8 Key HR Software Benefits

The human resources function has developed alongside new technologies to enhance talent management. 

It all started with human resources information systems to help with basic employee record management but they’re much more capable now.

So how can HR software benefit your organization in the 21st Century?

What Is HR Software?

The term human resources software encompasses a suite of digital tools designed to help HR teams manage various HR functions and processes. They’re designed to help streamline processes, remain compliant, and increase the function’s capabilities.

The HR software market size has expanded rapidly in recent years to incorporate new technologies and ways of working. Some common examples of HR software include:

• Human resources information system (HRIS)
• Human resources management system (HRMS)
• Applicant tracking system (ATS)
• Performance management software
• Learning management system (LMS)
• Employee scheduling software
• Time tracking system
• Onboarding software
• Compensation management and payroll software.

8 Key HR Software Benefits

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1. Increased efficiency

Implementing HR software can significantly increase efficiency and productivity by automating routine tasks like updating employee records, sending follow-ups and reminders, fielding questions and requests, gathering feedback, and generating reports.

Imagine, for example, having to manually update an employee’s data across multiple systems versus updating it in one system and then it being automatically updated elsewhere. 

Less time spent on admin allows HR professionals to focus on more interesting, strategic projects.

2. Improved accuracy 

Automated systems reduce the risk of errors in functions such as payroll and benefits administration. Self-service portals also empower employees to update their info without asking HR.

3. Improved compliance

Compliance is closely related to data accuracy and good record keeping but tools such as payroll software can also help through automated tracking and reporting.

Also, many solutions will automatically update to adhere to the latest workplace regulations and remind teams about upcoming compliance deadlines.

4. Data-driven decision making

Modern HR software helps HR teams to collect and analyze an increasingly rich array of workforce data which can then be used to inform talent management decisions. 

For example, with the advent of natural language processing, AI, and machine learning, it’s now possible to analyze large sets of unstructured data to glean deep insights into the workforce and assess employee sentiment.

Leveraging AI for data analytics can also help remove biases, enhance speed and accuracy, reduce costs, and create better predictive capabilities than relying on traditional data analytics practices alone.

The software improves accuracy and compliance by minimizing errors in payroll, benefits administration, and other HR functions. It also helps maintain compliance with legal and regulatory requirements through automated tracking and reporting.

5. Better communication

HR software can facilitate better organizational communication through integrated communication tools that connect employees across different departments and locations. 

The various solutions provide platforms for announcements, feedback, and recognition, ensuring that important information is easily accessible and that employees feel heard and valued.

As mentioned earlier, self-service portals enable employees to access and update their information, submit leave requests, and manage benefits, reducing the need for direct communication with HR for routine inquiries.

6. Better performance management

Performance management is notoriously difficult to get right. Performance management tools help fine-tune goal setting, track performance, and conduct appraisals.

As part of a continuous performance management system, these tools can help gather feedback and recognize employees for their work and conduct.

7. Enhanced learning and development

New HR tech is set to have an exciting impact on the learning and development function. 

For example, modern learning management systems (LMS) can recommend training and development opportunities based on an employee's current skills and career goals and adaptive assessments are going to shake things up greatly.

Skills are increasingly becoming the common currency of the workforce but becoming a skills-based org isn’t easy.

AI can help by inferring the skills your employees have from the courses they’ve taken, the projects they’re involved in, and other sources to build detailed skill profiles for your employee population.

This allows you to develop next-generation learning and development programs designed to meet both the current and future needs of your workforce and business.

8. Improved employee experience

Just as HR software makes HR teams’ lives better, it also helps enhance the wider employee experience both directly and indirectly:

• Self-service portals to easily access and update information
• Better HR processes and talent management initiatives based on rich workforce data and feedback
• Frequent communication and resource sharing
• More frequent feedback and recognition
• More effective training and learning and development programs.

Choosing The Right HR Software

With a galaxy of options to choose from, deciding on which tool best suits your needs can be a challenge. 

We have a useful article covering HR software selection, but here are some pointers:

1. Assess your current HR processes and department and organizational goals to identify the specific areas where software can bring improvements. This will help you create a list of must-have features and functionalities based on your organization’s unique requirements.
2. Whether you’re trying to support a particular business objective (e.g. sourcing better talent), improve a specific aspect of the employee experience (e.g. streamlining expense claims), or simply trying to meet HR needs (e.g. improving productivity within the HR department itself) success is more likely when you know what it looks like. 
3. While vendors will tell you their solution can do everything well, it’s normally better to mix and match. Assess each vendor carefully based on reviews, reputation (you can use your network, roundups articles like ours on the best HR software, and HR communities to gauge this), levels of support, and of course USPs, total HR software costs, etc.

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