7 Features to Look For in HR Software for Your Business

From recruitment and onboarding to payroll processing and performance tracking, HR software makes managing your remote workforce easier than ever. Jesse Liszka of Paylocity explains what to consider when looking for the right software.

Human Resources (HR) software has become a critical tool for managing and streamlining HR processes. What’s more, with the advent of cloud-based services and increasingly remote options, it has become an essential for remote employers. But with so many HR software options available, it can be challenging for businesses to determine the best solution. 

By understanding what to look for — from the different types of HR software, what to look for when evaluating software, the benefits of HR software — you can make informed decisions and select a software solution that meets their unique HR needs.

HR Software: The Basics

Human Resources software is designed to streamline and automate the management of HR functions for an organization. The software provides various features and tools to help HR professionals manage employee data, payroll, benefits administration, recruiting, performance management, and other tasks.

There have also been recent developments regarding remote and hybrid working. Remote employees can now access self-service systems and training programs using HR software. Some vendors even provide feedback tools, helpdesks, and chatbots to assist with their general queries.

Essentially, HR software can be customized to meet the specific needs of a business and can integrate with other software systems, such as accounting and enterprise resource planning (ERP) systems.

On-site vs. Cloud-based HR Software

There are on-site and cloud-based HR software options to consider, depending on whether you’re a fully remote employer or have a mixture of remote and in-person employees. 

HR software installed on-premise will run on an organization’s own servers. In comparison, cloud-based software is hosted on the software provider’s servers and accessed through the internet. Cloud-based software is becoming increasingly popular due to its flexibility, scalability, and accessibility.

The Many Benefits of HR Software

HR systems can provide considerable benefits for businesses of all types, including:

Streamlining HR processes: Software can automate and streamline many administrative tasks, such as employee data management, payroll processing, benefits administration, and performance tracking. 
Improved data accuracy: By using an HR system to manage employee information, businesses can reduce the risk of errors from manual data entry. 
Increased efficiency: With the right software, businesses can operate more efficiently and effectively, freeing time for HR professionals to focus on more important tasks.
Enhanced communication: Facilitates communication between employees and managers, making it easier for them to exchange information, set goals, and collaborate on projects. 
Better compliance: Software can help businesses comply with labor laws by automating compliance-related tasks, like tracking employee hours and benefits eligibility.
Improved analytics: Provides businesses with valuable insights into employee performance, turnover rates, and other key HR metrics. 

By automating administrative tasks and providing insights into employee performance, Human Resources software can help businesses make more informed decisions while improving employee productivity.

Types of HR Software

There are many different types of software available, each developed to meet specific HR needs. You can mix and match a few options or sign up for everything. Here are some of the more common types that are useful when it comes to remote working:

Employee Self-Service Systems: Provide employees with easy access to their own HR information, such as pay stubs, benefits information, and time-off requests. 
Learning Management Systems (LMS): These software solutions help businesses manage employee training and development programs.
HR Management Systems (HRMS): Comprehensive software solutions that cover all aspects of HR management. 
Applicant Tracking Systems (ATS): Help businesses manage their recruitment process, from posting job ads to scheduling candidate interviews.

Evaluating HR Software

To find the right HR system for your business, you’ll want to comprehensively analyze each software’s features, functionalities, and capabilities. Here’s what to consider:

Compatibility: Determine whether the software matches your current HR systems and workflows. You should also consider integrations with software tools like your payroll system or LMS and remote working tools like Slack. 
Ease of use: Evaluate how easy the software is to use, including its user interface, navigation, and training resources.
Functionality: Assess the software’s features and functionality, especially its ability to handle its touted HR tasks.
Customization: Determine if the system can be tailored to meet unique HR processes, rules, and regulations. For example, consider whether there are options that accommodate employees across multiple countries.
Security: Evaluate the software’s security features, including data encryption, backup, and protection measures.
Support: Determine the level of support available from the software vendor, including technical support, training resources, and customer service. 

Choose software that is easy to use, compatible with your existing systems, and can be customized to your specific needs.

HR Software Features To Look For

Now that you know what types of HR software are out there and how to evaluate them, you can think about the features you want. Here are some key features to look for:

Employee Data Management

Look for software with robust data management capabilities, allowing HR professionals to easily store, track, and update employee data, including personal information, employment history, and performance evaluations. With employee data management, you can easily practice labor forecasting and prepare for future hiring needs.

Payroll Processing and Benefits Administration

The system should be able to handle payroll processing tasks, including calculating and distributing employee paychecks, managing deductions, and generating tax forms. Additionally, look for software to manage employee benefits programs, including enrollment, eligibility, and claims processing.

Performance Tracking

Performance tracking features in HR software can help you evaluate employee performance, including setting goals and conducting performance reviews. You can also identify areas for improvement and discover the benefits of self-evaluation for employees.

Time and Attendance Tracking

Fine-tune time and attendance tracking by choosing a software solution that lets you track employee hours worked, overtime, and paid time off, all while managing employee schedules.

Compliance Management

Manage compliance with local, state, and federal labor laws, including tracking employee hours, leave time, and benefits eligibility. Managing employees in different locations can take time and effort. This feature can automate the process and flag potential issues early. 

Recruitment and Applicant Tracking

Certain HR systems allow you to manage the recruitment process. This feature can assist in posting job ads, organizing applicant data, and screening candidates’ resumes.

Onboarding

Streamline the onboarding process, including providing new hire paperwork, training materials, and orientation sessions by choosing an HR software with robust onboarding features. You can also look for stand-alone onboarding software that integrates with your other HR software solutions.

In Conclusion

With the rise in remote and hybrid working styles, a new layer of complexity has been added to HR. Evaluating and selecting the right HR software can be a game-changer — it can impact HR processes, employee engagement, and your organization’s success. By considering key factors such as functionality, customization, ease of use, reporting, security, and support, businesses can ensure that they select a software solution that aligns with their unique needs and goals. 

Author Bio

Jesse Liszka is the Senior Communications Specialist at Paylocity, leading provider of cloud-based payroll and key HR metrics software. She is a highly experienced communications, client marketing, and content specialist, with more than 12 years of experience.