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What is Human Resource or HR Software?

What is HR Software?

HR software or Human resource software is an enterprise-grade digital solution that supports end-to-end employee management for an organization of any size. HR software aids in creating a unified employee database, followed by the facilitation and optimization of repetitive and periodic human resource tasks.

Apart from addressing all routine matters and laying the groundwork for automation, PeopleStrong’s Alt Worklife HR software can better equip the management to plan succession, staff, budget, etc.

In a nutshell, HR software is a product of the technologies of its time and makes managing employees more efficient. It increases organizational productivity, enhances the use of resources, boosts employee satisfaction, and meets the overall HR goals of an organization.

Importance of HR Software

Employees are the building blocks of any organization. All individuals function as a gear in the well-oiled machinery, and they make their respective contributions that keep it going forward. Given the role and importance of each employee, it is essential to manage each of them effectively. HR software makes this management possible. It also takes some pressure off of the HR team and serves the company in the following ways:

  • HR software reduces the company’s labor requirements for carrying out administrative tasks efficiently.
  • Furthermore, it boosts productivity within the HR department. Once free from redundant, repetitive tasks, your HR team can focus on more pressing matters, such as recruitment, talent retention, etc.
  • It helps maintain a centralized and updated database of employee information.
  • HR software develops a transparent, employee-friendly work culture that keeps the morale of the workforce at an all-time high.
  • Due to its data-driven and tamper-proof nature, HR software is less susceptible to human or clerical errors, which could otherwise lead to potentially grave consequences.
  • It ensures financial and legal compliance by reducing errors and offering benefits in accordance with the local laws.
  • HR software collects and extracts crucial metrics, which can offer insights into the overall functioning of your organization. Apart from reporting on multiple variables, HR software can also make near-accurate predictions.

Features of HR Software

The features of any HR software will vary depending on the requirements of the organization using it. That being said, the following are some common features of HR Software:

What’s the Difference Between HRMS, HCM, and HRIS?

You may have been guilty of using the terms Human Resource Management System (HRMS), Human Capital Management (HCM), and Human Resource Information System (HRIS) interchangeably.

Interestingly, you are neither right nor wrong in doing so. Given that there is no hard and fast definition binding these terms, the difference between them may appear too negligible. One can view them as subsets of each other.

For a better understanding of the differences and similarities between HRMS, HCM, and HRIS, refer to the table below:

HRMS HCM HRIS

Compensation Management

Compensation Management

Compensation Management

Personnel Tracking

Personnel Tracking

Personnel Tracking

Workflows

Workflows

Workflows

Benefits Administration or Open Enrollment

Benefits Administration or Open Enrollment

Benefits Administration or Open Enrollment

Training and Development

Training and Development

Training and Development

Recruiting or Applicant Tracking Systems

Recruiting or Applicant Tracking Systems

Recruiting or Applicant Tracking Systems

Employee Self-Service

Employee Self-Service

Employee Self-Service

Absence Management

Absence Management

Absence Management

Reporting and Analytics

Reporting and Analytics

Reporting and Analytics

Onboarding and Training

Onboarding and Training

Onboarding and Training

Performance Management

Performance Management

Performance Management

Position Control

Position Control

 

Succession Planning

Succession Planning

 

Salary Planning

Salary Planning

 

Global Support

Global Support

 

Payroll Processing

 

 

Time and Labor Management

 

 

Different Types of HR Software

Given that HR involves a slew of activities, you could have HR software that carries out dedicated tasks or the entire end-to-end management. Hence, you will come across solutions that can be highly specialized for limited tasks or expansive and loaded with an array of functions.

The different types of HR software include (but is not limited to):

  • HRIS: HRIS software is primarily restricted to data management and is required for recruitment, employee data management, benefits administration, and regulatory and legal compliance.
  • HCM: HCM supports the acquisition and management of talent. In addition to performance tracking, it also helps in the professional (and sometimes even personal) development of an employee.
  • HRMS: HRMS is a combination of HR software depending on the organizational requirements. Companies can use it as a standalone application or a complete end-to-end solution.
  • Application Tracking System (ATS): ATS is a dedicated HR software that helps in streamlining the recruitment process. It typically handles tasks like posting job adverts, collecting candidate data, and screening the applicants.
  • Onboarding: Onboarding software help freshly recruited employees adapt to the work conditions and requirements. It typically includes LMS systems, training kits, progress trackers, and other such functions to smoothen the onboarding process.
  • Performance Management: A performance management system allows employees, managers, and HR professionals to evaluate their skills and performance against the set goals.
  • Employee Engagement and Collaboration: Employee engagement and collaboration is the process of involving and connecting the employees with his or her organization. It involves activities, feedback, coaching, etc., which nurture an employee’s growth.
  • Payroll Software: Payroll Software is essentially a technology-based tool that is used to manage and streamline the process of making payments to employees in an organization. It organizes all the activities surrounding the payment disbursal and tax filing of the employees and more.

Benefits of HR Software

The benefits granted by HR software are captured as below:

  • It offers a break from the regressive hierarchies.
  • It makes better use of resources like labor, time, and effort.
  • It leaves room for automation and is extremely scalable.
  • It reduces errors and mitigates any disruptions arising due to leave or absence.
  • It improves the documentation capacity of a company by collecting employee data.
  • It streamlines HR processes and reduces redundancies.
  • It captures continuous performance feedback, which improves employee engagement and improves overall workflow.
  • Its data-driven, actionable insights and reports are more accurate and reliable.
  • It boosts employee satisfaction, which in turn increases the profitability of the company.
  • It makes improvements in futuristic actions, such as planning budget, succession planning, etc.
  • It ensures compliance with the state and national rules and regulations.

Choosing the right HR Software

A basic HR software is a necessity for businesses to stay relevant. For an HR team with limited capacities storing employee information, managing employee absence and time, making speedy but fitting hires, and handling financial and budgetary requirements can be a bit too much. Apart from digitizing and automating these processes, HR software introduces scalability, which will grant unlimited potential to your HR teams. Plus, it is a future-proof technology that will continue to reap benefits in the long run (and improve results as it matures).

HR software offers a host of benefits with an attractive ROI, motivating businesses to give it a whirl. Now that you have an in-depth understanding of the same, how about getting started with it now?

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