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What is HR Software?
Human resource management software is an employee management solution that can help you perform everyday tasks without missing out on important events. For instance, it’s a great option to streamline and automate your business, making it easier to manage all aspects of the business relating to employees such as paychecks, time off, creating performance reviews, and so on. Of course, what specifics each solution provides does depend on the individual HR tool. Some can perform more in-depth options such as fully automating finances, while others focus on streamlining the hiring process.
SaaS HR software, for instance, is actually an outsourced option provided and monitored by a third party leaving you completely free. Some of the other best HR software for small business owners is completely hands-on or helps to shorten hiring time.
For the most part, though, the best HR software is one that offers a wide array of features and functions. Depending on what you are using it for, it can also be important to have the ability to handle large numbers of employees or, conversely, deal with just a few.
What Does HR Software Do?
An HR system is a very useful solution for automating and creating structure and efficiency in the workplace. It can be used for all manner of HR-related things including payroll, disabilities, time off, and more. Here we will quickly look at the main things that the best HR software for small business models can do.
- Management — All HR solutions provide a ton of management options. This can be everything from time tracking to keeping up with legal requirements. Depending on the level of your system, it can cover insurance, payrolls, disabilities, time off, and more.
- Automation — Any HR tool allows you to automate large portions of your workflow. Paychecks can be scheduled, checks can be organized, and more. All of this can be done automatically so there’s no need for you to try to keep track, especially in a large or growing company.
- Streamlining — With all the above factors in place, you’ll find that everything is streamlined much more effectively, Nothing will be out of place especially as most software will be able to scale as your company grows.
How We Rank the Best HR Software
At SaasGenius, we follow a rigorous evaluation methodology to identify the best HR software solutions. Our comprehensive evaluation considers four key categories: Price, Ease of Use, Features, and Support. If you want to gain a deeper understanding of our rating methodology, we encourage you to read our full rating methodology page.
Main Features of HR Software
As with all software types, human resource management software comes in a range of different types. Some offer better features than others, though all of them do help to ensure that records are kept for all employees. There should be intuitive UIs for a better experience, and strong support should the HR system fail at any time. Here are some of the main features that HR management software should be offering.
The best HR software for small business models will include applicant tracking. Not just for small companies, but for large ones too, this feature means that top applicants won’t get missed. The top AT tools allow you to follow potential candidates from the moment of their first interaction right through the hiring process to the day they leave your company. But, this type of tool needs to be carefully considered. Is it a tool that integrates well with current software, and does it handle unlimited users?
A core part of any good business, having good benefits administration tools can really help to elevate the way the company works. This feature allows employees to select and customize plans as well as making it easy for employees to register for benefits. This tool should handle everything from medical and dental to life insurance, and disability.
Good Customer Service
Finally, it is imperative that the SaaS HR software you choose has strong customer service. For the most part, if you choose software with an intuitive UI, you will find that everything is relatively straightforward. However, it is important that there is support should the system fail, have glitches or some other issue arise. If the software you’re looking at has lackluster support, it is best avoided.
Benefits of Using HR Software
Before launching right into getting some human resource management software, it’s a good idea to know why exactly you should be using this kind of solution. The type of HR system you need will depend primarily on the size of the company. With that in mind, choosing the right software for the company will increase its overall efficiency.
There is a wide array of different features and benefits that come along with an HR system. In this next section, we outline a number of different use-cases for HR management software. Whether for a large business, or a small growing startup, here are some important benefits to consider when looking at this software.
One of the massive benefits this type of software can provide to any type of business is evaluating the performance of employees. By using this software, it’s possible for you to see whether you have got the right people working in the right place. It also means you can check to see whether their skills are up to the required standard or not. This can then lead to the need for training. By utilizing this tool, it’s possible to see if there are any issues and, if so, where they lie.
Schedule Training Courses
Once you have identified areas where skills need improving, the best thing about human resource management software is that you can then set up online training platforms for your employees. eLearning tools can also be added to the system to ensure that the right training content is delivered to your employees. You can also make sure that this tool is installed either locally or run on a specific device giving you even more control over the whole process.
Scheduling and Shift Planning
If you have a multitude of workers, then being able to schedule and modify shifts easily within the HR program is a must. Often, this is managed by a separate app, but it can be integrated into the main HRMS suite that you have as well. For the best HR software for small business owners, this type of tool is still a necessity. This can switch you from using a simple spreadsheet that’s manually updated to a fully realized system that offers more flexibility when it comes to updating and modifying.
Compliance with Legal Requirements
Top SaaS HR solutions will also help you to ensure you are complying with all legal requirements pertaining to your business. This can be hugely beneficial especially when a third party takes this on. It can make sure that you are offering the correct benefits, paying out properly, providing the right disability coverage or life insurance and so on.
Who Should Use HR Software
When it comes to HRMS programs, there’s almost no company that won’t stand to benefit from such an option. Of course, due to the different types of businesses out there, there are various options available. For instance, large businesses may do well to utilize SaaS HR outsourcing options, whereas smaller companies may need human resource management software that they can manage themselves. Depending on the size of the company, different businesses need different things, which makes it very important to check the software on offer.
Large companies should very definitely be considering HRMS of some kind. These systems really help to ensure that everything is streamlined and operating efficiently. The type of HR solution that a massive company should be using will depend on whether you intend to outsource, manage this yourself or even opt for a Professional Employee Organization (PEO) service to take over completely.
Small businesses and startups would also do well to utilize this type of software. And that’s because it can help to make the little things easier. Even with just a few employees, having everything within an HRMS can mean that there is more time to actually focus on tasks and projects while still maintaining efficient records, payrolls, and benefits. Especially for smaller companies, the ability to keep track of legal requirements can be extraordinarily helpful.
How Much Does HR Software Cost?
The cost for the best HR software for big and small businesses will vary dramatically. This is to do with the various features each will offer. For instance, a package that caters to a large company with hundreds of employees will be more expensive than some basic human resource management software aimed at just a small, startup company. As such, costs vary widely.
Some software is available for free, but it tends to offer limited benefits and is better suited to small companies with fewer than ten people. For software options that charge, this is often based on a charge per employee. This can be anywhere from $2 per employee per month right up to $12 per month. Of course, it’s worth bearing in mind that some HRMS suites will also charge extra for additional modules that are added to the program such as hiring apps, payroll, and so on.
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