1. HR Software

Best HR Software

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Important Things to Know Before Choosing an HR Software Company

Human resources (HR) software aids businesses in streamlining both traditional and emerging HR tasks. Most modern HR software is cloud-based, scaleable, and offers a wide variety of features. Pricing depends on which features you want and the size of your workforce. For many businesses choosing an HR software, all the options can seem daunting. Here we’ll break it down for you.

History and overview

Human resources software has undergone enormous innovations in the last decade and will continue to evolve with new technology. When HR software first emerged, each provider tended to specialize in niche tasks. As the industry grew, customers increasingly wanted an HR software platform that would do it all. Now the majority of HR solutions offer full-service packages, with multiple services bundled for one price.

With the quick development of the industry, many terms emerged for this kind of all-in-one HR software. Its most popular titles are Human Resource Information System (HRIS), Human Capital Management (HRM), Human Resource Management System (HRMS), or Workforce Management Software (WFM).

Though some companies make distinctions about what each name means, there isn’t much consensus among the definitions. Other industry experts have said that the acronyms are obsolete and can be used interchangeably. No matter which acronym you use, you’re essentially describing the same thing: a cloud-based software that addresses workforce management needs.

Instead of focusing on a certain kind of HR software, you’ll need to decide which services your business needs and find a bundle that addresses your workforce management needs.


When an HR software solution offers a list of features, what do those mean? Here are some definitions of features you’ll likely come across:

  • Applicant Tracking Software (ATS) — saves your company time and money while recruiting, keeps track of resumes, and helps you streamline the hiring process and select the best candidate.
  • Benefits Administration — helps HR leaders manage all employee benefits on one integrated platform. This includes data and analytics tools that help HR make well-informed, strategic decisions.
  • Talent Management — helps your company acquire new employees (recruiting and employee onboarding), helps those employees grow and progress while at your company, and assists with successful offboarding as well.
  • Employee Engagement — offers surveys (often customizable) for management to send to employees. With the feedback, the HR department can improve the employee’s engagement in their jobs and identify areas for improvement.
  • Human Resources Business Process Outsourcing (HR BPO) — Business process outsourcing is when you contract a third-party service provider to complete a specific task for business.
  • Learning Management Software (LMS) — hosts e-learning content, modules, or lessons, often for onboarding new employees, professional development, or retraining your workforce.
  • Payroll — automates the process of calculating paychecks. This software will calculate taxes and other deductions. Payroll software often comes with some sort of time clock software to keep track of which hours employees worked.
  • Performance Management — helps leadership understand and track employees’ productivity and performance. This then helps inform other aspects of Human Capital Management (HCM).
  • Self-Service Portal — a place where employees can log in and see or adjust their personal information in relation to the company. They can clock in, request time off, see information about their paycheck, view their benefits, and view trainings and other information about the company. This gives employees help with and access to many of their HR questions and frees up time for the HR staff.
  • Time Clock/Time Tracking Software — saves time for your bookkeeper and dramatically reduces the likelihood of clerical errors. This kind of time and attendance software often includes features like allowing employees to clock in on an app from their phones, restricting clock-ins to certain geographic areas (ex: only clock in while at the office, or at the job site), or requesting time off.


HR software is a helpful addition to nearly any business. Different bundles of features run at different prices. The price depends on your size of business and which features you want. Very few HR software companies list prices on their websites. Instead, you’ll need to enter information about your business or call the company in order to get a quote. On the low end, expect around $10 per employee per month.

What is HR software?

HR software is a type of online (or cloud) based program that helps businesses recruit, keep track of, pay, and train employees (also referred to as human capital). Historically, businesses would buy a different software for each aspect of HR, but now more HR solutions are comprehensive, meaning they attempt to address any HR needs a business would have.

What is cloud-based software?

Modern HR solutions are cloud-based. This means that they are hosted online, so they don’t take up room on your computer and can be accessed from anywhere. Employees can log into their self-service portal and see a limited version of the software. This cloud-based solution allows for a centralized database where all employee data is kept. It is secure, automated, and easy to use.

What’s new in HR software?

HR software has seen dramatic changes in the last decade and is continuing to evolve. With online job applications becoming the norm, applicant tracking systems (that track applicants, resumes, and interviews) are more popular. Experts predict that HR software will increasingly incorporate AI and machine learning so the software can adapt to each business. Workplaces are focusing on efficiency, but also employee satisfaction.

Why should you use HR Software?

When a business uses an HR software solution, it saves time for small business owners or the HR team. The software automates tedious core HR tasks like payroll, benefits management, time off requests, and employee records. Many HR software options include a self-service portal in which employees can help with these tasks themselves. This automation of HR processes allows managers to focus attention on talent acquisition, employee satisfaction, company culture, and other high aspects of human capital management.

What should small businesses look for in HR software?

A small business will have less extensive employee needs and should look for a simple and inexpensive HR software that focuses on basic HR systems like payroll, recruiting, and benefits.

What should mid-sized businesses and large companies look for in HR software?

Large companies should look for a comprehensive management software with advanced tools that allow them to keep track of their employee data and optimize their large workforce.

What’s the best HR software for my business?

Check out the top ranked HR software companies here. Read HR software reviews and information about each company.

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