A Guide to HR Software: Benefits, Features, and Top Vendor Questions

Save valuable time and energy for your human resource professionals by using the right HR software.

HR teams are burned out. Gartner reports that less than 10% of HR teams are achieving functional excellence, and 55% of HR leaders receive requests on a wider range of topics.

Now is the time to create a strong foundation of efficiency, reduce the burden on HR teams, and win back hours that can be used for into value-added people management tasks.

This begins with making sure you have the right HR software in place. Our guide highlights the benefits of using HR software, explains its key features, and helps you plan how to implement the right platform in your organization.

What is HR software?

Human Resources, or HR, software is a digital tool designed to help people professionals support their company's employees. Traditionally, HR teams relied on paper-based processes to do everything from hiring new recruits, paying their wages, withholding taxes, and tracking employee time and attendance. Now HR software stores all this information online, providing a single source of truth for employee records and core HR processes. It’s fast, convenient, and secure.

What is cloud human resources software?

HR software falls into two buckets: on-premise and cloud-based solutions.

On-premise software is stored in a company’s server room, while cloud HR software is housed on a remote server and accessed through the internet.

Wondering which is the best? Cloud-based HR software offers greater flexibility, scalability, and cost-effectiveness than on-premise solutions. While some companies prefer the security of on-premise software, cloud HR software lets companies access their data from anywhere at any time, making it easier for distributed teams to manage employee information. And from an IT perspective, the cloud provider handles all updates and maintenance, which once again checks those time- and resource-saving boxes.

What are the benefits of using HR software?

There's a tool available for every aspect of our working lives, so it’s a no-brainer that organizations should incorporate technology into their core people processes. Even small businesses with low headcount and startups still finding their way can make use of HR software for the following reasons:

Talent management support

Today's talent is a fickle bunch. If internal operations seem clunky and archaic, they don't need much of a reason to head for the door. According to Achiever's Engagement and Retention report, 41% are firmly looking for a new job this year, and 24% are unsure. Only 1 in 3 employees plan to stay in their role. HR software can turn the tide on low engagement and retention rates by providing tools that: 

• Accelerate growth and development
• Recognize and reward achievements
• Enable regular communication between managers and employees

Manual workflow replacement

Without technology, HR can be pretty laborious. Imagine how time-consuming it is to manually gather data, fill out forms, and follow up with individual employees as needed. HR software automates these long-winded business processes, allowing HR professionals to focus on more strategic tasks, like building employee relationships and developing initiatives to improve the overall employee experience.

Reduced risk of human error

Slip-ups and mistakes happen regularly in the workplace. According to data published by Lifetime Reliability, typical failure rates in businesses using common work practices are between 10-30 errors per hundred opportunities, and this increases when you add stress into the equation. What does this mean? If you have ten workers and give each of them 100 opportunities per week to make mistakes, then you'll have a minimum of (10 x 10) 100 mistakes or a maximum of (10 x 30) 300 mistakes to sort out across the team.

Adding quality control into your HR processes might improve these figures somewhat, but a better solution is to switch to HR software, which: 

• Performs automatic calculations
• Negates the need to enter employee data in multiple locations manually
• Notifies HR professionals about key deadlines to remain compliant with relevant regulations

Accurate analytics

As companies collect increasing amounts of employee data, it can be painstaking to manually sift through the stats to find common patterns for businesses to act on. HR software does the heavy lifting here by analyzing data in real time to provide instant results. Managers can make better decisions based on factual information rather than on assumptions or gut feelings. They can use this intel to shape employee management strategies, training programs, and overall company culture.

Ensured compliance with labor regulations

There’s no two ways about it. HR teams must stay up-to-date on changing labor laws and regulations to remain compliant and avoid costly fines and penalties. With HR software, businesses can set reminders for important dates, automate calculations for taxes and employee benefits, and generate custom reports. In case of an audit, all this acts as evidence that the HR department meets compliance requirements.

Secure data storage

If your employee records are stored in an office filing room, or you haven’t created security protocols to send confidential information from one email account to another, you may be violating data protection laws.

Taking your data online and housing it in a quality HR tool ensures that you are adhering to the latest local and global security standards. These standards are constantly changing, which is why it’s essential your business remains proactive in staying ahead.

Simplified payroll processing

Manual payroll processes can be a real headache for payroll administrators. It’s a never-ending cycle of tax withholdings, time tracking, expense reimbursement, benefits administration, and the list goes on.

HR payroll software simplifies everything by automating these processes to save time and reduce errors. Employees can access their payroll information through a self-service portal, removing the strain on HR teams to respond to individual requests for pay stubs or W-2 forms.

