind, which they use to manage employees. Also known as human capital management software, these solutions support a wide variety of HR functionality.

These tools bring together recruitment, payroll, administration, management information, and performance management. All of this is done with a single source of data on employees, a centralized view into the company.

In the past, organizations have tried many types of tools to handle their HCM operations, using spreadsheets to cover payroll and other tools to allocate vacations.

With the modern recognition of the fact that people are the most critical asset, the development of HR software has resulted in the ability to seamlessly manage admin HR tasks while retaining focus on talent development. The function of people is becoming data-focused, which leads to improvements in business and workforce performance. These categories of activity are essential to the success of the biggest organizations in any industry.

The Types of HR Software

When it comes to the type of software used in HR, there is plenty to go around for everyone. Each of the tools covers a specific aspect of HR, and some other tools try to do everything as a one-size-fits-all solution.

HR information management

This type of software, HRIM, is used to record employee-pertinent activities. Anything from performance tracking, attendance to payroll records, and progress.

Human capital software

This type of tool combines various HR tools that are used to plan the workforce, visualize data and assess HR data. This tool is unlike the others because it's more of a mediator than a specialized solution.

HR Management tool

This type of tool performs similar functions to the information management software. However, there are more involved features, such as data analysis, forecasting, and much more.

Applicant Tracking System

This software is used by large companies quite regularly, especially if they hire throughout the year. Companies that receive many resumes and applications need to manage them somehow, this tool allows them to do this.

Employee documentation

This tool works with existing employee data and documentation, it allows for the management of this essential information. It adds encryption and security to data, as well as other features that make things happen faster and reduce the need for paperwork.

Payroll software

Evidently enough, payroll software helps organizations track expenses, payouts, schedules, and much more. Not to mention, an employee pay record can be reviewed at any time.

The Advantages of HR Software

The advantage of having HR software is in improving the feedback loop, decreasing the likelihood of error, and the organization of employee data. However, HR software also allows the department to use their time more efficiently on more important activities.

With HR software, your company will be able to ensure greater security, as well as access to information at any time from anywhere using cloud-based technologies. HR software helps businesses develop and train employees with real-time feedback on areas that require their attention for improvement.

Any small or medium-sized enterprise with under 249 employees must have HR software. As the business grows, it's important to have HR tools that work for the company, because there are just too many to choose from. HR software can help such enterprises hire the best candidates for their open roles, resulting in a committed and strong workforce.

Being a small enterprise might not be attractive to new candidates, especially when compared against larger enterprises. For this reason alone, the management of employees with training and development track on an internal level is critical.

This will ensure that you develop your employees inside the company as much as possible, making them even more valuable and willing to stay in the enterprise. This directly positively affects the business, removing the main weakness that deters top employees from joining smaller companies.

When choosing to take your business to the next level, having all of the information and data organized together securely is critically important. Having access to this data will let you assess the oldest and latest data, to make efficient decisions when reviewing employees.

Thus, an HR system will always come in handy. Not to mention, HR systems often have AI-driven analysis with automatic reports, which ensures your decisions are data-driven.

HR Software for the Future of Your Enterprise

HR software is the true flexible solution for any company. Flexibility is instrumental in adapting to the gradual and abrupt shifts in how workforces operate over time.

With HR software, you can go from a hierarchy to a flat team-driven structured workforce. Next, you can focus on developing employee-centric training, instead of classroom learning. By using the data available, you will be able to recruit tactfully, not reactively.

Furthermore, HR software will let you push transparency as a means for diversity and fairness in the company. You will also be able to coach, provide feedback, and show continual recognition. Next, you will develop a large-picture focus that is referenced on financial factors directly from HR.

And finally, you will be able to develop your remote sector of work, catering to contract, temporary and part-time workers as opposed to exclusive full-time employees.

Let's take a look at some of these important advances in your future business that will come directly from your use of HR software.

Flat organizational structures

A typical hierarchy in which management brings goals down to the bottom levels of management is a bit outdated. It takes time for these goals to break down into employee-specific tasks, and time is something hard to come by in the fast pace of life.

Smart enterprises that use HR software do so to flatten their hierarchy. Thus, allowing workers to have freedom in setting goals, which are not disconnected from the ultimate goals of the enterprise. Managers can review and approve goals, workers can update and submit changes in regards to progress.

Employee-centric growth

eLearning systems and self-service tools allow workers to control their own growth and development as an employee. By using such tools, employers will ensure that their staff can upgrade their skills whenever necessary. As well as gain new skills that will improve the organization from the inside out.

Through the use of interactive learning, instead of classroom learning, information retention is sure to improve. When employees become responsible for learning, they will be engaged and want to learn more instead of being forced to do so.

Tactful data recruiting

The only area that continues to change drastically over time in human resources is hiring. With the upswing in the economy and the number of workers retiring, recruitment has become employee-favored.

Data-driven considerate recruiting will ensure companies understand how to find candidates most effectively. This is also done by narrowing down the pool of candidates to the brightest and best, which seem to be ideal for the organization.

In turn, this results in turnover protection and hire rate timing improvements.

Remote employees

Letting workers collaborate from remote locations with transparent communication is a great benefit for many companies. HR tools can allow these connections to happen while tracking time spent so that everybody is compensated for their work fairly.

The greater picture—Human Resources and financial integration

HR tools are continually developing to include better integration with other work software solutions. By referencing existing HR information with financial data, the business can a greater picture of enterprise progress.

By examining this information next to each other, it's much easier to discover the relation between productivity and labor, profit and turnover, and much more.

Temporary workers

Many companies are starting to find that contractors can be of great benefit when they work for the enterprise for a specific project. Temp workers, gig workers, part-time employees, contractors are free from the full-time archetype of the loyal worker.

However, including these types of workers often allows the organization to tap into specialties that are useful to the business without a long-term commitment. HR software will make it easy to determine compensation for such workers, but also communicate with these workers outside of the on-site location and regular office hours.

Real-time continual employee feedback

Real-time continual feedback is a necessary demand of a progressive workforce that exists in the realm of rapid change culture. Annual appraisals are useless, workers need to be recognized and coached regularly to keep up with the future.

Many HR tools that provide management of performance will ensure that you have the ability to provide regular feedback without issue. Performance management can alert managers on task completion, present 360 reviews for peers to review, message employees instantly when necessary, and more.

HR transparency executed

The secret culture behind promotions and pay is simply ridiculous. It's becoming entirely replaced by the power of transparency. HR software will allow employees to present salaries, promotional opportunities, and merit increase projections for everybody to see.

Transparency makes it hard to discriminate on arbitrary conditions, leading to greater diversity and fairness in the company. When a company chooses to make things public, it lets employees know that they can and should expect fairness.

HR Solutions for You

Now that you understand the importance and value of HR software, you are that much closer to having it integrated as part of your business. In any case, if you choose not to use HR software, it's your loss.

The worst thing that can happen with HR software is the best thing that can happen with it. There are no downsides. If you're interested in scheduling a demo for our full-scale HR solutions, get in touch with us and we will happily accommodate your needs.