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Best HR Software

Streamlining business operations has never been easier with top-notch HR software. It helps with the management of numerous tasks ranging from recruitment to compliance with labor laws. Inevitably, it leads to improved planning, as well as decision-making, and supports everyone, from potential candidates to managers.

There are many dedicated platforms that provide different ways of assisting an HR team with its wide range of responsibilities. To find the most appropriate, it’s essential to identify your company’s needs before digging deep into the options to see which service best serves this.

Best HR software of 2024

Editor's choice
Deel logo
Editor's rating:
(4)
Free version
Extensive list of features
Responsive customer service
Simple payroll
Start-ups
Gusto logo
Editor's rating:
(4.5)
Plenty of extra functionalities
User-friendly interface
Tax solutions
Payout customization
Small businesses
Justworks PEO logo
Editor's rating:
(4)
Advanced payroll
Reliable compliance
Premium benefits
Thorough HR tools
Remote companies
Sage Business Cloud Accounting logo
Editor's rating:
(4)
Very detailed summary page
Fully customizable invoices
Intelligent inventory
Check printing by default
Nonprofits
Paycor logo
Editor's rating:
(4)
Unlimited payruns
Automated payroll
On-demand pay
Trustworthy tax compliance
Deel
Editor's choice: Deel
Editor's rating:
Reviews
  • Free version
  • Extensive list of features
  • Responsive customer service
  • Simple payroll
  • Coworking spaces
  • No mobile app
  • Steep learning curve
  • Expensive
Starting price: $49/mo Visit Deel
Video overview
Offers
$1,000 off Deel
Free HR software with Deel
Gusto
Start-ups: Gusto
Editor's rating:
Reviews
  • Plenty of extra functionalities
  • User-friendly interface
  • Tax solutions
  • Payout customization
  • Could have more accounting software integrations
  • Healthcare not available in all states
  • Not possible to use with international workers
Starting price: $6/mo Visit Gusto
Screenshots
Offers
$100 discount for yourself and a friend with the Gusto referral program
Free 30-day trial of Gusto without prior payment
Justworks PEO
Small businesses: Justworks PEO
Editor's rating:
Reviews
  • Advanced payroll
  • Reliable compliance
  • Premium benefits
  • Thorough HR tools
  • No setup fee
  • Two apps
  • Lack of employee engagement tools
Starting price: $59/emp/mo Visit Justworks PEO
Video overview
Offers
Justworks PEO demo
Referral program with Justworks
Sage Business Cloud Accounting
Remote companies: Sage Business Cloud Accounting
Editor's rating:
Reviews
  • Very detailed summary page
  • Fully customizable invoices
  • Intelligent inventory
  • Check printing by default
  • Google Drive integration
  • No recurring invoicing
  • Limited third-party app integrations
  • No yearly subscription available
Screenshots
Offers
$10 per month for Sage Business Cloud Accounting Start
Sage 50cloud Pro Accounting from $41.94 per month
Free 30-day trial of Sage Business Cloud Accounting
Paycor
Nonprofits: Paycor
Editor's rating:
Reviews
  • Unlimited payruns
  • Automated payroll
  • On-demand pay
  • Trustworthy tax compliance
  • Digital wallet
  • High subscription price
  • No refunds
  • Unresponsive email support
Starting price: $99/mo Visit Paycor
Video overview
Offers
50% off the first year with Paycor
No setup fees with Paycor
14-day free trial of Paycor
3-month free trial of Paycor

What Is HR software?

HR software makes it easier for companies to manage all relevant processes from the bottom of the ladder to the top. It eliminates any typically lengthy, inaccurate, and error-prone tasks by centralizing all information in an easy-to-access platform.

This software usually includes extensive features such as:

  • Onboarding and offboarding management.
  • Time, attendance, performance, and goal tracking.
  • Automation
  • Employee engagement tools
  • And more.

These result in regulatory compliance, enhanced efficiency, productivity, team morale and development, security, and more.

The three main types of HR software

As there are many aspects to consider when contemplating signing up for HR software, it’s best first to understand the difference between the three types of HR software:

Human resource information systems (HRIS)

With a focus on employee data and basic HR features, HRIS is most suitable for small businesses looking to store, manage, and automate information easily. It comes with:

  • Document management.
  • Reports.
  • Basic payroll.
  • Metrics.
  • Time and attendance tracking.