Executing faster employee onboarding

Preparing your employees for their new role should be a smooth operation that matches their expectations and ensures fast team productivity. Unfortunately, new research reveals that 29% of full-time employees have quit a job within the first 90 days of starting, making onboarding something of a dealbreaker.

HR software ensures this stage runs like clockwork by automating administrative tasks, providing frequent check-ins with new starters, and ensuring they quickly feel part of the company culture.

What are the key features of HR software?

Each of the core features listed below adds a layer of sophistication to your HR management processes. They check the box of helping HR professionals manage routine tasks more efficiently, but they go one step further by positioning people teams as strategic partners that shape organizational success. Here are some features to explore:

Talent management

Talent management encompasses the entire employee lifecycle, from recruitment to offboarding. From the moment job openings become available, this feature supports HR pros with:

• Crafting compelling job postings
• Identifying potential candidates
• Managing interviews
• Shortlisting applicants
• Onboarding new hires efficiently

But the work doesn’t stop there. With your new hires in place, talent management moves forward by continuously developing employees throughout their tenure with the company. This means holding performance reviews, tracking role competencies, and collecting valuable feedback from managers, peers, and business partners. This focus on continuous growth keeps employees engaged and high-performing for the benefit of the company.

Payroll

Access to payroll management features can automate the complex and time-consuming processes involved in paying your employees accurately and on time every pay cycle.

HR software with fully-formed payroll functionalities handles tasks like:

• Calculating wages
• Deducting appropriate taxes
• Ensuring compliance with employment laws

Modern payroll features also integrate with other financial systems, which can provide granular insights about an organization’s financial health. For example, you might generate reports to help HR professionals and finance teams analyze payroll expenses and optimize budgets.

Time and attendance

Time and attendance tracking help business owners understand when employees are working, which is key in businesses where shifts are fluid. These systems allow employees to clock in and out using mobile access or physical time clocks. Similarly, HR professionals can easily monitor attendance data, approve time-off requests, and analyze any common themes of absenteeism or overtime.

Employee scheduling

Scheduling tools are essential for optimizing how human capital is deployed across various shifts and job roles. This is a game changer in industries where work hours vary widely, such as retail, healthcare, and hospitality. Smart scheduling features allow managers to consider employee availability, skill sets, and labor laws, when planning shift schedules.

Additionally, scheduling tools may automatically notify employees about their shifts, offer shift swaps, and update in real time, reducing the likelihood of understaffing or scheduling conflicts.

Compliance

Compliance management may not be the most exciting feature of your HR software solution, but it's arguably the most important. Compliance tools ensure organizations stay on the right side of any local, state, or federal regulations impacting employment. They manage risk, track legislative changes, generate compliance reports for your audit trails, and send reminders for important actions.

HR service delivery

HR service delivery software provides tools for better employee communication and workforce efficiency. With employee self-service portals, users can update their personal information, request services, seek information, enroll in benefits, and get answers to their burning issues.

By doing so, this reduces the administrative burden on HR staff and improves employee satisfaction by involving your workforce in the management of their information.

Integrations

Integrations extend the value of your HR software by allowing seamless connectivity with other key tools in your tech stack. While some companies will use an all-in-one HR platform that houses absolutely everything, many others will prefer to sync their software with Enterprise Resource Planning (ERP) systems, accounting software, third-party payroll providers, or performance management systems.

When integrations run effectively, they eliminate the need for multiple data entries, reduce human errors, and ensure that information flows smoothly across different departments. The result is interconnectedness which leads to informed decision-making and a more cohesive operational strategy.

AI

Artificial intelligence is the new kid on the HR software block, already transforming traditional practices by automating routine tasks, providing predictive insights, and enhancing workflows. For example, AI can support talent acquisition and management by: 

• Analyzing resumes
• Predicting candidate success
• Personalizing learning and development programs for employees
• Predicting workforce trends like attrition rates

Additionally, AI-driven chatbots can offer 24/7 support to answer employee or candidate queries, improving the overall employee experience and operational efficiency.

Reporting and predictive analytics

Powerful analytics and reporting capabilities measure the success of HR initiatives and use hard data for metrics like employee turnover rates, training effectiveness, and compensation trends to make important workforce decisions.

Advanced analytics dig even deeper to deliver insights into workforce dynamics, productivity, and employee engagement levels. With customizable reports and interactive dashboards, HR professionals can visualize real-time data to forecast future trends and align HR strategies with business objectives.

