BLOG Human resources

Using The Right HR Software To Enhance Your Business

18 min read
Vlad Kovalskiy
July 10, 2019
Last updated: April 5, 2023
Using The Right HR Software To Enhance Your Business

Every company needs to utilize as many different resources as possible to help scale up their business. Being able to manage employees effectively ensures that the Company has maximized the benefits that employees have to offer. HR Software is a solution that can assist with this.

What Is HR Software?

Human Resource Software is a software that can be used by management to help set up their employees for success. This is accomplished by increased productivity and a good working atmosphere for the employees. A good quality HR Software can achieve this by automating many of the important tasks of both management and employees that traditionally would be done manually.

Types of HR Software

Businesses that are going to rely on HR Software have to decide on which one is best suited for them. There are different types of HR tools and they mainly focus on:

  • Benefits

  • Recruiting

  • Performance

  • Training

  • Talent

  • Workforce

Some of the specific types of HR software that addresses these are:


What is HRMS Software?

The Human Resource Management System (HRMS) Software is a combination of systems that allow management to analyze important employee information that can help management make some necessary decisions. HRMS helps to monitor the ways that employees are performing in their respective roles within the company and how much job satisfaction exists. Some of the specific areas that HRMS can automate is:

What is HRIS?

A Human Resource Information System (HRIS) can keep track of information such as:

HRIS can also provide a private social network and allow access for employees through an employee portal.

The difference between HRMS Software and HRIS software is that HRMS allows for the collection of qualitative information and HRIS gathers quantitative information. Both are equally important for employee management.


Managing payroll in a company can be a daunting task. There are different types of software that can be used to assist with this. Using a Human Resource Management System that includes a payroll platform allows for the use of information from other sectors of the Human Resource Information System. Some of the major benefits of using this payroll software are:

  • Reduction of errors

  • Increase in accuracy

  • Allows for compliance

  • Time saving

  • Reduces cost from not having to outsource

  • Allows for accuracy in necessary deductions

  • Stores important information 

Time Clock

Keeping track of how employees are spending their time when at work can be a challenge. Having an HR Time Clock software helps to make this task a lot easier. With an HR Time Clock management can:

  • Determine the employee start time

  • Know when the employee has finished work

  • Calculate the number of hours worked

  • Know when employees are on or off premises

  • Set restrictions such as where employees can access the software (IP restrictions)

  • Provide a platform for employees to clock their in and out

  • Use the information provided to determine the number of times employees are late or absent

  • Customize the software to meet the specific needs of the company

The time clock function of the HR software can easily be integrated with the payroll platform, which allows for seamless functionality of both software segments.

Performance Management Software

One of the most difficult tasks that management in a company is faced with is keeping track of employee performance. Even the small business owner can find this to be a challenge. With Human Resource Performance Management Software, all of the important information needed for performance evaluation can be collected for accurate analysis. There are a lot of indicators within a company that can support the need for this type of software, such as:

  • Employees are not happy with the current performance system being used

  • Too much time is being wasted on trying to complete performance reviews

  • The system currently being used is too complex. Meaning it is utilizing a collection of print material and the completion of spreadsheets

  • The company is experiencing a high employee turnover because of dissatisfaction

  • Employees are not meeting deadlines or goals

  • The current system is not providing reliable data to make important decisions, such as when to promote an employee or when to terminate an individual.

By being able to access data with a HR System that shows the performance of an employee and their ability to meet goals, it serves some important purposes such as:

  • Determining employee weaknesses and strengths

  • Deciding where in the company is the best fit for each employee

  • Being able to determine what skills may be lacking and whether there is a need for additional employees better equipped with those skills

  • The opportunity to access where management can be more supportive of their employees.


Performance Management Software

Performance management software

Performance management software is an extremely important component of HR software.

This module of HR software allows management to automate several different essential tasks. All of the performance data can be collected to provide “at a glance” information. This provides a quick way for being able to use this data for decision making.

Performance management software can be used to create performance review schedules. One of the benefits of this is better organization.

Peer reviews can also be created. The assessor will be able to use the interface the software creates to guide them through the process.

Many companies have a need to customize their performance management tasks. With the right choice of performance management software, this is quickly done. The values and goals of the company can become the cornerstone for creating scripts that can be in performance evaluations.


Recruiting Software

The hiring process for any company is time consuming and costs money on different levels. Using a valuable resource like HR recruiting software can help deal with both of these issues. What this HR System does is it allows for the automation of many of the responsibilities that come with the hiring of staff.

Using recruiting software properly allows management to:

  • Utilize the right sources for recruitment

  • Engage with prospective applications

  • Provide data needed to make the right employee choice

  • Streamline the hiring process

What some companies don’t realize is that employee recruitment is a two-way process. Not only do the applicants for the job have to impress the employers, but the company also has to appeal to the applicant. Recruiting software sets the company up for being able to do this. This type of software can give companies the ability to:

  • Identify job positions that need to be filled within a company

  • Decipher the skills that are needed for a position

  • Integration with social networks

  • The software serves as a valuable tool for the hiring personnel to use to automate many of their tasks, which leave more time to deal with applicants on a one to one basis.

