Human resource (HR) plays a crucial role in developing, reinforcing, and evolving an organization’s culture.
In this era of technology, HR managers use various types of technology that help them streamline and automate various aspects of HR-related processes.
An HR manager is responsible for managing the entire employee lifecycle, ranging from hiring and recruitment to onboarding and training and development, and much more. A well-executed human resource cycle is about ensuring the right people in the right role.
There is a high degree of overlap between the different stages of the HR cycle, which directly impacts your overall HR strategy and the employee experience.
These five stages of the employee cycle include —
- Hiring and recruitment
- Onboarding and training
- Career planning and development
- Workforce management
- Retirement and termination
Based on these stages, you will find different types of HR software in use. While some relate to specific areas of the HR department, others relate to the HR department as a whole.
Let’s look at essential variants of the HR software.
Hiring – and- Recruitment-Based Software
The first step to building a team is hiring the right candidate for your company. You need to attract candidates by posting jobs on various portals, screen through their resumes, and conduct multiple skills assessment tests.
Applicant Tracking System (ATS)
Today, almost 95% of organizations, including SMBs, rely on an applicant tracking system to pre-filter resumes.
An ATS solution acts as a centralized database where it collects, stores, and organizes all the resumes received from all platforms. It then scans those resumes for predefined keywords and phrases, scores them based on relevancy, and selects the most qualified ones for the next stage.
Thus, it brings efficiency and saves time at the same time.
Job boards are the digitized version of traditional print job advertisements that you find in the daily newspaper or physical boards in places like college career centers.
Similarly, companies post job descriptions on the job boards — an online portal. Companies can post multiple job openings on job boards like Indeed or Monster. Candidates can apply directly on the job board or can be redirected to a company’s career site to apply there.
These job boards easily integrate with the company’s ATS for the seamless apply process.
Once you have hired a candidate, the next process is onboarding. Here, both the employer and employee lay out their expectations of each other.
Learning Management Software (LMS)
An LMS system is a set of applications that facilitates the management, delivery, and reporting of various training programs. It makes activities like onboarding new hires or training existing employees extremely cost-effective. The system may offer a range of competency tests, skills assessment programs, and other development programs.
The global size of the LMS market is expected to grow at a CAGR of 19.6%.
Some of the top LMS systems are Canvas, Absorb LMS, Moodle, etc.
Talent Management Based Software
After a new employee is onboarded, the process doesn’t end there. An HR is responsible for employee engagement, development, and appraisal of their performance.
HR Information Software (HRIS)
The core functionality of an HRIS system is to collect, collate, and store a company’s human resource-related information — all at a single platform. It makes every information related to employees easily accessible, thus saving time and energy.
Performance Management Software
Performance management is all about establishing a clear line of communication between employers and employees. The performance management software helps managers create accurate job profiles and set expectations, draft organizational goals, and align them with employees’ responsibilities.
In other words, it helps bring transparency to the workplace.
This generally includes those tools that help with the maintenance of daily HR work and employee management.
According to the IRS estimates, every year 40% of SMBs in the United States end up paying a payroll penalty. The use of payroll software can help avoid this as it helps with accurate calculation of payroll after considering all taxes that need to be deducted, commissions to be paid, and other benefits included.
Not just that, but it also automates the process of disbursing their pay amount directly to their bank account.
Time and Attendance Software
Earlier, employees used to manually fill out a paper timesheet with their total hours worked. But not anymore. Today, the time is tracked digitally with the help of time and attendance tracking software.
A time and attendance management software primarily monitors hours worked, manages to leave, and prepares customized reports. Many advanced solutions also keep you in compliance with labor laws and regulations related to proof of attendance.
HR Compliance Software
An HR manager is responsible for understanding regulatory policies and laws and taking necessary steps to ensure compliance within the organization.
This HR compliance software aims to help business owners, professionals, and managers stay updated with all HR-related regulations and compliance laws. It includes employees’ health and safety, payroll, data protection policy, and others.
Anything related to the management of employee information and all other HR-related work falls under the aegis of the HR software. By automating the whole system, the best HR software can facilitate labor time, saving both for the HR staff and top management of an organization.
In the recent past, the use of HR software has only increased. The global HRMS (human resource management software) market is expected to reach $30 billion by 2025.
You can choose these variants of HR software as a standalone application or go for integrated-HR software. An integrated HR system comprises all aspects of HR functionalities into a single platform.
You will find both low as well as high-cost HR solutions for your company.
If you still haven’t started using HR software for your business, you shouldn’t wait any further.