How to implement HR software for your organization

Follow the steps below to successfully select and roll out the right Human Resources Management software for your business:

1. Evaluate your organization’s needs

   Begin by benchmarking your current HR pain points. Perhaps too many errors are creeping into your payroll, or you’re facing a penalty from the IRS due to a missed deadline? Document your current situation and work out what you need your HR software to do. Some examples could be:

   • Requiring a comprehensive way to store candidate data
   • Understanding if there are too many clashes with your employees’ leave requests
   • Needing to track overtime for salaried and hourly employees

2. Select the type of HR software you need

   Based on your identified pain points, consider the type of HR software you require. Depending on your requirements, you may opt for an all-in-one solution or standalone models dedicated to specific areas of HR. Some options include:

   • Human capital management (HCM): An all-in-one platform covering the entire employee lifecycle
   • Applicant tracking system (ATS): A tool to streamline the recruitment process
   • Employee performance management: Software that enables employee goal setting and performance tracking
   • Human Resources Information System (HRIS): A system to manage employee data and payroll
   • Payroll: Software to manage employee wages and taxes

3. Understand the core features you require

   The next step is to shortlist the most important functionality you need from a specific product. For example, do you need generative AI in your HCM system or the ability to store skills-testing data in your applicant tracking system?

4. Evaluate different HR software vendors

   Based on what you need, research appropriate software vendors and ask appropriate questions to draw up a shortlist of tools you’d like to explore closer. Consider asking:

   • Do you have any successful customer stories to share that are similar to our business size and industry?
   • How does customer support work? What support channels are available, and are they available around the clock?
   • What type of set-up and ongoing training is available for our team?
   • Can your software cope with our rising employee headcount?
   • What do user reviews say about navigation and user-friendliness?
   • How often do you release updates, and how are these implemented?
   • Can your software integrate with our existing systems and tools?
   • What measures do you have in place for data security and privacy compliance?
   • How customizable is your software to meet our specific HR needs?
   • Do you offer a free trial? If so, is it a full product exploration or a stripped-back version?

5. Select your preferred pricing model

   Part of your vendor research process will be understanding how much the software costs. Different pricing models are common in the software market, and include the following;

   • Per employee, per month
   • Annual subscription
   • License-based fee
   • Modular fee based on activating different components of the software most relevant to your operations
   • Custom quote based on bespoke requirements

   Be sure to consider the long-term costs and budget accordingly. Cheaper is tempting but it may not be your best bet, especially if the software lacks essential functionality or adequate customer support.

6. Design your implementation

   Once you’ve selected your vendor and software, work with your HR team and the vendor to develop a detailed implementation plan. This should include:

   • A project timeline outlining key milestones
   • Role assignments for everyone on the implementation team
   • Data migration processes from any existing systems or spreadsheets
   • Employee training plans and schedules
   • A change management strategy to ensure smooth adaptation by all employees
   • Regular progress updates and feedback sessions with the implementation team
   • Setting up a support and maintenance plan with the vendor for post-implementation

7. Pilot your HR software

   Before rolling out your brand-new sparkling software to the entire organization, test it out in phases to spot any issues before full deployment. For example, you may pilot your software in a single branch of your nationwide company or limit the software to a specific HR process, such as talent acquisition or performance management before extending it.

8. Gather feedback and refine 

   Post-rollout isn't a time to sit back and put your feet up. Listen closely to how your employees, inside and outside of HR, are experiencing the software. Run regular surveys, host feedback groups, and ask questions in 1:1 meetings to better understand how your people have responded to the new technology.

   If any common themes emerge, take steps to improve their experience, which may include contacting the vendor for advice on a specific use case.

UKG: Your HR Software Provider

Ready to explore some top HR software options for your business? UKG offers two different solutions based on your company size and HR requirements.

UKG Pro^® is a full-bodied HR software package designed to manage the entire employee lifecycle in larger companies. With reporting and analytics, time and attendance, and strategic workforce planning, HR professionals have everything they need to drive their business forward while offering a superior experience for their staff.

UKG Pro scores 4.2 out of 5 with the G2 software community. Employee experience architect Jaronika D. explains what she loves about our platform: 

“It has allowed our company to do more with our HR information in a more realistic timeframe. The end-user experience has enhanced the usage of our HR applications; the real-time information, including reports and dashboards, is more aligned with our other systems. The ability for employees to navigate seamlessly and manage their information has made an impact. The ease of use with the core HR applications has made a great impact on our employees.”

UKG Ready^® is aimed at small- to mid-sized companies that require core HR software to manage talent and execute timely payroll, but without some of the advanced functionality available in UKG Pro. UKG Ready scores 4.1 out of 5 with the G2 software community. According to mid-market user, Jayme:

“UKG Ready is an incredibly powerful program that is instinctively user friendly. There are multiple workflows that enhance user experience and make it easy for employees to control their own schedules. The more we integrate UKG ready into our company, the more pleased we are with the offerings that we could merge into one program.”

Ready to incorporate efficient and streamlined HR software into your people processes? Take a free UKG product tour today.