Human resource management system (HRMS)

This second type takes all the HRIS features to the next level and throws broader functionality into the mix. It’s best for medium to large businesses in need of a more comprehensive solution and includes:

  • Advanced payroll.
  • Benefits administration.
  • Performance management.
  • Legislative compliance.

Human capital management (HCM)

HCM is the most comprehensive solution since it combines HRIS and HRMS features and more. It’s aimed at larger companies, bringing together the best HR practices while offering strategic support, such as:

  • Applicant tracking systems (ATS).
  • Onboarding and offboarding management.
  • Advanced reports and analytics.
  • Performance management.
  • Culture building.
  • Objectives alignment.

Benefits of using HR management software

Most administrative tasks are tedious and time-consuming, hindering and slowing a company’s growth. However, a business of any size can use HR management software to improve, simplify, and consolidate all related processes. This leads to significant advantages, such as:

Process efficiency

  • Task automation.
  • Reduced errors.
  • Optimal resource usage.
  • Regulatory compliance.
  • Improved accessibility through mobile access.
  • Saving time with third-party integrations.
  • Online payroll processing.
  • The fast resolution of employee and employer-related incidents.

Employee empowerment

  • Autonomy through a self-service knowledge base.
  • Improved performance and engagement.
  • Professional growth support.
  • Detailed benefits plan.
  • Simplified personal finance.

Data-driven insights

  • Enhanced data visualization with charts, graphs, and metrics.
  • Compensation benchmarking.
  • Custom reports: KPI, earnings, retention, turnover, etc.

Enforced security

  • Reduced risk of malicious cyberattacks.

Easy access to reliable real-time data

Factors to consider when choosing HR software

It’s hard to pick the right HR software since so many are available. To effectively choose the most appropriate solution, it’s essential to consider what most requires improvement and needs to be prioritized in your business. Understanding your company’s limitations is also key, such as if it has IT infrastructure issues. Next, it’s important to find software that comes with:

  • Scalability and flexibility.
  • A good reputation.
  • User-friendliness.
  • Demos.
  • Integrations.
  • Multiplatform support.
  • User training and guidance.
  • 24/7 customer support.
  • Security and data privacy measures.

It’s also important to choose HR software appropriate to a company’s specific needs, such as budget and available implementation time. Making the right choice will make the whole process faster, leading to reaching goals more quickly.

Key features to look for in HR software

HR software comes with a long list of detailed features, meaning it’s easy to get lost when first learning about it. Nonetheless, some crucial features stand out and are worth looking for when choosing a service:

  • Employee hub: Gives team members real-time access to all records and documentation, such as salaries, insurance, tax, paid time off, and more.
  • ATS: Make hiring procedures faster, from source to hire. For example, applications are automatically accepted or rejected based on set criteria.
  • Recruitment: Combines ATS with features that further improve the recruitment process, such as better career pages, enhanced communication between parties, and more.
  • Payroll and benefits admin: Streamlines payroll-related time-consuming tasks, ensures easy access to compensation data, avoids manual data input, and clears calculation mistakes.
  • Time-tracking tool: Efficient work time tracking, which leads to accurate pay stubs and reports. Additionally, it removes the necessity to understand complicated tax legislation.
  • Performance evaluation: Easy assessment of team members through performance indicators, plus provides guidelines on what to develop further and improve.
  • Analytics, reports, and data: Real-time analytics, reports, and organized data are crucial for a business to prosper.

The future of HR software

We live in an era of digital transformation, where companies adopt new technologies to hone and optimize all work-related processes. Trying to stay competitive compels companies to adopt better policies, tools, and procedures, which makes considering HR software crucial.

For example, hybrid working models that mix in-office with remote work are now common but challenging without HR software. This service can assist in recruitment, performance monitoring, task scheduling, and other related challenges. Moreover, the newest version of this software uses AI and machine learning, which can analyze resumes, evaluate interviews, update data, personalize learning, develop work culture, improve employee engagement, and identify general issues.

It’s become increasingly indispensable for any business to consider using HR management software, whether a large workforce with many tasks or a small company full of multitaskers. Automation, predictive tools, and customization not only help simplify the lives of everyone in HR but also ensure general workplace satisfaction, leading to a successful business no matter the size.

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