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With so many HR software options out there, finding the right one can feel overwhelming. You need a tool that streamlines tasks, reduces admin work, and keeps your team running smoothly—but which one is best?

To help, I’ve curated this list of top HR software solutions that simplify everything from payroll to performance management, so you can focus on what really matters: supporting your staff.

What is HR Software?

HR software refers to digital platforms designed to manage and optimize various human resource (HR) functions within an organization. They encompass a range of tasks including recruitment, employee onboarding, payroll processing, performance management, benefits administration, and more.

Table of Contents

Here are the main sections I’ll cover in this summary of the best HR software:

The Best HR Software List

Here’s my list of the 60 best HR systems to cover all your core HR needs, including their pricing and free trial details:

Tool Trial Info Price
1
Rippling

Best workforce management platform that combines HR and IT mangement in one system

Free demo available

From $8/user/month (billed annually) Website
2
Nectar

Employee recognition and rewards platform designed to improve workplace culture by boosting employee retention, engagement, and morale.

Free demo available

From $3/user/month Website
3
Paycor

HCM software with integrated modules for payroll software, HR data management, talent management, workforce management, employee experience and benefits administration.

30-day free trial

Pricing upon request Website
4
Deel

Comprehensive HR software for global teams covering international hiring, onboarding, payroll, and compliance in 150 countries, with no need to have your own legal entity per country.

Free demo available

Flat rate user pricing, with a free version for businesses with up to 200 people Website
5
GoCo

Flexible employee management software for core HR functions, benefits, payroll, PTO tracking and compliance, with automated workflows.

Free demo available

From $5/employee/month Website
6
BambooHR

Popular HR software for small business owners, including helpful employee self service features and tools to measure employee satisfaction.

7-day free trial

From $6.19/user/month (billed annually) Website
7
Workable HR

Simple HRIS for onboarding new hires and managing documents, time-off, and payroll reports

Free trial available

From $99/month Website
8
Trinet

HR software that offers a comprehensive suite of HR services, including payroll, benefits administration, and compliance support, all on a single platform.

Free demo available

Pricing upon request Website
9
SixFifty Employment Docs

Employment law platform for HR compliance with automated legal document creation and real-time updates on evolving laws.

Free demo available

Pricing upon request Website
10
Insperity

Efficient, comprehensive, and user-friendly HR software for small to medium businesses.

Not available

Pricing upon request Website
11
TalentLyft

Full stack recruiting software with an integrated ATS and talent CRM, plus tools for candidate sourcing and recruitment marketing.

14-day free trial + free demo

From $124.17/month for 10 active jobs Website
12
factoHR

Modern and mobile-friendly HCM software for hybrid workforces, including tools to boost productivity, set OKRs and track KPIs.

Free trial available

Pricing upon request Website
13
Vantage Circle

Cloud-based employee recognition and engagement software for automating employee rewards and other types of corporate gifting.

Free demo available

Pricing upon request Website
14
Tremendous

Forward-thinking bulk payment platform that enables companies to distribute digital rewards and incentives globally, strengthening employee recognition and engagement.

Free demo available

Free to use + 3% fee for credit card purchases Website
15
Xoxoday Plum

Creative rewards, incentives, benefits and payouts platform that helps HR teams motivate learners, drive employee referrals, build loyalty and boost employee engagement.

Free trial + free demo

From $199/month Website
16
ProProfs Training Maker

Dynamic online training and LMS software with tools to develop multimedia courses, assessments and quizzes, including compliance tracking and automatic reminders.

Free demo available

From $1/user/month + $50/month Website
17
Odoo Employees

Modular HR solution for recruiting, employee performance, leave management, expenses, and employee engagement, with a long list of additional HR apps and integrations to choose from too.

Free to use one app only

From $31/user/month Website
18
iSmartRecruit

Sophisticated recruitment marketing platform including an ATS, a recruiting CRM, AI-generated automations and team collaboration features.

14-day free trial + free demo

From $30/user/month Website
19
peopleHum

AI-driven HR system that supports hiring, managing, learning, performance, OKRs, and employee engagement, including analytics and a helpful AI-powered chatbot.

Free trial + free demo

From $2/employee/month Website
20
Staff Squared

HR software solution for absence management, onboarding, employee data management, eNPS, document management, and HR reporting, including access to premium HR templates.

