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The Best Human Resources Software of 2024

Updated Mar 01, 2024
Best for Employee Onboarding
  • Applicant tracking tools
  • Onboarding and offboarding
  • Easy-to-use dashboard
  • Applicant tracking tools
  • Onboarding and offboarding
  • Easy-to-use dashboard
Best for Risk Mitigation
  • Comprehensive HR audits
  • Custom HR policy creation
  • Dedicated HR manager
  • Comprehensive HR audits
  • Custom HR policy creation
  • Dedicated HR manager
Best for Ease of Use
  • Starting price of $8 per month
  • Automated onboarding
  • Intuitive self-service dashboard
  • Starting price of $8 per month
  • Automated onboarding
  • Intuitive self-service dashboard
Best for Analytics
  • Intuitive analytics dashboard
  • Robust recruiting and onboarding
  • Easy-to-use mobile app
  • Intuitive analytics dashboard
  • Robust recruiting and onboarding
  • Easy-to-use mobile app
Best for Payroll
  • Full-service payroll
  • Automatic payroll tax filing
  • Built-in benefits administration
  • Full-service payroll
  • Automatic payroll tax filing
  • Built-in benefits administration

Table of Contents

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The best human resources (HR) software can streamline functions like recruiting, employee onboarding, time and attendance tracking, payroll and benefits administration, employee performance management, and legal compliance. It integrates seamlessly into hiring and operational workflows so that HR management is easy for not only HR leaders but all employees. To help you choose the best HR software for your business, we examined the top HR applications, evaluating each on its price, ease of use and valuable features.

What Is HR Software?

HR software helps businesses recruit, onboard, manage and pay employees. It integrates time scheduling and management tools to organize a company’s workforce, its payroll features accurately compensate employees, and performance management and reporting features facilitate and track employee development. When conducting your research about HR software, you likely came across terms like “human resources information systems,” “human resources management systems” and “human capital management.” All of these terms refer to HR software.

Tip Bulb

How We Decided

Our team spends weeks evaluating dozens of business solutions to identify the best options. To stay current, our research is regularly updated.

26

Considered

16

Researched

11

Selected

Compare Our Best Picks

BDC Ribbon
Our Top Picks for 2024
BambooHR
Bambee HR Software
Rippling
Gusto HR Software
Paychex Flex HR Software
GoCo
TriNet HR Software
monday.com HR Software
Papaya Global
Rating (Out of 10)9.19.59.79.39.79.28.99.49.19.09.4
Best for

Employee Onboarding

Risk Mitigation

Ease of Use

Analytics

Payroll

Remote Teams

Custom Workflows

Startups

Performance Management

International Businesses

Benefits Administration

Starting monthly price

Based on number of users and selected services

$99, plus a setup fee on some plans

$8 per employee

$99, plus $6 per employee

$40, plus $6 per employee

$39, plus $5 per employee

$5 per employee

$8 per employee

$8 per user with 3 user minimum (Free plan available for up to 2 users)

$20 per employee per month

Rates customized per plan

Pricing tiers

2 (add-ons available)

8 (add-on available)

1 (add-ons available)

4 (add-ons available)

4 (add-ons available)

3

1 (add-ons available)

3 (add-ons available)

5

4

5

Contract

Monthly

Monthly, annual or multiyear

Month to month

Monthly or annual

Month to month

Monthly

Monthly, annual or multiyear

Monthly or annual

Monthly or annual

Monthly or annual

Monthly, annual or multiyear

Payroll services

Included and third-party

Included

Included

Included

Included

Included

Included and third-party

Included

None

Included

Included

Integrations

125+

N/A

500+

215+

185+

235+

30+

40+

200+

Custom API integration

550+

Mobile app

iOS and Android

None

iOS and Android

iOS and Android

iOS and Android

iOS and Android

iOS and Android

iOS and Android

iOS and Android

iOS and Android

iOS and Android

Customer support

Phone, email and webchat – 6 a.m. to 6 p.m. MST (weekdays)

Dedicated HR manager, phone, email and chat – 9 a.m. to 6 p.m. PST (weekdays)

Email and webchat (plus phone support with HR help desk add-on)

Phone, email, webchat and 1-on-1 support – 8 a.m. to 8 p.m. EST for payroll, 8 a.m. to 6 p.m. EST for other products (weekdays)

