7 Major Things to Know About HR Software
We are here with a post showing 7 major things to be known regarding HR software. With the changes in technology and acceptance of such changes, the use of software in the business for efficiency has become a routine task. In this post, we will discuss why HR software is beneficial for any business. To understand HR software, firstly it is important to understand what HR is and what HRM is. Let us understand these two terms in detail
What is HR?
HR stands for Human Resource. We generally tend to connect the word HR to the people of the organization. It can be stated that human resource is the collection of people in one team or workforce to contribute to any organization and achieve common goals. The human resource staff can be employees or contractors or part-time workers or project-based employees, on-call workers, temporary help agency workers, or any such. With the high acceptance of the gig economy, more people have started working on a contract basis with organizations without traditional labor contracts.
The contractors can work under contracts for years with the same organization whereas the agency worker can work at different agencies throughout the year. As these people are involved in different organizations, they need to be managed and involved differently in the activities.
Along with technology, there is also an increase in the number of non-humans in the organization. Also, with the increase in the use of software and robots in day-to-day activities of the organization, the interaction between humans and machines has become more essential for growth and success. Even though the machines are not considered human resources, they need to be managed appropriately by the HR managers as they are part of the workforce.
What is HRM?
HRM stands for human resource management and can be simply defined as managing the human resource to achieve the desired performance.
For instance, if the people who are the best fit for the company culture are hired, they stay happier, productive, and longer in the business than the ones who don’t fit the company culture.
Another major point to be considered is the engagement of human resources because if they are more engaged, they will be more productive delivering higher quality work and make the customers happy.
The HR department is bound to provide the tools, training, knowledge, administration, legal advice, and talent management all of which is crucial to maintain and advance the company towards growth. Human resource management focuses on optimizing the company performance by managing the human resources in a better way.
Human resource management mainly includes 7 elements that need to be controlled and managed appropriately by the HR department. Let us first understand these 7 elements in short before moving to the 7 major things to know about HR software.
The sever major elements include recruiting and selecting employees, managing their performance, learning and developing, plan for succession, the compensation, and benefits, HR data and analytics, human resources information systems.
Learning and developing
The learning and developing stages ensure that the employees keep adapting to changes in technology, processes, shifts, and much more. This helps employees to reskill and upskill. It brings training opportunities for the employees that help them to advance in the long-term goals.
Selecting and recruiting
Recruiting and selecting the candidates is considered the lifeblood of the business and a key HR responsibility. When a new vacancy is created, the requirement of new hires arises. HR starts the recruitment process to find the best candidate to meet the job requirements. This includes the whole process of interviews, assessments, reference checks, and a few tests. Pre-selection tools can also be used by HR if there are more applicants.
Once the employees are selected, the process of managing their performance starts. HR provides the employees with their set of responsibilities to be followed. The employees are required to serve their best to boost the bottom line of the company. Also, the performance management tool allows the employees to get feedback on their performance. Successful management is considered as the joint duty of the HR manager and management where the manager leads and HR supports.
Plan for succession
Planning for succession is planning for alternative options if in any case, employees leave their jobs. It is mainly based on the ratings and efforts. It keeps the pool of qualified candidates ready to meet future uncertainties by building a talent pipeline.
Payouts and benefits
Making fair payouts is considered a major form of motivation among the employees. All the payouts and benefits must be decided to keep the budget limits in mind. HR must increase the payments with times and also pay audits on specific occasions. The primary compensation i.e., direct monthly salary, and secondary compensation i.e., performance-based are decided by HR.
HR data management
In the last few years, most organizations are becoming data-driven. The data stored in the software can be useful to make better and informed decisions. Reports are generated out of the collected data and those can be used to keep track of activities.
Human resources information system
Shortly known as HRIS, it supports all the cornerstones. All the functionalities from recruiting and selecting, training, tracking, hiring, performance management, learning, and payouts can be performed through a single system known as HRIS.
Now without waiting much let us move further to the 7 major things regarding HR software. The following are the most critical features that the software provides to support any organization.
Here are Some Examples of the Best HR Software:
- Keka HR Payroll Platform
Keka is the Saas employee experience platform that combines HR, payroll, ATS, and performance management in a single suite of tools. It simplifies the common tasks and allows organizations to seamlessly manage the human resources processes. Which has automated and simplify the people processes so you can focus on the core asset with employees. They will transform you from a good to a great organization!
- Spine HR and Payroll
Spine HR and Payroll that keep the HR and Finance professionals on their toes by helping them to fast-track the Human Resource and Asset management process. It will take you as you are and make you more than you ever imagined. Spine Technologies has established an HRMS and Fixed Asset Management Solution Company with an excellent track record of having the highest client of retention in the industry. Helping organizations to get it right through integrated advanced solutions which are including the use of technology that makes the experience for employees and employers easy and convenient.
GreytHR has automated all the people operations including employee information management, leave and attendance management, training, appraisals, compensation, and many more things. Aim of providing relevant and cost-effective software solutions in the HR domain to companies worldwide.
