125 Best HR Software in 2021

What is HRMS Software?

HRMS software is an enterprise solution that assists the organizations in tracking attendance, managing performance appraisals, payroll, workforce management, team management, leave management, etc. Businesses of all sizes can deploy the HR & payroll management software to enhance productivity and employee engagement. 

The best HRMS software not only saves time and energy consumed in manual tasks but also reduces errors as well. With the help of the workforce management system software, companies can share information and update employee-related data quickly and easily. 

How to Use HRMS Software

1. The best HRMS software can be easily implemented in your organization. All employee related details can be migrated from your existing system to the HRMS for information management. Further, employee profiles can be created with all required information to track and manage their life cycle. 
2. HRMS software is used by HR professionals to generate employee management policies, manage payroll, leave attendance. HR management software can be further integrated with a biometric system to track employee attendance. 

HR Management Software Modules & Integrations

1. Attendance Biometric Device: The HRMS management system, when clubbed with the attendance biometric device, not only provides security but also makes sure that the attendance is accurately logged. The payroll management system verifies the employee through fingerprint and helps in restricting staff’s access in specific cabins or offices. 
2. Leave & Attendance Management System: With HRMS system, employees can mark their attendance, monitor their duty hours, and apply for leaves. 
3. HR Payroll System: Besides getting detailed reports of the employee, the companies can ensure timely payments and track employee work hours through HR Payroll System.
4. Recruitment Management System: The HR management solution can be deployed to formulate hiring, and for getting important details about the candidate. 
5. Employees Performance Tracking System: Managing performance appraisal on a monthly or yearly basis becomes easier with HRIS software. Additionally, the managers can give quick feedback and performance ratings easily. 

How Does Online HR Management Software Work

1. HR Management System Software consists of self-service portals that help the employees in tracking and updating their record. HRIS software minimizes the time-consuming interaction between employees and the HR for simple issues like leaves. 
2. The centralized employee database of HR Management System Software can be accessed from anywhere, but the sensitive information can be restricted for some users. 
3. Employees can access policy related details through employee self service portal, apply for leaves, etc. Employees can also share performance appraisal forms, receive feedback, access their pay slips, and update taxation details with HR management software. 
4. HRMS also assist in job posting or training programs through social networking. HRIS software can easily integrate with different job portals and social media sites for candidate screening. 

Main Key Features of Human Resource Management (HRM) Software

Employee and HR Database Management - This database management feature includes employee’s complete data like medical history, leave management, PPF and EPF forms, grievance history, and other pertinent information. Through HRMS, the HR managers can access an employee’s records that are considered relevant for the organization.

Employees Application Tracker - Application tracker and management feature help you record and store information of applicants, and segregate which one to select, and which one to reject. Also, you can conduct an applicant’s background check and bring-in efficiency to the onboarding process.

Documents Management - This document management software feature ensures that all data and information relevant to the company and employees are maintained and managed efficiently. Company documents entail legal documents, yearly holiday lists, business documents, company policies, benefits, and insurance-related information.

Task and Project Management - With this feature of an HR management software solution, you can execute and manage a project effectively. With this you can keep a track of project sheets, execute task management, team management, progress analysis, etc. HR management solution also allows you to track a project’s progress.

Events Management - HRMS system helps the HR managers in performing their daily activities effectively. These daily tasks may comprise resource sharing, training schedules, reminders (employee birthdays, work anniversaries), collaboration between departments, updates on events, and more. The HR events management solution has an in-built checklist to ensure that emails or alerts are sent out on time.

Employee Shift Scheduling - Using this employee scheduling feature, the manager can schedule shifts and attendance. The feature also helps in enhancing the company’s assignment practices, improving cooperation between departments, and managing the schedule. 

Security and Safety - HR management software is available in two variants – on-premise and on cloud. Both have their own advantages, though the cloud-based solution is more popular thanks to its regular security updates and monitoring of digital threats. Hosting data on cloud offers greater protection as compared to on-premise software, as data transmission in cloud happens in a more encrypted form which leads to greater security.

