HR Software: What It Is and How to Choose the Best Solution

What Is Human Resources Software?

HR software refers to a digital solution for managing and optimizing the daily human resources tasks and overall HR goals of an organization. Thanks to HR software, HR staff and managers can reallocate time spent on tedious administrative tasks to more productive, profitable efforts.

HR software technology has come a long way since the first time computers were employed to manage human capital data in the 1970s. HR systems became more widely available to enterprise clients in the 1980s, and the arrival of web-based software in the 1990s made HR software even more common.

These days, most new systems are cloud-based, subscription-based, easily integrated with other data management programs, and highly customizable to an individual organization’s needs, goals, and budget. In short, there is now an HR software solution for every size and type of organization.

BambooHR is a complete HR software solution specifically designed for small to medium sized businesses, and is committed to setting people free to do great work. By taking on the bulk of many repetitive administrative HR tasks, BambooHR empowers HR professionals to focus their time and energy on projects that have the greatest impact on their business.

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How SaaS HR Solutions Work

HR software—also known as "software as a service" or SaaS—assists an organization’s human resources department by automating manual tasks, keeping employee information organized, and creating data-driven reports.

This is all done electronically, eliminating the need for paper documents. SaaS HR solutions can also serve employees and managers within an organization, assisting with tasks like time tracking, updating employee directories, and performance management.

Some of the functions HR software can perform include:

Securely storing and organizing employee data
Creating workflows and tracking approvals
Self-service time tracking
Tracking employee training for development and compliance
Gauging and reporting on employee satisfaction
Performance management and goal tracking
Benefits administration and management
Pre-boarding, onboarding, and offboarding automation
Third-party application integrations
Monitoring all data changes with an audit trail
Producing custom reports to provide strategic insight

What Is Cloud HR Software?

Cloud HR software, also known as cloud-based HR software, is a web-based software application that allows organizations to manage their HR processes and employee data in a secure, centralized system that can be accessed from anywhere with an internet connection.

Not all HR software is cloud-based, but cloud-based HR software has become the standard for many organizations. On-premise HR software, where the software is installed on local servers and maintained by the organization's IT department, used to be the norm. However, with the rise of cloud computing and the benefits that cloud-based HR software offers, more organizations are opting for cloud-based solutions.

Cloud HR software offers several advantages over traditional on-premise HR systems, including lower upfront costs, faster implementation, automatic software updates, and greater accessibility and flexibility. Additionally, cloud HR software can help organizations reduce the administrative burden of HR tasks, improve data accuracy and security, and enhance employee engagement and productivity.

7 Key Benefits of HR Software

While there are many benefits of using HR software, one of the biggest is its ability to reduce the time spent on repetitive, low-impact administrative tasks, which allows HR professionals to focus on more productive responsibilities and longer-term strategic outcomes.

Beyond this, other major benefits include:

Reduced errors
Improved organization of documents and employee data
Streamlined processes
Continuous feedback
More accurate analytics
Improvements in succession planning
Keeping organizations compliant with federal regulations

How to Choose the Best HR Software for Your Business

Look for Payroll and HR Software

When shopping for HR software, determine if you also need Payroll software. Not all HR software includes payroll functionality, while some integrate with payroll software to provide a seamless, end-to-end solution for managing compensation.

When HR and payroll software are integrated, data can be shared automatically between the two systems, reducing the risk of errors and minimizing manual data entry. For example, when an employee's pay rate or tax information is updated in the HR software, the payroll software can automatically update the employee's payroll records without the need for duplicate data entry.

Integration between HR and payroll software can also help organizations comply with various tax regulations and labor laws, as well as reduce the administrative burden of managing payroll processes. If the HR software you choose doesn't include payroll functionality, make sure it integrates with your payroll software for a seamless and efficient solution.

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Look for Additional Key Functionalities

Some types of HR software that may help your organization reach its goals are those that offer other key features, including applicant tracking management and onboarding, performance, and employee engagement.

Human Resources Information Systems (HRIS): An HRIS plays the core data-management role needed for multiple HR functions such as recruiting and tracking applicants, storing employee data, managing payroll and benefits, maintaining regulatory and legal requirements, etc. An HRIS can be standalone software designed to integrate with other HR applications, or it may be the central database in an all-in-one HR software system.
Applicant Tracking System (ATS): An ATS is recruiting software that helps streamline the hiring process for an organization from beginning to end. It typically handles tasks such as posting job openings to multiple job boards, storing applicant data, and screening applications for potential matches.
Onboarding: Onboarding software helps streamline and track the process of introducing new employees to an organization. It often includes elements like electronic signatures, pre-boarding packages, training tracking, employee questionnaires, and other automated functions to help HR ensure they are providing a compliant, smooth onboarding experience for new employees.
Performance Management: A platform for HR professionals, managers, and employees to assess employee skills, set performance goals, and track improvement.
Employee Engagement: Helps improve employee sentiment and increase individual and team engagement. This is done through everyday work priorities, feedback, coaching, and analytics.

8 Popular HR Software Companies

Whether you’re looking to effectively onboard new employees, conduct better performance reviews, improve payroll processes, and more, BambooHR offers award-winning HR software solutions for everything from hire to retire.

Want to see how BambooHR stacks up among other popular HR software providers? Get an in-depth analysis by checking out the pages below:

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