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HR software.

what is HR software?

HR software is a digital application used to manage and enhance human resource tasks and processes in an organisation. 

HR software helps HR staff and management to make the most of their time and resources leading to greater predictability and productivity in managing an organisation’s workforce.

In most cases, modern HR software runs on cloud-based systems. Users have the option to customise human resource tools to meet their goals, budgets, and respective needs.

how does HR software work?

HR software goes a long way in improving everyday activities undertaken by human resources within organisations. It enables the automation of manual activities such as data entry, information management, payroll management, updating directories, and data-rich reporting.

Additionally, HR software can also be useful for management-oriented work such as employee development, performance management, workflow creation, securing sensitive data, and time tracking.

types of HR software.

There are various types of HR software developed to perform a range of tasks. While some narrow their scope to focus on specific HR functions, others offer a more comprehensive set of capabilities covering most or all aspects of human resource management. Some HR software tools are more technical or back-end oriented - e.g. dealing with employee database creation - while others focus on delivering a user-friendly interface.

Types of HR software include, but are not limited to:

  • Payroll systems
  • Applicant tracking systems (ATS)
  • Human capital management (HCM) software
  • Human resources information systems (HRIS)
  • Human resources management systems (HRMS)

Let’s examine them in more detail.

payroll system

This type of HR software simplifies the process of allocating remuneration and accounting for applicable income taxes. Payroll systems minimise the time and effort needed to monitor hours worked, calculate pay, issue payments, etc.

applicant tracking system (ATS)

ATS software is used to automate the hiring process. Rather than pouring over each application manually, HR professionals can organise and manage candidate profiles based on the skills and qualifications required for the role. An ATS helps highlight the best-suited candidates for a given role, helping HR departments to use their time and resources more effectively during the recruitment process. 

human capital management (HCM) software

Human capital management software typically consists of a set of specialised applications bundled together, each focusing on a particular HR function. HCM assists HR departments in managing employees right from the hiring stage to retirement.

human resources information system (HRIS)

HRIS is software developed to help improve productivity in an organisation. Typically, HRIS serves as a centralised repository of employee information. Managers can leverage the data to make better-informed decisions regarding employee affairs. 

human resources management system (HRMS)

HCM software, HRISs, and HRMSs are similar and often used interchangeably largely due to providers marketing their products in different ways. Still, there are attributes that set them apart. Human resources management systems tend to be more robust, leveraging numerical data for analytical purposes. They’re typically more complex and overarching, often combining multiple systems and technologies. For instance, HRMS often harness machine learning and artificial intelligence.

benefits of using HR software.

improved efficiency

Automating HR processes reduces the risk of making mistakes leading to higher-quality output standards. Furthermore, more efficient and effective HR processes help improve employee engagement. Better engagement can be linked to higher annual revenue.

better insight

In manual settings, employees and managers create data in a disconnected manner. This makes it difficult to make comprehensive analyses and learn from the findings. Conversely, HR software centralises and digitises large pools of data for faster and improved decision-making.

improved recruiting

Drawing the best talent to your organisation, filling positions sooner rather than later within budget, and promoting the organisation as a desirable place to work are top priorities for any HR department. HR software can reduce the amount of time and effort taken up by the recruitment process, making it easier on HR departments as well as candidates. Better onboarding can reduce recruitment time by 50% and candidate confidence by up to 30%.

Furthermore, using HR software makes it easier to build a database of ideal candidates who may be the best fit for other positions down the road. Such candidates will be easier to keep track of and reach out to.

cost reduction

Using HR software does away with the need for paperwork. Cutting back on paper and postage can help reduce costs. More significant savings can be realised by opting for centralised, cloud-based HR software as this removes the need for on-premises IT resources and dedicated teams, which tend to be expensive.

keep competitive with hireful’s help.

HR software can transform human resource activities, improving employee management, and resource utilisation.  

Still, for many small and medium-sized organisations, HR software might not be flexible enough to fit their recruitment process. Hireful’s ATS integrates with most of the UK leading HR systems. Our ATS helps you compete with larger organisations for top talent at a fraction of the cost. To discover more about hireful’s ATS, book a short intro call with our team.