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These HR tools help businesses streamline their processes and provide HR departments with quick access to employee information, from onboarding to productivity.
The responsibilities of a human resources (HR) department are vast and depend on an organization’s size and industry. Because of this, about 50 percent of small to medium-sized businesses use cloud-based HR management software, according to our 2024 HR Management Systems Report. However, regardless of the business vertical or the number of employees, HR tools can help HR managers and their teams save time and make processes more efficient without sacrificing quality.
Selecting the right tool for your business requires planning, assessing organizational needs and reviewing available solutions. Thus, we compiled a list of the most essential tools for HR departments — big or small.
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HR tools are digital solutions that streamline managing and optimizing HR tasks and the overall goals of the business. Modern systems are often cloud-based, use subscriptions and can easily integrate with other data management programs as well as be customized to a business’s goals and budget.
HR tools automate tasks that would otherwise take considerable time and administrative effort from an HR professional. Whether they’re providing recruiting services or streamlining communication efforts, HR tools allow professionals to focus more on employee engagement and less on tedious, time-consuming administrative work.
Here are 16 tools every HR manager needs to know about.
Recruiting, hiring and onboarding tools assist HR managers in recruiting top talent and then automating the hiring and onboarding process — all in one platform.
Here are some examples of recruiting, hiring and onboarding tools:
Time- and attendance-tracking tools are usually used in congruence with other HR applications, such as top online payroll services, to keep track of each employee’s hours and attendance in compliance with labor laws.
Here are some of the best time- and attendance-tracking software solutions:
Survey HR tools are helpful for gathering feedback from employees. HR teams and leadership can use that data to analyze employee satisfaction, create employee training programs or dedicate time to building a better corporate culture from the answers received.
Here are a few examples of survey HR tools:
HR tools for productivity allow teams to manage their time and tasks efficiently. Here are a few examples:
With an increasingly remote environment, communication between you and your employees is essential to running a successful business. Communication HR tools allow you to keep in touch with everyone in the organization and help uphold company culture.
Here are a few examples of communication HR tools:
Stephen Kohler, CEO of Audira Labs, can’t overstate the importance of HR tools to his operations: “The most impactful tools are those which save time, drive efficiency and maximize productivity for the employee and the organization overall.”
HR tools take tiresome data-entry tasks from HR professionals and automate them so that human error is virtually nonexistent. This increases efficiency, streamlines productivity and reduces time spent on tasks, such as finding basic employee information or entering data from a spreadsheet. “HR software can reduce manual workload and allow HR specialists to use their time for more important initiatives,” said Justina Raskauskiene, HR lead at Omnisend.
Beyond increasing efficiency, HR tools can also reduce or even eliminate unconscious bias in the hiring process. Sofia Lyateva, chief marketing officer at nPloy, explained that artificial intelligence (AI)-powered systems can help remove identifiers such as name, gender and age to ensure that every candidate is evaluated solely on skills and merit. “This not only fosters diversity and inclusion in the initial stage of the hiring process but also leads to faster and better hiring outcomes,” explained Lyateva.
Using HR tools to reduce bias can also strengthen your employer brand, as it showcases a commitment to fair and equitable hiring practices, according to Lyateva. “This ultimately leads to higher retention and better long-term business growth,” she added.
When you use HR tools, heavy files and memorizing important codes become tasks of the past. HR management-system software allows HR professionals to easily access employee information and data that monitor employee trends, communication efforts and employee status.
“The largest benefit of having a comprehensive [HR] system is making sure that your data is stored in one place, under a data architecture that is prebuilt and intended to work across multiple HR processes and can be accessed in a similar manner by other systems,” said Lydia Wu, founder and creator of Oops, Did I Think That Out Loud.
Instead of countless emails or a chaotic shared calendar, HR tools allow professionals to better monitor PTO, absences and leave requests. These tools also have the ability to track an employee’s availability, the amount of leave they have allocated and can even automate the administrative task of booking holiday allowances.
Data allows HR professionals to figure out what is and isn’t working within the company, even regarding employee engagement. With tools, such as HR management system software, an HR team can monitor trends such as employee satisfaction and performance to identify what needs to be improved, often in real time.
With so many HR tools available for various use cases, you must consider your choices carefully to ensure your tech stack works for your organization. Here are a few key features to look for in any HR solution:
Once you’ve identified your HR team’s needs and the capabilities of each of your prospective solutions, cross-reference your lists to see which tools meet your “must-haves” while also aligning with available resources. Consider your budget and any upfront time and human capital investment to ensure your solution can be implemented as intended.
Don’t be afraid to ask around if you’re still trying to narrow your options. Customer reviews, as well as recommendations from other businesses, can provide insight into what your experience may be like. “My advice for selecting the right HR tool is gathering recommendations from companies that are already using it and learning about the issues they might be having, before making a decision,” said Raskauskiene.
While a thorough research and vetting process may seem daunting, it’s ultimately time well spent if you find a solution that will increase efficiency and productivity across your organization.
Danielle Fallon-O’Leary contributed to this article. Some source interviews were conducted for a previous version of this article.