Best Human Resources Software
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Top HR software recommendations
To help you in your search for the best human resources software, we’ve compiled a list of the top-rated HRM software according to their features. Read on after the comparison chart for more information on how online HR and payroll software can help your company, or fill out the Product Selection Tool at the top of the page to get free custom recommendations according to your needs.
Table of Contents
In this article...
What is HR software?
The growing human resources (HR) software market is forecasted to reach $33.58 billion by 2026. While most companies and individuals are somewhat familiar with HR and payroll software packages and online HR systems, the landscape is rapidly changing with the addition of new best-of-breed apps and HR tools to keep pace with the ways changing technology affects how users want to interact with software.
In its inception as licensed on-premise software, HR management software was restricted to employee data, payroll, and benefits. But the HRM software market has expanded significantly due to automated workflows and demand for cloud technology. These changes in customer expectations and the greater willingness of the workforce to use self-service models now mean HR tasks like payroll, time-off requests, benefits management, and org charts take up less administrative time, which frees up the HR team to focus their attentions on recruiting, employee experience, workforce management, company culture, branding, and other tasks that now fall under the descriptor of talent management.
Compare the best online HR tools
- TA Rating4.5/5
- ATSYes
- RecruitingYes
- Employee EngagementNo
- PayrollYes
- 3.5/5
- Yes
- Yes
- Yes
- Yes
- 3.5/5
- No
- No
- No
- Yes
- 4/5
- Yes
- Yes
- No
- Yes
- 4/5
- No
- No
- Yes
- Yes
- 4.5/5
- Yes
- No
- Yes
- No
- 4.5/5
- Yes
- No
- Yes
- Yes
- 4.5/5
- No
- No
- No
- Yes
Types of multi-tool on-premise or cloud HR solutions
- Human Resources Management Systems (HRMS)
- Human Resources Information Systems (HRIS)
- Talent Management Software
- Human Capital Management (HCM)
- Core HR Software
- HR Administration software
Best of breed SaaS categories within HR software
For in-depth information on each of these categories, click on the link to visit the category overview page.
- Applicant Tracking Software (ATS)
- Recruiting Software
- Employee Engagement Software
- Performance Management Software
- Learning Management Software (LMS)
- Payroll Software
- Time Clock Software
- Employee Onboarding Software
There has been little movement in traditional segments of the HRM software market since the first on-premise solutions were introduced in the late 1980s. HR and payroll software, time and attendance, and benefits management are the staple HRMS products, along with storing employee information. Market growth and consolidation are driven by emerging HRM software technology that makes the systems lighter and more available to SMBs, as well as new trends in HR management strategies like performance and talent management.
Human resource management software giants like Oracle, SAP, and ADP invested in multi-tool HRM software and have stayed competitive in the rapidly changing marketplace by acquiring successful startups and integrating those human resources tools and HR analytics into their current HR platforms. We can expect to see this trend continue, as startups have more flexibility to move quickly on emerging technologies and established core HR companies have the capital to acquire them.
Best HRM software vendors by specialty
Categories of HRM software solutions
Human resources information systems (HRIS)
Human Resources Information System (HRIS) software is an umbrella term that includes as many distinct types of software as there are online HR software companies. These products are known by many different names, but the purpose of these multi-function systems is to store individual employee data, manage payroll and benefits administration, and manage the company’s regulatory and legal employment requirements.
Although the amount of time that HR managers reported working on manual data input has gone down, these managers still spend up to 50 percent of their time on manual tasks. This time suck is closely followed by manual adjustments (30.6 percent) and spending time shuttling information between non-standardized HR tools across the organization (27.4 percent).
