The development of software for human resource management (HRM) has really evolved over the past century. From hitting our spreadsheets then computers then cloud-based applications, however it seems like we are now taking a step back in time. Software for HR is now moving back to our desktops.
Over the years, we have seen amazing technology come and go. The cloud has changed how we work, empowering us with technology that is powerful and accessible. This means that HR can now do a lot more with a lot less. Software for HR has changed the way we practice HR, leaving our desks and replacing them with our laptops or tablets.
What is HR software?
The growing human resources (HR) software market is forecasted to reach $33.58 billion by 2026. While most companies and individuals are somewhat familiar with HR software, the landscape is rapidly changing with the addition of new best-of-breed apps and to keep pace with the ways changing technology affects how users want to interact with software.
In its inception as licensed on-premise software, HR software was restricted to employee records, payroll, and benefits. But the market has expanded significantly due to automation and demand for cloud technology. These changes in customer expectations and the greater willingness of employees to use self-service models now mean HR tasks like payroll, time-off requests, and benefits management take up less administrative time, which frees up HR professionals to focus their attentions on recruiting, employee performance, company culture, branding, and other tasks that now fall under the descriptor of talent management.
Categories of HR software solutions
Human resources information systems (HRIS)
Human Resources Information System (HRIS) software is an umbrella term that includes as many distinct types of software as there are HR software companies. These products are known by many different names, but the purpose of these multi-function systems is to store individual employee data, manage payroll and benefits administration, and manage the company’s regulatory and legal employment requirements.
Although the amount of time that HR managers reported working on manual data input has gone down, these managers still spend up to 50 percent of their time on manual tasks. This time suck is closely followed by manual adjustments (30.6 percent) and spending time shuttling information between non-standardized HR tools across the organization (27.4 percent).
HRIS systems are designed to streamline and automate the three traditional pillars of HRM: payroll, time and attendance, and benefits management. And modern solutions go a long way to reduce manual data entry. Companies searching for the right HRIS software can expect to see these features:
- Payroll
- Time tracking
- Employee scheduling
- Benefits management
- Self-service employee portal
Other included features in an HRIS:
- Recruiting
- Applicant tracking
- Accounting
- Performance management
Leaders in the HRIS software space tend to be software giants that require significant onboarding but promise flexibility, accuracy, and data security. Because HR administration software stores and manages the personal identifying data, banking, and tax information of all employees, these human resource tools are subject to industry regulations and must stay current with state, local, and federal tax requirements.
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Applicant tracking systems and recruiting software
The rise of applicant tracking systems and recruiting software can be directly correlated with the increased automation of many of the traditional data-entry and administrative tasks that HR employees used to fill their days with. Now that HR departments don’t spend most of their time manually calculating time cards and payroll deductions, these teams can focus on attracting and hiring stellar employees.
Applicant tracking systems and recruiting software have similar functions but often differ in scale. Recruiting software is most often employed by recruiting agencies and large enterprise companies with high job demands as they are built to handle bulk or ongoing recruiting efforts.
Applicant tracking systems, on the other hand, are often employed by organizations that need employee lifecycle tracking and can include performance management and engagement modules in addition to the traditional job board, resume, interview, and onboarding features.
Read the overview and detailed feature descriptions for standalone applicant tracking software or specialized recruiting software that fits your business. Our Technology Advisors are standing by to recommend the best tool for your needs. Call 877.702.2082 now for a free, 5-minute recommendation.
Learning management systems
Learning management systems (LMS), also known as elearning systems, track an employee’s education, certifications, qualifications, and skills and connect the employee with materials or courses available to develop those skills. An LMS may function as a part of an ATS or be included in an ERP software, but many standalone options are also available for businesses of all sizes.
A traditional LMS allows managers to approve training, budgets, and calendars alongside performance and appraisal metrics. Most LMS users create their own learning content that then gets hosted on an LMS server. These systems typically require in-house departmental experts and training coordinators or HR employees with training expertise to build extensive learning and assessment modules.
