Human resources software helps your business in more ways than one. You can use it to do everything from screening job applicants and tracking employee performance to running employee payroll, keeping track of employee benefits and storing employee-related paperwork. Check out some of the different types of HR software and learn why you need to use them:
Human Resource Management Software
Human resource management (HRM) software allows your company to manage payroll, track employee performance and schedule your employees’ shifts. It also keeps track of all of your employee evaluations, attendance records and what type of continuing education or training classes employees have completed. Most HRM software also includes some type of applicant tracking system, and lets you run analytics and reports to access your company’s future employment needs.
Every company needs software to handle these types of HR tasks. However, before you purchase HRM software, you need to decide whether it’s the right fit for your business, or if you’d be better off using Human Capital Management (HCM) software. HCM software is similar to HRM, but it usually has a few extra features. Looking at HCM vs. HRM comparisons before making a purchase helps you make a well-informed decision.
Human Capital Management Software
Human capital management software digs a bit deeper than traditional HRM software. In addition to tracking all things employee-related, HCM software looks at each employee as a company asset. So in addition to tracking things such as attendance and employee evaluations, it tracks hiring budgets for each department, helps you create a specific onboarding process for new employees and helps you plan and execute strategies to build and manage effective workforce productivity. Like HRM software, HCM software keeps all of your human resources-related data in one place, which makes it easy to access by multiple employees, improves communication between the HR department and your department managers and increases the overall efficiency of your HR department.
Applicant Tracking Software
To attract and retain the best possible employees, you need a plan — and that plan should include applicant tracking software (ATS). In fact, approximately 75 percent of business organizations use an ATS, and with good reason. Applicant tracking software stores the information that applicants submit to your company, so you can quickly filter through it to find applicants suitable for open job positions. Additionally, the software helps you screen potential employees by completing background checks automatically.
Employee Recognition Software
Employee recognition is important to your overall retention rates, so you should consider using a rewards tracking software. This type of software lets you track every employee recognition, and helps you determine which employees meet specific recognition requirements. Use the software to track monthly productivity contests, employee anniversaries and performance quality levels.
Learning Management Systems
You should always encourage employees to continue their education, even if the courses taken are simply on-the-job training for higher positions within the company. You can track what courses and training sessions your employees have completed using learning management systems (LMS). This way, when you’re ready to promote from within the company, you’ll know exactly which employees already have the training needed to do the job.
Ultimately, the type of HR software you choose to use for your business is your decision. However, you need to choose an option that covers all of your bases, or multiple systems that cover everything you need.