Top 5 Must-Have HR Tools Every Company Needs


Professional individuals working in Human Resource departments face a particular set of challenges in their chosen careers. The critical nature of the work they do demands that business operations function correctly with minimal discrepancies. This condition also applies to the overlapping systems and interpersonal communications within a company as well. The defining characteristic of a reputable HR department is a genuine commitment to present company policies to employees and facilitate collective co-worker compliance in any way possible.

In the modern workplace of today, there are technological tools that streamline and enhance the collaborative efforts and results of HR teams throughout several industries ranging from manufacturing to marketing. There are more than a few ever-changing apps, platforms, online software, and services on the market for HR departments to choose from. This overabundance presents some company departments with yet another intellectual and commercial challenge. Today, you’ll find out what types of HR tools exist and what are the most popular HR tools.


Types of HR Tools

At any given moment, numerous different providers of business-to-business services and software startups with innovations in tow. Although the cornerstone of recruitment and compliance stays the same through different HR departments, the people management software used varies. There are three major types of HR systems – HRIS, HRMS, and HCM.


  • HRIS

HRIS, which stands for Human Resource Information System is the human resources software used to analyze data and construct reports to be distributed within a company or to a third party for quality assurance and compliance issues.

It can help the HR department automate core HR tasks like personnel tracking (provides a full list of employees, their contacts, job position, and personal information), payroll (calculate salaries, overtimes, and underperformance), benefits administration (enable employees to enroll to benefits like health insurance), time and attendance (track working hours, calculate and monitor sick days, vacations, and day-offs), and recruiting (automatically post vacancies, receive applications, track candidates).

The list of top systems of this type includes BambooHR, Namely, Zoho People, and Zenefits.


  • HCM

HCM stands for Human Capital Management. In addition to the basic HRIS functionality, it has features for talent management. This solution includes in-depth performance tracking and analytics, salary planning, onboarding automation, and succession planning features.

Infor HCM, Oracle PeopleSoft HCM, and UltiPro are examples of human capital management systems.


  • HRMS

HRMS, which stands for Human Resources management system, is often used as a synonym for HRIS. HRIS is all about tracking quantitative indicators like working hours and salaries, while HRMS tracks qualitative information about the employee and their satisfaction.

It combines the functionality of HRIS and HCM and offers such features as time labor management and payroll processing automation. The list of HR management tools includes PeopleHR, Sage HRMS, and OrangeHRM.

The functionality of HR tools may vary greatly, and the more features it has, the higher the price for the tool. Let’s move to an overview of the most popular solutions available on the market.


The Most Popular HR tools

  1. BambooHR is one of the most popular online HR systems that automatizes the work of HR departments in small and middle-sized companies. It is an easy-to-use system with a centralized employee database and an extensive set of features.

It has two packages of features of different prices, Essential and Advantage, also you can include add-ons for an additional price. The Essentials package includes employee records, benefits tracking, document storage, time-off management, company calendar, and employee directory. It also has standard access levels, workflows and approvals, email alerts, and reporting.

The Advantage package has the same set of features in combination with an applicant tracking system, onboarding, e-signature, training tracking, as well as advanced access level, reporting, etc.

For an additional price, you’ll get access to peer feedback, goals, employee and company performance report, daily time entries, employee timesheets, automatic reminders, and overtime calculations.

Some customers complain about poor sharing document options and bad integrity with third-party business software. Also, as far as it’s an online solution, you and your HR team cannot access information offline.


  1. Zoho People is another cloud-based HR platform designed for businesses of all sizes. It has a user-friendly design with an intuitive interface that allows you to see all the information about your employees in one place, and categorize and organize it as well.

It also has a simple dashboard that tracks employees’ attendance and calculates sick leaves, holidays, day-offs, etc. Each employee has their page, where you can score their performance, set goals, and give feedback. At the same time, employees can see their attendance, timesheet, and basic info about your company and connect with an HR manager.

The notifications tab allows employees to make announcements and discuss issues that emerge during work. HR managers can exchange important files in the Files tab. This tool also provides advanced analytics and insights about the workforce so you can identify bottlenecks and make informed decisions.


  1. Breezy HR is geared toward the automatizing recruiting process. It automatically searches for candidates from several sources and prepares a full list of people who can be interested in your vacancy, help you create effective job descriptions, and advertise them on several job portals in just a few clicks.

It provides robust tools for candidate management. The drag-and-drop pipeline enables recruiters to organize the list of candidates simply. Just like in Trello, you can put cards with candidates into several columns including “Phone call”, “Interview”, “Feedback”, and so forth.

This tool automatically sends SMS messages and emails to candidates, visualizes the meeting schedule, and lets you prepare questions for the interview with candidates. After the interview, the whole team can discuss and score candidates in real-time within the HRM.


  1. Cezanne is a system designed to interact with employees on a modular level. The system not only tracks individual performance but has protocols in place to train, develop, advise, and advocate on behalf of employees as well.


  1. ADP is another cloud-based all-in-one solution that enables you to automate time tracking, payroll and taxes calculation, benefits administration, recruiting, and talent management. Besides providing a robust tool for HR management, ADP also offers its clients outsourcing company’s HR specialists to extend existing HR staff. It deals with businesses of all industries and can serve small, middle-sized companies as well as enterprises.

HR management software is a literal lifesaver. Hourly wage employees receive compensation for their time accounted for in service to a company whether their performance yields a profit or not. Mix this fact of modern life in America with a high turnover rate, or a strong and equally loyal workforce putting in ridiculous overtime hours, and outsourcing soon becomes a company’s best option. On such a serious matter, firsthand diligence in researching which HR management software works best for a company is the only good advice to give. As far as standards on the matter go, high-level HR software can handle anything. It all happens while making workers in Human Resources departments smile.


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