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HR software automates recurring departmental tasks to streamline daily tasks and optimize resources. Different types of software applications are used by the HR teams to complete a varied range of tasks. Here, we’ll discuss the best online HR software an organization should use.
The human resource industry is fast adopting technology and tools to streamline various tasks. From recruiting to payroll management and performance appraisal, many repetitive tasks can be automated using online tools.
According to a report by Market Research Future (MRFR), the global HCM (Human Capital Management) software is expected to touch $28.93 billion by 2030. Statista says the HR tech market will touch $90 billion by 2025. From learning management systems (LMS) to test generators, various online tools can streamline the HR department to boost the success rate.
Let’s find out more about online HR software and its role in different human resource departments across various industries.
What is Online HR Software?
Online HR software helps human resource teams to handle a range of tasks like screening candidates, recruiting, tracking employee performance, managing payroll, conducting training programs, and more. The software applications automate manual processes to save time and resources for the HR department and increase overall productivity. The tools also help HR teams comply with employment laws and regulations to minimize the risk of lawsuits.
What are the Types of HR Tech Tools?
HR tech tools include automation, analytical, management, and data visualization applications. The software runs on cloud servers and is used through web-based apps. Several SaaS products developed exclusively for human resource management. While some are scalable, some are limited to SMBs or large enterprises.
So which software is best for HR? There is no single HR software suitable for every organization. In fact, the HR teams use more than one application and integrate them to streamline workflow.
Here, we will look at the types of HR software tools and proceed to discuss the best online HR tools in the market.
- ATS: HR recruiting software to collect, store, and process resumes and job applications.
- PMS: Performance management system evaluates employees’ skills and provides training suggestions based on goals and metrics.
- Onboarding Software: Streamlines and tracks how new employees are welcomed into the organization.
- HRIS: Comprehensive software that manages recruiting, payroll, employee profiling, legal compliance, etc.
- Analytical Software: Manage employee data and derive insights to make effective decisions.
- Payroll Management: Helps automate employee salaries, incentives, rewards, bonuses, etc.
- LMS: Employee training software to provide continuous learning facilities and assess their performance.
Best Online HR Tools
1. PrepAI – Online Automated Test Generator
PrepAI by DataToBiz is among the best HR software for startups, SMBs, and large enterprises. It is an AI-based test generator used for employee assessments. The software automatically creates quizzes and test papers for the given input data and allows trainers to conduct assessments through the platform.
PrepAI saves time, money, and effort for the HR teams. It helps enterprises save over 87% of their costs spent on outsourcing the same. It is also the only assessment tool to support Bloom’s Taxonomy and offers API integration with third-party LMS and HR systems.
Create MCQs, fill-ups, true or false, and short descriptive questions using PrepAI. Select the type and number of questions to create a quiz or test anytime you want. Trainers can edit the questions and conduct tests online or offline. Get rid of human bias when assessing employees. PrepAI is a free test maker with paid pricing options for business use.
2. HirelakeAI – Resume Parser and Hiring Software
HirelakeAI is a turnkey hiring solution developed by DataToBiz to help HR teams extract and match resume data with job descriptions. The AI-based tool is one of the best HR software examples to accelerate recruitment and hire candidates best suited for the job. From shortlisting candidates with JD matching to candidate engagement, everything can be handled through the same interface.
HirelakeAI extracts data from resumes and creates accurate tables to list candidates’ attributes under the right heads. It processes resumes in bulk and completes the task in a few minutes. It is the best online HR system for small businesses, recruitment agencies, and technology MNCs.
The platform can also be integrated with existing HRMS (Zoho, BambooHR, etc.) and third-party sites like Naukri, Monster, Indeed, etc., to collect and process candidates’ information in bulk. HirelakeAI assesses the candidates on three major factors- personality traits, technical skills, and communication skills. It is available for free and paid subscriptions.