A popular option that many companies with the lack of time or resources to build their own elearning courses adopt is purchasing subscriptions to ready-made learning content platforms. While not tailored specifically to the company’s workflows or internal processes, learners can take advantage of expert industry and tool-specific courses that increase their productivity and engagement. These platforms also provide data export or training records that individuals can port into the company’s HRIS, performance management, or employee engagement software.
Want more information about learning management software and elearning systems? Visit our learning management software category for features to look for, benefits to expect, and advice on the best products.
Performance management software
Performance management software is a platform where HR professionals, managers, and employees can focus on assessing employee skills, set goals for performance, and track improvements over time.
Many companies use a performance management system to coach employees of all skill levels and tenures and to organize and track performance appraisals yearly, quarterly, or through weekly pulse updates. All of this information gives HR employees and managers a clear view of the employee’s maturation in a current role. This end-to-end view often helps the team with larger HR initiatives like succession planning and employment growth.
Performance management systems often include or are closely integrated with LMS and employee engagement software that gives teams a better understanding of individual and overall movement toward goals.
Want to learn more about performance management software features and benefits? Visit the performance management software category where you can check out top products and reviews, and receive recommendations based on your software needs.
Employee engagement
Whereas performance management tools seek to build an integrated system from hiring to retiring, employee engagement software helps companies improve employee sentiment and increase individual and team engagement with everyday work priorities. Employee engagement software both measures current engagement levels and seeks to provide solid feedback and coaching to improve the employee’s level of involvement in daily tasks.
Employee engagement systems often use a combination of survey tools, follow up workflows, gamification, and analytics. Users are prompted daily or weekly to provide feedback on their current work priorities, progress towards goals, and feelings about their own work.
Employee engagement software is found either as a standalone system, a feature of an HRIS or ERP software, or as an integrated tool that works in tandem with a larger HRIS, ERP, performance management, or talent management system.
Visit the employee engagement software overview to learn more about this HR software, including major features and products. Or if you’re ready to look at employee engagement options, call a Technology Advisor today for free recommendations based on your current software needs.
Current trends in HRIS systems
As the human resources software market grows and changes, there are a few additional considerations to make when choosing a solution. Features such as analytics, social integration, and mobile capabilities are becoming standard issue for most platforms rather than innovative selling points.
Here are the most prominent and ongoing trends for some of the best HR software providers on the market today:
Artificial intelligence (AI) and machine learning
The growth of AI and Machine Learning in the software space is undeniable, with nearly 50 percent of businesses saying they’ve adopted AI in at least one aspect of their business. Currently, AI companies are building tools that help HR professionals with recruiting and onboarding new employees, and some companies are using the technology to make more intelligent pulse surveys.
Machine Learning can most often be found in the elearning fields and within LMS software to better understand what types of courses employees should take next. These tools can also be used to offer learners new resources based on established learning patterns and behavior. They’re also helpful in recruiting tools to reduce hiring biases and find qualified candidates quickly.
AI and Machine Learning are both still relatively new fields of technology that are just finding applications within HR systems. Expect to see big strides within both of these fields over the coming years as the technology matures.
Team management vs. talent management
As with any trend in HR, employee management styles go through swings along the personalization scale. And while greater personalization is a huge trend across both employee and consumer management, many companies find that managing teams of employees who share similar business outcome goals makes sense.
This trend has changed how management and employees communicate, how managers and HR professionals look at performance management, and how the whole company looks at employee engagement. Expect to see this trend play out in team goal-setting and business organizations. While perhaps not fully affecting recruiting yet, team management will have an effect on interviews as managers will need to ensure candidates can work well with their teams.
HR consulting services
Small and medium-sized businesses (SMBs) don’t typically prioritize HR staff, which can create delays or difficulties with core processes like payroll and recruiting. Luckily, many HR software companies have started to offer HR services as an add-on in their packages. With these services, the vendors act as an HR managed services provider, allowing these small organizations to outsource their core HR functions.
