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Best HR Software for Business in 2021

Finding the best HR Software for your business is now faster and easier! Compare prices, reviews, features, and get free consultation to find the perfect software.

What is Human Resources Software?

Human Resources software helps to optimize and manage all your HR tasks and enhance the HR team’s productivity.

HR Software Guide

Table of Contents

What are the Various Features of HR Software?

There are different Human Resource (HR) software available on the market. Based on the size, nature, and type of enterprises, businesses can opt for the most suitable human resource management software. They can also customize an HRMS according to their specific requirements.

Whether customized or ready-made, business heads must look for the following dynamic features and modules within their HRIS software.

HR Software Features

1. Centralized Database

A robust centralized database is a crucial element of efficient HRMS Software. It is the pillar on which the entire software system fetches data and provides accurate information. Regardless of any organization, the centralized employee database must have a complete list of all present and past employees along with necessary information including their address, personal contact number, work experience, the number of years in the current company, etc.

HR heads must update the database at regular intervals or according to circumstantial situations. For example, when a new candidate joins in, or an employee resigns, we must update the database with such information.

2. Recruitment

A recruitment module will simplify the hiring procedures and make things better for the hiring entity and the prospective candidates. Using this feature, recruiters can find the right talent and can avoid major mistakes during online recruitment approaches.

From internal form-filling to online tracking of applicants, this dynamic component provides a complete solution. Organizations can also develop a “talent pool” to enhance their reach to the most appropriate candidates and bring them into the designated profile.

3. Onboarding

After recruiting, it comes to onboarding, i.e., introducing the new joiners to the organization or some significant departments specific to his/her designation. Having an onboarding feature helps HR to take the new staff through the organization and arrange inductions; all in just a few clicks.

New Recruits can also use this module to introduce themselves to the enterprise or concerned departments. This application also performs some other duties like providing appropriate access, developing user accounts, and security credentials.

4. Attendance and Leaves

After a candidate comes on board and becomes a member of the staff, the HR team then looks into attendance and leaves, which determines the Payrolls. With the help of the attendance and leave module, the HR manager can keep a real-time track of employee hours, including entry and exit time as well as system login.

Concurrently, they can also monitor approved, unapproved, and approval pending leaves. Thus, they can maintain an automated record of attendance and leaves of all employees.

5. Payroll

Attendances and leaves determine the payroll. Besides, conventional payment processes are tedious, time-consuming, and require substantial paperwork. To ease this, we can use the data that gets generated from the attendance and leave modules for processing payrolls.

The best way to use this software is by integrating it with leave and attendance software; thus, fetching system-generated entry and exit time along with the number of days employees are present in the organization. Together with attendance and leave software, the payroll module maximizes the potential of HR Managers and enables them to invest their productivity in other work areas.

6. Performance Management

While working in an enterprise, employees undergo an appraisal procedure. Here, the reporting officer and the management review the process. Thus, monitoring and managing job performance become crucial to every business.

79% of executives rate redesign of performance management software and practices to incorporate elements like continuous feedback, goal-setting, and employee-driven communication - Source.

A performance management feature enables simple and easy tracking of employee performance over a period. Such software comes with numerous tools through which business heads can set targets for employees and track their progress towards achieving the pre-determined objectives and give them scores. In this manner, they can maintain a live status of competency and capabilities of workers and review their overall performance from time to time.

7. Talent Management

To boost productivity and encourage employees to meet their goals, having a talent management feature is crucial. The innovative module in the best HR software helps organizational leaders to identify specialized skills and proficiencies of employees and assign them suitable job roles.

We can also combine talent management modules with performance management to get a complete understanding of the expertise of an employee.

8. Training and Development

Training, learning, and development are part of the work schedule. Based on employee performance analysis, companies can use the learning and development module to plan staff training sessions. Through this dynamic feature, employees can access learning materials and training courses; thus improving their professional knowledge.

This procedure can further continue to real-time evaluation and feedback by the reporting heads.

9. Employee Engagement

Spending 8-9 hours a day requires some bonhomie along with the most innovative employee engagement module, which is the intranet; employees can stay connected and enhance their professional bonding. From the trainees to the CEO, each employee can access the intranet and enjoy its features.

The HR department can add, update, or modify data within the intranet and make it accessible to everyone across the company. This module also allows HR to shed off their responsibility for conducting offline activities for employee engagement.

10. HR Analytics

Just like other business divisions, HR also plays a significant role in determining the management strategies of an organization.

HR analytics is a standard module that generates human resource metrics and benchmarking data, which further helps the HR team to present useful insights for framing the business strategy of a firm. It is a purposeful feature to the HR department in helping the top management to strategize their plans according to HR inputs.

HR Management Software is one such example whose implementation and utilization has automated HR activities like Recruitment, Onboarding, Attendance and Leaves, Benefits Administration, Payroll, etc.