Phone, email and webchat; 7 a.m.-4 p.m. PST

Phone and webchat – 24/7

Phone and email (webchat with HR Support On Demand) – 9 a.m. to 6 p.m. CST (weekdays)

Phone, email and webchat – 6 a.m. to 4 p.m. PST

Phone, email and webchat – 24/7 support

Phone, email and chat – 9 a.m. to 5 p.m. EST (weekdays)

Phone, live chat, and a strategic account manager – 7:30 a.m. to 10 p.m. ET (weekdays)

Review Link
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Our Reviews

BambooHR: Best HR Software for Employee Onboarding

  • All service plans include employee self-service features.
  • You can run custom reports to manage your business more effectively.
  • BambooHR requires you to call for a quote, and some users say it can be expensive.
Editor's Rating: 9.1/10
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BambooHR is a mobile-friendly platform that is ideal for hiring and onboarding employees. Each service plan includes essential HR services like document storage, employee records, benefits tracking, time-off management, reporting, and workflows and approvals. What sets BambooHR apart is its Advantage plan: It offers everything you need to source, hire and onboard the best talent. Unlike some competitors, it includes applicant tracking capabilities so that you are able to find the best employees for your open positions. You can post open jobs, search and filter resumes and cover letters by keywords, and create talent pools full of viable candidates. Once you’ve found the best candidate, you can automatically funnel them into BambooHR’s onboarding process.

With BambooHR onboarding, you can send out electronic offer letters to be signed digitally and automatically saved as PDFs. We like that the platform allows you to send a candidate multiple offer letters, if needed. To enhance your onboarding process, the software can be used to send welcome emails and new-hire packets, as well as assign onboarding tasks. These help your new hires understand what they have to look forward to when starting at your company. Since BambooHR now offers benefits administration as an optional add-on service, anyone who opts for this solution can further enhance their employee onboarding process by guiding new hires through open enrollment as well. If you add on BambooHR’s payroll service, you can seamlessly pay new hires as soon as they’re eligible for their first paycheck. The platform seamlessly connects with 17 different carriers (and counting), removing the burden of manually updating employee data. BambooHR offers self-service features and the user interface is intuitive, so your new hires can get up and running in no time.

Bambee HR Software: Best HR Software for Risk Mitigation

  • Your organization is assigned a dedicated HR manager to help you create custom HR policies and procedures.
  • Bambee offers annual and comprehensive audits to help identify HR gaps.
  • Bambee can’t support organizations with more than 500 employees.
Editor's Rating: 9.5/10
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Bambee is an HR outsourcing solution geared toward supplying small businesses (fewer than 500 employees) with custom HR support in a way that helps mitigate HR risks. After completing a brief survey about your organization, Bambee pairs you with a dedicated HR manager or director to meet your specific HR needs. This manager then conducts an HR audit on your organization to quickly identify areas where your business can improve to meet current federal, state, and local laws and regulations. Bambee works with you to create custom HR policies and procedures that not only are legally compliant, but also match the needs of your company culture.

Bambee has other tools to help you mitigate risks and stay compliant, such as HR process automation, document retention and e-signature capabilities. It can help you onboard, train and terminate employees as well. With features like Bambee Report Cards, you can easily track employee progress against their goals to ensure no one falls behind. We like that it also has the ability to facilitate employee feedback, which can help you identify and navigate problems as soon as they arise. Bambee support is available by phone, email and chat.

Rippling: Best HR Software for Ease of Use

  • Rippling can be implemented in less than four weeks.
  • It integrates with more than 500 applications.
  • You must pay an additional monthly base fee for the Rippling HR Help Desk.
Editor's Rating: 9.7/10
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Rippling is our choice as the best HR solution for ease of use. We were impressed with how quickly you can get your business up and running with Rippling – within four weeks. Rippling’s workforce management platform starts at just $8 per user per month, and you can add a variety of HR management services, like applicant tracking, time and attendance tracking, payroll processing, benefits administration, learning management, and an HR help desk. It even offers comprehensive spend management functionality so employers can track and manage all company expenses (including payroll) in one place. If you employ workers overseas, Rippling can easily support your payroll needs through its global payroll system. You can run payroll off-cycle, correct historical pay runs and even pay employees in their local currency. The Rippling platform is intuitive and easy to use, and it even has a mobile app for iOS and Android devices.