3. Monday.com – Employee and Task Management Software
Monday.com is among the best HR systems for large companies and provides an array of features for employee onboarding, applicant tracking, self-servicing, 360-degree feedback, employee scheduling, integration with payroll software, etc. It provides attractive data visualizations to understand employee data and help HR teams make effective decisions.
The platform has pre-designed templates to create and share employee reports, project updates, team iterations, and more. It can be integrated with third-party applications and email systems like Gmail to automate communication across the enterprise.
Monday.com is not limited to the HR department. It offers software products like work management, CRM, and product development. Teams from marketing, sales, IT, and operations departments can also use the platform to streamline their projects and increase performance. Monday.com has a detailed price plan and offers annual and monthly subscriptions.
4. BambooHR – Complete HR Software
BambooHR is popular software developed to manage various tasks handled by human resource teams. It is used by SMBs and large enterprises to streamline, employee onboarding, payroll, benefit administration, employee performance, etc., from a single interface. The platform also offers pre-built integrations to enhance its performance and help HR teams automate their tasks.
BambooHR provides data analytics by processing employee records. HR managers can use the dashboard to track employee progress and decide the next course of action (train, promote, demote, fire, etc.). It is also available as a mobile app and can be used on the go. HR teams can collaborate through the platform and stay up to date about each employee’s performance.
The platform also manages salaries, benefits, and rewards by automating manual processes. No more worrying about double entries, missed entries, or mismatches in employee data. Every employee’s working hours, vacation time, payslip, and other information can be accessed through the dashboard. BambbooHR has two price plans with custom solutions.
5. Factorial – All-in-one HR Software
Factorial is among the best HR and payroll software applications used by several enterprises. It can help the HR department save up to 30 hours a month spent on administrative tasks. The platform helps manage documents, digital signatures, payroll, expenses, reports, and employee analytics from a single interface.
It helps HR teams track employees’ working hours, the time spent on a project, and time off, and manage shifts so that there’s no overlap or confusion about when an employee has to be at work and where they can take time off. The platform also deals with recruitment and onboarding, performance and talent management, and third-party integrations.
Factorial automates recurring tasks to complete in a quick time. It creates employee portals and generates organizational charts to track employees at different levels. The platform has a permission system to provide restricted access to data. It generates HR reports and analytics in real-time. Factorial offers paid plans and bundles where businesses can choose plans accordingly.
6. Gusto – HR Software for SMBs
Gusto is an HR software offering hiring tools, employee benefits administration, and payroll management for small and mid-sized businesses. The platform manages all types of teams (in-house and remote) and provides all the necessary features in a single place. It offers full-service payroll solutions like managing employee working hours, tax cuts, credits, etc.
The platform provides insights about employee feedback, compensation management, project costing, and more. It can save 5 hours spent on payroll processing every month. Manage employee benefits and compliance, streamline hiring by tracking job applicants and generating offer letters using templates, and provide the necessary training to employees based on their performance.
Gusto also has a self-servicing portal where HR teams can effectively manage and automate repetitive tasks and access insights through the dashboard. Though the platform doesn’t have 360-degree feedback, it can collect data from employee surveys and analyze the inputs to generate HR reports. The platform has four paid plans and comes with flexible features.
7. QuickBooks – Employee Time and Payroll Management
QuickBooks is an efficient HR software for payroll management. It helps employees track the time they spent on a project. The platform works in real time and can be accessed through smartphones and tablets. It is useful when employees work remotely or travel on work-based projects and need to calculate the time spent on the job.
The platform is a great choice for startups and new businesses to streamline employee and contractor payments, working hours, etc. It also allows companies to accept payments from clients and track expenses and profits from the intuitive interface. Furthermore, it helps manage and calculate tax payments to avoid last-minute paperwork and issues with IRS.
QuickBooks can be used by SMBs and growing businesses from different industries like manufacturing, retail, hospitality, construction, legal, nonprofit, etc. The platform is compatible with some third-party apps and offers cloud-based accounting and bookkeeping services. It has four paid plans and offers free onboarding (guided setup) services.