These HR services allow SMBs to cover these core functions at a cheaper cost than hiring in-house personnel. It also removes some of the burden from the business’s employees, allowing them to improve their own productivity and optimize their department.
Bonus
ADP
Simplify HR and payroll With software and services designed for your businessADP the cutting-edge solution designed in a way that empowers people to grab their full potential. It gives a convenient method to attain payroll, time and attendance, benefits and other essential HR information for you and your working team. The HR services extend from basic templates and call centers for regular queries to long-term HR counseling commitments related to mergers, acquisitions, and rearrangements. ADP’s deep insights and unique experience are changing the scenario of work.
- Vendor : ADP
- Country : United States
- Company Size : 10,001+
- Founded : 1949
- Price : N/A
- Free Trial : Yes
4.5 / 5Our Score99/100
ADP Reviews”Running payroll for a small business is a headache. For me to have switched over to ADP, it’s saved … hours and hours every week. It could come out to days a month!” – Chris Bredesen
Popular
User-Friendly
Affordable#2
BambooHR
Best HR software with heart.BambooHR offers web-based human resource service to human resource recruiters of small and mid-sized businesses. It provides an integrated applicant tracking solution for with on boarding tools, e-signatures, performance management, time-off tracking, easy reporting, interview scheduling, internal HR, candidate tracking, assessments, etc. It gives an affordable way of growing businesses to manage essential employee information with a personalized human resource information system software (HRIS Software).
- Vendor: BambooHR
- Country: United States
- Company Size: 201 – 500
- Founded: 2008
- Price: N/A
- Free Trial: Yes
4.5 / 5Our Score99/100
BambooHR Reviews“From the moment I started using [BambooHR], I felt calmer. It just made sense. The implementation process couldn’t have been easier—I didn’t have to spend hours training people on it.” – Amanda Schneider
Popular
User-Friendly
Affordable#3
Zoho Recruit
All in one Applicant Tracking System and Recruiting softwareZoho Recruit is a cloud-based HR management software with a cutting-edge applicant tracking system(API) streamlining recruiting process. It comes with a set of features mandatory for hiring solutions and includes advanced search, candidate status, careers website pages, creates job openings, resumes database, embeds resume form, LinkedIn integration, etc. It enables HRs to source talents faster; tracking resumes and allows interviewing processes.
- Vendor: Zoho Corporation
- Country: India
- Company Size: 5001 – 10000
- Founded: 1996
- Price: $25.00/month/user
- Free Trial: Yes
4.5 / 5Our Score99/100
Zoho Recruit Reviews”Employee referral was one of our biggest challenge. Zoho Recruit’s customizable platform helped us set up the employee referral web page as per our requirement. This reduced manual work and the feedback to candidates was seamless through Zoho. We were also able to initiate offers and filter the candidate records.” – Dereck
Popular
User-Friendly
Affordable#4
Paylocity
#5
Rippling
Simplify Your HR & ITRippling is one single platform that makes it easy for your company to manage your employee payroll, benefits, apps, and computers. With Rippling, you can automate several things at a time when an employee joins, works at, or leaves the company. The key feature is a combination of HR and IT in-one modernized platform. As everything is connected to one accurate employee system of record, it’s not necessary to update rules and employee information continuously.
- Vendor : Rippling
- Country : United States
- Company Size : 50 – 200
- Founded : 2016
- Price : $35.00/month
- Free Trial: Yes
5 / 5Our Score98/100
Rippling Reviews”Rippling has been fantastic for our company. As an employee, I love being able to see all of my pay stubs in one place and easily sign/add necessary documents when needed. As a manager, I like being able to refer new hires to Rippling for an organizational chart and the onboarding information they need.” – Emily F.
Popular
User-Friendly
Affordable
Conclusions
Software is what made our businesses run. We were not able to scale and expand in the past without the help of these tools. But which ones should we choose? There are plenty of options out there but not all would be beneficial for your company. The software I put in this blog post is what I use in my HR business to run my business and will help you in your endeavor.