GlossaryHR

The Essential List of Human Resource Definitions You Need to Know

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HR Software

What is HR software?

HR software automates Human Resources processes. These processes include hiring, onboarding, timekeeping, payroll, performance management, training and development, benefits management, and employee scheduling. Within each process are dozens (or more) sub-tasks.

Good HR software helps employers manage their people in a way that will ensure individual success as well as the overall success of the company.

What is integrated HR software?

An integrated suite of HR tools is called a human resources management system (HRMS), human capital management (HCM) or human resources information system (HRIS). Each term refers to work tech that manages multiple core and non-core HR functions.

Before cloud computing, companies purchased HR software and stored it on their company computers. Some of the original HR software vendors still provide Legacy or on-premise HR software, but many have moved to a Software as a Service (SaaS) model. SaaS works like a subscription. Companies pay a monthly fee to use the software which is stored on the HR vendor’s servers. The HR software vendor takes care of updates, data security and technical support. The SaaS model has made HR software available to more businesses because it doesn’t require a large upfront cost and systems can scale up or down.

How does HR software help HR professionals?

Reducing or eliminating the repetitive and mundane actions that every Human Resources employee is tasked with on a daily basis is the ultimate dream. When HR employees use an HRMS to automate workforce management, they can focus on high-value activities such as enhancing company culture and strengthening employee satisfaction. An HRMS can also help a company scale quicker by improving workplace efficiency.

How does HR software help employees?

HR software can help employees do their jobs better by simplifying HR tasks. Let’s discuss how HR work tech benefits employees.

  • Onboarding: Cloud-based HR onboarding software provides a convenient, paperless way for employees to complete tax forms, compare benefits plans, and enroll in the payroll system from a mobile device.
  • Time and Attendance: With HR software, punching in for shifts is easy. An HRMS timekeeping module accurately tracks hours. Employees don’t have to fill out paper timecards—which has long been the bane of hourly employment. The clock reminds employees of missed punches so they can fix them before payday.
  • Payroll: An HRMS creates payroll integrity. Employees know they will be paid extra when they come in early or stay late. They know that overtime will be correctly calculated. They have confidence that their accruals are tracked accurately. If benefits eligibility depends on full-time status, an HRMS can validate hours requirements. Payroll accountability brings peace of mind to employees.
  • Employee scheduling: With an HRMS, employees can see their schedule, swap shifts, request time off, and manage FMLA in the HR portal. It improves work/life balance by accommodating schedule preferences. It takes the hassle out of shift trading. When a shift opens up, employees who want extra hours can request it. This eliminates the need for a manager to beg unwilling employees. Part-time employees can better juggle two jobs when their employers use HRMS scheduling.
  • Performance: HRMS with employee performance dashboards are popping up in many industries. Employees appreciate having access to the big picture. Real-time feedback is a powerful motivator. HRMS performance dashboards are objective. They remove the subjectivity inherent in manager evaluations.

How does HR software help managers?

  • Oversight: Managers are an important part of the workforce. Team oversight is essential. But it can be challenging even when all employees are in the same office. Managers with mobile, offsite, or remote employees have even greater challenges. An HRMS mobile app allows managers to monitor teams from a smartphone or tablet.
  • Timecard approvals: An HRMS creates digital timecards. The hours are tallied with each shift. Managers have all timecards in a centralized location. They don’t need to round them up. The system doesn’t make math errors when tallying employee hours, so managers don’t need to double-check. HR software prevents missed punches and other timecard mistakes.
  • Time off requests: Confusion surrounding time off is a common problem. Without a formal system, managers are at risk of scheduling employees who are on vacation. Or forgetting someone’s request. Employees request time off with the HRMS PTO tool. Managers can see all the requested dates together, side by side. Managers never have to remember which requests they have approved.
  • Employee schedules: Managers create schedules in minutes with templates and drag-and-drop tools. The software finds eligible employees to cover open shifts. Managers can view schedules by team, week, or location.

Why do companies use HR software?

Companies that want to maximize their human capital use advanced HR software to improve efficiency and productivity, control labor expenses, maintain compliance with workplace laws and drive employee engagement and loyalty.

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