Data Backup and Upgradation - Top HRMS software solution also offers flexibility and supports scalable IT architecture. The HRMS software features get updated directly from the server-side. 

Importance of Human Resource (HR) Management Software

By choosing the right HR Management System software, you can add value to your business. Since the HRMS saves time spent in maintaining employees, database, attendance and spreadsheets, businesses can use their time in maximizing the production and quality of their service. HRMS modules like applicant tracking, payroll, learning management, and talent management are important for any business to maintain employer-employee relationship. 

Managing time is another crucial factor and HRMS makes sure that the employee’s attendance is being tracked through biometric devices, physical cards, or passcodes. Additionally, HR management software provides reporting tools to analyze the performance of employees in real-time. 

Functions of HR Management Software

Recruitment Process - A robust recruitment management system helps manage any process starting from filling up forms to onboarding and off-boarding. Apart from this, it helps post job vacancy advertisements online, maintain a record of job applicants, shortlist candidates, and file documentation online. 

Performance Evaluation - The performance management module forms an integral part of modern HR management system software that allows you to automate the appraisal process, track the set targets, set individual team objectives, incorporate competence framework, etc. Also, it enables the HR managers to integrate work reviews and keep a tab on key performance milestones achieved by the employees during their appraisal cycle. 

HR Onboarding - Once an employee joins the organization, he has to undergo an induction process to get familiar with the company’s policies and guidelines. With HRMS management software, the onboarding process for a candidate can be automated, and new recruits can meet their reporting manager, team members, and other staff virtually. Apart from this, the onboarding module helps in sending automatic notifications to relevant departments for issues such as vehicle pass, for parking, user accounts, security passes, etc.

Workforce Management - The best of HRMS payroll software offer a workforce management module, which primarily takes care of the scheduling needs of the organization. This module closely ties up (and is often used with) time, attendance and leave management modules. Additionally, the workforce management module can also be linked with other business intelligence systems like ERP and CRM modules. 

Time and Attendance - Another significant feature of the best payroll HRMS software solution is that it helps the HR in recording time and attendance. The software incorporates biometric identification to avoid ‘buddy punching’ – a practice where your fellow employee can do the punching for you.

Leave Management - With this module, an organization can automate several processes such as allocation, booking, approval, tracking and monitoring an employee’s absence. The employee absence may occur due to several reasons such as vacations, compensatory leave, illness, parental leave, etc. The HR management solution helps in streamlining leave requests and approval processes and feed them into team calendars.

HR development and Learning - Companies offer employees the opportunity to undergo training and skill development courses. HR teams can easily plan training programs, manage the follow-on evaluation, and receive feedback. Further, the training expenditure can be tracked and evaluated against budget allocations.

Talent Acquisition - The HR management software comes pre-equipped with a talent management system module, which helps establish talent pipelines for specific roles. It also helps with succession planning. The talent management module can be seamlessly integrated with several modules namely, recruitment, learning and development, and performance management.

HR Analytics - The HR analytics module of human resource management system software offers reporting capabilities via metrics and benchmarks. HR analytics also helps in devising strategic and predictive insights and designing the organization’s business strategy.

Administration - In this module, the emphasis is placed on providing timely information, and the monitoring of employee benefits. These benefits pertain to managing healthcare and pension/welfare packages, tracking enrolment options, and any other financial implication. 

Exit Process - This module ensures a smooth exit process for employees and helps them with employee clearances and exit compliances. From employee separation requests to relieving letters to experience certificates, the exit management module covers these subjects. Every company has a distinct exit process and is considered to be an important feature of HRM management software. The exit process involves handing over all responsibilities by the employee prior their exit from the company. The HRMS system also helps you take feedback from exiting employees.