With Rippling’s new applicant tracking system, recruiters and managers can easily track applicant pipelines, create automatic workflows, view recruitment data and acquire candidate feedback. Once someone is hired, you can automate onboarding and offboarding as well, creating simple-to-follow workflows and approvals. With HR automation, new hires are funneled through the onboarding process (e.g., offer letters, new-hire paperwork, criminal background checks and e-verification). The automated process is seamless. Rippling says the average time it takes a new hire to complete onboarding is 90 seconds. To further simplify your HR needs, you can automate other processes, like time and attendance, applicant tracking, and ACA and COBRA administration.

If you want to gain employee insights, Rippling offers Pulse. This product automatically sends custom and templated employee surveys based on employee events, as well as triggers follow-up actions based on employee responses. Rippling comes with customizable reporting, an open API and more than 500 third-party integrations to help connect and streamline your business processes.

Paycor: Best HR Software for Analytics

  • The software and its mobile app are both intuitive and easy to navigate.
  • Paycor offers robust analytics, complete with key drivers and benchmark data.
  • Initial implementation takes an average of two to three months.
Editor's Rating: 9.3/10
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Paycor is our choice as the best HR software for analytics. Instead of offering simple standard reports, we like how Paycor provides users with several charts and graphs that can be easily digested. Users can view current workforce trends, like headcount by employment type, as well as projected trends that are predicted based on past workforce data. You can access charts and graphs on benchmarks and demographics and easily compare multiple organizations or locations. We were impressed with how Paycor lists key drivers affecting certain workforce trends to help you quickly discover ways to improve your organization. With Paycor’s performance management metrics, you can easily track and improve employee performance as well.

The platform, which can cater to businesses of all sizes, is a full-service human capital management (HCM) software platform. It offers a variety of features for HR, payroll, benefits administration, talent and workforce management, and employee engagement service. We like how it provides metrics and analytics on these topics to better inform your business. We also are impressed by how the software is constantly improving with new features to help simplify these HR processes, such as its new AI-generated job descriptions tool. Since a lot of Paycor’s features can be implemented with automated workflows, the administration on your end is simplified. It also offers an advanced tax recommendation feature that provides business owners with employee-specific tax information based on employee location and alerts business leaders about missing tax information. This type of data is key for avoiding potential tax problems.

Gusto HR Software: Best HR Software for Payroll

  • Gusto offers comprehensive payroll and benefits administration features.
  • It integrates with more than 185 popular third-party applications.
Editor's Rating: 9.7/10
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Gusto is our choice as the best HR software for payroll. It offers full-service payroll functions, workers’ compensation administration and the Gusto Wallet app, which your employees can use to access their payroll and account information. Employers with Gusto aren’t limited to running payroll in one specific state or country, because Gusto can help employers run payroll for employees and contractors in multiple states or countries. For example, Gusto can take care of state tax registration for you, as well as handle exchange rates and payments in multiple currencies. It can also act as an employer-of-record if you want to hire workers outside of your own jurisdiction. This ensures all of your workers, regardless of location, can be managed from one platform. This type of pay assistance is increasingly important as more employers move toward global and distributed workforces.

We like that with Gusto, you have access to unlimited and multistate payroll, tax filing and payments, direct deposit, state and federal unemployment insurance, year-end tax forms, garnishments, multiple pay rates and schedules, PTO policy management, holiday pay, and time-off tracking. Since Gusto offers a variety of comprehensive benefits, employers can seamlessly integrate those into payroll as well. It also provides reporting, accounting and time tracking integrations; new-hire reporting; and payroll reports.

Paychex Flex HR Software: Best HR Software for Remote Teams

  • The Paychex dashboard is easy for administrators and employees alike to use.
  • The Paychex Flex mobile app gives your employees 24/7 access to their pay and benefits details.
  • Paychex Flex makes you contact a sales representative directly for pricing details.
Editor's Rating: 9.2/10
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Paychex Flex is our choice as the best HR software for remote teams. Since Paychex is a full-service solution, you can take advantage of the many features you’ll need to manage your remote workforce, such as remote onboarding workflows with e-signatures, new-hire reporting, time and attendance tracking, time off management, payroll processing, payroll tax management, and benefits administration. The software also integrates with numerous third-party services, which is ideal for customizing a solution that can serve your remote workforce best. For example, you can seamlessly manage and reimburse expenses from any location through Paychex’s expense management service.

