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The responsibilities of a human resources (HR) department are vast and depend on an organization’s size and industry. Because of this, about 80 percent of small businesses in the U.S. are using HR software, according to a report by Capterra. However, regardless of the business vertical or the number of employees, HR tools are a great way to save time and make processes more efficient without sacrificing quality.
Selecting the right one 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.
Editor’s note: Looking for the right HR software for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.
HR software is a digital solution that streamlines managing and optimizing HR tasks and the overall goals of the business. Modern systems are 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 payroll software, to keep track of each employee’s hours and attendance in compliance with labor laws.
Time- and attendance-tracking tools help HR monitor employees’ hours and attendance while complying with labor laws.
Here are some of the best time- and attendance-tracking software:
Survey HR tools are helpful for gathering feedback from employees. HR teams and leadership can use that data to analyze employee satisfaction, create 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:
While you can choose individual tools for tasks like recruiting, time and attendance, and communication, you can also select a complete human resources software solution. The best HR software offers all of these services in one easy-to-use platform. Learn more about top options in our Gusto review, our review of Paychex Flex and our BambooHR review.
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 tools take the guesswork out of monotonous but important HR documents and projects.
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. No more wading through stacks of papers or cursing at spilled coffee on a resignation form when you have an HR tool’s electronic file system in place.
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.
HR managers can use software tools to monitor employees’ paid time off, absences and leave requests.
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.
You should ask yourself a few questions before choosing the right HR tools for your organization. First, what HR tasks eat up the majority of time in a day? Look for tasks that can be automated or may need increased efficiency to be effective. Once you identify the problem tasks, searching for an HR software tool that can automate that task — and be customized to other business needs — becomes less like trying to find a needle in a haystack and more like reaching out for the perfect fit.
Next, what is your business’s budget for a new tool? Will add-ons or monthly payments drain the company’s account? If the budget feels comfortable and includes wiggle room for must-have additions, it’s time to ask a few final questions.
When choosing an HR tool, make sure that it solves your problems and scales with business growth, rather than creating more tech headaches.
Will this tool solve problems and not create more tech headaches? Can the tool scale with business growth, whether that growth means adding more employees or changing the business model?
Ensure you choose the best HR software for your business that covers key aspects from onboarding to retirement, enhancing performance reviews, payroll and other HR functions efficiently.
Source interviews were conducted for a previous version of this article.