For applicants:

  • It can help to clearly outline the position that is available

  • Allow them to import information

  • Update the information they have provided.


Talent Management Software

This sector of an HR System also plays an important role in HR responsibilities. Here the focus is on the long-term goals of the company in respect to the role that humans can contribute to this.

This software will allow the HR department to streamline the recruiting process. Knowing what talent is required for long term goals of the company helps to set the perimeters for the type of employees that will be able to contribute to these goals.

Development is another purpose of the talent management software. Often talent that is present within a company goes unnoticed. This software eliminates this and allows for the development and implementation of strategies. Management can then help employees enhance their talents for the benefit of the company.

Employee retention is another benefit of using this type of HR software. It can help to identify current as well as future needs of the company. With this knowledge, management can then put their focus on retaining employees that fit in with the needs of the company.

Talent management software can be comprised of a variety of different components such as:

  • Recruitment management
  • Managing of performance

  • Succession planning

  • Learning and Development

  • Management of compensation

 This particular segment of HR software can follow each employee through from the time of their employment up to the time they leave the company.


HR Software Reports

No matter what the size of a company is, they are required to have a variety of different types of reports. When it comes to human resources, this department has its set responsibilities for report keeping. This can be daunting, depending on the number of employees. A resource like HR Software reports can help the HR department in several ways, such as:

  • It can create easy to read reports based on accurate data

  • They can be used for analytical purposes to help management with decision making

  • They are a way of keeping track of all the important employee information

  • Good reports can save time and money.

There is a variety of reports that a company needs to be able to keep their business functioning as well as to grow it. Some of the common types of reports are:

  • Employee information reports such as attendance, performance, employee history

  • Payroll repots

  • Planning reports

  • Job Position data such as evaluations, turnovers, openings

  • Skill reports

  • Pension plan reports

  • Budget reports

  • Gantt reports

  • Status reports

  • Workplace safety reports

Each of the types of reports generated by HR software is based on information that can be collected from the other modules within an HRMS software application.


HR Software on Premise or Cloud Based: Which is Better?

HR cloud based

   Once the decision has been made to utilize a valuable tool like HR software, the next decision to be made is whether to access this through an onsite application or via the cloud. To make the decision, it has to be an informed one based on various circumstances that are important to the company, such as:

  • The cost for software installation

  • The quickest method for set up

  • Which is the most secure?

  • Which is the most reliable?

Then added to all of this it will come down to which method is the most suitable for the company itself.


Benefits of On-Premise HR Software

While many enjoy using the cloud for business applications, the on premises use of HR software has its benefits such as:

  • A selection of features that can be chosen

  • The option to choose from a wide number of vendors

  • Customization of the software

  • Restricted access to the third party which enhances data security

  • No subscription fees

  • Easy to use interface

Benefits of Cloud Based HR Software

The cloud application of HR software provides a lot of benefits, such as:

  • Procurement is much faster

  • Limited input from IT experts is required

  • It operates virtually, so no additional resources are required

  • No infrastructure is needed

  • User friendly, which means less time is spent on training.


Choose Best HR Software

Choosing the best software is going to include which particular brand to use as well as how to access it as referred to in the cloud or premise-based applications. The following are some factors to keep in mind when making a choice.

  • Does the HR software possess the core HR tools such as the HRMS and the HRIs?

  • Does it include the talent management system?

  • Accessibility and ease of use

  • Cost factor versus value

  • Functionality

  • Is there room for company growth within the software?

  • What type of customer support is available?

The best software should be able to provide opportunities for:

  • The creation of less paperwork and more automation

  • Quicker data collection with fewer errors and more reliability

  • Reduction in staffing costs for the HR department

  • Organized collection of accurate data

  • Better working environment for both HR staff as well as all employees including management

Good quality HR software has the ability to set any company up for success and a seamless transition into company growth. All of which is done through automation, time and cost saving and accuracy of data.

Most Popular
Call Management in Bitrix24
New Bitrix24 Fall Winter Live Webinars
New Automation Rules To Enhance Team Collaboration
Create And Send Electronic Documents For Signing With Bitrix24 Sign Tool
Bitrix24 Rest API Webinars For Developers
Table of Content
What Is HR Software? Types of HR Software What is HRMS Software? What is HRIS? Payroll Time Clock Performance Management Software Performance Management Software Recruiting Software Talent Management Software HR Software Reports HR Software on Premise or Cloud Based: Which is Better? Benefits of On-Premise HR Software Benefits of Cloud Based HR Software Choose Best HR Software

Free. Unlimited. Online.

Bitrix24 is a place where everyone can communicate, collaborate on tasks and projects, manage clients and do much more.

Start for free