Until very recently, a company investing in Human Resources (HR) would hire a specialist (or, more frequently, a team of specialists) to coordinate resources. However, as with so many other areas of life, in recent years software's role in HR has expanded. Nowadays even the smallest company on the smallest budget can afford to invest in HR to some degree.
What is HR - and why is it important?
Before understanding how HR can improve your company operations, it's probably best to clarify exactly what Human Resources is. At its core, Human Resources is the art of creating value from a company's employees by maximizing their potential.
Of course, HR in practice is considerably more complex and can involve everything from recruitment to payroll and benefits - but, the core values remain the same - to get the best from employees.
Different types of HR software
HR has come a long way in recent years and these days the job is growing ever more complex with increasing responsibilities. Consequently, even skilled HR practitioners are now leaning toward using intelligent HR software solutions. As these solutions are widely available, they can be put to good use in your company - even if you don't have a dedicated HR department.
Here are three types of HR software that you might find useful in running your company:
Applicant Tracking Systems: An Applicant Tracking System (ATS) is used by HR teams to aid in the recruitment of new employees. Rather than searching resumes by hand, ATS allows the volume tracking and sorting of resumes by keyword or other criteria. Using an ATS, HR departments can automatically sort and evaluate applicants by various standards or benchmarks, allowing applications to be graded side by side. An ATS can also be used to track progress through the application process (eg initial contact, screening interview, main interview, etc).
HR payroll software: Payroll software can be used to automate the process of generating payslips, calculating taxes and contributions, transferring money into employee bank accounts and keeping track of previous payments. Advanced HR payroll software can also allow time management features and holiday requests.
Human Resources Information Systems: Human Resources Information Systems (HRIS) is a generic term used to cover many HR software apps. More advanced systems will typically contain at least some measure of the standalone apps listed above. HRIS contains all the core data required to manage, track and look after your employees - from the point of initially being hired through to them leaving or being fired. Typical HRIS will include:
Recruitment tools: Similar to the ATS listed above to help in recruitment.
Employee profile: The full contact details, history, pay grade and performance of individual employees.Employee hub: Allowing staff to sign in and change details, request holidays, pay reviews, etc.
Benefits records: Details of any benefits programs the employee might have signed up to.
Payroll: As noted above, to automate paying employees and track wages.
Training, education and learning: A record of employee on-the-job training.
Attendance and time-off tracking: To check employee performance and attendance.
Most modern HR software combines all of the above standalone software into one HRIS app. Additionally, more comprehensive programs can also include Human Capital Management (HCM) systems which give a company-wide view of performance and a better indication of Return on Investment (ROI). HCM can help organizations identify bottlenecks or predict potential problems on a wider scale, giving a macro picture of performance.
