Best Human Resource Management (HRM) Software [Updated List of 2024]

Why HR Management (HRM) Software?

Replacing the loyal yet lousy excel sheets and paper files with something foreign like Human Resources Management Software (HRMS Software) can seem like a huge gamble for Small Business. Finding the right fit can induce deep-rooted anxiety. The thought of making a huge purchase for ‘a complete package’ only to find glaring loopholes that make the software worthless is nothing short of distressing.

Finding the right HR Management System for your small business isn’t that different from online shopping. Shopping online is convenient, yet buying something unseen turns you into an over-concerned worrywart. You drive yourself crazy with the thought of being misled by inaccurate representation. Similarly, Human Resources (HR) managers are concerned about buying inadequate HRMS for your small business. Unlike online shopping returning HR management, returning HRM software for small business is not an option.

Customizing it to fit your needs might be too time-consuming. Finding the perfect solution can be painful and the array of available options will only add fuel to the fire of desperation. To avoid getting hoodwinked by masquerading HR software providers, you need to ignore the self-promotional seaweed, skip the technical jargon, and focus on solid functionalities.

Rather than trying to strike gold with the most popular and expensive enterprise-level HRMS Software with your meager funds, opt for a cloud-based HR software solution that solves your pain points one at a time. The following sections will aid your search with a broader description of must-have functionalities under the broad term of HR management software that you can choose for your business.

8 Components you need to look for in an HR Management Software

The enterprise-level HRM softwares have features and components that aren’t necessary for a small business which adds to the complexity. The best way to choose the best HR software for your business is to break down your requirements and see which solution fits your requirements.

Here are the components and features you should be looking for when evaluating different HRM software options.

1. Application tracking

An applicant tracking software (ATS) assists HR staff in optimizing their recruitment process and closing job openings faster. These applications sift through resumes, find suitable candidates, schedule interviews, and store resumes securely over the cloud for easy accessibility and document management. Web-based ATS SaaS Platforms are perfect for all businesses, regardless of what their size or budget is.

An ATS software automates all manual tasks involved in the recruitment process, optimizes it end-to-end, and gives HR managers enough time to spend on critical tasks like interviewing candidates. Applications like BrightMove, Kissflow HR Cloud, Workable, Clear Company, and Zoho Recruit extend enterprise-level functionalities to SMBs in a feature-rich platform to streamline their application tracking process and hire the best candidates.

Must-have features:

• Seamless integration (e-mail, website, job board)
• Multi-channel accessibility (cloud, mobile, browser)
• Document management (cloud storage)
• Collaborative (share it with interview panel)
• Progress reports (status, feedback)

2. Employee onboarding

Organizations place all their trust on onboarding checklists. Although checklists are useful, their high propensity for errors and time-consuming nature make them less desirable. On the other hand, a robust onboarding software has a great impact on the readiness and performance of a new hire. Undergoing a solid onboarding experience reduces the time-to-productivity of employees, improves their morale, heightens engagement, and reduces turnover rate.

As the onboarding process differs from one company to another, a platform that is easily customizable by the HR staff will be more appropriate for your organization than a packaged off-the-shelf human resources software. An efficient onboarding application like BambooHR, Kissflow HR Cloud, Zenefits, or Cake HR take the stress off the onboarding process and make onboarding hassle-free and memorable for both new hires and HR staff.

Must-have features:

• Self-service option for candidates
• Customizable onboarding workflow
• Multi-user access
• Electronic forms and e-signatures
• Compliance management

3. Performance management

Performance management systems play a vital role in aligning employee interest in the organization’s mission. Opting for a broader, continuous approach will list the process of goal setting, implementing, reviewing, evaluating, and revising under the umbrella called performance management. A structured, constructive approach can make employees happy, induce a sense of loyalty and give businesses a competitive edge in the market.

A proper performance management system facilitates growth for individuals and the organization. Performance management system options like Workboard, Kissflow HR Cloud, Cezanne, and Small Improvements help all businesses from SMBs to enterprises define expectations and shared responsibilities clearly, provide continuous coaching and feedback, and assess employee performance accurately. They come with pre-built customizable performance evaluation templates that simplify launching and administering performance cycles.

Must-have features:

• Customizable performance review templates
• Comprehensive assessment criteria
• Define review cycle (Time, goals-individual/team/department)
• 360-degree feedback (self, supervisor, peers)
• Review results (collect, organize, display, and analyze)

4. Employee training and development

Training and development software offers HR admins and supervisors a feature-rich interface to create and manage employee training programs quickly. Using training and development software, businesses can easily identify the training needs, implement a program, retrieve feedback, and analyze the effectiveness of the employee training process. In addition to reducing the workload of trainers, they also offer the management a 360-degree view of the training process.

HR Management software platforms like Mentis, Kissflow HR Cloud, and Bizimply extend end-to-end automation with an easily accessible database, seamlessly integrated with other modules like forms, folders, calendars, etc. while offering the option to pre-define the workflow that needs to be followed. These applications allow organizations to deploy centralized employee training programs to their staff and measure the outcome effortlessly.

Must-have features:

• Manage it all (trainers, programs, trainees)
• Schedule sync (with Google/Outlook calendar)
• Real-time feedback (trainer, trainees)
• Review results (assessment, productivity)
• Revise strategy

5. Employee management

Employee management software helps businesses overcome inevitable challenges in employee management. These human resources software options allow HR managers to handle everyday tasks like forecasting workload, scheduling shifts, allotting schedules to employees, and managing workload to keep employees engaged and productive. Maintaining an archive of all labor-related data in a centralized database lets organizations make a comprehensive analysis and make informed decisions.

