8 Best HR Management Software for Startups and Enterprises [2023]

An HR Management Software is not limited to the recruitment, onboarding and payroll process. With all the n number of task that HRs have to juggle, HR Management Software is a solution that ensures better efficiency and overall productivity.

HR is a people’s profession. It is people, better to say, employees who drive businesses.Hence, keeping them motivated and managing them wisely is crucial. Thanks to technological breakthroughs such as HRMS (Human Resources Management System) software involving artificial intelligence and automation, HR processes have become less challenging.

As your business grows, various issues start surfacing that include scaling, managing processes and data, workforce optimization, and more. With the increasing number of employees, managing human resources also becomes complicated, from screening, hiring, training, and payroll management, to regulatory compliance. Besides, your sensitive information remains scattered in many locations and folders.

While we focus on the best HR Mangement Software in this article, here’s a table that offers you a sneak peek!

It is actually the vast amount of data and resource management that causes HR burnout while dropping the overall efficiency.

But with neck-to-neck competition around, where time is money, you cannot afford inefficiencies, especially during the growth stage.

So, if your HR process still maneuvers spreadsheets and paperwork stashing in your filing cabinet, you are missing something!

What’s the solution?

HR Management Software or HRMS! Now enough ado, let us have a detailed take on each of the best HR management software!

What is HR Management Software?

Simply put, HRMS is software that leverages the power of technology to administer HR processes. It aims to enhance the efficiency and productivity of your business by automating manual and recurring tasks.

The software covers different aspects of human resource management, including:

• Manpower planning
• Recruitment
• On-boarding
• Job confirmation process after the probation period
• Employee information management
• Transaction and leave policy management
• Tracking attendance and time
• Payroll processing
• Salary change calculations
• Resignation process
• Communication and Managing rules and regulations
• Employee engagement
• Statutory compliance
• MIS reports
• Training and development
• Performance appraisal
• Succession planning

As a result, your HR team can manage the processes well and find more time to utilize in other important activities for business growth.

Types of HR Software

In the world of human resources, where people are at the heart of every organization, the role of HR software cannot be understated. These technological marvels serve as caring companions for HR professionals, streamlining their processes and enhancing employee experiences. Let’s explore some of these remarkable HR software types that have revolutionized the workplace.

#1. HRIS (Human Resources Information System)

Think of HRIS as the heart of HR software. It’s like a nurturing guardian, collecting and storing essential employee data, from personal information to work history. With HRIS, HR professionals can effortlessly track and manage employee records. 

#2. Payroll Software

Ensuring that employees are compensated fairly, and accurately is a testament to an organization’s commitment to its workforce. Payroll software is the empathetic financial caretaker, automating payroll calculations, tax deductions, and even direct deposits.

#3. Recruitment and Applicant Tracking Systems (ATS)

The journey of welcoming new talent into the fold begins with recruitment. ATS software is like a trusted matchmaker, helping HR teams source, screen, and select the best candidates.

#4. Performance Management Software

Nurturing employee growth and development is at the core of any organization’s success. Performance management software acts as the encouraging mentor, facilitating regular feedback, goal setting, and performance evaluations. 

#5. Learning Management Systems

In today’s knowledge-driven world, continuous learning is vital. LMS software is the dedicated teacher, delivering training programs, tracking progress, and helping employees acquire new skills. 

#6. Benefits Administration Software

Employee well-being extends beyond the workplace. Benefits administration software serves as the caring custodian, managing employee benefits such as healthcare, retirement plans, and more. 

#7. Onboarding Software

The first days at a new job can be daunting, but onboarding software acts as a welcoming friend. It guides new hires through the orientation process, providing them with the information and resources they need to feel comfortable and confident in their new roles.

In this technology-driven era, HR software types are like the caring support system for HR professionals and employees alike. They bring efficiency, transparency, and a human touch to the workplace, ensuring that everyone feels valued, supported, and empowered.

Why do Businesses Need HR Software?

The pen-and-paper mode might help during the initial phases but is not healthy for your business while growing. For SMBs, using a decent HRMS is important as it can accelerate the growth process by automating complicated tasks while eliminating possible errors because even minor errors can be fatal to your productivity.