We like how the Paychex software allows you to track employee information regardless of where they’re located and maintain legal compliance through data analytics, general ledger reports, and automatic W-2 and 1099 forms. It also offers a secure document management center that serves as a centralized location for remote and hybrid employee documents. It supports multiple uploads, in-app signing capabilities, real-time reporting and rule-based restrictions.

Keeping employees satisfied can be tricky, especially with so many teams working remotely. Paychex Flex helps with this by offering direct deposit and pay cards, employee financial wellness programs, employment and income verification services, and an e-learning management system. One feature that sets Paychex Flex apart from its competition is its mobile capabilities: The free Paychex Flex mobile app is comprehensive, whereas most competitors limit the functionality of their mobile apps. This is great for on-the-go managers, remote employees and teams with flexible working arrangements.

GoCo: Best HR Software for Custom Workflows

GoCo
  • GoCo automates and streamlines the hiring and onboarding processes.
  • You can access an embedded payroll option or sync your current payroll solution with GoCo’s software.
  • GoCo is compatible with relatively few third-party app integrations.
Editor's Rating: 8.9/10

GoCo is our choice as the best HR software for designing custom HR workflows. This easy-to-use software starts at $5 per employee per month for essential hiring and onboarding services, employee self-service functionality, and digital document tools. We like how you can customize the software with a variety of add-on services, like benefits administration, payroll processing, and time off and time tracking. With GoCo’s Workflow add-on, you can simplify your company’s HR processes by automating HR tasks. For example, you can streamline your onboarding process by standardizing new-hire packets, training and orientation, and onboarding checklists. With GoCo’s recent AI integration capabilities, drafting and managing employee documents is a breeze as well. You can also automate offboarding checklists, travel and promotion requests, performance reviews, employee surveys, and equipment requests.

Automating an HR process with GoCo is as easy as creating a workflow template (e.g., create tasks, collect data, set due dates, customize permissions), collaborating with others (e.g., assigning tasks to others in the organization), and tracking workflows (e.g., viewing HR workflows on one dashboard). With GoCo’s custom messaging features, you can easily deliver targeted messages to your staff. GoCo also offers custom reporting tools that provide a variety of visualization options along with sorting, filtering, grouping and aggregation capabilities. This is helpful when making educated HR decisions. If you have questions regarding GoCo or its many features, you can access customer support by phone or email. If you add on the HR Support on Demand feature, you can connect with certified HR professionals by live chat as well.

TriNet HR Software: Best HR Software for Startups

TriNet HR Software
Trinet logo
  • TriNet offers industry-specific HR services.
  • TriNet customer support can be contacted by phone, email, webchat, and an online form.
  • TriNet requires companies to have a minimum of five employees.
Editor's Rating: 9.4/10

TriNet is a comprehensive solution with all the features a startup needs to manage its HR needs. It has multiple service plans to support a variety of industries, so you can be sure to find a custom solution to meet your startup’s needs. Contracts and rates are customized per plan. This allows a new business to create a plan that works best for it (and its budget). Its modern and intuitive user interface is ideal for companies that want to get started on the platform without the steep learning curve that some other services have.

TriNet offers vital HR services that help you manage your growing workforce. For example, it assists with time and attendance tracking, employee benefits administration, compensation management, payroll processing and tax administration, expense management, risk management, and workforce analytics. What’s especially beneficial about TriNet is that it offers 24/7 customer support and expert representatives who are focused on your specific industry. It also has an online knowledge center to support your startup even further.

monday.com HR Software: Best HR Software for Performance Management

monday.com HR Software
monday.com logo
  • Monday has extensive project management and collaboration tools.
  • It offers multiple-tiered service plans with transparent monthly and annual pricing.
  • Depending on the tier selected, Monday can be more expensive than other competitors in the market.
Editor's Rating: 9.1/10

Although it may seem like an unlikely contender, as it’s primarily known for its project management and CRM software, Monday is now offering top-notch HR services and is our choice as the best solution for performance management. This software has many features to help you manage employee and team performance. For example, we like that it has a wealth of project management tools that can be easily customized to meet users’ needs. You can set up dependency settings, meaning certain tasks can only be started after other tasks have been completed. This helps ensure that tasks are being completed in order, keeping workers on task. Additionally, we like that you can view worker progress by various charts and timelines. If an employee is falling behind, you can quickly identify the problem to help them get back on track.

Other Monday features that aid in managing employee performance are its collaboration tools. With collaborative whiteboards, embedded documents and update notifications, employees, contractors and clients can easily work together in real time. Since Monday offers a multitude of security settings, you can ensure workers are accessing only information that is relevant to them.

Papaya Global: Best HR Software for International Businesses

Papaya Global
Papaya Global logo
  • With Papaya Global, you can automatically pay employees in their local currency.
  • Papaya Global is an international provider that offers compliance support in more than 160 countries.
  • Papaya charges setup and onboarding fees.
Editor's Rating: 9/10

Papaya Global is our choice as the best HR software for international businesses. If you have employees in one or more countries, Papaya Global helps manage your global workforce. It currently offers support for workers in more than 160 countries, which is a wider reach than many of the competitors we reviewed. If you don’t have a physical entity in the country where you are hiring, Papaya Global can act as your employer of record. We like that Papaya Global can run payroll for all worker types and helps you automatically pay workers in their local currencies, directly to their bank accounts.

The Papaya Global platform allows you to set customized roles and permissions for specific workers. This is a great way to easily manage what type of access workers can have and the actions they can take, as well as what type of data they can view, depending on who they are or where they’re located. Papaya Global is fully compliant with SOC2 requirements and GDPR requests, and it also helps facilitate compliant digital contract management for your global workforce. If you have any questions along the way, Papaya Global support can be reached by phone and webchat.

ADP: Best HR Software for Benefits Administration

  • ADP’s technology is user friendly for employers and employees.
  • Data is automatically synced between the ADP platform and benefit carriers.
  • ADP doesn’t provide pricing information online, so you need to contact a representative for a custom quote.
Editor's Rating: 9.4/10
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ADP is our choice as the best HR software for employee benefits administration. Whether you go with ADP for its HR software, HR outsourcing or PEO model, you can access ADP’s robust benefit administration capabilities. The company has connections with major healthcare companies, allowing you to tap into comprehensive benefits with flexible rate structures. If you’re new to the scene, ADP can help you set up your ADP plan and guide you through the benefits administration process.

We like that ADP offers services like employee discount programs, open enrollment administration, election changes, dependent and beneficiary tracking, life event processing, absence management, and benefits invoice reconciliation. ADP also helps you maintain legal compliance by offering an ACA compliance dashboard, COBRA administration and COBRA event triggers. It can even act as a liaison with carriers for evidence of insurability approvals and help with the reconciliation of carrier error reports. All of these benefit services combine to make for a seamless benefits administration process.

How Much Does HR Software Cost?

The cost of HR software varies depending on the size of your business, your industry and the features you need. Most HR software pricing is based on a per-employee basis, averaging between $5 and $20 per employee per month. Some HR software providers also charge a monthly base fee, ranging roughly between $40 and $100 per month. Additionally, you may have to pay for extra features like payroll capabilities, employee benefits and performance management.

Some HR software solutions are on a month-to-month basis with no long-term requirements, while others require that you sign an annual contract.

Although free trials and free plans are uncommon with HR software, most companies offer either an online demo or a demo that you can schedule with a company rep to walk through all of the software’s features.

Bottom LineBottom line

The average HR software solution costs $5 to $20 per employee per month, plus a monthly base fee of $40 to $100. Other features, like payroll and employee benefits, often cost extra.

What HR Software Can Do for Your Company

Small business owners and HR professionals know how time-consuming HR management can be. Although employers were previously limited to manually performing HR functions, HR software has automated and simplified the process. Some companies offer specific types of HR software, like those for recruiting, employee scheduling, and time and attendance, while others offer comprehensive HR solutions to handle nearly every aspect of workforce management.

The best HR solutions streamline employee recruiting, automate onboarding and offboarding, administer and track employee payroll and benefits, and manage employee attendance and performance. Additionally, HR technology can help your company comply with employment and labor laws.

Did You Know?Did you know

HR software with automated workflows not only speeds up your HR processes, but also helps you comply with many federal and state regulations. Read our related article on switching to an automated HR system.

These solutions can also provide great insight into your workforce. All HR software offers reports that provide a treasure trove of data that can be used to improve underperforming areas.

