So that your business can manage workforce efficiently
Human resource management is the bedrock of every organization, both small and large. Most companies have dedicated human resource (HR) departments to coordinate and manage their workforce, and software tools enable smooth coordination.
Software tools allow HR departments to effectively manage employees in various ways, such as allocating vacation time, calculating payroll, storing and organizing employee data, conducting employee satisfaction surveys, etc.
HR software is usually versatile, allowing HR teams to perform various functions from a single platform. This article will dive deep into HR software and what you need to know about it.What is HR software?
They are digital platforms that help organizations streamline their HR-related tasks. These platforms allow HR teams to increase their efficiency in managing employees. They can automate many tasks and organize and store data using software instead of manual processes that require much more time and effort.
Most businesses these days use one form of HR software or the other. The few still using manual processes are also migrating towards HR software. The HR software industry is projected to reach $34 billion by 2028, compared to $16 billion in 2020, signalling increasing demand globally.
HR software can be cloud-based or on-premise. The former is hosted on a public cloud and accessible from anywhere, while the latter is hosted on a company’s own servers. Cloud-based is more convenient and easier to access, but some companies choose on-premise tools for privacy and better customizability.Why is HR software important for businesses?
We’ve mentioned the HR team being the bedrock of every company. No matter how skilled employees are, they won’t function effectively and achieve common goals without sufficient management. HR software makes it easier for companies to organize employees and ensure their needs are met. It’s only when this occurs that employees work effectively to achieve the company’s goals.Types of HR software
HR software comes in different forms. For example, the software for handling payroll might not be the same for managing employee time-ins and time-outs. The software for conducting employee surveys might not be the same for storing employee information. Some platforms combine multiple HR functions into one system, but many companies need more than one HR software tool to function effectively.
The main types of HR software include:
Human Resources Information Systems (HRIS)
These are the platforms where HR departments store and organize information. The neatly organized information makes it easy for them to make good decisions regarding hiring, pay, postings, etc.
Examples of data stored in an HRIS include
Human Capital Management (HCM)
Human Capital Management (HCM) tools deal with recruiting employees and managing them after they get the job. It has three main aspects:
Acquisition: The initial process of recruiting and onboarding a candidate to a company. HCM tools allow companies to streamline their interview processes and ensure they stay in touch with potential candidates who have applied for job postings.