14-day free trial

From £2.50/employee/month Website
21
ActivTrak

Modern workforce analytics platform that classifies user activity data and populates it into insightful, real-time workforce reports.

14-day free trial + free plan available

From $10/user/month Website
22
Recruitee

Collaborative hiring software for HR teams with tools to boost candidate sourcing, automate hiring, and evaluate candidates effectively.

18-day free trial

From $269/month Website
23
Oorwin

AI-powered talent intelligence platform including an ATS, CRM and HRMS functions - designed for organizations in the US, UK, India or Singapore.

Free trial available

Pricing upon request Website
24
Oracle HCM Cloud

Comprehensive HR management suite with tools for recruiting, onboarding, benefits, absences, performance management, payroll management, and HR analytics.

Free demo available

From $13/user/month, with a minimum of 1000 employees Website
25
Zoho People

Cloud-based HR operations platform with tools for onboarding, employee management, timesheets, payroll management, expenses, HR analytics, case management, employee development, and deep time & attendance tracking features.

30-day free trial

From $1.66/user/month (billed annually). Website
26
Jibble

Advanced time tracking software including a time clock app, timesheets, GPS tracking, billable time tools, a work hours calculator, facial recognition, and attendance and PTO tracking.

Freemium plan available

From $2.52/user/month Website
27
Personio

Well-rounded suite of HR tools including applicant tracking, digital employee files, a training management module, performance management tools, approval processes, tasks & reminders, and reports & analytics.

14-day free trial

Pricing upon request Website
28
Eddy

All-in-one HRIS system with tools to manage people, payroll and hiring processes - well-suited for deskless workers.

Free demo available

From $8/employee/month + a $49 base fee/month Website
29
HealthStream

Cloud-based talent management and learning management system specifically designed for the healthcare sector.

Free demo available.

Pricing upon request. Website
30
Amber

Sophisticated employee engagement chatbot that incorporates AI, machine learning, predictive people analytics and continuous culture evaluation to pinpoint employees who are a flight risk.

Free demo available

Pricing upon request Website
31
Sage HR

SaaS-based HR management software with core HR functionalities, as well as a full-feature mobile HR app to encourage employee self service.

30-day free trial

From $6/employee/month Website
32
SutiHR

AI-powered HRMS software for workforce management, with modules for core HR, talent management, time tracking, and additional HR apps and integrations.

Free trial available

From $4/user/month (min of $150/month) Website
33
OnBlick

SaaS-based immigration and HR compliance software specifically designed to support US-based companies with onboarding and employee management.

30-day free trial + free demo

From $1,099/year Website
34
Zimyo

Full-featured HRMS software with modules for employee engagement, recruitment and onboarding, core HR tasks, payroll management, employee performance management, time and attendance, and benefits administration.

Free trial + free demo

From $2/employee/month Website
35
Ceridian Dayforce

HCM software that supports continuous payroll, talent intelligence and workforce management.

60-day free trial

Pricing upon request Website
36
Tap My Back

Adaptive HCM solution with modern workforce management features like skill development tools, succession planning features, DEI tracking, and a compliance management module.

Free demo available

Pricing upon request Website
37
Cornerstone OnDemand

Adaptive HCM solution with modern workforce management features like skill development tools, succession planning features, DEI tracking, and a compliance management module.

Free demo available

Pricing upon request Website
38
BrightHR

Cloud-based human resources software suite for tracking attendance, managing staff holidays, rota planning, and tracking overtime, including unlimited document storage.

Free trial + free demo available

From $4.08/user/month Website
39
Calamari

Innovative people management tool with HR apps focused on leave management, PTO, and attendance tracking, including clock-in and clock-out capabilities.

14-day free trial

From $2/employee/month Website
40
Sage People

Flexible HR solution that supports workflow automations and analytics - specifically designed for mid-sized global businesses.

Free demo available

From $10/user/month Website
41
Performance Pro

Cost-effective and modular software for performance management, merit-based compensation, and learning management, tailored for small and mid-sized companies.

Free demo available

From $2 to $7/employee/month Website
42
Zenefits

Full-featured HRIS platform with comprehensive options for benefits administration and group insurance management.

14-day free trial

From $10/user/month Website
43
Compport

Flexible AI-powered compensation management software designed to support HR leaders through improved engagement, employee surveys, pay-based analytics, and reduced employee turnover.

