60 Best HR Software List for 2025

What is HR software?

I know that many of the people reading this list live and breathe in the HR field and don’t need a definition. This section is for the many HR leaders that have joined the space through non-traditional circumstances such as cross-functional managers, startup founders, or anyone else who is scratching their heads over all the new terminology they’re learning.

HR software, or human resources software, refers to a technology solution that helps HR professionals streamline their processes and manage their workforce efficiently. This software can include a variety of features such as employee records management, recruitment and applicant tracking, time tracking, benefits administration, performance management, and payroll processing.

HR software is designed to improve the overall efficiency of HR operations and reduce the time and resources needed to manage a large workforce. By automating many of the administrative tasks associated with HR, HR software can help professionals focus on strategic initiatives and more effectively manage their employees.

What are the main benefits of using HR software?

cThe benefits of HR software are numerous. Firstly, HR software can help HR professionals save time and effort by automating many of the time-consuming administrative tasks such as data entry, document management, and maintaining employee records.

Additionally, HR software can provide greater accuracy in data management, reducing the likelihood of errors and omissions. This can help improve compliance with legal and regulatory requirements.

HR software also provides easy access to employee information and data, which can help HR professionals make better-informed decisions about their workforce.

Finally, HR software can help HR professionals analyze workforce data and identify trends and patterns, which can help them develop more effective strategies for talent management, performance improvement, and employee engagement.

Are there different types of HR software?

tYes, the HR software space does cover a wide range of core and niche software offerings. While the HR management software space is very broad, the best HR software in this list falls into these main categories:

• A Human Resources Information System (HRIS) is the most basic form of HR database that stores employee information and contains modules for basic HR functions (e.g., time-tracking, benefits, and sometimes (but not always!) payroll).
• A Human Resource Management System (HRMS) goes beyond basic functions to add additional modules for higher-level tasks, such as recruiting or applicant tracking, performance management, and employee engagement.
• Lastly, a Human Capital Management [System] (HCM system) usually offers a slightly broader set of modules than an HRMS (though not always), often with a more strategic focus on workforce planning. As a result, these human resources systems are more likely to include features for employee scheduling or native integrations with enterprise resource planning software (ERP software).

Other popular subcategories include:

• Applicant tracking or recruiting software to simplify hiring and onboarding processes
• Compensation management software to help HR teams ensure pay structures are fair and in line with industry benchmarks
• Employee engagement software to monitor employee morale and request feedback via surveys
• Employee recognition software to help teams celebrate achievements and milestones while offering rewards
• Learning management systems to administer internal training and skill development programs at scale
• Talent management software to help HR teams manage the entire employee lifecycle, from onboarding to offboarding
• Workforce management software to assist managers and team leads with managing daily operations, such as employee scheduling, time tracking, and task management

For a more comprehensive list, I recommend reading this article on the different types of HR software, which summarizes the key benefits of each category.

What key features are included in HR software?

Here’s a summary of the main features you can expect to find in this list of the best HR software:

• Core HR data management features: A single source of employee data management that populates all software modules automatically.
• Payroll solutions: Integrated, tax-compliant payroll management software that removes the need for manual calculations.
• Time off, attendance and leave management: Tracking when your employees start and stop work, as well as their vacation and other leave requests.
• Benefits administration: A way to link your health benefit offerings to your core employee and payroll data to enable easier benefits management.
• Performance management: Tools to facilitate performance reviews and track employee performance and development over time.
• Talent management & employee engagement functions: Features to reward, engage, motivate and incentivize staff for top performance, including tools to measure eNPS, employee satisfaction, and employee sentiment trends.
• Recruiting & candidate sourcing tools: Digital HR tools to source and screen candidates, including features like an applicant tracking system (ATS) or a candidate relationship management (CRM) module that can streamline the recruitment process.
• Onboarding tools: Automated process tools that make it easy to transform hired candidates into new employees, including tools for employee verification and background checks.
• Training & learning management features: A process for tracking employee qualifications and certification expiry dates, and hosting in-house training presentations through a learning management system (LMS).
• Advanced workforce management features: These include features like HR compliance tracking, succession planning tools, and platforms that prioritize upward mobility and skill development initiatives.
• HR analytics & reporting tools: The ability to run meaningful reports on your system data, including report templates that populate data automatically, in real-time, as data flows into the system.
• Employee self-service: The ability for employees to update their own personal information and access other details independently without relying heavily on HR staff.

