Did you know that HR software could be the edge your business needs to get ahead of its competitors?
Whether it’s automation, smoother payroll management, enhanced employee experiences, or simply improved recruitment, HR software is a vital business tool.
Unfortunately, there is some confusion as to what HR software does. So, let’s take a closer look at what HR software is all about, beginning with:
The term HR software is an umbrella term that refers to the myriad of applications that allow HR professionals to manage all data and processes related to an organisation’s employees.
There are different types of HR software available, with different variants fulfilling other functions within the organisation.
The actual value of HR software comes from its ability to automate and simplify complicated business processes. At the same time, it also allows the HR department to enhance its service range.
All of this allows HR professionals to take on more value-added roles. And as the war for top talent heats up, these tools will prove invaluable for businesses to remain competitive.
Now with all of that in mind, let’s look at the different types of HR software available to users on the market.
Human Capital Management refers to enhancing and optimising a company’s employees.
From HR, payroll, leave, claims, compensation to upskilling, leadership training, providing employees with professional development improves motivation and enhances performance and improves retention rates.
Hence, Human Capital Management (HCM) or Human Resource Management (HRM) software has become so popular in recent years. Employers can chart out an employee’s professional development and provide appropriate training programs to improve their skills.
But that’s not all HCM software can do – far from it.
With HCM software, employee onboarding and performance management can also significantly improve. All of these improve the overall employee experience and increase operational efficiency.
Human Resource Information Systems or HRIS similar to a whole umbrella of HR suite such as HCM which are used interchangeably. These work similarly to HCM software however being named differently, their uses are vastly similar to help support HR practitioner with an automate HR software. A different HR software that works similarly across the board.
With a HRIS system also known as a HR software system, HR professionals previously had to contend with repetitive filing and paperwork; with a HR software, paper filings are known to be the past.
Instead, employee information is now input into a centralised database to be filed and stored automatically. It can be easily accessed or referred to by HR professionals with just a click.
As an added plus, HRI-style software often supports employee self-service portals – which allows employees to submit claims or perform administrative functions without submitting a request to the HR department.
All of this minimises errors and eliminates the risk of misplaced prerequisite forms or paperwork.
Within an entire HR suite, there are HR software modules that allow HR professionals and managers to customize the capability of their systems. While some systems feature a one-size-fits-all configuration, a module-based system provides HR professionals with greater flexibility.
For example, a recruitment module also known as Applicant Tracking System. It provides the tools to manage and acquire recruits. Meanwhile, other specialized systems include data analytics, performance management, and learning and development.
As organisations regularly receive hundreds or even thousands of applications daily, it can be tough to thoroughly analyse every candidate’s submission.
And because of this, the quality of said organisation’s hires may fall as a consequence.
Fortunately, with an Applicant Tracking System or ATS, this will soon become a thing of the past. ATSs allow HR professionals to automatically sort, analyse, and file candidate applications with no errors – thus making it possible for the hiring manager to make the best possible decisions.
Apart from Application Tracking System, there are various modules that are relevant to HR practitioners. However, we will touch on the hot module which ease most HR works.
Payroll management. An important HR processes. Besides keeping employees happy, ensuring that staff are paid on time is the responsibility of every employer.
Unfortunately, payroll management can be pretty messy for those unprepared for its intricacies. Employee payroll requires collaboration between the HR department and finance, from taxation to staff overtime.
And worse still, payroll errors can lead to some complications besides unhappy staff members.
But thanks to payroll management software, all of these can be entirely automated. In fact, the majority of systems available are compliant with local tax requirements – ensuring that both employer and employees are compliant with the law.
All of this allows HR professionals to pivot and adjust their functions to support a variety of organizational processes.
Besides ad-hoc software modules, current generation HR software also supports customers looking to utilize either on-premise or cloud-based solutions.
Both systems have their advantages and disadvantages, so let’s take a look at how an on-premise system differs from a cloud-based one.
An on-premise system is just that — HR software installed and based on the company’s premises. The main advantage of such a system is that it is more secure than a cloud-based system.
This is because on-premise software can use the company’s existing intranet and does not require employees to log in via a VPN or the internet. All of which significantly reduce the risk of a cyberattack.
However, on-premises systems require an in-house team to provide regular maintenance and support. Additionally, these systems use up valuable office space as a dedicated room/area will need to be prepared for the required infrastructure.
On the other hand, cloud-based systems are fully online and require significantly less setup than their on-premise counterparts.
A cloud-based system is hosted on a remote server, and it does not require any additional infrastructure investment. Because files are stored in the cloud, organizations do not worry about data loss.
And as an added plus, a cloud-based system allows HR professionals to access valuable company information remotely. Thus, eliminating any issues or concerns related to business continuity.
But, as these systems are 100% online, they can be susceptible to cyber-attacks and require significantly more maintenance than an on-premise system.
This is why HR professionals, business owners, and managers alike will need to analyze the needs of their businesses to assess what type of HR software works well for them.
Despite having different HR software and naming convetion. Regardless of their choice, HR software is a solid investment for any large or small business.
Firstly, HR software allows for a more considerable degree of automation and frees up HR professionals from non-value-added tasks such as filing and data entry. By doing so, HR professionals can then be better utilized for other functions.
With HR software, businesses can refine their recruitment practices for better hires. This is done by integrating AI into the assessment process, speeding up analysis, reducing errors, and improving the candidate experience.
As for talent management, HCM software allows managerial staff to plan and manage their staff’s professional development. These include identifying areas for improvement and planning courses to enable employees to upskill themselves.
As can be seen, with different HR software, companies are able to customize and elevate the power of powerful HR modules to facilitate their day to day work.
Thanks to the advent of AI technology and advanced data processing software, we can expect HR software to become increasingly sophisticated.
And because of this, the role played by HR professionals is set to evolve even more.
Rather than functioning as administrators, HR experts will soon have to incorporate new skill sets to remain relevant. This includes advanced skills such as data analytics, continuous improvement, and even IT expertise.
HR software is an integral part of any smooth operation, and the benefits of investing in it cannot be understated. For more information on top-quality HR software and technology solutions, check out our website.