8. Workday – Human Capital Management Software
Workday offers enterprise cloud management solutions for HR, finance, and other departments. The HR software deals with human capital management and is trusted by some leading global brands. It is embedded with Workday Skills Cloud, which uses machine language algorithms to align talent with job opportunities and ensure that the right candidate is assigned the right job to increase overall performance.
The software helps HR teams gather employee feedback to understand their requirements and enhance employee satisfaction with the business. It also provides augmented analytics by processing various datasets. The HR department can have greater control over the talent in the organization and take the necessary steps to motivate them.
Workday HCM software automates recurring HR tasks and offers flexible features to manage employee engagement, compensation, benefits administration, and much more. From uncovering talent gaps to identifying the necessary training methodologies and streamlining the workforce, the software helps effectively manage the human capital in an enterprise. Workday pricing is not mentioned on the company’s website.
9. ADP Workforce Now – HR Work Optimization
ADP’s online HR software helps manage employees and compliance issues without hassle. It minimizes the risk of violating employee laws and regulations and streamlines workflow to optimize the use of resources. The software has been developed to provide easy solutions to complex HR issues.
The software allows HR teams to create employee handbooks in quick time. The vast library of policies and suggestions offered by the tool simplifies the process of customizing the handbook so that employees can follow the rules and guidelines by referring to it. It also allows integrations with other HR services and payroll tools offered by the company.
The online HR software can work seamlessly with tools such as talent management, payroll, retirement, benefits administration, compliance, time & attendance, etc. The web-based software lets the HR department effectively handle recordkeeping and the help desk. It also offers self-servicing features for employees and managers. The software is suitable for SMBs. Contact ADP for pricing information.
10. JazzHR – ATS for Small Businesses
JazzHR is online HR software and applicant tracking system (ATS) designed for small and growing businesses. It is powerful, user-friendly, and automated to streamline repetitive manual tasks like resume screening, scheduling interviews, posting job ads, etc. It reduces the time taken to manually perform these activities and saves resources for the business.
The tool can be seamlessly integrated with third-party online HR management software to build a robust IT infrastructure in the organization. Customization is another advantage of this tool. Workflows can be customized to align with the HR strategies and business goals. From sourcing candidates to measuring their experience and adding filters for accurate screening, the tool has many features that empower HR teams to work effectively.
JazzHR also offers white-label and custom branding for businesses to make it an integral part of their tools. It is a scalable solution while being a lightweight software that doesn’t overload the existing systems. The company offers different subscriptions for businesses to access its features and upgrade or downgrade as required. JazzHR creates tailored solutions for small businesses to enhance their HR processes.
Why Every Business Needs Online HR Tools
Human resource software is not something a business can ignore or avoid in today’s competitive world. It can be a deal breaker and boost business efficiency when aligned with the goals and objectives. Let’s look at some of the benefits of using online HR software in an organization, irrespective of its size and industry.
Access to Centralized Data
The HR tools don’t work in isolation. They are connected to a central repository (on-premises or cloud platform), making it easier for teams to directly access the latest and updated information from the databases. This reduces data silos while giving restricted access based on job responsibilities. HR teams can search through different datasets to find the relevant information. They can also make faster and accurate decisions using real-time reports. Additionally, cloud-based online HR tools are fast and reliable.
Data Security and Compliance
Human resources information software (HRIS) and related online tools are designed to comply with data security and data privacy regulations around the world. Moreover, the organization can add security layers to prevent data breaches, hacking, and other cyberattacks. Data encryption is a good way to keep confidential information safe, while role-based permissions can prevent unauthorized access. All these features enhance data security and reduce the risk of leaks or lawsuits. By digitalizing the data and using remote backup services, businesses don’t have to worry about losing vital information due to natural disasters or external factors.
Automation and Time-Saving
HR software can automate many recurring activities that consume a lot of time and resources. The human resource department can reduce the workload using automated workflows without worrying about quality or compliance. They can finish more work in less time, such as tracking responses to job ads, screening more resumes using filters, shortlisting candidates based on assessment results, scheduling interviews with selected candidates, and many more. It also simplifies the administrative tasks around employee salaries, bonuses, incentives, etc.
