Best Human Resource Management (HRM) Software [Updated List of 2024]

Why should HRM software be used?

For Small Business, switching the devoted but poor Excel sheets and paper files for something alien like Human Resources Management Software (HRMS Software) seems like a big risk. Finding the appropriate fit might cause intense fear. It is somewhat upsetting to consider making a large purchase for “a complete package” only to discover clear flaws rendering the program useless.

Choosing the appropriate HR Management System for your small company is not too different from internet purchasing. While shopping online is handy, buying something invisible makes you an overactive worrywart. The idea of being mislead by false representation drives you nuts. In the same vein, Human Resources (HR) managers worry about purchasing insufficient HRMS for your small organization. Returning HRM software for a small firm is not an option unlike internet buying returning HR management.

Making it match your requirements could take too much time. Finding the ideal answer might be difficult, thus the variety of choices just fuels the fire of desperation. You have to disregard the self-promotional nonsense, cut out the technical jargon, and concentrate on basic capabilities to avoid being hoodwinked by impersonating HR software providers.

Choose a cloud-based HR software solution that addresses one at a time instead of trying to strike gold with the most popular and costly enterprise-level HRMS Software with your limited means. The following parts will help your search with a more general definition of must-have functionalities under the broad term HR management software you can choose for your company.

Eight components you should search for in HR Management Software

The complexity increases with the capabilities and components of the enterprise-level HRM softwares not required for a small company. Breaking down your needs can help you to select the finest HR program for your company by seeing which one satisfies them.

These are the elements and features you should be seeking for among the several HRM solutions.

1. Recording applications

An applicant tracking system (ATS) helps HR employees to speedly close job opportunities and maximize their hiring process. These tools search resumes, identify qualified applicants, set up interviews, and safely save resumes over the cloud for simple access and document control. Whichever their size or budget, web-based ATS SaaS platforms are ideal for every company.

All manual labor required in the hiring process is automated by ATS software, which also optimizes the end-to–end process and provides HR managers with sufficient time to dedicate to important chores including candidate interviewing. Applications such BrightMove, Workable, Clear Company, and Zoho Recruit feature-rich platforms that give enterprise-level capabilities to SMBs thereby streamlining their application tracking process and recruiting the best individuals.

Must-have characteristics:

• Flawless integration—email, website, job board
• Cloud, mobile, browser, multi-channel accessibility
• Document management (cloud storage)
• Cooperative (tell the interview panel)
• Reports on progress—status, comments—inaction

2. Staff onboarding

Organizations mostly rely on onboarding checklists. Though checklists are helpful, their time-consuming character and great tendency for mistakes make them less appealing. Conversely, a strong onboarding system greatly affects the performance and preparedness of a recent hire. Having a strong onboarding experience helps employees to enhance their morale, lower their turnover rate, and shorten their time-to-productivity.

Since every firm’s onboarding process is unique, a platform easily modifiable by the HR team will be more suitable for your company than a bundled off-the-shevel human resources tool. An effective onboarding tool such as BambooHR, Zenefits, or Cake HR helps to relieve the stress on the onboarding process and ensure that it is unforgettable for new employees as well as HR staff.

Features that are absolutely necessary:

• Self-service candidate choice
• Customizable onboarding process
• Multiple-user access
• Electronic forms and e-signatures
• Managers of Compliance

3. Control of performance

Aligning employee interest in the goal of the company depends much on performance management systems. Choosing a more all-encompassing, continuous strategy will list under the performance management umbrella the goal setting, implementation, reviewing, evaluating, and rewriting process. A disciplined, creative strategy can satisfy staff members, foster loyalty, and provide companies a competitive advantage in the market.

A good performance management system helps both personally and professionally to flourish. From SMEs to companies, performance management system alternatives such Workboard, Cezanne, and Small Improvements enable all firms to clearly outline expectations and shared tasks, offer ongoing coaching and feedback, and fairly evaluate employee performance. They provide pre-built customized performance evaluation forms that streamline starting and running performance cycles.

Essential elements:

• Templates for customizing performance reviews
• Complete evaluation guidelines
• Specify review cycle (time, objectives, team/departmental/individual)
• 360-degree comments (self, boss, colleagues)
• Review findings (collect, arrange, present, and evaluate)

4. Employee development and instruction

Software for HR managers and supervisors provides feature-rich interface to rapidly construct and oversee staff training programs. Training and development tools let companies quickly spot their training needs, start a program, get comments, and evaluate how well the staff-training program works. Apart from lightening trainer responsibilities, they provide the management a 360-degree perspective of the training process.

