Best HR Software: uses, categories & advantages -iSoftwareshops
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Best HR Software: uses, categories & advantages -iSoftwareshops

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What are the different categories & advantages of HR Software? 

Most of the organizations globally have implemented some HR software in their process to simplify the operations. There are various software vendors in the market, each providing solutions to optimize your HR tasks. The management must choose the best HR system that adapts to your business needs. Because this software will help to manage your workforce, engage them and improve overall productivity. In this blog, we will dive deep into the different types of HR software available; in the market. Additionally, we will also cover the benefits of this software for your organization. 


What is an HR management system? 

 HR software is a set of algorithms that helps to manage employee data, assign tasks, and other HR functions. It is a perfect tool to manage your entire workforce on a single platform, automate menial jobs, and structure the data. Additionally, this software will help to minimize the operation time by automating tedious tasks. 

The best HR software will help businesses to make better data-driven strategic hiring and planning decisions. 


What are the different types of HR software solutions? 

Best HR Software

The software vendors have developed various systems; that help to accomplish multiple tasks. The best HR software will be an all-inclusive tool that helps manage all the aspects of the human resource department. There are various software vendors, which only help manage one or two; aspects of the HR department. 

 Some HR software vendors have a flexible solution that can be customized and integrated with other systems. Following features will be present in HR software, but they can add more features according to the business needs. 


  • Human resource management information system (HRIS), Human resource management system (HRMS) & Human capital management (HCM). 
  • Applicant tracking system (ATS). 
  • Payroll management system. 


Based on the deployment of the HR software we can categorize them into two types: 


  • On-premises software: 

 On-premises HR software solutions deploy on official servers which operate only on specific locations and systems. This software will only operate on the devices on which it is installed and will not work on any other system. On-premises software might be a secure and cost-effective solution but it is challenging to upgrade and maintain the system. Additionally, with such systems, the businesses are responsible for upgrading and maintain the system. As a reason, the business owners have to invest a huge upfront cost installing IT infrastructure and team. 


  • Cloud-based software: 

 Most business owners today implement cloud-based HR software because it has all the features they need. The best advantage of cloud technology is that this software can deploy easily on a compatible device with an internet connection. The employees can use this application on their devices with login-id and password. Online HR system ensures flexibility, reliability, and scalability for your business which allows your team to access it from anywhere.  Additionally, the employees can access and update their personal or professional information by themselves. 


Based on the features of the software; we can categorize the HR system in the following ways: 


  • Benefit management software. 

 Payroll and benefits play a crucial role to motivate your employees and increase their productivity. 


Manage benefits: 

 This HR software helps to calculate and process benefits like insurance, PF, and incentives. 


Manage compensation: 

 This software helps you manage all the compensations that you provide to your employees and process them. These compensations include salary, bonus, incentives, and commissions. 


Manage payroll: 

 Payroll is a crucial aspect to motivate your employees and help your business to stay compliant. The best HR software in India will help to calculate taxes, payroll, and other government compliance. 


  • Recruitment management software. 

 If your business wants to simplify the recruitment process, then HR software with this feature will help you. 


Track applicants: 

 This software will help track all the applications received, filter them, and recruit the best ones. 


Job posting: 

This software will help to post the job description on multiple channels in a few clicks and gather applicant details on a single platform. 


  • Performance management software. 

The HR software with these features will help you to set, track and evaluate the workforce performance. 


Manage appraisal: 

This software will help to track the employee performance and give appropriate appraisals to them. 


360-degree feedback: 

This software will help you to evaluate the employee in all aspects to give overall feedback. 


Employee rewards and recognition: 

HR system with these features will help you to recognize the best performers to reward them. 


  • Training management software. 

Organizations who need to make their training process robust than this software will be the best solution for you. 


Manage training: 

This software will help you to assign employees the training modules and track their progress. 


Content creation: 

Additionally, this software will help you create the training content based on your business needs. 


Onboarding management: 

Software with such features will help to automate the onboarding process and digitally transform it.

  • Work administration management software. 

 Efficient workforce management is challenging and complex; HR software with such tools will simplify it for you. 


Talent management: 

 Talent management is an intricate process that needs specific tools for efficiency. 


Track attendance: 

 This software will help to track the attendance and leaves automatically without errors. 


Engage employees: 

 Engaging employees plays a crucial part in retention, development, and happiness; this software will help you increase workforce engagement. 


Schedule employees: 

Software with such features will you have an efficient work schedule based on your needs. 


Time and expense management: 

HRS with work administration management will help to track the time and expenses. 



 The cloud-based HR software is an essential need for every organization, but they need to understand their requirement. Once they know their needs, they can choose the best HRS in India, which will adapt your process.

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