Today, almost everything has a technological component to it – whether you’re using a sat-nav to get one from point to another, or browsing the internet for tricks to help rustle up the perfect dinner, it’s likely that technology is involved in some form.

The same is true for businesses, with most using some type of software to automate and maintain day-to-day processes.

A human resources software is not just valuable but unavoidable in today’s growing business. It makes it possible to handle HR processes in a way that’s organised and manageable. But, how do human resources departments use HR systems exactly?

Primarily, HR systems are used to gather and organise data to support the following functionalities:

For Recruitment

A great piece of software will streamline your internal recruitment process, right from the moment you post a job advert online to the day your newest member of staff is being shown around the building. The best types of software will synchronise to social media, allowing you to publish job vacancies in full view of the best candidates, and you’ll be able to track and monitor the applications as and when they come in. You can then use the data you gather to track recruitment spend, time, diversity and other factors that are important to you.

For Training

The best way to ensure you retain your best talent is to know what it is, and where it is. A people-management HR system help you identify and analyse employee skills, monitor training (including completion and performance), and ensure that training budgets are properly managed.

For Payroll

As your company grows, the demands on your payroll functions are going to continue to become further arduous. A good payroll software is important as its single point of data entry will mean that everything is ready for processing without fault, synchronising with accounting software, to ensure you’re complying with your tax obligations and managing essential forms and documents.

As well as the above functions, a great HR software will also monitor employee attendance and absenteeism, as well as assist with benefits administration such as bonuses, holiday entitlement and more. All in all, it provides a centralised platform to manage core HR functions, as well as holding a goldmine of data that can be used to improve operations in your business.

As you can see, there are a lot of ways that HR departments use management systems. But how do you choose the right HR system?

Well, there are many software products on the market, but it’s safe to say that some HR systems are better than others. Keep in mind:

  • One size does not fit all
  • You’ll need a piece of software that’s suitable for your current number of employees, but be sure to choose something that’s scalable for the medium, and the long term
  • Certain types of software may provide either more, or less functionality, so identify what core functions you require
  • A friendly interface will make it easier to use
  • Cloud-based software will mean your HR systems are accessible on multiple devices

You should take the time to read reviews before you invest – an HR system is like any other product, in that the ratings and feedback will give you a snapshot of how useful it is. It’s wise to speak to current customers to find out what they think of the software.

So, whether you’re looking for good management software for the very first time, or you already have HR systems in place and are looking for an upgrade, doing some research will help you choose the one that best suits your business: and you’ll be glad you did.

Tobias Matthews

Tobias Matthews


Writer at Fourth Source.