HR Management Software

HR Management software helps to manage to facilitate human resources functions and tasks. These tasks are wide-ranging and include the following: payroll, personnel information management, onboarding, recruiting, talent management, performance management, learning management, succession planning, workforce management, and employee engagement

However, not all HR management software is the same, and as the HR field has grown over the past several decades, many new terms and philosophies have come into play. The most important are core HR, strategic HR, Human Capital Management, and People Ops.

What is HR Management?

HR Management software helps to manage to facilitate human resources functions and tasks. These tasks are wide-ranging and include the following: payroll, personnel information management, onboarding, recruiting, talent management, performance management, learning management, succession planning, workforce management, and employee engagement

However, not all HR management software is the same, and as the HR field has grown over the past several decades, many new terms and philosophies have come into play. The most important are core HR, strategic HR, Human Capital Management, and People Ops.

Core HR

Core HR, also known as administrative HR, is the set of fundamental administrative tasks that are needed to employ people. Typically, this refers to payroll, personnel information management, and onboarding. It can also include functions typically associated with these. For example, benefits administration is often a part of core HR due to its association with payroll.

As its name suggests, core HR is core to HR management packages. Every package will cover these essential functions. In fact, many payroll packages cover the functions without being classified as HR management.

Strategic HR

Strategic HR is a loosely defined term. It generally refers to several HR-related activities that can help improve the quality of the labor force. This includes recruiting, talent management, performance management, learning management, and succession planning.

Not every software package will have all of these functions. In fact, many of these functions will be sold as add-ons to or modules for a core HR package. This allows businesses to pick and choose the areas of HR where they want to focus their efforts.

Human Capital Management (HCM)

Human capital management aims to maximize the value of a company’s labor force. This is achieved through a strong foundation in core and strategic HR tasks, as well as many workforce management functions.

Many HCMs use the data obtained from these core functions to provide actionable information to decision-makers. This data can be used for many purposes, from identifying unproductive business units to identifying high-performing employees. This insight and visibility allows leaders to make precise decisions instead of overly broad ones.

People Ops

People Ops is a newer HR philosophy focusing on enabling employees to be their most productive. While Human Capital Management seeks to identify and enable high performance, People Ops aims to unlock employee performance. Philosophically, there is an emphasis on treating employees as people instead of capital or assets. As such, People Ops will focus on employee engagement and corporate wellness.

It is important to understand that while People Ops and Human Capital Management entail different approaches, they are built on the same or very similar tools. Many HCM software packages will provide all the information needed to implement a People Ops program. The difference is in how the information is used.

Due to the differences in implementation, Human Capital Management and People Ops often thrive in different industries. Human Capital Management is more often seen in industries with a higher fraction of hourly workers, higher turnovers, and more easily measured KPIs. In contrast, People Ops is often seen in industries requiring creativity and innovation.

HR Management Features

Many products in HR Management have the following features:

Human Resource Information System (HRIS)

• Employee personal information
• Employment history
• Job profiles
• Workflow for transfers
• Promotions
• Pay raises
• Benefits information, etc.

Payroll Management

• Calculation of employee pay and benefits
• Managing direct deposit
• Salary revisions
• Payroll tracking

Employee Self Service

• Access pay records
• Access benefits information
• Update personal information
• View company policies

Recruiting and Applicant Tracking

• Job requisition
• Job site posting
• Applicant tracking
• Candidate filtering tools

Strategic HR Functions

• Goal setting and performance tracking
• Performance management
• Succession planning
• Learning and training management
• Employee engagement

HR Management Software Comparison

To compare different HR management systems, you will likely want to consider these facets of the software:

1. Target Size: Many HR management systems are tailored to specific company sizes. For instance, some vendors focus on SMBs, while others tailor their HR management software to enterprises. Look for a product with proven users in your size range, as well as a demonstrated ability to scale up if you want to accommodate future growth.
2. Core HR vs. Strategic functions: Many HR management systems have expanded to include strategic HR functions, like talent management, in addition to the core HR processes of payroll, personnel tracking, and employee recordkeeping. However, not all HR management vendors have expanded, or expanded to the same breadth, as the large HCMs. You may also not need to use, or pay for, all of the strategic HR functions if they’re not relevant to your industry or size.
3. Reporting: Reporting is an increasingly standard aspect of many HR professionals’ lives. Feature ratings can give some indication of a product’s reporting capabilities in general. Reviews can also contextualize whether a product’s strengths or weaknesses in reporting comes from its customizability, exportability, or visualizations, so you can focus on the reporting aspects most relevant to you.

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More Resources

• See How 10 Leading HR Management Products Stack Up
• 10 Ways Cloud HR Software is Changing the Way Human Resources Works
• Management Software Turducken: What are the Different types of HR Software?
• The 5 Biggest Challenges that HR Software Users Face Today
• Choosing the Right HRIS Software for your Organization
• HR Management Software Market Update (2021)

HR Management Software Best Of Awards

The following HR Management Software offer award-winning customer relationships, feature sets, and value for price. Learn more about our Winter Best Of Awards methodology here.