Most of today’s HR software is cloud-based. The self-service portals and intuitive dashboards make it easy for employees to take control of HR-related functions like managing benefits and compensation, requesting time off, and accessing performance reviews.

Standard Features in HR Software

The features available in each HR software package vary, but here are some standard ones that most providers offer.

Recruiting and Onboarding

Tools used to recruit, onboard and offboard employees are commonly found in most HR software. These features include job posting and syndication, configurable job applications, interview and assessment functionality, background check integration, offer letter templates, new-hire packets, onboarding checklists, e-signature capabilities, workflow automation, document storage, employee profiles, and training tracking.

While some systems include these features internally, most offer a combination of internal features and integrations with third-party platforms, such as applicant tracking systems and top background check services.

Payroll

Most HR software either comes with a built-in payroll option or integrates with top-rated payroll software from a third-party service. Built-in payroll modules typically include the ability to accurately calculate employee paychecks, handle multiple pay rates and schedules, administer garnishments, pay employees via direct deposit and pay cards, and provide online pay stubs. A newer feature offered by some software solutions is on-demand pay, which allows employees to access a portion of their wages on the day they earn them.

HR software can handle all payroll tax responsibilities, like calculating and withholding federal, state and local payroll taxes, as well as providing things like electronic 1099 and W-2 preparation and delivery. Most HR software can integrate with top accounting software.

Time and Attendance

Many HR software options include time and attendance features so that employers can accurately track when employees are on and off the clock. Most systems are cloud-based, which allows for browser-based clocking in and out, while many also offer iOS and Android mobile apps for punching on the go. Another useful feature for off-site workers is geolocation tracking, which tracks where an employee is located while clocked in. Most HR software allows for automatic and manual time tracking, as well as shift scheduling, swapping and dropping.

HR software can help manage paid time off requests and accruals, and it can offer certain automation and alert features to help you maintain legal compliance with things like break policies and overtime laws. Employee time tracking data is automatically synced into payroll solutions to streamline payroll processing and increase pay accuracy. [Read related article: Why Your Small Business Needs an Attendance Policy]

Benefits Administration

HR software can help you administer employee benefits like medical, dental and vision insurance; employee retirement accounts; life insurance; accident and illness policies; short- and long-term disability insurance; HSAs and FSAs; auto and home policies; commuter benefits; workers’ compensation; pet insurance; and miscellaneous coverages. Most will integrate with popular benefit carriers to get you competitive benefits and rates.

In addition to providing you access to employee benefits, most HR software providers will help you educate and enroll your employees on how to get the most out of their benefits. Features like easy plan configuration and ongoing participant education can help simplify the benefits process.

Performance Management

Standard HR software allows you to track and manage employee performance. This can include tools for goal setting and monitoring, succession planning, and performance evaluations. They can also include personalized dashboards and learning management systems with training courses so you can easily provide mandatory training (e.g., sexual harassment) or professional development training.

FYIDid you know

Ongoing employee learning and professional development can help with employee recruitment, skill level, expertise and retention.

Legal Compliance

HR software helps you maintain audit-ready records and compliance with labor and employment laws such as the ACA and COBRA. Custom workflows and automation features can also help to maintain legal compliance, as they reduce the likelihood of human error by ensuring that certain required measures are being followed every time. HR software companies typically offer customer support via phone, email and chat; however, the best companies also offer a dedicated support representative who can provide HR guidance along the way.

Reporting

Most HR software provides helpful reporting and analytics. You may, depending on the type of reports you want, need to sign up for a more advanced software plan, but basic plans typically provide data on your team, payroll, taxes and more. HR reporting can be a valuable tool for tracking workforce trends and increasing efficiency across your entire workforce.

Self-Service Dashboard

Employees can use the software to access a self-service dashboard to manage their benefits, request time off and complete performance evaluations. Since most systems are cloud-based and offer mobile apps for iOS and Android devices, employees can access the software wherever they have an internet connection.

How to Choose the Right HR Software for Your Small Business

There are a few key components to address when you’re choosing the right HR software for your business.