Benefits of Implementing HR Software

Benefits of hr software

1. Increased Productivity and Efficiency of the HR Department

Using appropriate software tools can reduce 40% of the time spent by HR personnel and the cost involved in various activities, by reducing the need for paperwork and streamlining the process. Updating information becomes automated with instant reminders and notifications about compliance and productivity.

2. Reduced Errors

Paper-based methods are not completely infallible, and even one misplaced decimal point can cause several financial and legal complications. HRM software can reduce the occurrence of such errors by automating most of the processes and keep everything working properly.

3. Evaluation of Metrics

Review the business information periodically and upgrade the strategies based on the internal operation and the market. The metrics evaluation tools in free HR software systems allow for accurate monitoring and issues, turnover rates, and costs that help design optimized business strategies with the help of data analytics and reporting.

4. Conquer Geographical Barriers

For large companies with a global footprint, HR systems enable Global communication and establish uniformity in processes. It helps in standardizing the organization leading to better consistency across geographies.

5. Increased Performance Management

These systems help keep track of the skills and performance of the employees and help in the decision-making process while arranging new training and skill development programs for the employees based on their current standing and the company’s needs.

It helps managers evaluate the performance, provide regular feedback and advice. We utilize human capital better when all the information is available in one space -HR professionals too can devote their time to better endeavors that will benefit the organization.

Besides, HR Software comes with a lot of other perks like:

1. Highly effective support system and modular functionalities for facilitating better productivity and efficiency of the organization.

2. Core Human Resource Software covers traditional human resource management too.

3. Greater compliance with the current market standards for better organizational performance.

4. Comparatively reduced human effort and risk of potential errors, thus providing for greater accuracy of the data records.

5. Universal metric systems for better data detailing strategies.

6. Easy integration into the mainstream workflow of the respective organization for enhanced business solutions.

7. Streamlined sharing and implementation of information.

8. A Cloud support system facilitates better security standards.

9. Greater ease of HR operations and effective employee information management with secure storage facilities.

Types of HR Management Software

types of hr software

Human Resource is an important department for any business. As people are one of the most important assets of any business, good HR software becomes essential. Following are the Major Types of HR Software:

1. Time and Attendance

2. Applicant Tracking System

3. Learning Management System

Let’s look at the importance of all three in detail:

1. Time and Attendance

To find out the number of hours invested by an employee, a business needs good time and attendance software. It will keep track of employees' time and attendance with exact details.

There are various ways an employee can punch attendance:

1. Manual entries

2. Biometric devices

3. GPS location

4. Swipe cards

Based on the attendance of the employee, it designs his salary slip, hence the best HR software will also calculate the salary based on the total time. Other factors like basic salary, number of working days, paid leaves, unpaid leaves, allowances, it also considers deductions at the end of the month. After considering all these factors, it designs the final salary slip.

Apart from recording attendance, HRM software must have a provision for leave management. In an HR system, employees can request leaves and get approvals from the manager. He can also decide the type of leave - paid leave, unpaid leave, on-field trip, etc.

2. Applicant Tracking System

According to research, every job attracts over 250 job applicants through various channels. As there are lots of vacancies open at the same time in a company, there will be tons of resumes attracted by the company. It gets extremely tough for an HR employee to sort out the right candidates.

The applicant tracking system filters the relevant resumes from the pile and helps HR to find the right candidates.

ATS allows you to connect itself to your website page. So, when an applicant fills in data on the website, it directly fetches the details. You can also connect applicant tracking software with various social media channels like Facebook, Twitter, or LinkedIn to sourcing and attracting candidatesAfter collecting all the details from the applicant, you can filter the resumes with keywords.

Say that you have posted a vacancy for a “Digital Marketing Manager.” But that doesn’t mean people who have applied belong to that genre. You can use keywords like “Digital Marketing” or “SEO” in the designation field. Also, if you are looking for an experienced candidate, you can filter them by the number of years of experience.

ATS becomes necessary for the HR and hiring committee when the hiring process is constant.

3. Learning Management System

Learning Management System is a type of HR software as well. When employees want to learn new things, they look for resources from every corner. We always advise businesses to let their employees grow.

The learning management system(LMS) provides employees with learning materials regarding their field of interest. The LMS identifies your designation and skills and asks you about your areas of interest. According to your interest, it will provide you with all the learning material.

For example, An employee is working as an SEO executive, but he wishes to learn in other areas of digital marketing as well. He can simply ask for learning materials for digital marketing. He can also put a request for further training. The Manager has to decide whether to provide him with the training or not.

Many companies have already implemented and utilized the various benefits that the different suites in HRIS Software have to offer. Not only does it save time and cost, but it has also helped companies perform better and upgrade in order to excel in the market.