How can I select the best HR software for my needs?

Helping people find the best HR software for their needs is our specialty, so you’ve come to the right place! Follow this easy 5-step process to find the best HR software for you:

Step 1: Identify Your HR Needs: Before you dive into the software selection process, assess your organization’s specific HR needs. Defining your HR department’s needs is vital to selecting the best HR software for your organization.

Step 2: Research HR Software Vendors: Familiarize yourself with the leading HR software solutions for your use case (this list will save you valuable time in identifying the best vendors). Identify vendors based on your needs, your organization’s industry, and any other criteria specific to your buying journey.

Step 3: Create a Shortlist: Now it’s time to narrow your selection down to a handful of the best human resource management software solutions.

Step 4: Trial Your Shortlisted Vendors: Take advantage of any free trials or demos that are available. Play around with each tool to get a sense of its UI, UX, and capabilities. Take note of any limitations and try to include ideal users in the trial to ensure a strong test case.

Step 5: Implement and Onboard: Make a strategy to implement the HR software including an onboarding schedule for your managers and employees. Get stakeholder input early to fulfill their needs from day one. Take advantage of support resources to ensure a smooth rollout for your team.

For a deeper dive into the details, review our 5-step process to choosing HR software next!

What are the average implementation times for HR software?

Implementation times for HR software can vary widely depending on the complexity of the software and the specific needs of your organization. For simple software systems, implementation can be relatively quick, often taking a few weeks to a couple of months. However, more complex systems might require several months to a year to implement, especially if extensive customization or integration with other systems is needed. This phase includes initial setup, data migration, user training, and system testing to ensure everything operates smoothly.

To gain a better sense of your own implementation needs, have a read through this article on software implementation and how to tell if you’re ready for new HR technology.

Are there any hidden costs associated with HR software?

When purchasing HR software, it’s important to look beyond the sticker price. Hidden costs can include fees for data migration, additional charges for customer support, costs associated with training your team to use the new software, and fees for updates or upgrades.

Furthermore, if the software requires custom integrations, these can significantly increase the overall cost. Being aware of these potential hidden costs upfront can help you budget more accurately and avoid surprises.

To help you arm yourself with information, take a look at my article examining the hidden costs of payroll software.

How do HR platforms manage data security?

While each HR software system is different, the need to protect sensitive employee data while in transit and at rest applies to every system. HR software developers ensure data security and compliance, using the following methods:

• Regular security audits
• Compliance with international standards like GDPR and ISO/IEC 27001
• Detailed access controls to prevent unauthorized access
• Two-factor authentication
• Single sign-on

It’s important for businesses to review each provider’s security credentials and compliance certifications. This article offers more details into data management best practices if you’re interested in learning more.

What’s the difference between cloud-based and on-premise HR software?

The main difference between cloud-based and on-premise HR software is where the system is hosted and how it’s accessed.

• Cloud-based HR software is hosted on external servers and accessed via the internet. This type of software is typically sold using a Software-as-a-Service (SaaS) model, meaning businesses pay a subscription fee for access. Cloud-based solutions are scalable, accessible from anywhere, and usually include automatic updates and maintenance handled by the vendor.
• On-premise HR software, on the other hand, is installed directly on a company’s local servers. This setup gives businesses full control over data security and customization but requires more in-house IT resources for maintenance, updates, and troubleshooting.

For most modern businesses, cloud-based HR software is the preferred choice due to its flexibility, lower upfront costs, and ease of integration with other digital tools. However, on-premise solutions may still be suitable for companies with strict data security or compliance requirements that necessitate keeping HR data in-house.