HR Management Software Overview
What is HRMS and Core HR?
Human Resource (HR) Management Software, also called Core HR, include the following:
- Benefits administration
- Personnel tracking
These systems are also referred to as back-end HR systems since they help manage key administrative HR tasks, and are essentially the employee system of record. These core tasks are distinct from strategic HR tasks like performance management, recruiting, talent management, and learning management.
HR Software and the Emergence of HCM Suites
The dividing line between various HR software categories is blurring. Many core HR vendors are offering adjacent capabilities in order to capture the attention being given to categories that are seen as more strategic vs. administrative.
Talent management software, for example, is focused on helping companies hire, train and keep the highest quality staff. A number of core HR vendors are adding talent management capabilities, just as some talent management vendors are adding in back-end core HR capabilities.
Ultimate Software, Oracle, ADP, and SilkRoad all offer some combination of core HR and talent management features. Few Human Capital Management Suites provide equally strong capabilities across all areas, but convergence is an important trend.
Core HR Software Features & Capabilities
The Core HR features common to most products in this category are as follows:
Core HR / HRIS
The primary function of Core HR software is to provide a central database containing records for all employees past and present, along with contractors. The Human Resource Information System (HRIS) is an employee master record which supplies this, a system of record for employee data.
HRIS contain data on the following:
- Employee personal information
- Employment history
- Job profiles
- Workflow for transfers
- Pay raises
- Benefits information, etc.
Payroll management capabilities provide for the following:
- Calculation of employee pay and benefits
- Managing direct deposit
- Salary revisions
- Payroll tracking
Leave and Attendance Management
Leave and attendance management streamlines communication between HR and employees, and facilitates efficient management of employee leave including:
- Balance calculation
- Annual carry-forward
Provision of an employee portal allowing employees to view and update their personal information. This removes a considerable administrative burden from HR staff.
Some Core HR systems have the ability to keep a record of assets issued to employees such as:
- cell phones, etc.
The record typically includes asset type, number, serial number and date of issuance.
HR reporting has come to be seen as more important than ever as HR data is now seen as strategic to the running of any business. Some vendors build their own reporting capabilities, while others partner with BI vendors to embed 3rd-party functionality.
HR Management Software Comparison
To compare different HR management products, you will likely want to consider these facets of the software:
- Target Size: Many HR management tools are tailored
to specific company sizes. For instance, some vendors focuses on SMBs, while
others tailor their product 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.
- Core HR vs. Strategic functions: Many HR management products 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.
- Reporting: Reporting is an increasingly standard
aspect of many HR professionals’ lives, and it’s frequently one of
the lowest-rated features across HR management products. 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.