A) Case Study - SaludCare India Pvt. Ltd.

SaludCare is one of the trusted pharmaceutical brands of India, manufacturing 100+ products in 7 states of India. Salud has a wide staff of 450+ employees spread across various branches in India.

SaludCare was looking for free HR software to handle its heavy staff, as they had an unsatisfactory experience in this matter. SoftwareSuggest, after understanding their employee strength and requirements, suggested Keka.

Keka is one of the best HR software with modules like:

1. Payroll Management

2. Employee management

3. Talent management

4. Feedback and goal management

5. Applicant tracking system

As we mentioned, Salud has large many employees, so the employee management and payroll management was basic. As a pharma business, they are continuously looking for Medical Representatives who can promote their products. Hence, the applicant tracking solution was also a good choice for them. For a business like this, employee goals and targets should be well managed, so the feedback and goal management was an exact choice. In a nutshell, Salud got the perfect solution with the little help of SoftwareSuggest. 

Top 5 HR Software to Look Out For

1. Keka

Keka HR is a payroll solution and a human resource management platform that helps you automate basic and monotonous payroll and HR tasks. Thus, allowing your HR teams to do their jobs faster, better, and with utmost precision. 

Considered to be one of the top HR software in the market, it allows businesses to replace their traditional, old-fashioned approach to management practices.

You can easily streamline your payroll processes and manage your employees more effectively. Moreover, you can even customize the payroll system to meet the specific needs and demands of your company. So, what’s unique about it? Well, even after all the customization it would still be 100% compliant with industry standards.

keka dashboard

Pros 

  • Employee Referrals
  • Quick and Accurate Candidate Search
  • Ease of Integration
  • Easy Communication
  • Social Media Recruiting

Cons 

  • Difficult to navigate through payroll information
  • Priced higher than its competitors

USP

Integrates every aspect of time tracking right from scheduling shifts, over time, and fully integrated with payroll.

2. Bamboo HR 

BambooHR is a SaaS solution designed for small and medium-sized companies that have outgrown spreadsheets. It lets you centralize all employee information in one location. Thus, making it easier for HR to track employee data. 

Moreover, you can also track employee benefits, job, performance, and salary history. You can even customize fields to track other data. 

BambooHR also has a reporting functionality that lets you create and share reports in a short period of time. You can even use the report library to select pre-built reports and even create custom-built reports for sharing.  These reports take only a few clicks and can save the time of HR. 

BambooHR comes with an integrated applicant tracking system that can help recruiters access candidate resumes and LinkedIn Profiles. They can even post jobs and share candidates with hiring managers. 

bamboohr dashboard

Pros

  • Easy hiring and employee management
  • Provides role-based access to information
  • Performance analysis on a six-monthly and yearly basis
  • Provision for an equal employment opportunity and benefit reports

Cons

  • Intended only for small and medium-sized businesses
  • No offline mode 
  • Doesn’t offer full learning management functionality.

USP

Relatively priced lower than its competitors and offers a high level of data encryption. 

3. Zoho People 

Zoho People is cloud-based hr and payroll management software that comes with a polished payroll process. Thus, helping you manage employees' onboarding, leave and attendance, and documentation.

HR and payroll management departments share a lot in common. But, when these systems can collaborate with each other, you might spend up populating the same information in multiple systems. Zoho brings you the power of a robust payroll management system and an equally powerful HR management solution. 

You can easily keep track of recorded department transfers, designation upgrades, work location changes, and that too without any manual intervention. Zoho offers easy Integration with biometric devices. This will help you capture the right clock-in and clock-out times for all your employees.

zoho people dashbaord

Pros

  • Branded resumes and pre-defined templates 
  • The organized and efficient workflow structure 
  • Lets you create vendor portals 

Cons

  • No dark mode 
  • Problems With Integrating with Microsoft Office 365 Outlook

USP

This HR software allows you to parse 50 resumes at a time

4. Freshteam 

Freshteam lets you find, engage,  and hire great talent without the hassle of juggling through inboxes. You can easily manage job postings, source employee referrals, and engage with candidates all from a single platform.  

Freshteam can also display a list of open positions on any website. Not only this, but Freshworks also maintains a complete record of each candidate. This includes their interview feedback, resume, emails,  and timeline of interactions with the hiring team. 

Its deduplication feature ensures that no matter the times a candidate applies, only one profile is maintained in the system. Freshteam helps everyone in your team stay updated. It even sends out email notifications to the hiring team whenever a new application comes in or a candidate is rejected. 

freshteam dashboard

Pros

  • Managing talent acquisition
  • Resume parsing & interview scheduling
  • Candidate retargeting

Cons

  • No customization of the vendor portal 
  • Complicated blueprinting process 

USP

Free for up to 50 users. 

