HR management software empowers HR teams to manage the entire employee lifecycle. We discuss its definition, key features, and benefits.
As the war for talent continues, organizations are taking an employee-centric approach to talent management, and HR management software plays a crucial role in deciding how organizations respond to key issues in talent management. So, before we explore how the best employers leverage HR software to drive business growth, let’s get the basics right.
What is HR Management Software?
HR management software is defined as the technology solution that enables HR teams and organizations to design and manage the entire employee lifecycle from recruitment to retirement. It’s an end-to-end solution that provides employers with an in-depth view on the current state of talent within their organization, identify gaps in the talent management strategy, optimize HR processes and workflows, make data-informed decisions, and deliver a positive employee experience.
HR management software is typically deployed through the cloud as a Software-as-a-Service (SaaS) product and is also known as human capital management (HCM) software. Historically, HR management software has also been referred to as human resources information system (HRIS) or human resource management system (HRMS), however, modern HR management software has transitioned from being a mere system of record to becoming an essential tool for data-driven people leaders. Major HR software vendors today, offer capabilities such as advanced analytics, artificial intelligence (AI), and machine learning (ML) to help HR teams make better business decisions. In addition to business intelligence and reporting HR management software also includes features and modules for recruitment, onboarding, career management, learning and development, performance management, workforce management, benefits, and compliance. Modern HR management software enables organizations to track, manage, and gain insights into the state of their workforce in real-time. This allows HR teams to proactively engage and retain their employees while predicting future workforce needs.
5 Benefits of Deploying HR Management Software
Now that we’ve established what HR management software is and explored the features and modules on offer, let’s take a quick look at how it can help you improve the business impact of your HR function.
1. Attract Top Talent
Most HR management solutions offer comprehensive features for recruitment. Employer branding, recruitment marketing, recruitment email automation, interview scheduling, and offer management are a few features that major HR management software products offer. By leveraging the power of candidate relationship management and employer branding modules, you can attract and hire the best candidates for your organization. Most importantly, HR software allows you to deliver a personalized candidate experience that helps you bolster your recruitment marketing and employer branding initiatives.
2. Improve Productivity
Workforce productivity is a key factor that determines business performance. HR management software helps you monitor workforce productivity and identify improvement areas. An ideal HR management software can easily track and identify high-potential (HiPo) employees even if they work remotely. You can use this data to run advanced analytics to understand the level of your workforce’s engagement and satisfaction. Once you’ve understood the key drivers of engagement and productivity within your organization, you can roll out a performance management strategy or an engagement strategy to encourage other employees to punch above their weight. Additionally, employee self-service modules within HR management software also saves precious time that employees would otherwise spend following up with HR about time, attendance, payroll, etc.
3. Create an Employee-Centric Culture
“I love red tape and hierarchy,” said no one ever. Does your organization encourage the free flow of ideas, communication, and innovative thinking? HR management software can help you actively design your workplace culture by giving your employees a voice through communication and collaboration tools. Communication breeds trust. And trust is the cornerstone of a high-performance culture. Most solutions also offer integration capabilities with multiple third-party tools like Slack. Furthermore, AI- and ML-powered chatbots can prove to be a robust feedback collection tool, allowing you analyze and measure employee sentiment from multiple touchpoints like emails, messaging apps, performance management modules, and your rewards and recognition tools.
4. Drive Employee Engagement
“To win in the marketplace, you must first win in the workplace,” said Doug Conant. This couldn’t be any truer today. In the competitive business landscape, employee engagement is vital to continued business success. HR management software allows you to capture engagement data from multiple employee touchpoints and analyze their sentiment, job satisfaction, and their experience interacting with other enterprise technologies you have in place. AI-powered software can also help you deliver bespoke employee experiences that invoke a sense of belonging and motivate employees to bring the best version of themselves at work.
5. Improve Employee Retention
What do you get when you add a great work culture to an engaged workforce? You get a winning organization. Engagement and culture foster employee retention. Additionally, HR management software also provides you with advanced analytics features that help you identify at-risk employees that you can proactively engage and retain.
Your people, processes, and technologies hold the key to your organization’s future and choosing the right people and technologies will help you set up efficient processes. Check out our interactive buyer’s guide for HCM Software to make an informed purchase decision.