Human Resources (HR) software is a digital solution that combines a number of systems and processes to ensure the easy management of human resources, business processes, and data. HR software is used by businesses to automate and combine a number of HR functions, such as storing employee data, managing payroll, recruitment, employee performance management, time and attendance tracking, and tracking competency and training records.
HR Software development began during the 1970s with just a narrow scope that typically focused on a single task, such as automating the payroll process or tracking of employees’ work hours. Due to advancements in technology, today’s HR systems cover the full spectrum of tasks associated with human resources departments, including tracking and improving process efficiency, managing organizational hierarchy, tracking absence and annual leave, simplifying financial transactions, and providing reports on people data.
Benefits of HR software
The major benefit of using HR software is that the time spent on repetitive, low-impact administrative tasks is reduced and this allows HR professionals to focus on more productive responsibilities and longer-term strategic outcomes. Other benefits include;
- Reduced errors
Not only is manual data entry time-consuming, but it’s also error-prone. Investing in robust HR technology can help make your HR processes more efficient and accurate by automating redundant tasks and integrating information system-wide. For instance, if an employee signs up for leave, that input is reflected as a deduction on his/her annual leave days without the need for manual updates.
- Improved organization of documents and employee data
When you have all of your employees’ data securely stored on an integrated, cloud-based platform, it facilitates the process of retaining their documents properly as required by law. If you terminate or make someone inactive, you can archive their record but still have access to their information if you need it later.
- Streamlined processes
By streamlining HR processes through automation and process improvement, you can save your organization time and money. For example, errors in payroll can be reduced and you can manage your workforce more effectively.
- More efficient and focused recruiting efforts
If your company adds personality or skills assessments, the system can track the results. These types of tools can help your company sharpen its hiring process and make sure you’re hiring the right people for the right positions.
- Accurate and actionable workforce analytics
By keeping your HR information in an integrated database, you’ll be able to track not just costs, but also characteristics of successful, long-term employees. Having workforce analytics readily available when you need them will also make planning easier.
Types of HR software
There are a variety of applications to meet the many workforce management needs of modern companies. The following are some of the most common types of HR software:
Human Resources Information Systems (HRIS)
A Human Resources Information System (HRIS) is a software application for the data entry, data tracking and data management needs of an HR department. Common features of HRIS software include:
- An employee profile database where managers can easily access contact, salary and performance information
- An employee self-service portal where employees can manage their own information, view payroll documents and request time off
- Benefits portals where employees can enroll in and manage their healthcare benefits
- Recruiting management tools
- Time and attendance tracking
- Payroll functionality
- Learning and Development
Human Resources Management Systems (HRMS)
The term Human Resources Management System (HRMS) is often used interchangeably with HRIS. Technically speaking, an HRIS is a type of HRMS. HRMS systems offer more data analytics and forecasting options than a standard HRIS.
Human Capital Management (HCM)
Whereas HRIS and HRMS software tend to focus on the day-to-day management of employees, Human Capital Management (HCM) software typically includes more specialized tools for workforce planning and analysis. In addition to HRIS/HRMS software features, an HCM system will offer functions such as reporting and data visualization features, as well as predictive HR analytics to assist in planning for future challenges.
Employee Document Management Software
An employee document management system seamlessly manages all aspects of employee files and adds critical security and compliance functionality that is missing in most HRISs or HCMs. This software automates time-consuming paper processes, allowing HR managers to classify, file, and route documents with just the touch of a button.
Systems integrate with a company’s HRIS or HCM and store all documents in the cloud, making it easy to access files anytime, anywhere, hence maintaining centralized, audit-ready files.
Applicant Tracking Systems (ATS)
An applicant tracking system (ATS) is a type of specialized software that assists HR managers in recruiting and hiring. Large companies typically use an ATS to assist in collecting and sorting large volumes of resumes. Instead of reviewing each resume, recruiters and hiring managers can search submissions using keywords, as well as automatically filter and rank resumes using certain criteria. Additionally, an ATS can assist with job postings and track candidates throughout the hiring process.
HR Payroll Software
Payroll software automates the compensation process. These applications generate employee checks, initiate direct deposits, calculate taxes, make deductions and maintain payment records. Most programs also incorporate functions that allow management to monitor attendance, time, and pay structure.
If you are looking for an HR software solution that will help your business stay profitable in a competitive and evolving market, then Partner with us at Infinity Computers and Communications Company (I3C). We use the latest technologies to develop HR solutions that serve the needs of employees and organizations.