Free demo available

Pricing upon request Website
44
OrangeHRM

Cloud-based HRMS software for people management, culture, compensation and talent management - including a free option available under an open source license.

30-day free trial + free plan available

From $6/user/month Website
45
Workday

Trusted HCM platform for medium-sized and large companies, with tools to automate the full hire-to-retire employee lifecycle process.

Free demo available

Pricing upon request Website
46
Darwinbox

Enterprise-level HCM software with unified modules for workforce management, payroll & expenses, talent acquisition, talent management and people analytics.

Free demo available

Pricing upon request Website
47
PeopleFluent

Flexible employee development software with modules for talent mobility, performance, compensation, succession planning, org charts, and L&D.

30-day free trial + free demo

Pricing upon request Website
48
TriNet

Comprehensive PEO service provider for SMBs, including strategic HR, risk mitigation, payroll services, benefits, and integrated technology solutions.

Free demo available

Pricing upon request Website
49
Bonfyre

Dedicated employee engagement platform focused on mobile-first, two-way communication, feedback, recognition, corporate events and engagement analytics.

Free demo available

Pricing upon request Website
50
Namely

Popular all-in-one HR solution for employee onboarding, employee self-service, talent acquisition and management, payroll and time tracking, benefits administration, compliance and HR analytics.

Free demo available

From $9/user/month Website
51
SAP SuccessFactors

Industry-leading HCM software focused on employee experience and talent management, well-suited for enterprise-level organizations.

Free trial + free demo available

Pricing upon request Website
52
bob

Modern HRIS software with a social media-inspired interface that maximizes the employee experience and deepens company culture.

Free demo available

Pricing upon request Website
53
Workzoom

All-in-one people management software with tools for recruiting, onboarding, leave management, payroll, employee benefits, learning and development, and performance management.

Free demo available

From $4/employee/month Website
54
WebHR

All-in-one, modular, core HR solution with affordable add-ons for employee performance management, payroll, and recruitment tools including an applicant tracking. System.

Free plan available (up to 4 employees)

From $2/employee/month Website
55
SimplyHired HRIS

Free HR software for small businesses, with HR tools for employee onboarding, team attendance tracking, document storage including e-signing capabilities, and a benefits enrollment tracker.

Free demo + free forever account

Free forever plan Website
56
PeoplesHR

Enterprise-level HCM software with unified modules for workforce management, payroll & expenses, talent acquisition, talent management and people analytics.

Free demo available

Pricing upon request Website
57
SyncHR

Advanced HCM software with cutting edge features like “time machine” data snapshot technology, position-based architecture, interactive org charts and other workforce planning and operational reporting capabilities.

Free demo available.

From $6/user/month, (billed annually). Website
58
Keka HR

Human resources management software that helps teams scale their core HR processes like hiring and employee onboarding, payroll and expense tracking, employee performance and culture, and people analytics.

Free trial + free demo available

From $500/month Website
59
HROne

Enterprise-level HCM software with 10 core HR modules designed to increase productivity, create connection, facilitate collaboration, and support decision-making.

Free demo available

Pricing upon request Website
60
LeaveBoard

Leave management system that incorporates absences, PTO requests, and employee self-service within a core employee database.

14-day free trial + free plan available

From $1.35/employee/month Website

How I Selected the Best HR Software

To construct this HR software list, I evaluated and compared various HR tools that covered a unique aspect of common HR or business needs.

I further honed this list by using the selection criteria below to see how each platform worked for common use cases.

I also drew upon my years of HR administration experience to recognize the features that add value and reduce time-consuming manual work.

Selection Criteria 

Here's a summary of the main selection criteria I used to develop this list of the best HR software:

Core HR Software Functionalities (25% of total score): To be considered for inclusion in my list of the best HR software, each solution had to fulfill these common use cases first:

  • Core HR data management capabilities that centralize all your employee data
  • Integrated modules for easy digital data management
  • Some form of employee self-service module to reduce administrative requests
  • Customizable user roles and permissions to curate who can access your employee data

Additional Standout Features (25% of total score): To help differentiate one HR system from another, I also kept a keen eye out for unique features that will ultimately make your day-to-day life easier, including the following:

  • The ability to track employee working hours and/or attendance management within the system (with bonus points awarded for systems that automatically sync time-tracking data with their payroll module)
  • Tools to facilitate performance reviews and create continuous feedback loops
  • Features that cover all key phases of the employee lifecycle, from recruiting and hiring to onboarding, employee development, and offboarding
  • Integrated compliance monitoring features to monitor regulatory requirements
  • Automations to streamline common yet time-consuming administrative processes and improve the system's ease of use

Usability (10% of total score): To evaluate the usability of each system, I considered the following:

  • An intuitive design and user interface that are straightforward to master and create a positive user experience
  • Clear and concise on-screen instructions and tips to improve ease of use and create a positive user experience
  • A user-friendly mobile experience or dedicated mobile apps for Android and iOS mobile devices to support remote and on-the-go HR management
  • Role-based access controls that are straightforward to configure

Onboarding (10% of total score): To get a sense of each software provider's customer onboarding process, I considered the following factors:

  • A streamlined setup process and clear configuration guidelines for new users
  • The availability of training materials such as videos or interactive tutorials
  • The availability of live support or chatbots for real-time assistance during setup
  • Customizable templates to speed up the onboarding process
  • Support for migrating historical employee data into the new HR platform

Customer Support (10% of total score): To evaluate the level of customer support each vendor offered, I considered the following:

  • The availability of multiple support channels, including email, phone, and chat
  • Whether a dedicated account manager is provided for personalized support
  • The existence of a self-service knowledge base, an FAQ repository, or other self-help resources to speed up troubleshooting
  • The overall quality, responsiveness, and helpfulness of the support team during customer onboarding and post-purchase, as inferred from customer reviews

Value for Price (10% of total score): To gauge the value of each software, I considered the following factors:

  • The availability of free trials or demos to test the software before purchasing
  • Competitive and transparent pricing models that reflect the software's feature depth and explain which features are included at each level
  • Tiered pricing plans that cater to different business sizes, from small to medium-sized businesses (SMBs) up to enterprise-level organizations
  • A clearly demonstrated positive ROI through efficiency gains and cost savings

Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how well a product performs in the hands of real users. Here are the factors I considered:

  • Whether a product has consistently high ratings across multiple review platforms, indicating a broad level of user satisfaction
  • Specific praises, criticisms, or trends in customer feedback that indicate the software's strengths or areas for improvement
  • Whether customer feedback specifically mentions issues with ease of use, customer support responsiveness, or lacking features
  • Any testimonials that highlight significant improvements in HR processes or employee management capabilities

Using this assessment framework helped me identify the HR systems that go beyond basic requirements to offer additional value through unique features, intuitive usability, smooth onboarding, effective support, and overall value for price.

Benefits of HR Software

HR software is a broad category to analyze, but it does offer numerous benefits, regardless of the specific subset of HR software you're considering. Potential benefits of HR software include:

  • Automation Tools: A major benefit of HR software is the automation of mundane, repetitive, and time-consuming administrative HR tasks. For example, if your HR system includes an employee self-service portal, your staff can update their own details, and their changes will automatically update across your system, including your payroll module.
  • Analytics and Data Visualization Tools: One of the biggest benefits of using an HR software platform is the ability to analyze and run reports on your data. You want an HR platform that makes it easy to collect and interpret data from across different modules. Plus, the ability to drill down into your data sub-groups such as departments, locations, or employee types. Having flexible data analysis tools will help you uncover useful insights about your workforce that you otherwise wouldn't identify.
  • Mobile app accessibility: Allowing your staff and administrators to make updates from anywhere is important for several reasons. For employees, it will improve their employee experience and allow them to stay on top of their personal information updates easily. For administrators, it prevents work from building up if you're away from your desk. Instead, you can update something the moment it occurs to you, no matter where you are.
  • Templates: When I was working as an HR administrator, I was constantly short on time and long on things to do. That's where templates can also add a lot of value. By starting off with a strong template for whatever HR action you need to take, you can get away with tweaking it for your specific needs, rather than having to reinvent the wheel for each task. Some examples of great templates include job postings, offer letters, welcome packages, new hire onboarding workflows, employee handbooks, and recurring training.
  • Software Integrations: Connecting natively with other software systems you're already using will improve your team's productivity and help you work more efficiently. Key integrations to look for include email providers, digital calendars, job boards, and work platforms. You'll also want to ensure that your software integrates with other niche tools that are not built into their system. For example, if the HR software you choose does not include payroll management, make sure payroll integrations are readily available.

