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Employee Benefits

How to Choose an HR Software System

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Published On: November 3, 2021

As an HR professional, you know all too well that you and your team are responsible for managing some of your company’s most important business needs. From recruiting to payroll and benefits, HR leaders utilize technology solutions for organizational excellence and efficiency daily. 

HR software is designed to help businesses scale and manage HR processes like employee benefits; time and attendance; employee performance; and other important details to ensure employee and organizational health and legal compliance.

Below is a primer on what HR managers and HR leaders should consider when researching workforce management software.

What to Look for in a Software Provider

When researching potential solution providers, there are a few factors you’ll want to consider before signing on.

First and foremost, you want to ensure your technology team is prepared for any system integrations or implementations that may prove necessary. Communicate early and often about large-scale changes or updates, especially if these interruptions could impair your operational efficiencies internally or impact the customer or client-side.

Additionally, when talking with vendors, make sure to ask the following questions:

  • What kind of industries utilize your software the most?

  • What size companies usually use your software? 

  • What size HR departments would best utilize this software?

  • What kind of customer support and training do you offer?

  • What are new features that may become available?

  • What is your renewal rate?

Types of HR Software Systems 

If your company wants to overhaul the existing HR software completely, the process could prove overwhelming early on. The sheer amount of HR-related software on the market alone is vast. 

Because organizational efficiency and compliance are crucial to maintaining a happy and productive workforce, the HR solutions industry is inundated with products for any business or workforce. While many HR systems started as a way to track employee time and attendance, the industry trend has evolved to include product features that extend well beyond traditional payroll responsibilities. 

When considering different types of systems, know that many HR platforms come with a variety of software modules reflecting the diverse responsibilities of the HR team. 

Almost every platform nowadays includes:

  • Human resource information systems (HRIS)

  • Human resource management systems (HRMS)

  • Human capital management (HCM) software 

What’s more, the responsibilities of HR leaders have changed over the decades, which is why many software platforms now include features like:

  • Talent acquisition and management software

  • Workforce management software

  • Employee engagement software 

  • Self-service employee portals

  • Performance management software

Let’s take a quick look at each product feature to understand the benefits better.

Talent Acquisition and Management

It’s no secret that there is a labor shortage in America, so finding and retaining quality talent has never felt more urgent.

Talent acquisition and management suites are designed to make the recruiting and retention process simpler and more effective for HR professionals. Recruiters may get more accolades and recognition, but many C-suite executives understand employee retention's significant impact on business development. 

Workforce Management Software 

Workforce management software is designed to help businesses manage their employee schedules, track employee attendance, and report on workplace efficiency. 

In particular, employers are investigating how best to track employee productivity as the labor market’s demand for remote and hybrid workplaces has increased. Workforce management software is designed to identify productivity issues with employees and teams and alert staffers on what areas of the business need immediate help.

Employee Engagement Software

Employee engagement has remained a hot topic in HR and a generally effective tool for gauging employee happiness and churn rate. As a result, there is no shortage of software options available to address this area in the marketplace.

When considering program options to measure employee engagement, keep in mind that your workforce is the end-user. This means that selecting an easy-to-use software is paramount, especially for employees who struggle with technology. Employers will also want a platform that can seamlessly integrate with your organization's email and collaboration platforms to ensure widespread adoption and usage. 

Self-Service Portal

Self-service employee portals are one the biggest growing trends in HR technology. Self-service options enable employees to take more ownership of their HR needs, making it easier to schedule meetings, review their benefits or request time off, along with other tasks. 

A self-service portal is a must for smaller operations to keep costs down and effortlessly manage your HR team’s workload.

Performance Management Software

Performance management software helps HR staffers quickly identify personnel problems. These features can also help manage performance reviews, making it a must for companies with clearly defined growth tracts or regular performance check-ins.

If you are considering a performance management option, look for a system with the ability to help your team identify emerging leaders, employees at risk of leaving, and employees that may need encouragement or require additional training.  Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, and be sure to catch the latest episode of This Week in Benefits.

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Abbey Dean

Content Marketing Lead, Mployer Advisor

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