Having a seamless employee management process can keep business activities moving forward without hiring a dedicated resource to handle them. Employee management softwares like Deputy, Kissflow HR Cloud, Ultipro, Orange HRM, and Natural HR provide businesses a powerful employee management system with customizable workflows, centralized database, rule-based engine, and in-built reporting module.

Must-have features:

• Employee directory
• Monitor, track, and record tasks
• Access on the go
• Resource planning
• Reporting module

6. Timesheet management

Timesheet management software records, tracks, and monitors employee performance. A good timesheet software synchronizes the number of employees in an organization with their working hours to measure productivity and determine the labor hours involved in completing a specific task. It can be used to establish a process for timesheet tracking and approval, record working hours, retrieve leave details, and calculate their salaries accurately.

Platforms like PeopleBookHR, Zenegy Owner, and Kissflow HR Cloud offer the option to integrate with third-party applications to capture and analyze the performance of an employee, a project or even a task and export the report in any format. Organizations can use these applications to determine their scheduling and hiring needs, streamline their payroll, and make insightful decisions to optimize workload and workforce.

Must-have features:

• Time clock
• Seamless approvals
• Interactive dashboard
• Real-time reports
• Easy integration with payroll and human resource software

7. Leave management

Leave management is connected to the organization’s bottom line. However, prioritizing leave requests and ensuring proper availability of the workforce cannot be done with partial visibility. Leave Management software automates the process and provides transparency. These software tools offer employees a self-service option to apply, track and manage their days off. Managers and HR staff have the option to view, approve/reject, and keep track of these requests.

Leave Management Applications like Cake HR, Zenefits, and Kissflow HR Cloud help businesses customize their leave types, holiday list, workflow (route requests directly to managers) for approval/rejection. HR teams can analyze leave patterns and retrieve insights on employee performance and diligence. These applications help organizations track all type of leave requests (sick, vacation, paid), ensure adherence to leave policy without dissatisfying employees.

Must-have features:

• Configurable fields (leave type, policy, holiday list)
• Leave balance auto-update
• Customizable leave request approval workflow
• Carryovers and overtime
• Transparency

8. Payroll

Payroll software minimizes human intervention and associated errors by automating the process and empowering your HR staff. What previously took 3-14-day for the HR department to compute will barely remain to be a few hours of work. Automated systems improve the accuracy of critical details, store confidential payroll information securely, perform complex calculations using pre-defined and customizable rules.

Payroll Management Software extends improved control over the payroll process, letting you configure changes without needing IT support. Businesses can keep up with statutory requirements and adapt to rising business needs quickly using these flexible applications. Solutions like Zenegy Owner, Patriot Software, Orange Payroll, and PeopleBookHR make accessing, retrieving, modifying and analyzing payroll data completely hassle-free.

Must-have features:

• Robust and secure
• Functionally rich interface
• Omni-channel compatibility (mobile, web, cloud)
• Integrated accounting (tax, salary, PF)
• Customizable rule-engine

Best HR Management Software for SMBs and Enterprise in 2023-24

We evaluated different HRM softwares available in the market that caters to the small businesses. Here are some of the very best platforms that you should consider when choosing your solution.

1. BambooHR

BambooHR is an HR Management Software specifically designed for SMBs. BambooHR has a lot of features we mentioned earlier like applicant tracking, onboarding, performance management, employee management, time-off management, etc.

2. Kissflow HR Cloud

Kissflow is an all-in-one HR suite that comprises of all essential core HR modules, a self-service portal, tracking capabilities, rule-based workflows, and advanced reporting functionalities. Built for businesses of all sizes, the system comes with powerful modules for recruitment, onboarding, performance management, leave and attendance management, training management, and offboarding. Following the footsteps of traditional HR management, Kissflow HR Cloud ensures compliance with role-based access to confidential employee information.
G2 Leader Winner 2020 – 4.3 / 5 (462 Reviews)

3. Zenefits

Zenefits is a cloud-based HR management software that has a range of different HR tools but specializes in payroll and benefits administration. You can also integrate with dozens of enterprise and productivity apps using Zenefits.

4. CakeHR

CakeHR is a recruitment automation platform which also has other HR modules like timesheet management, leave management and onboarding. You can create powerful reports using CakeHR and get insights on your processes.

5. Gusto

Gusto is a HCM tool that packs all essential HR software features for successful onboarding, benefits management, and performance management in a modern, easy-to-use interface. You can try their one month trial to learn how it fits your SMB.

6. Zoho People

From onboarding and attendance management to time tracking and appraisals, Zoho People platform has a range of business applications to automate HR processes.

Things to remember when choosing your HR management software

Taking on the challenge of selecting the best HR management software is a time-consuming yet fruitful process. It is critical to select an HR software solution that comes with a galaxy of flexible yet powerful human resources modules which is easy to implement and effortless to manage. In order to find the perfect software that fits your HR processes like a glove, you’ll need a crystal clear understanding of what your needs are.

Hesitant to take the plunge into the world of the best HR management software for businesses? Would you like to address the gaps in your HR process without making a dent on your account? Start with a user-friendly HR solution like Kissflow HR Cloud and tailor-make your perfect fit from scratch.

Automate your HR processes from hire to retire, make way for seamless integrations, and get real-time interaction in your siloed environment and patch up the glaring loopholes swiftly with Kissflow HR Cloud. Sign up for a free trial!