December 5, 2023

With the right HR software, organizations can automate their processes, from job applications and employee satisfaction surveys to daily reminders and time off requests. Additionally, key HR functions such as recruiting and performance appraisal can be handled easily with the right HR tools.

But before you go shopping for your next HR software, join us as we dive into the different categories and explore how and which HR tools can help you and your teams. perform daily processes smoothly.

5 must-have HR tools for your business

Choosing the best HR solution for your organization requires careful planning and evaluation, making it quite a challenging task. Before making any decision, it is important to develop a thorough plan, research your needs and consider all available options. Below you will find HR software that stands out from the competition and will surely elevate your HR processes.

1. Human resources management system

HR teams process a plethora of employee data that is quite extensive and must be entered, stored and retrieved in a secure and efficient manner. A human resource management system is the best tool for processing such information without risk. HRMS is very necessary for smooth employee management as you can store and organize data like employee profiles, working hours, attendance records, holidays and more.

Most such tools typically offer a basic human resources management platform, but also include integrations for payroll management and performance evaluation and benefits management. In fact, you may come across the term Human Resource Information System (HRIS), but this is different from HRMS. HRIS usually does not come with talent and performance management features like most HRMS. If you’re looking for something simpler, then HRIS might be a better choice.

2. Applicant tracking system

You can organize it better and speed it up recruitment when using digital HR platforms. With such platforms, you can enjoy the innovation and convenience that older recruitment techniques lack.

For example, selection of candidates it’s easier with a recruiting tool because you can collect data about people’s skills or experience through assessments, then shortlist based on the data and ultimately decide who to hire. HR can also automatically manage processes such as posting vacancies, receiving and categorizing applications and scheduling interviews. This way, you can save valuable time because you don’t have to do these tasks manually.

3. Performance evaluation system

Employee performance appraisals can be tracked using behavioral approaches. It is common to schedule an annual meeting between employees and HR managers to discuss performance and bonuses.

Performance appraisals will be more meaningful and objective when your process is sophisticated and structured. For example, asking the same questions and evaluating using pre-defined criteria. It is then essential to record responses and comments, as well as document follow-up plans. If you had to do it all manually, it would take forever.

But if you have a performance appraisal system handy, you can automate processes such as setting clear goals, monitoring, evaluating with specific KPIs, checking, sharing and storing data in a secure environment in a simplified way.

4. Teaching management system

Planning a training strategy requires many processes to be carried out smoothly. Distributing education courses and training to your teams can be simplified in the modern workplace.

With the help of an LMS, you can benefit from automations such as adding users to courses, sending alerts, grading and reporting. This SaaS platform also gives you the option train your teamseither in person or online. LMS is a perfect HR tool that can assist in various HR processes such as preboarding, onboarding, upskilling or retraining employees and more. Most LMSs available offer mobile learning integration, making training available anytime, anywhere, asynchronously or synchronously, to better suit the needs of your people.

in addition this essential component of an effective learning strategy enhances employee engagement with microlearning, gamification, various content formats (PDF, videos, animations), ready-made courses and web conferencing integration.

Training will be automated through self-directed learning and significantly simplify HR processes. Overall, this HR tool can help you:

  • Organization and delivery of training materials
  • Construction tasks for the development of employee skills
  • Assessment of progress

All in all, HR departments can design, monitor and measure employee training and development risk-free and on time.

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5. Payroll system

A particularly essential task of the personnel department is the effective management of the payroll of employees. Compared to the past, there have been no significant changes to the way payroll, taxes and employee payments are typically processed.

Compared to regular payroll software, however the new payroll HR tools come with a number of improvements. These include streamlining processes, cloud management and transparency for employees who can access their data remotely and evaluate their rewards. HR professionals can also set parameters for each person and set individual salaries to ensure equity or facilitate talent management and career development plans.

Salary management platforms too help employees manage their personal finances better with features like pay on demand.

What to consider when choosing the right HR suite

Choosing an HR tool that fits your needs is a very important process, but it doesn’t have to be intimidating. The HR software your team needs must be carefully selected as it is essential for smooth business administration. In fact, according to a PwC study, 36% of HR leaders are considering changing their current HR tool when their subscription ends. The reason lies in the challenges faced by HR professionals, with budget (28%) and integration with other technology solutions (27%) being the most prominent.

As said, choosing the right HR suite requires careful consideration. Let’s go over some tips to help you choose the exact software that your organization can benefit from.

Basic HR tools you should keep an eye on

The first step in the software selection process is to carefully research what your organization’s specific needs are. As you develop a clear picture of your priorities, ask yourself the following questions:

  • How satisfied are you with your current HR tool?
    Before making a new selection, you should consider evaluating the HR software you are using. Check it out and explore its pros and cons. Analyze the work performed on the current platform, define processes and identify areas for improvement. One feature you shouldn’t miss is cyber security, for example. A great idea is to plan a brainstorming session with the rest of the HR department, but also with other teams that can provide useful insights when it comes to using HR communication software.
  • What challenges does your HR team face?
    Your organization may be growing, hiring regularly, or conducting employee reviews more frequently. These are signs that your HR team may be facing new, bigger challenges. Except for the real thing Training of HR teams you need to choose an HR tool that provides all the necessary features that facilitate the work of the HR department. For example, you should look at the user access number, applicant tracking system, performance metrics, scheduling and payroll management. Additionally, you should consider choosing software that provides support in case your team members experience problems using it.
  • What obstacles do you face when creating a positive employee experience?
    HR teams need to make sure that employees are satisfied with their roles and responsibilities, but also with the benefits that their company provides. Consequently, the right HR software should assist in the process of creating a positive employee experience. For example, you should look for an HR tool that allows for time off tracking, cybersecurity, and benefits management.
  • Do you use any other HR systems? Can they be integrated into one platform?
    Let’s say you use an LMS for most of your internal processes. Before choosing the HR suite you need, you need to narrow down your options to those that are compatible with your LMS (or other administration and training software). Changing all your software can add additional costs to your business, so you should plan accordingly.

  • How tech-savvy is your team?
    HR solutions differ from each other. Not all of them are easy to use, and your people may not be familiar with implementing the new tool you’re considering. This is why you might opt ​​for an HR tool that provides support or training and tutorials so that your HR teams discover the details of each feature and avoid pitfalls when using them in practice.
  • What is your budget?
    Many factors can affect the cost of HR software. However, this does not mean that paying the highest price will get you the best solution. It all depends on your company’s needs and your budget. You want to spend money on an HR tool to reduce costs, not increase them.

Make the right (final) decision

As businesses grow and need to change, evaluating the tools you use is a one-way street. It doesn’t matter if your current HR tools are a legacy system or a recent purchase. If they no longer meet your requirements, you need to start revising your existing suite and try new tools that will bring positive results to your teams and business.

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