  1. Identify which features you require. The right HR software package for your company depends on the functions you want to streamline and how the solution will complement other software programs your company is already using. Some businesses need a comprehensive, full-service HR platform to manage all aspects of HR, whereas others may want specialized software to help with one or two aspects of HR.
  2. Look for important integrations. A key factor to consider is the software’s integration capabilities, primarily if you are already using programs that perform some HR functions. For example, if you need a solution to help onboard and manage employees but want to keep your current payroll system, find employee onboarding HR software that integrates with your current payroll platform. Identify which business platforms you currently use before choosing an HR software program. This will help you select HR software that is compatible with your business needs.
  3. Assess the platform’s functionality and support. The software should be intuitive and easy for your whole team to use. Customer support is also important. Since HR software handles a lot of the critical functions of running a business, you want to make sure help is available when you need it, including at night or over the weekend.
  4. Compare costs and contracts. Cost and contractual obligations are other key aspects to consider. Some HR software can be used on a month-to-month basis, while other vendors require you to sign an annual contract. Think about how much the software will cost you as your organization and HR needs grow.

HR Software FAQs

By automating your HR processes, HR software saves your HR team time that it would otherwise spend manually performing administrative functions. This gives your HR department more time to execute other important tasks. In addition, most HR software helps you comply with federal, state and local laws, which can reduce the possibility of costly legal issues.

When looking for HR management software, make sure it has all the functionality and features your team needs. Are you looking for a recruiting, applicant tracking and onboarding solution? Do you need payroll, time and attendance tracking, and benefits administration? Analyze your current HR process to determine which functions you want the HR software to manage.

If the HR software package is missing a few of the features you want, ask the vendors you’re considering if the solution will at least integrate with other platforms that fulfill those needs. Additional features to look for in an HR software package are reporting and analytics capabilities to track your processes, a self-service portal for employees to access and manage their information, a mobile app, and great customer support.

If you are a startup with a few employees, you may be fine handling all of your HR responsibilities manually. However, as soon as your HR functions take up too much time or you expand, it is time to invest in HR software.

Regardless of how small or large your business is, HR software is a great way to streamline common core HR tasks like recordkeeping, payroll and talent management. It is also a great way to help your business maintain compliance with labor and employment laws. If your business needs help with any of these functions, consider getting an HR software solution. If you want someone else to help you manage these functions, you might also consider partnering with a top-rated HR outsourcing service instead.

The best HR software solutions automate and streamline your HR processes. Not only do they help with recruiting, onboarding, employee engagement, administrative tasks, time tracking, employee compensation and benefits administration, but they also allow you to comply with labor and employment laws.

The best HR solutions are cloud-based and intuitive, they come with easy-to-use dashboards and mobile applications, and they provide quick and responsive customer support.

Many HR software solutions provide preset service plans; some companies let you add customizable features. This is a great option for small businesses that need specific HR management functions only.

For example, you may be able to add on components like payroll, benefits administration, time tracking, performance management, learning management systems, and advanced HR support and advisory services. Some providers even offer industry-specific HR software tailored to each business’s unique needs.

What to Expect in 2024

As recent advancements in artificial intelligence (AI) make their way into the business world, HR professionals – and the software they use – are forced to adapt. In 2024, HR software will morph into AI-powered technology. Its automation will go beyond scheduling, with bots handling everything from recruitment to performance management. HR software will help create personalized learning journeys for each employee and instantly match candidates with open roles based on skills and company culture.

We anticipate HR teams will become strategists, using HR software insights to predict engagement dips, nip burnout in the bud, and foster a culture of continuous growth. Your HR pros will be armed with real-time data to proactively address issues before they snowball.

And it’s not just about efficiency. HR software will have features that prioritize wellbeing in 2024. Gamified interfaces will nudge employees towards healthier habits, while AI flags potential mental health concerns and connects them with support resources. We expect to see more “mental fitness” perks, like on-demand mindfulness exercises and AI-powered stress management coaches.

Data privacy will remain important throughout the year. Expect robust encryption, clear user consent processes, and an emphasis on explainable AI. Employees will have more control over their data, deciding what’s shared and for what purpose.

Skye Schooley
Senior Lead Analyst & Expert on Business Operations
Skye Schooley is a human resources writer at business.com and Business News Daily, where she has researched and written more than 300 articles on HR-focused topics including human resources operations, management leadership, and HR technology. In addition to researching and analyzing products and services that help business owners run a smoother human resources department, such as HR software, PEOs, HROs, employee monitoring software and time and attendance systems, Skye investigates and writes on topics aimed at building better professional culture, like protecting employee privacy, managing human capital, improving communication, and fostering workplace diversity and culture.
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