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HR Software can be more beneficial to your organization than you can ever imagine. Whether you are looking for Benefits administration and personnel tracking or time and attendance, you can find all these HR functionalities here. Compare different HR services companies, explore our in-depth reviews & informative articles, and choose the best solution for you.

Last updated: June 2024

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Choosing the Best HRIS Software For Your Business Needs

One of the most important aspects of a business is making sure that your HR processes are in proper order. Your employees and contractors are a highly important part of your business. If you do not make sure that they are key happy, you can run into all sorts of issues. There is also a lot of time and effort that has to go into manually managing HR systems.


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This time can usually be better focused on other aspects of the business. Therefore, utilizing HR software as part of your business needs and employee engagement is a no-brainer. These offerings can help you in a myriad of ways, including logging employee data, time tracking, making sure that employees are paid on time, ensuring that you are fully compliant with the relevant rules and regulations, as well as allowing employees to quickly access key documents and to submit requests for time off.

There are a lot of different companies offering HR management software today. While it is great to have a wide selection of choices, this can often be overwhelming for the business owner. This guide will take you through some of the key steps involved with finding the best HR software for the specific needs of your business.

What is Human Resources Software?

HR software simplifies a lot of the key processes in a business. This human resources information system includes making sure that your payroll system is automated, accurate, and speedy. You also want your employees to access key documents as they want and submit requests for time off and sick leave as needed. By having all of this in one place, you are able to achieve a lot of important goals and improve workflow.

First and foremost, you are making sure that all of your data is in one place, making it much easier for your HR team to do their work. Having all of your employee information in one space is also an easy way to improve the overall employee experience. Further, it eliminates the chance that effort involved with using different types of platforms for your HR needs.

Many popular HR platforms (e.g. Zenefits, ADP, Paycor)  go beyond payroll processing and employee onboarding by allowing you to stay up to date with the latest compliance requirements, meaning that you can rest easy knowing that you have not missed some recent changes or that you aren’t fully compliant.

What Is HRIS?

An HRIS software maintains, manages, and processes employee information and policies and procedures pertaining to human resources. HR Information Systems (HRIS) standardize HR tasks and processes, making it easy to keep accurate records.

The HRIS acts as a two-way channel for sending employee information into the organization and receiving it from the employees. The use of an HR information system will free up HR professionals to perform more strategic and high-value tasks.

What’s the difference between a HRIS, HRMS, and HCM?

A human resources information system (HRIS), a human resource management system (HRMS), and a human capital management system (HCM) are often confused terms. However, depending on which features companies choose to enable, there might be subtle differences between the three.


It refers to the basic system of keeping employee records. Today’s HR functions include talent acquisition, recruitment, and employee data management.


Developed as organizations began using sophisticated software and automated tasks to manage their HR operations-even though it is still used interchangeably with HRIS. HRIS today may include payroll management as well as time and labor management.


This refers to a solution that combines all aspects of workforce management and HR functions. In addition, HR planning features such as performance management, succession planning, compensation planning, and strategic workforce planning are included. HCM includes all HR functions, whether transactional, analytical, or strategic.

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Types of HR Software

There are a few different types of HR software solutions that you will come across. Most businesses will use some type of human resource management system. However, there are a few different types of HR departments that can be suitable for a multitude of situations. These HR tools can help streamline the operations of your business, automate tasks, increase productivity, and keep your workers happy. Here are a few of the common types of HR software you will come across:

Personnel Tracking

If you are looking for a way to track all of your employees’ information properly, then this type of software is for you. This allows you to create a database for your employees. In addition to overseeing and tracking workforce management, you have data on employee records, employee performance, availability, anniversaries, salary data, workday tasks and hours, and more all in one user-friendly location.

Time and Attendance

This is an option used if you are looking to get some help with your workforce scheduling. You can keep track of times, sick times, time clocks, and manage absences all in real time.


One of the more popular types of HR software is that which looks after your payroll needs. This means that you can keep a track of salaries, bonuses, and have paychecks calculated automatically. Payroll solution software also lets you look after tax withholdings, garnishments, as well as the filing and reporting of taxes. Finally, you can directly deposit the wages into your worker’s accounts and get access to a variety of reporting tools.

Employee Self-Service

Employees like to have the ability to access certain types of information and update any out-of-date info, which is where self-service portals come in handy. They can enroll themselves into benefits programs, submit time-off requests and get access to company announcements. As an added bonus, most software offers a mobile app, making HR tasks easy for employees to take care of.

Benefits Administration

If you are looking for a variety of benefits for your workers, then this type of software will come in handy. It allows your employees to have access to all relevant benefits information such as healthcare enrollment, PTO, as well as wellness programs, and retirement planning.

Performance Review

Some types of HR software are dedicated to completing performance reviews. This means looking at the employee performance of a given worker over a certain period of time. You are able to engage in all forms of talent management such as giving them feedback, setting goals, assessing competencies, and annual reviews.

Applicant Tracking System

You can also search for new employees, screen them, interview them, and hire them through specialized HR software. The software can provide you with access to a database of candidates & new-hires, interview management, and onboarding. All aspects of the hiring process can be completely streamlined.

Learning Management

If you are looking to upskill your worker, then having some sort of in-house learning management system in place is a must this allows you to manage certifications, e-learning modules , assessment tools, and gamification of training. This all leads to a more well-rounded worker.

Benefits of Using HR Software

The benefits of using HR software are obvious. You can make sure that an integral part of your business is made as streamlined and efficient as possible. You won’t have to worry as much about the likes of compliance as you will be able to stay on top of the latest developments in the regulatory space. Employees can have access to key information and log their times and days off as needed.

Payroll can become headache-free when you are no longer relying on outdated systems. Workers can be constantly upskilled, while you are able to take a lot of the annoying aspects of hiring new workers off your shoulders. With so many different types of HR software packages out there, business owners are spoilt for choice. Some systems even look after each of these needs in the same package.


HR software has only gotten better year after year as technology has improved. It’s not just large businesses that use the technology now, but small businesses and medium-sized businesses also use Human Resources Management Systems (HRMS).  You have the ability to tailor the software you use to your specific needs. Therefore, you don’t have to pay for every single feature, you can normally chop and choose the plans that are most relevant to your needs. This ultimately can be the most time and cost-efficient way to conduct the HR aspects of your business

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