Manage finance and accounts
One of the most important tasks of any organization is to manage the finance and accounts and is considered the integral duty of the HR department. With the use of HR software, the business can carry out the essential functionality and make sure that the payouts are calculated properly and on time. The base salary calculation, bonus programs, stocks, commissions, and long-term incentives are managed easily in the different modules of the software. The HR software provides the facility of compensation management that helps to plan the financial activities. Major activities that can be carried out are compensation, payroll, rewards, bonuses, salary administration, recognize employees, and much more.
Manage employee information
The software must include complete data of employees and their profiles such as job and salary history, personal information, banking and tax data, time off requests, insurance plans, performance feedback, disciplinary history, or any more custom fields if required. This helps keep the information of every employee linked to the main record which allows easy access, tracking, and reporting of the same. The software is capable of providing a self-service portal to the employees where they can log in and access the important information as well as the important documents. The major features provided by the software are the employee self-service portal, their records and profile information, job history, salary data, disciplinary data, insurance plans, time off, banking, and taxation data.
Training and learning processes
Training and learning courses are necessary to keep the employees and workforce up-to-date. The HR software includes learning management systems that come with the pre-loaded modules having educational resources that even allow the employees to upload their customized materials. Some software also allows connecting the external systems to help the employees to get advanced material. It keeps a track of all the certifications which helps to minimize the staffing and planning problems. The major benefits of having these training and learning processes are learning the course administration, test and train along with customized data, professional certification, standardize the content, manage the performance, and much more.
Recruiting candidates and hiring process
The HR software stays capable of assisting all the human resource responsibilities of every employee cycle right from the beginning of their job with recruitment and hiring. The HRM software can manage the hiring process for HR departments by providing automated HR features right from selection to admission of the employee. The businesses get permitted to post their job openings on multiple websites as well as social media channels with ease and also use the software to craft any vacancy description. Whenever job openings are started, the application tracking systems automate the process of accepting or rejecting the candidates based on predetermined rules.
The benefits of using the HR software for recruitment include job descriptions, job requisition, posting, social recruiting, evaluating the applications, track the status of applications, automate the responses, extend the job offers, check backgrounds, and manage the site, and much more.
The HR software also includes robust talent management features that evaluate the employees even before the interview process. Once the employees are hired, the performance assessments give access to information regarding employee productivity, satisfaction, and much more. The programs are mainly designed to provide automated feedback and also help the HR people to base their reviews on the analysis of software. If the system allows, employee performance can be made visible to the workforce through the dashboard or any other such interface. This reduces the time spent notifying the employees through emails or review meetings.
The inclusions in the HR software regarding the maintenance of talent are employee performance, competency tests, behavioral tests, reviews and feedbacks, and KPI i.e., key performance indicators.
Manage the interests of the organization
One of the major inclusions in the HR software is the management of employee interests including their healthcare and much more. The HR software facilitates the HR department by gifting the features to facilitate workflow and information. Along with this, if the employees get the benefits of ease of use, it can reduce the errors and extra work.
The HR software allows the users to get the following things such as wellness, administration, health, and life insurance, traveling compensation, retirement plans, paid overtime, paid leaves, and much more.
The HR software allows the users to schedule the shifts and attendance that is required to comply with staffing requirements. Different schedules can be decided for employees of different departments or locations or projects. Most of the software provides the facility to alert the listed employees if any changes are made in the schedules or staffing levels. The electronic timesheets are also prepared which makes the management of payouts and tracking much smoother. Managing the time of features helps the HR people to handle the payouts and add the maternity leave, disability leaves, paternity leave or any such if applicable. Also, the biometrics data is automatically connected to the HR software which allows easy calculations of leaves or late reporting to calculate final payouts at end of every month.
The major providing of HR software for managing attendance include timely reporting, tracking, clock in/ clock out, bill projects, track overtime, schedule workforces, paid time offs, mark absents, biometrics, check holidays, and much more.
The standard HR software has now become a necessity of different types of businesses as it fulfills the requirements of storing the employee information at a single place to manage and access it with ease. It also helps to handle the finances and gives major benefits are information is shared across the industries and locations. Not only the HR software but also the other features such as advanced learning techniques, analytic, reporting, and accounting capabilities are plus.
The first step of finding new HR software is evaluating the requirements of the business unit. Once all the requirements are penned down and mapped against others, opting for the correct software vendor becomes easy. You must check the available software and the system requirements to get the best software. Making a full list of the HR features requirements can make the HR software selection much less overwhelming and help you to make the best choice.
What do you think, which features are necessary for your business? We brought these 7 major things to be known regarding the HR software and these 7 can be considered as the major feature requirement for any type of business. We hope these points gave you a clear idea of getting the software and making with work well.
Aftab Vasiwala is nurturing his future at Techimply as Software Analyst and Writer for HR Software with good experience in various genres of blog writing in various industries under the several topics. Who loves to write on the latest Software technologies and their impact on businesses.