HRIS systems are designed to streamline and automate the three traditional pillars of HRM: payroll, time and attendance, and benefits management. And modern solutions go a long way to reduce manual data entry of employee information. Companies searching for the right HRIS software can expect to see these features in popular online HR systems:
- Payroll
- Time tracking
- Employee scheduling
- Benefits management
- Self-service employee portal
Other included features in an HRIS:
- Recruiting
- Applicant tracking
- Accounting
- Performance management
Leaders in the HRIS software space tend to be HR and payroll software giants that require significant onboarding but promise flexibility, accuracy, and employee data security. Because HR tools can store and manage the personal identifying data, banking, and tax information of all employees, human resource management software is subject to industry regulations and must stay current with state, local, and federal tax requirements.
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Applicant tracking systems and recruiting software
The rise of applicant tracking systems and recruiting software can be directly correlated with the increased automation of many of the traditional data-entry and administrative tasks that HR employees used to fill their days with. Now that HR departments don’t spend most of their time manually calculating time cards and payroll deductions, through the use of online HR tools, these teams can focus on attracting and hiring a stellar workforce.
Applicant tracking systems and recruiting software have similar functions but often differ in scale. Recruiting software is most often employed by recruiting agencies and large enterprise companies with high job demands as they are built to handle bulk or ongoing recruiting efforts.
Applicant tracking systems, on the other hand, are often employed by organizations that need employee lifecycle tracking and can include performance and engagement modules in addition to the traditional job board, resume, interview, and onboarding features.
Read the overview and detailed feature descriptions for standalone applicant tracking software or specialized recruiting software that fits your business. Our Technology Advisors are standing by to recommend the best tool for your needs. Call 877.702.2082 now for a free, 5-minute recommendation.
Learning management systems
Learning management systems (LMS), also known as elearning systems, track an employee’s education, certifications, qualifications, and skills and connect the employee with materials or courses available to develop those skills. An LMS may function as a part of an ATS or be included in ERP software, but many standalone options are also available for businesses of all sizes.
A traditional LMS allows managers to approve training, budgets, and calendars alongside performance and appraisal metrics. Most LMS users create their own learning content that then gets hosted on an LMS server. These systems typically require in-house departmental experts and training coordinators, or HR employees with training expertise, to build extensive learning and assessment modules. HRM software equips those in human resources roles with powerful HR tools to not be bogged down by repetitive data-entry type tasks.
A popular option that many companies with the lack of time or resources to build their own elearning courses adopt is purchasing subscriptions to ready-made learning content platforms. While not tailored specifically to the company’s workflows or internal processes, learners can take advantage of expert industry and tool-specific courses that increase their productivity and engagement. These platforms also provide data export or training records that individuals can port into the company’s HRIS, performance management, or employee engagement platform.
Want more information about learning management software and elearning systems? Visit our learning management software category for features to look for, benefits to expect, and advice on the best products.
Performance management software
Performance management software is a platform where HR professionals, managers, and employees can focus on assessing employee skills, set goals for performance, and track improvements over time.
Many companies use performance review software to coach employees of all skill levels and tenures and to organize and track performance appraisals yearly, quarterly, or through weekly pulse updates. All of this information is stored in employee files and gives HR employees and managers a clear view of the employee’s maturation in a current role. With the assistance of a quality online HR system, this end-to-end view often helps the team with larger HR initiatives like succession planning and employment growth.
Performance systems often include or are closely integrated with LMS and employee engagement tools that give teams a better understanding of individual and overall movement toward goals.
Want to learn more about performance management software features and benefits? Visit the performance management software category where you can check out top products and reviews, and receive recommendations based on your software needs.
Employee engagement
Whereas performance management tools seek to build an integrated system from hiring to retiring, employee engagement software helps companies improve the employee experience and increase individual and team engagement with everyday work priorities. Engagement software both measures current workforce engagement levels and seeks to provide solid feedback and coaching to improve the employee’s level of involvement in daily tasks.
These systems often use a combination of survey tools, follow up workflows, gamification, and analytics. Users are prompted daily or weekly to provide feedback on their current work priorities, progress towards goals, and feelings about their own work.