While providing the option to pre-define the workflow that needs to be followed, HR Management systems such as Mentis and Bizimply extend end-to-end automation with an easily accessible database, seamlessly integrated with other modules such forms, folders, calendars, etc. These tools let companies easily monitor the results and implement centralized employee training programs to their employees.

Features of must-have:

• Handle all of it—programs, trainers, trainees
• Plan using Google’s or Outlook’s calendar
• Real-time comments for trainers and trainees
• Review output (evaluation, output, productivity)
• Edit your plan

5. Manager of employees

Software for personnel management enables companies to overcome unavoidable difficulties in this field. These human resources software solutions provide HR managers handle daily chores such workforce projections, shift scheduling, employee schedule allocation, and workload management to retain staff members active and productive. Maintaining an archive of all labor-related data in a centralised database helps companies to analyse all around and make wise decisions.

Without appointing a specific person to oversee them, a flawless personnel management system helps to maintain business operations running forward. Deputy, Ultipro, Orange HRM, Natural HRM, and other softwares for staff management give companies a strong system with customisable workflows, centralised database, rule-based engine, in-built reporting module.

Features of necessity:

• Staff directory
• Track, keep an eye on, and document chores
• Access on the move
• Planned resources
• Module for Reporting

6. Timesheet administration

Timesheet management systems track, monitor employee performance. To track output and ascertain the labor hours required in finishing a particular task, a good timesheet program links the employee count in a company with their working hours. It can be applied to record working hours, create a timesheet tracking and approval system, retrieve leave information, and precisely compute salaries.

To record and evaluate the performance of an employee, a project or even a task and export the report in any format, platforms including PeopleBook HR and Zenegy Owner provide the means to interface with outside apps. These tools let companies decide their hiring and scheduling requirements, simplify their payroll, and guide wise decisions to maximize workforce and workload.

Features you really must have:

• Time-clock
• Easy approvals
• Dynamic dashboard
• Real-time assessments
• Simple connection with human resource and payroll systems

7. Leave policies

The bottom line of the company is related with leave management. But partial visibility cannot allow one to give leave requests top priority or guarantee correct workforce availability. Leave Management tools give openness and automate the process. These tools give staff members a self-service way to apply, monitor and control their days off. Managers and HR employees can view, approve or reject these requests as well as track them.

For approval or rejection, leave management applications including Cake HR and Zenefits enable companies to customize their leave types, holiday list, workflow (route requests straight to managers). By examining leave trends, HR departments can learn about employee performance and diligence. These tools enable companies to monitor all kinds of leave requests (sick, vacation, paid), guarantee adherence to leave policy without violating staff members.

Must-have features:

• Configurable fields (leave type, policy, holiday list)
• Leave balance auto-update
• Customizable leave request approval workflow
• Carryovers and overtime
• Transparency

8. Payroll

Payroll software minimizes human intervention and associated errors by automating the process and empowering your HR staff. What previously took 3-14-day for the HR department to compute will barely remain to be a few hours of work. Automated systems improve the accuracy of critical details, store confidential payroll information securely, perform complex calculations using pre-defined and customizable rules.

Payroll Management Software extends improved control over the payroll process, letting you configure changes without needing IT support. Businesses can keep up with statutory requirements and adapt to rising business needs quickly using these flexible applications. Solutions like Zenegy Owner, Patriot Software, Orange Payroll, and PeopleBookHR make accessing, retrieving, modifying and analyzing payroll data completely hassle-free.

Must-have features:

• Robust and secure
• Functionally rich interface
• Omni-channel compatibility (mobile, web, cloud)
• Integrated accounting (tax, salary, PF)
• Customizable rule-engine

Best HR Management Software for SMBs and Enterprise in 2023-24

We evaluated different HRM softwares available in the market that caters to the small businesses. Here are some of the very best platforms that you should consider when choosing your solution.

1. BambooHR

BambooHR is an HR Management Software specifically designed for SMBs. BambooHR has a lot of features we mentioned earlier like applicant tracking, onboarding, performance management, employee management, time-off management, etc

Gusto is an HCM tool that packs all essential HR software features for successful onboarding, benefits management, and performance management in a modern, easy-to-use interface.  You can try their one month trial to learn how it fits your SMB. 

Zenefits is a cloud-based HR management software that has a range of different HR tools but specializes in payroll and benefits administration.  You can also integrate with dozens of enterprise and productivity apps using Zenefits. 

CakeHR is a recruitment automation platform which also has other HR modules like timesheet management, leave management and onboarding.  You can create powerful reports using CakeHR and get insights on your processes. 

From onboarding and attendance management to time tracking and appraisals, Zoho People platform has a range of business applications to automate HR processes.