Payroll Process - This module automatically computes salary for all employees including statutory deductions (PF/PT/ESI/TDS), loan deductions, arrears, revisions, loss of pay, pro-rata salary, income tax computation, etc. It also helps the HR in tailoring a salary structure that suits your industry needs. It helps you customize your salary register, and payroll statements as per your needs. Adding more, it also offers automated reimbursements, loans, and advances and automatic closure on completion of repayment.

Advantages of HRMS Software (Human Resource Management Software)

 Improving Productivity of HR People - Using an HR management solution can reduce the paperwork for the HR department by half. They no longer need to invest as much time over producing, editing, and keeping records of an individual’s documents. 

HR management software costs reduced - The best HRMS system not only helps you enhance productivity but also helps in lowering costs on resource management, recruitment, and more.

Information Access with HR system - HRMS software also helps you with data security. An HR management solution contains information with respect to employees as well as company policies. In this solution, information is shared on a restricted basis. 

Increased Administrative Efficiency - The payroll management software helps you keep a track of employee-related information such as their attendance, number of leaves taken in a month, late comings, etc. HR management software makes it easier for you to carry out your administrative duties. Also, you can apply filters to search for the required information such as typing an employee’s name to know details about his/her birthday, date of joining, etc.

Data Analysis and Quicker Decision Making - An HR management solution helps keep your data organized and updated. You can easily analyze your data through user-generated reports and make decisions based on the findings. For instance, if you need to find out the number of people who are going to attend Friday’s training session, you have to simply, pull up the software’s datasheet to access it.

Improved Communication - The HR management system offers the functionality of an employee directory. Through this, you can send internal messages to the company workforce. This feature eliminates the need of using any other tool as you can pick and choose between whether to send a company-wide email or an SMS directly to employees’ mobile phones.

Security and Disaster Recovery - HR management software keeps your data secure from outside threats and creates a data backup for your organization. This backup gets automatically updated on cloud at a preset time every day/week/fortnight/month. Also. the data can be recovered from the cloud or the remote server.

Top 10 HR Management Software Companies for Small Business

• HRmantra
• Pocket HRMS
• Zeta HRMS
• Peoplesoft HRMS system
• GreytHR software
• OrangeHRM
• Keka HRMS
• BambooHR
• Zoho HR
• Spine HR
• Marg Hr Payroll
• Sumhr

Factors to Consider When Buying HR Management Software

There is a wide range of HR Management System Software available in the market. Therefore the buyer should go through the features, relevance, size and pricing of the software before investing. Some of the factors are discussed below:

Type of HRMS: There are several categories of HRMS software available in the market such as free HR management software, HRMS for small businesses, HRMS software for iPhone/ Mac/ Android/ Windows or Web-based. The user can choose from them according to the relevancy and budget. 

Pricing: Usually HRMS software are priced as “per use, per month.” Pricing for base plan and premium/ enterprise plan can differ. The higher rate comes with additional features like workflow management and compliance management. 

System Requirements: According to the focus areas, HRMS can be classified as recruiting, training, payroll, talent, workforce and performance. Buyers can identify their requirement and invest in relevant software. 

Simplicity and user-friendly: The software should be simple and easy to learn. It must provide a complete solution for the business at a reasonable cost. 

Modules covered: Make sure the HRMS software covers all the necessary modules for your business. Typical modules cover applicant tracking, learning management, talent management, payroll, benefits, reporting & analytics, onboarding time & attendance functions. 

Relevant HRMS Software Trends to Consider 

Integration of machine learning: Many businesses are using machine learning technology to improve the efficiency of systems. The HR staff gets real-time information on the tasks and employees through machine learning. Moreover, managers can easily assess employees’ work and do performance appraisals. With machine learning solutions, the management can predict the output of an employee in future based on previous work.

Automation through Chatbots: Chatbots can assist in recruitment processes by interacting with applicants. Chatbots are expected to augment several processes within HR as they offer a scale of communication. They can also answer basic queries on HR related processes and policies.