Technology and HR are now inseparable. It is an indispensable part of a typical working day of a 21st century HR professional. Those reading this article are probably already using some kind of HR software to ease their day to day tasks. But there are so many types of HR tools out there in the market right now that it sometimes becoming confusing to identify the tool that will serve the intended purpose in the most efficient manner. Therefore, this post will try to demystify the various types of HR software that are presently being developed and marketed by various vendors along with their specific purpose.
The Different Types of HR Systems:
- What is an Applicant Tracking System?
- What is Onboarding Software?
- What is a Payroll Management Software?
- What is a Performance Management Software?
- What is Human resource management system?
- What is HR Analytics software?
- What is an Employee Referral Software?
Applicant Tracking System is software to automate an organization’s recruitment process that also provides a centralized database of CVs, on the cloud. An ATS replicates every stage of the recruitment process online allowing recruiters to be more efficient. Using an ATS the recruitment process can be made more transparent, collaborative and performance intensive. Also, with most Applicant Tracking System now providing cloud database, the maintenance and speed of the recruitment also receives a definite boost. There are plenty of benefits of using an ATS as there are to using any automation tool, but the most experienced benefits include better quality of hire, better speed of hire and improved candidate experience. An ATS screens the incoming CVs based on a predefined search algorithm using “keyword match” and helps shortlist better candidates more quickly.
What is Onboarding Software?
Once a candidate gets selected and accepts the offer, it’s time to onboard the new employee onto the team. This whole process can be confusing and overwhelming for both, the new employee and the recruiter. Therefore, using a dedicated onboarding solution can make a lot of difference to the employee’s future with the organization. Onboarding software can help facilitate an employee’s transition from a new hire to an efficient, productive and successful team member. Some vendors provide onboarding as an add on to the ATS while there are standalone onboarding software also in the market.
What is a Payroll Software?
As the name goes, Payroll Management software helps in calculating and crediting employee salary for the time worked. Payroll software can be a part of the complete HRMS or can be developed as a standalone tool by the HR software vendor. The payroll system works by measuring the hours logged in time and using the attendance tracking systems. Automating payroll process can result in huge savings in terms of labor, remove errors and avoid any legal compliance issue arising out of a human error. It is easier to manage the records of employee compensations and deductions using a payroll management software.
Performance management software assists managers, HRs and team leaders to better understand their team member’s performance and efficiency. It has built in technology that allows the leadership to track, analyze and evaluate employees, making sure targets are met, or any concerns are resolved preemptively. The software does continuous goal tracking and analyses key datapoints to come up with insights on a talent’s productivity, so that leadership can perform informed performance reviews, yearly appraisals, and compensation revisions and decide on the right career path for the employees.
A Human Resource Management System also sometimes referred to as Human Resource Information System combines a number of HR processes and functions, and automates them to make the day to day HR processes easy to manage. A HRMS is comprehensive software that integrates all the functions such as recruiting, onboarding, payroll, attendance and time scheduling, performance management, talent analytics into one and streamlines the various HR processes for effective talent management. HRMS provides a way to gather, store, access, and analyze data to convert and distribute it as insightful information to various stakeholders. The HRMS helps in evolution of traditional processes and enables strategic decision making.
What is HR Analytics software?
HR Analytics is a recent development in the field of HR technology. HR analytics software uses analytical processes, fueled by artificial intelligence and machine learning to derive insights from the huge HR data for better decision making and efficient HR processes. These data-driven decisions lead to significant workforce performance improvements and streamlining of processes. The HR Analytics software, can collect data from every HR function separately, collate it and provide useful business intelligence to improve the overall business performance. It can come as a part of the HRMS or can be built as a standalone tool with integration with other automation tools.
Employee Referral software automates the employee referral process inside an organization. Employee referral is one of the best sources of hiring and research has consistently proved that employees hired through referrals stay longer. Therefore, automating the employee referral process allows greater employee participation and thus improves the quality of hire.