The global HR software industry is expected to be worth over $30billion by 2025. Two years later, in 2027, this is set to have risen to $38billion.
HR software enables businesses of all sizes to manage people and processes throughout the entire organization. Whether you’re a team of five or 500, HR software allows you to automate essential HR tasks so you can invest your time elsewhere.
There’s a wide variety of tools and software available, so we’ve categorized them with a brief description so you can find the solution that’s right for you. Read on for more on the 20 best HR software tools in 2023.
What is HR management software?
HR management software is any product or service that facilitates the people, culture-related processes, and tasks carried out by the HR department. These include but are by no means limited to:
- Recruitment and hiring
- Training and development
- Personnel management and company culture
- Management of employee benefits
HR software is designed to make life simpler for your HR team by providing a platform on which to organize and manage HR-related tasks and activities.
It’s by no means mandatory, but 80% of SMBs in the US already use or are planning on implementing HR software in the next two years. It’s not without good reason, either.
HR software provides a wide array of benefits not only to HR managers, but the entire HR team.
HR management software saves time
HR software makes once-arduous tasks super simple by streamlining and automating processes. Intuitive interfaces and helpful tooltips make adopting the software easy for both you and your team.
Using HR tools limits clutter
No more sifting through years of paperwork and spreadsheets to find what you’re looking for. HR software categorizes and stores all your data—such as employee information—in an intuitive and accessible way. Whatever you need is never more than a few clicks away.
Great HR software secures confidential documents
HR software allows you to organize and manage important documents online, without having to sift through locked drawers and filing cabinets.
It’s time to say goodbye to padlocked drawers and hello to password-protected folders.
Your software helps manage personnel
Keeping an eye on your team’s progress and wellbeing is an integral part of HR management, and there’s ample software plans out there to help HR managers and teams of any size.
HR software manages essential personnel-related tasks, such as:
- Leave and sickness
- Paid time off (PTO)
- Onboarding and offboarding
Recruit new team members
HR software doesn’t just cover your existing workforce, it can help you recruit high-quality talent from any industry. Streamline your recruitment workflow, interviewing process, and employee onboarding in one place to ensure you’re always up-to-date with what’s happening with your team.
HR software does all this and more, often with an all-in-one platform. Your ideal solution exists, you just have to find it—here’s what to look out for when making your decision.
Features to look for in HR management software
There are many software solutions with a variety of key features available to help HR managers and teams hit their business goals. We’ve compiled a list of factors to consider when choosing your perfect fit human resources software.
Remember, every HR solution is unique, but we advise you to consider these general aspects when making your decision. Regardless of your chosen software, ticking these boxes will make life easier.
Training & support
Ensure that your chosen HR software offers enough adoption training and support to allow you to use it to its full potential. Powerful tools are only valuable when you know how to use them.
Research the tool and the support offered, and make sure to read reviews from other teams in a similar position to yours.
HR software needs to be agile in order to meet your evolving needs. Ask what it is you’re looking for and whether your chosen platform can meet those needs. Consider how your needs may change in the future, your people growth plans, and what solution is best suited to accommodate that.
You also want to look out for integration capabilities to enable you to pull data and insights from other tools and platforms you’re already using. This saves a lot of time and limits errors to make for a smoother workflow.
Many core HR solutions are customizable from the offset or provide add-ons to ensure it follows and supports your growth. Some also offer this support via a mobile app to ensure you’ve got complete and flexible control at all times.
Check plans and pricing to see what platform is suitable for your needs right now and moving forward.
HR software offers deeper insights into your organization and personnel—make sure those insights are in-depth, actionable, and shareable. Look into the software’s analysis features and reporting templates to understand how they enable you to effectively report on internal KPIs.
A human resources information system (HRIS) should provide you with exactly that—human resource information. It enables you to use that information to make better, more informed business decisions.
