Investing in HR software can be a crucial step for any business organization. And when you are looking to streamline processes and improve your business operations, selecting a reliable tool becomes even more imperative.
The key functions of HR tools include a self-service portal for managers and employees, digital tracking of employee data, or similar capabilities. However, there are other functions as well that add weightage to these tools making them a must-have utility for any SME.
You might be wondering why your organization needs a human resource management system. Why having an HR application is important for a business? What are the benefits of employing one? Let’s explore.
How Do Employees Use HR Software?
Most people in an organization need to interact with HR Software at some point in time. Employees even use HR tools to manage tasks that are not usually directly related to their work. These tasks vary from managing time off to optimizing the experience.
HR teams utilize these tools to gather the most up-to-date employee data and manage it accurately and in a timely manner. Automated tools, in return, ensure that the business tasks are in compliance with state and federal labour laws.
Managers use human-resource tools to help employees learn and develop new skills. These tools allow managers to keep track of employee performance through analytics and insights based on recent activities.
Finance teams in any business organization need more in-depth reporting that helps them project budgets and future profits. Tax compliance reports, payroll management, and other similar features simplify finance processes in different ways.
Human resource is a vast area and explaining all the tasks that a tool can handle effectively is not quite feasible. Considering the features and functions offered by HR software, they can be categorized into three major segments.
- HRIS or HRMS
While HRIS comes with more basic functions such as payroll and attendance management, the HRMS can be considered an advanced version that enables performance management or reporting and analysis.
HRIS tools can be ideal for small and medium-sized business organizations with a limited number of employees. On the other hand, HRMS handles more complex HR operations and is hence a perfect option for large enterprises with a distributed workforce.
- Workforce Management Software
As the name signifies, workforce management software (WMS) allows HR teams to manage their employees effectively. In general, it is a suite of productivity tools that ensure that all the employees are in the right place and handling the assigned tasks efficiently.
With the active tracking of employee activity, workforce management tools ensure maximum productivity for employees. This can be deployed as a standalone solution or as a module in your existing HRMS platform.
- Talent Management
For maximum productivity, the business must acquire and retain top talent from the extensive talent pool. The talent management software integrates features that help you hire top applicants for any open position.
These tools ensure smooth recruiting and onboarding processes. Other significant features that make talent management software a must-have for businesses include performance tracking, learning and development, and compensation planning to name a few.
Since HR software is helpful for all departments – be it your IT employees, HR professionals, or Finance experts, it’s important to employ one in your workplace. Cloud-based features make collaboration easier across different departments.