The Benefits of HR Software | Human Resource Management Software

Talking about the combination of human resources and technology was almost inconceivable until recently. However, this merger, which has given rise to human resources management software, has advanced a lot qualitatively in a very short time. 

The human resources function was identified as a secondary and administrative work within the organizations. But technological progress has made it take a strategic weight in companies that seek to differentiate themselves from their competition, due to problems such as the recruitment and retention of talent in companies.

In addition, currently working with a huge amount of data, both quantitative and qualitative, so the development of the functions of this department is much more efficient with the help of human resources software.

What is human resources software for?

The Human Resources Department was one of those with the fewest technological resources within a company. While companies invested large amounts of money and time in the application of specific software for other operational areas, such as Production, Sales, Finance, and Logistics, the Human Resources Department was working without adequate technological means. Over time, companies have realized the mistake of not investing in good people management, since it is the strategic enclave to attract and manage the company's talent.

In general terms, we could say that human resources software is a set of technologies that bring together all the people, hiring and talent management systems used to improve business efficiency. Its purpose is to combine different administration and human resources processes in a centralized management model, where administrators can also assign the automation of tasks, evaluate progress within the company and reward the best employees of the team, helping to make the best decision making regarding human capital.

Structure of a human resources software

Different ERP or HR software offers a wide variety of solutions, modularly adaptable to the needs of each company. Thus, they are made up of the following modules:

The central module or HRIS ( Human Resources Information System ) refers to a basic information management program for company employees. This allows you to define the organization and create organization charts, and serves as an internal communication center, like an intranet or a notice board for all employees. This central module, also called HRM ( Human Resources Management ) core, is the pillar on which different functions depend, from the simplest to the most complex. 

The payroll and salary management module help to automate the management of the payment of salaries, such as the settlement of taxes in the relevant bodies. It is also usually accompanied by a compensation and benefits module that allows defining the salary policy of the company.

The talent management module is an additional module that not all human resources software includes. This measures aspects such as the recruitment and maintenance of talent, succession, and career plans or the supervision and evaluation of performance.

The recruitment module is used to analyze the needs for selection and preparation of profiles, connect with other platforms such as professional social networks to attract candidates, and is of great help in the preselection and evaluation of applicants.

The labor relations management module helps to maintain the order of hiring, compliance with labor regulations in relation to hiring or time control, preparing work shifts, controlling absenteeism justified or not, and absences or the connection with official organizations, such as SEPE or TGSS, for administrative procedures.

Should your company bet on human resources software?

More and more companies are implementing human resources software. Until recently, company leaders viewed the Human Resources Department as a cost department, not tied to company operations or strategy. However, many are evolving considering that this mission is to grow the company through the people who work in it. For this reason, the implementation of specific software, which helps reduce costs, optimize time, and increase the productivity of teams, is increasingly common.

With human resources software adapted to the needs of your company, many unnecessary costs are reduced, since the information can be measured and accessed immediately, which provides flexibility to the company while it prepares it for the reality of the new challenges of an increasingly digitally connected society.

Advantages of using human resources software

The main advantages of using human resources software are these:

A strategic vision of human capital, its capabilities, and its talent. The main function of this software is to centralize employee information and help companies to develop actions to gain efficiency. Thanks to this, employees get complete and updated information about their activities and tasks that helps save time. Thus, when a task is ready to be started, you can always assign the best talent, monitor its progress, and know when it will be finished.

Agility and efficiency in recruitment. The recruitment modules have facilitated and streamlined the administrative part of attracting talent for the company, as well as its evaluation and onboarding processes.

A boost to productivity. The main mission of human resources software is to grow the company through the people who work in it. This productivity translates into clear time savings and cost reduction.

End-to-end workforce management. A good HR system brings all area-related operations together under one roof, which means you can assign tasks and track your progress. Thus, all the company's collaborators can be on the same page thanks to the communication panels, where they can follow recent updates, comment on tasks, share content or ideas, etc. With all this data accessible to everyone from any device, employees can work together no matter where they are.

Evaluation and recognition. Good human resources software helps to keep control of the progress of each employee and to develop quality practices for the recognition of their performance, which allows finding the axis, trends, and non-productive patterns and making strategic and operational decisions on the employees with less than desired performance.

Analytics and reporting. With these functions, the company can process the updated data and obtain all the necessary statistics and control dashboards without using an external application.

What if my company can't afford HR software?

If your company is an SME, you may think that at the moment you cannot afford the use of human resources software, but the development of ERP and software in the cloud ( cloud ) with the payment system SaaS ( Software as a Service ) make the price of this type of programs affordable for companies of any size since they are modular and only pay for what is needed and used. In addition, they do not require maintenance, updates, or backups, since being in the cloud all this is included in the service.