HRMS, laced with emerging technologies like data analytics and automation, benefits not only employers but also employees and customers as the right information can reach the right place and at the right time.

A report says that the global market for HR software is projected to be a whopping $30 billion by 2030. It also forecasts 9.4% in its growth from 2017-to 2025.

Let’s check out some of its benefits to modern businesses.

Efficient employee management

Your HR team can monitor the attendance and work hours of employees to ensure maximum productivity and compensation for overtime. You can also manage training, payroll, performance, and better engagement of employees so they can feel attached to your organization.

KPI monitoring

HRMS can precisely automate the overall process of monitoring the Key Performance Indicator (KPI) to show the efficiency of employees in achieving their set objectives. For this, it can monitor the duration an employee stays in a role, absenteeism, time taken to reach the goals, etc.

Promotes employee self-service

One of the finest features of HRMS is its employee self-service, where they can access their profiles and portal. It incorporates detailed information about the company terms and conditions, leaves policy, payroll, resignation process, etc. so they do not have to ask all the questions to the HR department. Thus, it saves time for both parties.

For seeking leaves, employees no longer need to write an application. They can apply it through the system itself and also check their remaining leave balance, holiday list, upcoming events, and more features.

Eliminates human errors

Automation eliminates human errors that might cost businesses in terms of regulatory compliance, cost, and time. It reduces the possibility of mistakes and duplicate entries to ensure faultless task execution.

Data security and privacy

Ensures compliance

Compliance with federal and state laws is crucial for the well-being of your company. If not handled well, it can pose serious threats to your business in terms of reputation and penalties. HRMS updates all statutory changes regularly to ensure compliance.

Why Cloud-based or SaaS HRMS Software?

Instead of using traditional on-premises software where you have to purchase all of it, you can go for Software-as-a-service (SaaS) software hosted on the cloud. It is subscription-based, meaning you do not need to pay for the entire software. The service provider gives you the authority to use it for a while, depending on the plan.

Ring a bell?

Yeah, like Netflix!

Unlike on-premises software, the SaaS model requires no installation, and no configuration. Everything is ready beforehand, and you can start using it in an hour or two. Hence, you can save costs and time along with no worries about maintenance.

Residing in a cloud environment, SaaS software gives you better scalability as you can choose the software based on your organizational capacity.

So, if you want to incorporate an HRMS in your organization, consider adopting SaaS software. And to help you with it, here are some of the best software available for you to explore.

BambooHR

Your employees are the assets of your company and matter the most. Manage them with care using BambooHR, which is all-in-one software to collect, organize, and analyze employee data. Enhance the overall process of recruitment and onboarding, manage compensation smartly, and develop a sustainable company culture.

BambooHR lets you store all the information in a single, secure database powered by dynamic editing and reporting tools for faster workflows. Controls it using a website or mobile app that you can access anytime, anywhere.

Personalize your formalities and paperwork to ease the onboarding process for a less stressful first day. It features e-signatures so you can manage records digitally and prevent paper from piling up on your desk. Tracking time, PTO, benefits, running payroll, etc. are delightful with BambooHR.

It lets you gain deeper insights into performance management, employee satisfaction, and other important statistics to shape your next plan of action. At present, it has over 1.56 million active users worldwide and also offers seven days of free trial to get hands-on experience on the software.

Bizneo HR

To automate and optimize the Human Resources department and reach another level in the management of personnel and talent, one of the best solutions is Bizneo HR Human Resources Software. A suite formed by more than 10 technological tools that cover and provide solutions to improve all the stages that a worker goes through in a company.

First, its most powerful tools. They start by innovating and perfecting the recruitment and selection of candidates, the evaluation and training of workers to measure their skills and develop their performance in order to reach their maximum potential.

Then there are several functionalities that make day-to-day business easier:

• Time management and holidays and shift management.
• Onboarding and offboarding processes to assist the integration of new employees
• Surveys to measure satisfaction, commitment, work climate, etc.
• Workflows that automate routine tasks, notifications, and communications (end of the contract, meeting date for a salary review, notices that the employee has not come to work…).

Not to mention its ability to integrate with other tools (integration with payroll, access control, presence, ERPs). In short, the best technology to give a plus to your Human Resources Management and take maximum care of the greatest value of a company: the workers. 