Costs & Pricing for HR Software

Something to look out for in any HR software solution is fair, transparent, and scalable pricing. Most providers offer various pricing tiers to cater to the needs of small businesses and startups, midsize businesses, and enterprise businesses.

I'm also a firm believer in test-driving any software before you jump into a contract, so I purposely tried to select software that includes free trials, or at the very least, a free demo, in this list.

Plan Comparison Table for HR Software

Plan TypeAverage PriceCommon Features Included
Free$0Basic employee management, time-tracking, limited reporting, and access for a limited number of users
Basic$2 - $8 per user/monthEmployee self-service, leave management, basic reporting, and payroll abilities or integration
Professional$8 - $15 per user/monthPerformance management, benefits management, advanced reporting, and enhanced security features
EnterpriseCustom PricingCustom integrations, full-suite HR management, dedicated support, advanced analytics and reporting
A breakdown of HR software plans and pricing details depending on the level of features required.

I always strive to choose software with transparent pricing models (and most in this list do provide price details). However, sometimes those details are only available upon request due to the modular nature of their system. You can often still get a clear understanding of their different plan levels and the features that are included in each by visiting their websites.

If you're interested in comparing features across various platforms, our tailored HR software guide is another valuable resource you should check out. Or, if cost is your biggest factor, this article digs into the costs of HR software and how you can decide what's best for your company.

If your budget is really tight, don't sweat it. Free HR software solutions also exist! While they won't contain all the bells and whistles of their paid competitors, they are still a step ahead of managing your HR functions from Excel spreadsheets!

Everything You Need to Know About the Best HR Software

Here’s some answers to frequently asked questions you may have about HR software to help you along in your buyer’s journey.

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?

The 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?

Yes, 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.

Additional HR Software Lists

Looking for a specific subset of HR software? I’ve got you covered there too. To help you speed up your selection process, here are some links to our most popular HR software subcategories. Each list includes the top-ranked software within it's primary use category, as well as key feature summaries and screenshots.

Core HR Software Systems:

These systems all handle core HR needs, such as employee data management, attendance tracking, employee scheduling, and time tracking:

HR Software for Small Businesses:

Small businesses often have limited internal resources and budgets, and that's okay. I've spent the time researching the best systems to satisfy small business needs without a hefty price tag attached. Review these lists for the best options for small and medium businesses:

Employee Experience Software Systems:

This sub-category of HR software is all about collecting feedback and improving employee morale and retention. These systems equip businesses with culture-building tools and helpful automations to make employees feel valued for their contributions. This, in turn, makes employees more likely to stay with companies long-term.

Tools to Manage Performance & Development:

Performance-focused HR systems offer holistic features to monitor training, skill-development, goals, and other performance metrics. Many systems also link performance to succession planning processes, helping HR teams identify top performers within the organization easily.

Tools for Hiring and Onboarding:

With many tools out there to manage recruiting processes, these lists are more curated around specific aspects of the talent acquisition process, such as attracting and sourcing diverse candidates to meet DEI initiatives.

Tools to Manage HR Operations:

These specialty tools fall into the HR operations category, since they facilitate process that aren't usually considered core HR functions, but may end up on the desk of HR professionals nonetheless! If you need additional support in these key areas, take a look at these lists for my curated recommendations:

Tools to Measure & Track Workforce Data:

Lastly, these tools are helpful for understanding the health of your business at large, including your workforce analytics and productivity metrics at the team, department, and company-wide level:

The Best HR Software Deserves the Best Practices

With so many options to choose from, it’s natural to feel a little overwhelmed. To help you along in your buyer’s journey, review these additional resources next:

For more information on the latest and best HR software and trends, be sure to subscribe to our People Managing People newsletter covering the latest trends in HR leadership too.

Kim Behnke
By Kim Behnke

Kim Behnke is an HR Tool Expert & Writer for People Managing People. She draws on her 9 years of human resources experience and her keen eye for systematic processes to support her analyses of the top HR tools on the market. She is passionate about maximizing efficiencies and streamlining workflows to ensure internal systems run smoothly. Kim's HR experience includes recruitment, onboarding, performance management, training and development, policy development and enforcement, and HR analytics. She also has degrees in psychology, writing, publishing, and technical communication, and recently completed a Certified Digital HR Specialist program through the Academy to Innovate HR. When away from her desk, she can usually be found outside tending to her ever-expanding garden.