We’ve looked high and low for the best HR software tools around, and compiled a list of 20 HR tools to send you in the right direction. Whether it’s payroll processing and absence management or employee engagement and satisfaction, there’s a tool that’s right for you.
First up, tools specializing in recruitment and hiring.
Recruitment and hiring
Recruitment and hiring software facilitate the hiring process faced by HR professionals worldwide. It puts all the important applicant tracking data right where you need it and allows you to seamlessly manage the recruitment and hiring process. This improves the experience for both you and your applicants.
Codility is a HR tool designed for those recruiting in the software development industry. The platform makes hiring developers fast and efficient and allows you to engage and evaluate candidates with skills-based programming tests.
This tool enables you to test the skills that matter to you, and helps build high-performing, diverse tech teams to power your growth.
Goodtime is an interview scheduling platform that empowers organizations to find the right candidate. Automate your interview scheduling process so your team can focus on hiring the ideal candidate, not juggling timezones.
The platform also offers solutions for diversifying your interviewer panel, to minimize unconscious bias and reduce the barriers to entry for underrepresented groups.
Workable is recruitment software for every step of the hiring process. From sourcing the right candidate with one-click job posting to 200+ websites using their applicant tracking system, all the way to reporting and improving on your hiring process—Workable keeps your finger on the pulse at every stage.
iCIMS is another tool that enables HR managers to track and manage the entire talent acquisition lifecycle. Attract, engage, hire, and advance your talent with this all-in-one solution.
The platform also offers solutions to help you meet your hiring goals, such a DE&I hiring and university recruitment.
AmazingHiring is an all-in-one tech sourcing automation platform that claims to find 40% more candidates from 50+ open sources and job boards online. Its AI-backed sourcing tool helps you find relevant candidates for your role and speeds up the hiring process to allow you to do more with your time.
Personnel and performance management
Another essential area of human resources is personnel and performance management. We’ve covered tools to help find and hire your talent, but these tools enable you to manage and organize your employees at work. Whether you’re looking for performance reviews or payroll software, these solutions can meet your business needs.
Sesame is an employee management tool that equips teams with a fresh take on employee time tracking. It’s three methods of checking in and biometric system integration capabilities enables you to give employees greater freedom.
The software also offers task planning and shift planning capabilities, to give you a more comprehensive overview of your employee’s time management and the profitability of your projects. Alongside these functionalities, the platform also offers other HR solutions—such as hiring and onboarding solutions.
Sapling is a people operations platform that manages everything from onboarding to offboarding. It integrates with other tools to provide a complete view of your personnel and their employee records within your organization.
The platform offers solutions designed specifically for remote teams, startups, and high-growth companies so you can unify your global data in a single HR system no matter what.
8. Zoho (people)
Zoho’s HR solution, Zoho People, offers organizations an all-in-one employee management solution that empowers employees to control their profiles with a self-service portal.
From onboarding new employees and tracking attendance, to performance management and employee profiles—the platform is a comprehensive solution that both HR managers and employees find user-friendly.
BambooHR is a personnel solution that focuses on gathering, storing, and analyzing people data. The software organizes all the information you gather throughout the employee lifecycle to help you improve HR processes.
Its compensation management tool allows you to manage the payroll system, paid time off, and time tracking to ensure a great experience for both you and your employees.
Now, TravelPerk is a corporate travel management platform—it’s not HR specific, but it’s very useful for many HR-related tasks. TravelPerk’s main offering revolves around streamlining the business travel process, but it’s many integrations make it an adequate tool for managing business expenses related to corporate travel.
Sending employees around the world on business can be stressful and costly, but TravelPerk’s corporate travel solution addresses and minimizes these problems. It gives you peace of mind to know that employees are safe on their travels, thanks to TravelPerk’s travel safety solutions—like TravelCare.
Start saving money on business travel for your company today!
Training and development
Training and development are an essential part of an employee’s time with your organization. Training is essential for getting people up and running within your company, and development opportunities are key for getting them to stay.