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Deel

Deel is an HRMS solution that lets you effortlessly manage your workforce, including international workers. This all-in-one platform can be used for contractors, immigration. Global payrolls, EOR, and many more, Thus, it eliminates any need for performing duplicate or repetitive tasks on different HR solutions.

Its unparallel global coverage helps you stay compliant while managing workers coming from different countries. This self-service platform offers customization for each contract type, so you can onboard the new joiners in a few minutes. It also saves you valuable time by letting you manage time offs, accesses, documents, expenses, and compensations from one place.

Using the live reporting analytics tool of Deel, companies can understand global costs, track changes, and know what to anticipate in the future. It also supports 20+ integrations to automate mundane tasks and allow you to grow efficiently.

HR teams can use this solution to keep all the team details and documents in one place. Its customizable approval and permission settings make sure your sensitive data does not fall into the wrong hands. Deel also follows the highest standards for data protection and security for compliance and infrastructure security.

Sage HRMS

Conquer all your HR challenges and make smart decisions with Sage HRMS to enhance the effectiveness of your organization. It provides a dynamic solution to manage the complete life-cycle of your employees from hire to retire. The software is scalable to keep supporting you with your growing needs.

Hire talented people, retain the best ones, and identify internal employees easily for leadership positions. It also helps you minimize employee turnover by increasing engagement. Enhance time management for every employee and cover leaves and attendance apart from managing payroll, performance reviews, benefits, self-service, and so on.

Eliminate costly errors in enrollments and data entry while avoiding painful paperwork associated with benefits. Its risk analytics lets you gauge employees based on their information, statistics, skills, performance, insurance, demographics, and more.

It provides comprehensive classes by instructors and on-demand learning to use the software in the best possible way through Sage University. The Sage Knowledgebase, Sage City, and Sage Resources are there to extend their support 24/7 and help you resolve your queries, and offer the latest updates in the software as soon as it releases.

Gusto

Return the favor to your hard-working team by supporting them with a comprehensive HRMS, Gusto. All the processes from hiring, onboarding, and payment, to performance and promotion; everything is flawless using the software.

Create professional offer letters, onboard new joiners avoiding paperwork, and let them fill their profile. You can store all the documents digitally on the software to remain organized. The days of painful and risky payroll processes are over; use the simplified payroll of the software and file taxes easily.

It automatically syncs all the data associated with time tracking, benefit plans, new hires, and more. Keep your employees happy, healthy, and insured using the same software which can feed your plans in the payroll. Give your team resources and tools with Gusto to secure their financial future through Gusto Cashout, commuter benefits, workers’ compensation, and 401(k) retirement and 529 college savings.

In addition, it offers other tools like Small Business Financial Relief, Burn rate calculator, Employer tax calculator, salary comparison tool, and new hire checklist. The software is compliant with HIPAA, ACA, and ERISA. It can manage COBRA requirements and email employees to complete the paperwork after leaving your organization.

Cezanne HR

It does not matter if your organization is small scale, medium, or large, Cezanne HR has got your back to streamline every aspect of your HR efforts. This cloud-based modern HR suite lets you manage and support your workforce efficiently by leveraging high-end technologies, automation tools, and impressive features.

Helping businesses in 100+ countries, Cezanne HR offers translation in 10 different languages with no extra fees. It also supports recording financial data in your local currency and facilitates multiple offices worldwide with your own approval flows, cost centers, HR portals, and admin permissions. The system offers optimum flexibility to execute different tasks, from adding employees to removal, and everything in between.

It offers a 24/7 online portal packed with expert articles, how-to guides, set-up advice, training, consulting, smart notifications, in-built reporting, configurable forms, efficient workflow management, and implementation services.  Engage with your workforce well using its mobile app along with online tools to boost collaboration and effective communication.

Waste no time on maintenance because Cezanne takes care of it apart from periodic updates. All your data is safe with its advanced security and data protection through encryption, passwords, and GDPR compliance.  Besides, its open architecture helps you improve your productivity and enables third-party app connectivity with ease.

People HR

Are you tired of wasting time on monotonous tasks?