Employee experience software is found either as a standalone system, a feature of an HRIS or ERP software, or as an integrated tool that works in tandem with a larger HRIS, ERP, or performance or talent management system.
Visit the employee engagement software overview to learn more about this human resource software, including major features and products. Or you can call a Technology Advisor today for free recommendations based on your current software needs.
Current trends in HRIS systems
As the HR and payroll software market grows and changes, there are a few additional considerations to make when choosing a solution. Features such as HR analytics, social integration, and mobile capabilities are becoming standard issue for most HR tools rather than innovative selling points.
Here are the most prominent and ongoing trends for some of the best HRM software providers on the market today:
Artificial intelligence (AI) and machine learning
The growth of AI and Machine Learning in the software space is undeniable, with nearly 50 percent of businesses saying they’ve adopted AI in at least one aspect of their business. Currently, AI companies are building tools that help HR managers with recruiting and onboarding new employees, and some companies are using the technology to make more intelligent pulse surveys.
Machine Learning can most often be found in the elearning fields and within LMS software to better understand what types of courses employees should take next. These tools can also be used to offer learners new resources based on established learning patterns and behavior. They’re also helpful in recruiting tools to reduce hiring biases and find qualified candidates quickly.
AI and Machine Learning are both still relatively new fields of technology that are just finding applications within HR systems. Expect to see big strides within both of these fields over the coming years as the technology matures.
Team management vs. talent management
As with any trend in HR, team management, also called workforce management, styles go through swings along the personalization scale. And while greater personalization is a huge trend across both employee and consumer management, many companies find that managing teams of employees who share similar business outcome goals makes sense.
This trend has changed how management and employees communicate, how managers and HR professionals look at performance, and how the whole company looks at employee engagement. Expect to see this trend play out in team goal-setting and business organizations. While perhaps not fully affecting recruiting yet, workforce management will have an effect on interviews as managers will need to ensure candidates can work well with their teams.
HR consulting services
Small and medium-sized businesses (SMBs) don’t typically prioritize HR staff, which can create delays or difficulties with core HR processes like payroll and recruiting. Luckily, many online HR software companies have started to offer HR services as an add-on in their packages. With these services, the vendors act as an HR managed services provider, allowing these small organizations to outsource their core HR functions.
These HR services allow SMBs to cover these core functions at a cheaper cost than hiring in-house personnel. It also removes some of the burden from the business’s workforce, allowing them to improve their own productivity and optimize their department.
Best of breed vs. integrated systems
Driven largely by the overall move to cloud software, many companies now choose to use several separate HR platforms to manage the entire employee life cycle rather than contract a fully featured HRIS. This choice is sometimes financially motivated, but there are many factors at play here.
HRIS can be difficult to implement at first, requiring several months or years of onboarding (depending on the size of the company). However, once it’s in place, the HRIS can act as a central source of truth for everything related to employee information including:
- Payroll software
- Time tracking
- Performance management
- Employee engagement
- LMS and elearning
- Succession management
- Benefits
Companies that choose to implement separate software for each of these items may find comfort in SaaS’s subscription model that gives them the freedom to switch providers at any time, or they may choose to only implement each software as it becomes necessary to the company’s growth.
A third option employed by many companies is to skip both HRIS and SaaS software and implement an ERP system instead. This software tends to be more complicated than HRIS systems, but can include vital features like supply chain management and financial systems.
Company branding & culture
Workplace culture and company branding have affected all points in the employee lifecycle. Recruitment strategies that look more like marketing and employee health and wellness programs help companies plan and involve employees in positive company cultures. These programs help companies combat the rising cost of mental health issues that impact time loss and benefits coverage.
Companies can expect HR teams and individual employees to push for professional development, elearning, wellness benefits, and greater attention to harmful workplace cultures than ever before. These priorities can be tracked and improved through the use of online HR systems including performance reviews, LMS, and recruiting systems.