Increased Employee Efficiency
With Task Management Software, HR teams don’t have to spend several hours on manual jobs. They can use their time to focus on core activities like improving the workplace environment, planning employee learning and development programs, etc. They can come up with innovative ideas to help employees feel connected to the business and become assets to the organization. Budget planning, performance appraisal, employee welfare, and other important activities can be given their due priorities.
Better Communication and Collaboration
HR information systems make it easy for teams to track emails, conversations, alerts, updates, lists, etc. The tools help create communication channels between team members and different teams. Additionally, they can be integrated with third-party platforms like Slack, Microsoft Teams, Zoom, etc., for messaging, video meetings, and more. With everyone using the same interface, they know the progress of each project. Team leaders can allocate tasks and track their progress from the dashboards.
Using Analytical and Reporting Tools
Analytics and reporting tools provide in-depth insights to HR teams about employees, organization rules, performance metrics, and more. This enables them to make data-driven decisions and help the top management take proactive and bold steps to strengthen the business presence in the market. The reporting tools can be a part of HR software or third-party integrations. The engagement rates can also be tracked using these tools. Automated business intelligence tools for HR departments enable greater accuracy in making decisions.
Suitable for Diverse Work Environments
Organizations have different work models these days. Many have shifted to hybrid work environments where employees come to the office and also work remotely. Some of them may even belong to different geographical locations and time zones. Using cloud-based HRM software, the teams can streamline online interviews, onboarding, leave applications, submissions, requests, feedback, etc., from the same interface. The hiccups of using multiple software and tools can be eliminated.
Cost-Effectiveness and Scalability
Another benefit of using an employee management system is the cost-effectiveness of the process. Though it requires an initial investment, the software will continue to give returns in the long run. Moreover, online HR tools are flexible, customizable, and scalable to suit the varied requirements of different organizations. A growing business can use the same tool to manage its workflows and processes.
Conclusion
The human resource teams have similar responsibilities irrespective of the industry and niche. However, the business size, vision, and goals determine how the HR teams operate. While there is no definite best free HR software for every enterprise, the above list should help get an idea about how technology is useful to streamline success.
For example, an AI-based test maker online is great for assessments, and a resume parser saves time spent manually collecting data from resumes based on the job requirements. Take time to consider the existing technology and future plan for the business before investing in online HR software. The right tech tools can save resources and increase employee satisfaction.
FAQs
1. Can AI question generators be integrated with HRMS?
Yes, AI question generators and assessment tools like PrepAI can be integrated with Human Resource Management Systems (HRMS) to automate the process of creating and conducting tests, quizzes, etc., in the organization. The tools can be customized and branded to align with the business’s branding guidelines.
2. Do small businesses need HR software?
Yes, small businesses can benefit from using HR software to streamline and automate various departmental processes like payroll, performance appraisal, etc. This saves resources and helps the teams to complete more tasks in less time. It increases internal efficiency and results in better business performance. Small businesses can opt for online HR software for better cost-effectiveness.
3. Is HRMS the same as ERP?
No, HRMS stands for Human Resource Management Systems, and ERP stands for Enterprise Resource Planning. Both software have different purposes. While HRMS focuses on managing and streamlining employee information/ activities, ERP deals with optimizing business processes across departments like production, procurement, supply chain, inventory, accounting, etc.
4. Can LMS be used with human resource software?
Absolutely, yes! Learning Management System (LMS) is a part of the online HR tools a business uses. That’s because it streamlines employee training and creates a comprehensive solution for employees to improve their skills and knowledge at work. LMS can be used with human resource software and can also be integrated with AI assessment tools.
5. How can assessment tools help HR teams?
Assessment tools like PrepAI are used during recruiting and training. The tool can create and conduct screening tests to shortlist eligible candidates for the jobs. Additionally, it can generate quizzes and assessments during training and development. Furthermore, HR teams can use these tools to create feedback forms and surveys as well.