Use People HR to automate these processes and focus on areas demanding more attention. Now forget tracking sickness, updating employee data, approving holiday leaves, compiling turnover insights, and so on. Using its applicant tracking system, you can hire and retain talents fitting your organization culture. Share job vacancies across different job portals as well as identify and connect with people who can help grow your business.

Present HR information with comprehensive graphical reports to business leaders and seek recommendations and action plans. Learn from other HR professionals through the HRMS and enhance your decision making. You can also compare your HR insights against other companies within your industry to determine the areas that need improvements.

Connect with your employees better and help them optimize their potential with its dynamic Performance Management System. Find your top performers, and those who need some help improve their performance. People HR lets you smoothly migrate your data into the new system and provide expert training to utilize the software to its fullest.

Even without good technical knowledge, you can use this software due to its simplicity and user-friendliness.

Zenefits

Managing HR processes is not a headache anymore if you have Zenefits that benefit your business in a plethora of ways. With a mere click, you can send offer letters with all the essential details along with a link for online offer acceptance. For this, it provides exquisite templates for offer letters or an option to upload a separate one.

Its partner Checkr carries out comprehensive and fast background checks from the software. It allows new joiners to self-onboard themselves using Zenefits mobile app or website and save hassles on the first day. The software digitally creates tax documents for joiners based on the available information.

It encourages you to go paperless by offering the digital signature feature. Through smooth integration with Slack, Salesforce, Google Workspace, etc., new employees can log in to their accounts automatically. It offers dynamic organization charts and an employee directory with necessary details to improve cross-functional communication.

Automate employee events such as promotions, team/department transfers, terminations, resignation, and more. The software proactively syncs data and any changes performed in real-time so it can reflect everywhere. It not only supports your employees but also another workforce, including freelancers, independent contractors, and consultants. Stay compliant with government regulations by automating tasks.

Create and administer your PTO policy, leave requests, set blackout dates, and use its automatic PTO Balance Calculator to save time. It supports business intelligence by reporting compensation summaries, headcount activities, statistics for equal opportunities, turnover rates, and granted stock options.

How to Choose the Right HR Software for Your Team

Finding the perfect HR software for your organization can be a game-changer where efficiency and productivity are paramount. The goal is to create a workplace where employees thrive, and HR professionals can truly make a difference. So, what do you need to choose the right HR software for your workforce? Here they are.

#1. Identify Your Needs

Involve your HR team, managers, and even employees in the discussion pertaining to requirements. What challenges do you face? Is it recruitment, onboarding, performance management, or all of the above? Understanding your needs is the first step in finding a solution that will truly resonate with your organization.

#2. User-Friendly Interface

An HR software that makes people’s lives easier should be intuitive and user-friendly. After all, your HR team and employees will be using it daily. Look for software that offers a smooth and visually pleasing experience. 

#3. Scalability

The HR system application should seamlessly adapt to your changing requirements without causing disruption. Scalability ensures that your HR processes remain efficient and effective, no matter how much you expand.

#4. Data Security and Compliance

Your chosen software must adhere to stringent data security standards and compliance regulations. It should also offer robust access controls to safeguard your data, ensuring access to only authorized personnel.

#5. Customization

Your organization is unique, and so should your HR software. Seek a solution that allows for customization to reflect your specific processes and policies. Tailoring the software to your organization’s culture creates a sense of ownership and engagement among your team.

#6. Reporting and Analytics

Make data-driven decisions with ease by choosing software that offers robust reporting and analytics tools. Understand workforce trends, track performance, and identify areas for improvement. 

#7. Support and Training

Behind every successful HR software implementation is exceptional support and training. Ensure that the software provider offers comprehensive resources to help your team master the system. This support instills confidence and ensures a smooth transition.

Selecting the right HR software is not just about streamlining processes; it’s about enhancing the overall employee experience and empowering HR professionals to focus on what truly matters – people.

FAQs

Conclusion

HR processes are one of the most critical aspects of modern businesses, be it recruitment, payroll, performance, or promotion. It requires a great level of accuracy, and even a slight mistake can prove expensive. But worry no more; incorporate a cloud-based HRMS Saas software in your organization to automate all the tasks with zero error.