What are the Different Types & Benefits of HR Software?

Compared to traditional methods, modern HR solutions have advanced a lot. Searching for one on the internet will offer you a list of features that never end. But for someone who just stepped into this field, choosing the right one can be difficult. In this article, we go over the types and benefits of these Human resource solutions, which should allow you to choose the right one for your company.

Types of HR Solutions

There are three main types of human resource solutions that are offered.

  • HRIS & HCM
  • HRMS
  • HR Workflow Software

HRIS & HCM

HRIS or human resource information system & HCM or Human Capital Management software are somewhat similar since they deal with automating the processes of the Human Resource Team. Compared to a human resource information system, HCM offers much better features such as performance management, workforce management, and analytics. These extra features help the HR team to focus on achieving the goals set by their organizations.

If you had to choose one of these, going with HCM will benefit you much more than HRIS since most of the HCM software offers all features from HRIS and some extra one such as Employee onboarding, Performance management, workforce management, Analytics, etc.

HRMS

Human resource management software or HRMS is a tool for HR teams to streamline the HR processes within an organization. An HRMS software consists of all the modules from HRIS and HCM combines and still offers some extra tools such as Payroll Management, Compensation, and Benefits management.

HR Workflow Software

Workflow software aims to automate existing HR processes that used to be manual. This helps reduce the burden on the human resource team so they can focus on activities that might help achieve organizational goals. Workflow software focuses on automating processes such as recruitment, attendance management, onboarding employees, and managing the performance of the employees.

Key Benefits of Using HR Management Software

Reduces Paperwork

With the help of HR software, a lot of regular processes can be automated which allows the HR team to dedicate their time and resources to processes that focus on organization goals. The HR team doesn’t have to go through the repetitive process of managing the documents for every individual process. Managers can also focus on coaching their employees for better performance.

Better Data Collection

With most of the processes automated, managers can retrieve data without looking into multiple systems and documents. Creating reports becomes much easier with HR software. HR managers can gather reports and insights with just a click of a button. 


Once they have gathered all the data, it’s much easier to focus on areas where they need more improvement or recognize departments where there are improvements compared to last time. Not only this saves a lot of time, but it also helps managers streamline the process and produce better results.

Reduces Admin Staff Cost

Since these softwares can automate multiple processes, you will be able to save a lot of time and money on HR functions. This also reduces the number of HR staff required to carry out regular tasks manually.

Accuracy

Most of the HR software modules will follow predetermined workflows and rules which results in fewer errors compared to process carried out manually. Since these softwares are built with precision in mind, the probability of errors are reduced significantly. For example, the time and attendance management process are automated, which offers precise data for every employee. This helps the HR department produce accurate payroll at the end of the month.

Conclusion

While being in the market, looking for software for your organization, you have to focus on the requirements your business has. Compare that with what vendors are offering in return for the money you have to invest and final in one the best one. Discuss with your HR department as well before you make your decision to go with one of them.


The main focus of HR software is to aim for the growth of an organization. The HR team can easily manage most of the process without getting stuck in repetitive manual tasks. These were some of the common benefits that an HR solution offers. Based on the requirements you have, choose the right software that offers the most benefits in return.