Your Guide to HRM Software

Learn the importance of HRM systems, explore the different types available, and find out which top HRM tools are leading the market.

Whether you’re searching for the perfect HRM tool for your business, or simply interested to learn more about how HRM systems can improve efficiency in the workplace, our guide has all you need to know. 

The importance of HRM software in business 

HRM (human resource management) in business involves a strategic approach to managing employees. From recruitment and selection to on-going training, development and general management of employees’ issues, HRM is a vital function within all businesses. 

Luckily for HR teams, there is software designed specifically to manage human resources and related processes throughout the employee lifecycle. The use of HRMS is invaluable to HR teams, for multiple reasons, including: 

Efficiency 

HRM software automates many administrative tasks which would take an HR professional without such software, much longer. Tasks such as payroll processing, performance monitoring, and holiday and sickness tracking, are examples of data-heavy, labour-intensive HR tasks which are sped up no end by HRM software. Automating these admin-heavy tasks leaves HR professionals more time to focus on the likes of talent acquisition, staff retention and more.

Employee empowerment 

Many HRM software platforms allow employees to track their own HR-related tasks, such as time-off requests and payslips. This is not only empowering for employees but reduces the administrative burden on HR staff.

Accuracy  

Manual data entry is prone to human error, which can lead to business issues such as compliance violations or incorrect pay, for example. Using HRM software reduces these errors by automating processes.

Compliance 

Business compliance laws are updated frequently, which is why HRM software is invaluable to HR management. HRM systems can alert businesses to changing labour laws and regulations, prompting policy reviews in order for companies to remain compliant. 

Types of HRM software 

It can be difficult knowing where to start with HRM software – you may know your business needs it, but which is best for your company? Knowing the following three main types of HRM software can really help you to narrow it down: 

1. Human Resource Information System (HRIS)  

An HRIS organises employee data efficiently. It typically automates tasks such as onboarding, time tracking and compliance monitoring, ultimately improving company efficiency and accuracy. HRIS typically have self-service portals for employees to manage their own data, saving HR teams time and resources.

2. Human Capital Management (HCM)  

HCM builds upon what HRIS offers, with a focus on the entire lifecycle of any given employee. HCM organises recruitment and structured onboarding, leading to higher rates of staff retention, performance and development. 

3. Human Resource Management System (HRMS)  

HRIS and HCM come with their own benefits, but when the two are amalgamated, the best results can be achieved. Many HRMSs have advance administrative tools, boosting their efficiency further. Detailed reporting and analysis of the data obtained allows HR professions to make informed business decisions, backed by stats.

Best HRM systems available 

There are hundreds of HRM systems available, but according to research conducted by Forbes.com, these are the best HRM systems on the market in 2024*: 

• monday.com HR 
  - Cost: Free; £7 per seat, per month (3 seat minimum) 
  - USPs: 24/7 support, easy to use, connects to workflow tools for finance, marketing, operations and more. 

• Paycor 
  - Cost: £79.93 ($99) per month plus £4.04 ($5) per employee 
  - USPs: Seven industry-specific builds, Customer support available Monday to Friday, 8 a.m. to 8 p.m. Eastern time. 

• Rippling 
  - Cost: £7 per user, per month 
  - USPs: 24/7 customer support with live chat, automated workflows, integrates data between four departments, products can be purchased separately for a customised plan. 

• Zenefits  
  - Cost: £6.46 ($8*) per month per employee 
  - USPs: Ability to choose which add-ons you need for your specific business/industry, Independent contractors and temps are just £4.85 ($6*)/month per worker, customer service Monday to Friday, 7 a.m. to 4 p.m. PT. 

• ClickUp  
  - Cost: Free; £4.04 ($5*) per member 
  - USPs: 24/7 customer support, affordable premium plans starting at £4 per member per user, unlimited users. 

*Prices and USPs correct as of April 2024

How an MSc in HRM can help you keep on top of HRM trends 

If you’re interested in learning more about trends in HRM, our CIPD accredited online MSc in Human Resource Management (HRM) is designed to give you an advanced level of knowledge, understanding and ability around people management and leadership.

This course is 100% online and part-time, allowing you to work your existing commitments around your studies: