--- description: Through this article, we will discuss what HR software is, its benefits for employees and employers, and the different types of HR software. image: https://gdm-localsites-assets-gfprod.imgix.net/images/capterra/og_logo-e5a8c001ed0bd1bb922639230fcea71a.png?auto=format%2Cenhance%2Ccompress title: What is HR software and how can employees benefit from it? --- # What is HR software and how can employees benefit from it? Canonical: https://www.capterra.co.uk/blog/2547/what-is-hr-software-and-how-can-employees-benefit Published on 25/02/2022 | Written by Sukanya Awasthi. ![What is HR software and how can employees benefit from it?](https://images.ctfassets.net/63bmaubptoky/SCPc8dPmybxFhEuEpIXIWDRAeg202NWs_-8fv5a7aYA/4607a925afa48fa8495401035450ce69/What-is-HR-UK-CA-Header.png) > In this article, we will talk about human resources (HR) software, the need for such software for small businesses, and how employees and HR professionals can benefit from it. We will also look at different types of HR software companies can choose from. ----- ## Article Content In this article, we will talk about human resources (HR) software, the need for such software for small businesses, and how employees and HR professionals can benefit from it. We will also look at different types of HR software companies can choose from.In this articleWhat is human resources (HR) software?Why should SMEs opt for HR software?What are the benefits of using HR software?What are the different types of HR software?What’s the key takeaway?According to a report by Verified Market Research, the HR software market is expected to be worth US$33.57 billion by 2028. The article also states that with factors like rising mobile and cloud deployments, increasing automation in HR operations, and higher acceptance of cloud technology such as Software-as-a-Service (SaaS) solutions , the global HR software market has been growing at a fast pace. In such a landscape, many small to midsize enterprises (SMEs) may be looking for software to assist them in their day-to-day HR operations. In the next sections, we will talk about what is HR and the different types of HR software solutions.What is human resources (HR) software?HR software are digital solutions used for monitoring and managing an employee’s everyday tasks like attendance tracking, viewing to-do tasks, analysing reports etc, along with other human resources assignments. HR software is possibly used by companies of all sizes to increase their employees’ productivity and employee satisfaction as well. Human resource management systems (HRMS), human capital management (HCM), and human resource information systems (HRIS) are all terms often used interchangeably to describe human resources software.Why should SMEs opt for HR software?A report by MarketsandMarkets estimates that the global human capital management (HCM) business will rise to US$24.3 billion in 2025, attributing such growth to factors like the growing use of cloud-based technology by SMEs to properly manage their employees.COVID-19 has caused a shift in the way people work. From the usual 9-5, many companies have moved to remote and hybrid work models. According to an article by Forbes, corporate flexibility is an important aspect employees are looking for in a workplace. Managing a hybrid workplace may become more convenient for HR professionals with the use of HR software.Apart from that —when SMEs grow in size and employee strength— managing a pool of employees may get increasingly complicated. Critical corporate tasks, such as hiring new staff and paying existing employees, generating pay slips, tracking paid time off etc, may need a system more advanced than spreadsheets or pen and paper. To manage such a workforce, businesses may be looking at HR software to help them monitor, track, and better analyse their employees’ performance.What are the benefits of using HR software?A lot of companies these days potentially use one or another kind of HR software to carry out tasks like payroll processing, onboarding, attendance tracking etc. This section will look at some of the benefits offered by HR software.Helps in automating tasksA challenge that some recruiters may face is the need to keep up with the rapid turnover of applications, and this can be caused by a lack of recruiting resources. In such a scenario, HR software may come handy in automating tasks like registering potential candidates’ applications, and filtering out the relevant ones through the use of machine learning (ML) algorithms etc. With such software in place, HR staff could possibly be required to spend less time on administrative activities and have more time for high-priority projects and corporate initiatives.Enhances data securitySome SMEs may still be using physical registers to keep employee records. Others may be keeping their data in spreadsheets and may run the risk of data breaches. Not only are such methods potentially unsecure, they may also compromise important employee data. HR software can potentially help you protect confidential data, and secure your valuable employee data from natural disasters like floods and fires by keeping your data safe behind passwords and multi-level authentications, apart from saving it on the cloud. As an added benefit, companies can also access it from any computer or device using such software.Assists in regulatory complianceHR software may also help businesses comply with regulatory standards since most of the employee-relevant information would ideally be stored in one place and companies can send reminders via such software when action is required on important documents. Therefore, some HR software may help keep organisations compliant with government regulations and aid in ensuring that rules and processes are put in place to so that employee data is gathered, kept, and handled in accordance with General Data Protection Regulation (GDPR) guidelines.What are the different types of HR software?As companies expand and grow, so may their HR requirements. Knowing when to invest in HR software and of which kind may be an important decision for businesses. Although there can be many different types of HR software, some of the common ones that fall under this category are listed below.Payroll softwareSuch software may assist organisations in keeping track of employees’ wages and salary information as well as automating payroll processes. Payroll software can compute total pay, make income adjustments, and release salaries to employees. In short, processing pay, bonuses, incentive programmes, commissions, and salary planning can all potentially be a part of compensation, and some payroll software may help companies keep track of such tasks.Applicant tracking system (ATS)Recruiters can possibly use an applicant tracking system (ATS) to post job vacancies on job boards and social platforms, track job applications and resumes. In addition, such software may help them monitor applicants during the recruiting process, evaluate and rank candidates, and share a job offer. ATS systems aim to provide a consolidated platform for businesses to manage their entire recruitment and hiring process.Performance management softwareWith performance management software, companies can potentially track and monitor the performance of employees wherein employees can set their annual goals, receive and give feedback, check the status of assigned tasks etc. HR teams, managers, and employees may use this software not just to evaluate performance, but to also set performance targets, production goals, and development plans.Onboarding softwareFrom digitally signing key documents to completing new hire training assignments, onboarding software can help guide new recruits through all of the procedures necessary to be successfully onboarded to a new organisation. Onboarding software can also possibly help new recruits by cutting down on the paperwork, providing them with a checklist of onboarding tasks, as well as allowing them to drop any comments or questions they have within the platform itself for an HR team member to answer. What’s the key takeaway?As workplaces evolve, HR departments might want to adapt themselves to meet the demands of employees and industries by making use of technology. Different companies may also have different requirements and expectations from HR software. Knowing when to invest in one may be as important as finding the right software for your business.Looking for human resources software? Check out our catalogue\! ## About the author ### Sukanya Awasthi Sukanya Awasthi is a content analyst for Capterra, covering emerging technology trends with a focus on retail, construction and ERP. With an educational background in Computer Science, she brings 8 years of hands-on experience to her writing, translating intricate technical concepts into accessible and informative insights. Sukanya’s research and analysis is informed by nearly 200,000 authentic user reviews on Capterra and over 40,000 interactions between Capterra software advisors and software buyers. Sukanya also regularly analyzes market sentiment by conducting surveys of business leaders in the construction space, as well as retail leaders and consumers, so she can provide the most up-to-date and helpful information to small and midsize businesses purchasing software or services. Her work has been featured in Financial Express, Economic Times, and Bloomberg Quint, among other publications. Outside of work, she likes to spend time with her loved ones and her two dogs. ## Related Categories - [Accounting Software](https://www.capterra.co.uk/directory/1/accounting/software) - [Benefits Administration Software](https://www.capterra.co.uk/directory/10025/benefits-administration/software) - [CRM Software](https://www.capterra.co.uk/directory/2/customer-relationship-management/software) - [Project Management Software](https://www.capterra.co.uk/directory/30002/project-management/software) - [Talent Management Software](https://www.capterra.co.uk/directory/10029/talent-management/software) ## Related Articles - [What are UK SMEs doing to tackle climate change?](https://www.capterra.co.uk/blog/3469/what-are-businesses-doing-about-climate-change-UK) - [Get more from your sales teams with CRM and machine learning](https://www.capterra.co.uk/blog/998/get-more-from-your-sales-teams-with-crm-and-machine-learning) - [Consumer insights to help UK SMEs deliver better customer service](https://www.capterra.co.uk/blog/3271/Insights-for-UK-SMEs-to-provide-better-customer-service) - [Decoding software purchases: Know the secrets to success from satisfied buyers](https://www.capterra.co.uk/blog/7599/advice-successful-uk-software-buyers) - [5 Best software for video editing and their key features](https://www.capterra.co.uk/blog/3115/best-software-for-video-editing) ## Links - [View on Capterra](https://www.capterra.co.uk/blog/2547/what-is-hr-software-and-how-can-employees-benefit) - [Blog](https://www.capterra.co.uk/blog) - [Home](https://www.capterra.co.uk/) ----- ## Structured Data