5. GreytHR

greytHR is a cloud-based HR software that has been designed to reduce the effort of HR, empower employee self-service and save both cost & time. Having served 9000+ businesses across 150+ cities, greytHR can automate key HR tasks such as leave, payroll management, and attendance tracking. 

greytHR is the one-stop solution for all your business’s HR needs & requirements. It also offers exceptional support for the transitioning phase, full-fledged customer support, and HR and payroll executives’ guidance. 

greythr dashboard

Pros

  • Supports quick salary processing
  • Streamlines communication
  • Offers 120+ readymade and standard reports for vast usage 

Cons

  • Poor ticketing system 
  • Frequent logging error
  • Complicated UX

USP

Offers 100% statutory compliance 

Factors to Keep in Mind While Implementing HR Software

Below are some crucial factors which you should keep in mind while implementing an HR Solution in your organization because these factors can actually make or break the whole objective of the implementation.

1. The Possibility of Identity Theft 

There is a minor possibility of potential ambiguity, misrepresentation of facts, or ‘identity thefts’ as one may call it. For example, there is a possibility that a ‘fake’ candidate may make it to the top without actually possessing the right skills for a particular profile.

2. Technical Glitches

Some technical glitches may arise during the deployment process of the software. There are chances that the software is not likely to comply with the respective third-party services installed in the system.

3. Security Issues

Even though most of the HRIS software is highly secure, those that are not certified cannot be trusted as far as Data Privacy and Security is concerned.  The implementation of low-quality HRMS Software makes the whole data, including candidate applications, vulnerable to hacking, and other forms of cyberattacks.

HR software is highly inclusive and definitive of various HR processes and management techniques. It also provides effective automation strategies for the organizations on the whole. However, integrating suitable HR management software with your business operations elevate your business levels and streamline solutions for your organizational workflows. 

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Frequently Asked Questions (FAQs)

  • When it comes to deploying HR software, you must analyze its performance capacity. Reliable and flexible HR software demonstrates the ability to grow and scale with the company in terms of employees, offices, benefits, and more.
    • HR software assists a company’s human resource department by automating redundant tasks, organizing employee information, and creating data-driven reports. As all these tasks are done electronically, it eliminates the need for paper documents. Some of the core functions HR software does are:
    • Storing & organizing employee data
    • Time tracking
    • Applicant Tracking System (ATS)
    • Determining employee satisfaction
    • Performance Management
    • Pre-boarding, onboarding & offboarding
    • Third-party application integrations and more
    • As HR software is available in all sizes, picking the one that is compatible with your organization would rather be difficult. However, bearing these purchasing tips in mind will help you immensely:
    • Analyze the features that your prospective platforms offer
    • Determine if it can be configured to adapt to your current HR processes
    • Find out whether the system specifications in accord with your equipment
    • Confirm with the vendor what add-ons they can provide
    • Check the inclusions of subscription plan you want and go through the software licensing agreement
  • The HR software that helps you achieve your organizational goals include Human Resources Information Systems (HRIS), Applicant Tracking System (ATS), Onboarding, Performance Management, and Employee Engagement.
  • Even if you are managing a handful of employees, you can leverage the benefits of HR software. However, it probably won’t stay a few employees forever as you grow. If the cost of the HR system bothers you, you can get started with a free plan.
  • To install HR Block Software on Windows
    Step 1: Open the email of Purchase and click on download.
    Step 2: Close all other applications.
    Step 3: Open the downloaded file.
    Step 4: If you face difficulty in finding the downloaded file, then click on Find.
    Step 5: The instructions to install the software would be mentioned there, and you need to follow the instructions carefully.
  • SAP HR, also known as human capital management is an essential element which is famous for supporting all the processes of Human Resource management. It increases the productivity of a business, slows down the cost, and helps business owners make better decisions. It also improves employee engagement in a company. SAP HR has many attractive features, which makes it one of the most robust planning software available in the market today. It not only consolidates the HR data but also finds and manages talents. It ensures productivity and provides a clear picture of the workforce.

SoftwareSuggest Leader Matrix

Rollover to see software insights

  • 1
    Spine HRMS
  • 2
    Zimyo
  • 3
    HRMantra
  • 4
    Wallet HR
  • 5
    HROne - Complete HR Software
  • 6
    Keka
  • 7
    Freshteam
  • 8
    Qandle
  • 9
    BatchMaster HeRd
  • 10
    Pocket HRMS
  • 11
    Zoho People
  • 12
    greytHR
  • Show More Software's...
  • 13
    eliteHRMS
  • 14
    Akrivia HCM
  • 15
    PulseHRM
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Nikunj DudhatBy Nikunj Dudhat | Last Updated: June 09, 2021

#1

Freshteam

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#2

Sage HR (formerly CakeHR)

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#3

Hibob

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