Coursera is an online learning platform that connects individuals with courses, certificates, and degrees from universities and companies worldwide.
Coursera aims to provide individuals with courses to enrich them both personally and professionally—87% of people report having experienced career benefits as a result of their training.
Rise is an online training system that enables organizations track and manage employee learning. Their courses are easy to create, enjoyable to take, and simple to manage. If you’re not looking to create your own courses, the platform also provides a wide repertoire of pre-made courses.
Analytical capabilities allow you to monitor progress and ensure that employees are continually learning. Plus, it’s also cloud-based, so enrollment couldn’t be easier.
Lessonly is training, enablement, and coaching software that helps teams keep their training in-house. It’s designed to help teams learn better and faster so they can swiftly settle into new roles and responsibilities.
TalentLMS is a learning management software designed to help companies grow faster. Their simple interface makes adoptions quick and easy, and their training ranges from onboarding new hires to sales, compliance and more.
Auzmor is an employee training platform that helps employees learn and grow in their roles. You can both create your own courses and choose from a library of pre-made courses.
Real-time results and instant insights allow you to build better courses and dive deeper when necessary. You’re able to invite other team members to work together and edit learning settings based on customized analytics.
Employee engagement and company culture
Another important part of HR management is employee engagement and company culture. Employee engagement is hugely important for your organization, as unengaged employees cost organizations about $3,400 for every $10,000 in annual salary.
Here are some tools to help avoid this and create a dazzling company culture your employees can’t help but rave about.
16. Culture Amp
Culture Amp is an employee engagement platform that empowers you to establish and build your company culture. Its many HR features enable you to get feedback from employees, prioritize your focus areas, and create insightful reports from employee data.
The platform also uses insights from their performance and engagement tool to predict employee turnover, so you can focus on keeping your top talent.
Workbuzz is employee engagement software that focuses on giving employees a voice, even through organizational change. The software provides solutions for remote and hybrid teams that focus on employee wellbeing and employee retention.
Workbuzz’s solution also uses data from all employees to determine their feelings around diversity, and helps you identify any barriers to career progression, equality, and inclusion.
15Five is an employee engagement tool that provides solutions for employees and managers alike. The performance and engagement features keep an eye on your employees throughout the workforce and build insights. These insights are then used to provide in-depth feedback for HR stakeholders and prioritize actions.
The solution also offers an upskilling tool designed to transform managers into leaders who know how to drive employee performance and engagement simultaneously.
Espresa is a culture benefits management platform that empowers you to deliver an immersive employee experience and create a workplace powered by total wellbeing, community, and recognition.
The benefits administration platform offers organizations the ability to give rewards and recognition, create challenges and achievements, and a wellbeing and fitness platform for increased support.
It also provides employees with employee resource groups, where they can communicate and connect with others in both formal and informal settings via the platform’s employee portal.
Assembly is an employee recognition and rewards platform that allows employees to recognize each other and be rewarded for their positive actions. Rewards are configurable, or you’re able to pick from Assembly’s catalog of previously successful gifting initiatives.
The insights tool provides a deeper understanding of how your organization works and reveals data on unexpected collaboration between departments to improve your workforce management.
The best HR software for your business
Choosing the right software for you depends on your unique business needs and goals, and determining which is right for you can be difficult. Below, we’ve assembled the software depending on your company size, to help your selection process that much easier. Take a look.
What’s the best HR software for small businesses?
The best HR software for small businesses are:
- Zoho People
What’s the best HR software for medium businesses?
The best HR software for medium businesses are:
- Culture Amp
That’s it from us on the best HR software solutions out there, we hope you’re a couple of steps closer to finding which are right for you. Some cover all bases whereas others specialize in one area—compare and consider each software and what it can offer your organization.
Your people are your competitive advantage, so people management and retention is key. A human resource management system enables you to do this more successfully and efficiently than ever before.