Which type of HR software will help your company?

We live in an ever-changing world; the technology that is trending now can be rendered entirely irrelevant tomorrow. The industries have been leaning more and more towards software services to be more efficient and reduce costs.


But it’s not that great!


Why? Because there is a ton of software out there, and going through the long list will make your head spin. What is the difference between payroll software and personal tracking software? Do you really need it? Go through our guide to get a clearer idea as to which HR software to pick.

Starting phase

These types of systems are mostly for startups.




All the activities regarding the salary of employees and salary rates are controlled by the payroll software. The payroll software automates the task of payroll, and it can debit the total compensation amount from the company account to the employee’s account with just a click of a button.

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The payroll HR software takes care of a very delicate matter that most companies face: providing salary to its employees. Delay in employee salary can lead to an adverse effect on the overall productivity of the company. An added advantage of the payroll software offers is that it can also handle the tax section for the user.


Tax area is the section where most companies make errors, and it is a headache to deal with. The payroll software has an in-built tax section, which can eliminate most errors and also saves you a lot of money.


Time and attendance

Having time and attendance software can be a pivotal point if you are in a shift-based industry. In such industries, the executives can check schedules of the shift, change timings, and communicate the instructions regarding any changes to the employees via mail or messages directly.

The software also gives the employees the independence of self-assessment as they can see there in and out timings, check for hours left for them to fill, and even apply for any leaves they may need directly from the hr software itself

Growing phase

These systems are for owners running fast-growing businesses.

Personal Tracking

If you are a small company with a mere ten employees, then you can manage all their information live, their employment history, certifications, resident address, academic achievements, and much more quickly and easily. But when it comes to managing a big organization with hundreds of employees, you need a personal tracking HR software.

The process of individually updating a single piece of information for 100 employees can take too long and is often tedious. To avoid this, you should invest in a personal tracking HR software that has preset fields and can update any changes in just a few clicks.

Applicant tracking

As per some reports, Applicant tracking software is the most requested software by HR management from around the world. The applicant tracking software can track the job posted on social media platforms. It can also measure the engagements of people with the post, collect information filled up by the user, and store all that information to be reviewed later.

Performance management

Performance management systems help remove the stress of performance reviews. Using these, the company can efficiently track employee performance, collect feedback using forms, store essential documents, and report relevant metrics to the employer.

In growing the organization’s performance, the management HR system plays an important role. It is necessary to measure and track the individual achievements of the employees. This can help to increase the overall productivity of the company.

Benefit Administration

As an employer, you are obligated to provide your employees with essential benefits. The benefits, such as health, insurance, and others, are expected by the employees. The Benefit Administration HR system helps track these by streamlining all these processes for the owners.

As your company grows, it falls on you to make the employee status better by introducing new strategies. The benefits administration software proves more useful for organizations bigger than 250 employees.

Established phase

This types of systems are used when you have an established company

Compensation management

Compensation management software is used to manage things like company revenue, annual budgets, currency fluctuations, employee bonuses, etc. Compensation software can help you motivate your employees by providing them with a bonus based on their performances.

Your workforce is the biggest asset of your company, and providing them with proper compensation based on their performances can bring more productivity out of them, and this will prove beneficial for the company in the long run only.


Hiring for new employees requires a lot of work from the human resource department. The onboarding HR systems can help streamline this operation and give you results efficiently.


The process of document submission can be automated using the software. The employee, thus, from day one, can interact with the manager directly. The overall onboarding process can be significantly improved using the onboarding HR system.

Learning management phase

The new joining employees need to be given some training when they join the company. In order to develop their skillset, the learning management software is used; the management can add different multimedia formats, a tutorial for new machines, administrator courses for workers, and analyze their training effectively over the time period, of course.


One size fits all is a myth; the list of different types of HR softwares is long and often overlaps. So pick a system that satisfies most of the features required by you. But hopefully, this article may have cleared some basics about different HR systems. To give yourself a headstart, check out our guide to the top free open source HR systems available out there.

 Author Bio: I am Greg Wilson, a Content Writer working with GoodFirms, a research and review platform for service and software companies. I am passionate about blogging, creative writing, social media, and content marketing. I write blog posts for GoodFirms about SEO softwares, Cloud computing, IoT development, and many more such categories.


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