Human Resource Management Software explained
Human resources management software assists with managing people, information and processes.
Used by businesses of all sizes, HR software is designed to help both managers and employees work more efficiently while reducing errors, ensuring compliance and increasing productivity.
Almost every business uses some type of HR management software, whether it’s a simple payroll application or a more sophisticated suite of technologies that integrates the entire employee experience, from onboarding to benefits administration to employee document management
Why Companies Need It
As the way we work evolves, so must the way companies manage their workforces. To meet the needs of a modern workplace and to attract the highest caliber talent, companies must invest in new technology to both improve the employee experience and increase the bottom line.
By automating tasks and managing data, human resources software saves valuable time and reduces cumbersome paperwork. When an HR team has all the information they need at the click of a button, errors are reduced, compliance risks go down and policies are more consistently enforced.
By reducing paperwork and streamlining processes, organizations can transform the role of both managers and employees to be more strategic and engaging. HR software allows employees to focus on more high-level tasks, resulting in better planning, more strategic decision making and greater job satisfaction.
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. In the early stages of HR software, HRMS was used for systems that offered more data analytics and forecasting options than a standard HRIS. Today, however, the terms are generally synonymous.
Human Capital Management (HCM)
Whereas HRIS and HRMS software tends 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 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. As telecommuting becomes more popular, and employers must maintain compliance across multiple states or countries, an employee document management system is critical to 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
Conclusion
As the world and workplace changes, HR departments must also adapt the latest technologies to serve the needs of employees and organizations. By selecting the right HR software solutions, companies can help ensure that they remain nimble and profitable in a competitive, evolving market.
Memorysoft is a type of Human Resources Information Systems (HRIS). It incorporates all common HR features needed in a Human resources software to assists with managing people, information and processes