Though small businesses with relatively few employees usually have fairly few responsibilities regarding human resource management, it goes without saying that the need for some kind of infrastructure to manage HR becomes increasingly evident once your business begins to grow.

As such, if you’re aiming to see any kind of success with your company as it grows — regardless of what particular industry you are working in — it can always help to have some kind of cloud HR software as a means of streamlining your overall workflow and enhancing employee productivity.

So, throughout this article, we’re going to be taking a closer look into what these platforms actually are and what kind of impact they might be able to have in making business management easier.

In addition, there are plenty of HR software platforms out there that are below average, so we’ll also be walking you through our top six choices for the best HR software that’s currently available.

Table of Contents:

• What Is HR Software
• How Does HR Software Work
• Pros and Cons of HR Software Systems
• Reviews
• 1. Xero
• 2. Info-Tech
• 3. JobAdder
• 4. Employment Hero
• 5. BambooHR
• 6. MYOB
• Final Thoughts
• FAQs

What Is HR Software? ➡️

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Before we get into the review section of the article, it’s worth providing some background information about how HR software functions if you’re currently reading this with no prior experience using any similar kind of platform:

Put simply, human resource management software is basically just a range of different digital tools put together on one convenient platform, all with the ultimate aim of either automating or generally just streamlining some of the more HR-related tasks you have to perform on a daily basis while running a business.

These kinds of tasks can range from things like recruitment and onboarding to other tools for your existing staff for payroll processes and performance management. In essence, think of HR software as a centralised, all in one, highly integratable hub for managing employee data and general communication.

How Does HR Software Work? 🔎️

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Now that we’ve got some of the basics out the way let’s cover how this software actually works and what specific kinds of features you can generally expect across pretty much all platforms.

These platforms essentially work as an assistant for your HR department, coming with various kinds of technology to digitise any HR responsibilities you might have — including cloud-based systems, too, so you and your employees can access the software from any device and any location, so long as you have an internet connection.

Ultimately, the main idea behind workforce management tools such as this is that by centralising all of your HR processes within a single platform, you’re able to save a lot more time when it comes to administrative work — which can be incredibly valuable if you’re already working with relatively limited resources as a small business.

Aside from this, the automation aspect reduces any human errors, too, so you’re dedicating less time and receiving more accurate data at the end of the day.

Features

So that you’re more familiar with the types of features you can expect to see with HR software, let’s walk through some of the most common tools across these platforms:

Integrated Applicant Tracking System (ATS)

As any business owner knows, recruitment can be a massive chore to handle, especially amongst all the other responsibilities that demand your time. Although it can help to have your own dedicated recruitment specialist, any extra staff that you hire (and subsequently have to train and educate) obviously gets fairly cost-heavy when you’re working with a tight budget.

Fortunately, integrated ATS offers a solution for this, as it basically lets your HR team post job openings across multiple different channels, such as job boards like Indeed or networking platforms like LinkedIn, with barely any effort.

Then, as your potential candidates start to apply, the ATS will actually scan their CVs automatically based on the predefined criteria you provide, so this can be a quick and easy way of ranking them according to relevance.

Without this, you’re probably going to have to wade through a fairly uninspiring slog of unsatisfactory CVs before you begin to find something with even a slight amount of relevance — so, needless to say, it streamlines the initial stages of recruitment.

The software actually handles a lot of the communication with your candidates throughout the overall hiring process, too, whether that’s by sending automated emails or appointments to applicants based on their specific applications.

Dynamic Performance Management Tools

Generally speaking, traditional performance reviews often get looked at as a dreaded annual ritual, but modern HR software comes with tools to make the process far more efficient when it comes to things like goal setting, tracking progress, and providing continuous feedback.

Furthermore, HR software isn’t the only tool that allows you to do this, but it’s helpful that you’re able to receive plenty of insights with these kinds of platforms by way of things like performance dashboards and analytics for individual and team performances. As a result, this can be a pretty useful way of identifying strengths and any other possible opportunities for career development.

Comprehensive Payroll Software

Moving forward, payroll processing is yet another one of the most critical yet time-consuming tasks any business owner has to handle at some point, and all the best HR software solutions automate this process — handling calculations and staying compliant with tax and labour laws on your behalf, consistently without mistakes.

To be specific, your HR team will be able to manage payroll cycles, including processing salaries, bonuses, and deductions, but things like automated tax calculations and filings can even further simplify payroll processing and minimise the overall risk of costly errors.

Finally, the majority of payroll software out there generates comprehensive reports and payslips for all your employees, too, which is another burden taken off your shoulders.

Seamless Integration With Other Systems

Perhaps one of the more underrated capabilities that come with HR software solutions is the opportunity for integration, giving you a solid opportunity to use your software in tandem with the rest of your business’s tech ecosystem

HR software that seamlessly integrates with other systems, such as accounting software, communication platforms, and even performance management tools, all goes a long way in facilitating data flow and information sharing across your organisation, so it definitely helps that you won’t have to use two separate dashboards or systems in general.

As an example, if the HR software provider that you’ve partnered with allows you to integrate their platform with your accounting software, this will be incredibly handy when it comes to payroll processing, whereas integration with communication platforms might be more useful for employee engagement and collaboration.

Either way, your HR operations generally become a lot more efficient, which can only drive overall improvement throughout your company.

Pros and Cons of HR Software Systems

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Before we get into the review section of the article, it’s worth taking a brief look at some of the main advantages and disadvantages of these platforms across the board so you have an idea of what to look out for or avoid when searching for the right HR software system.

Pros ✅️

Kicking things off, let’s start positively by walking through some of the pros:

• Streamlines processes
• Increases efficiency and accuracy
• Enhances employee experience
• Facilitates compliance
• Enables better decision-making
• Scalable solutions

Cons ❌️

We’ve mainly talked about HR software solutions in a positive light thus far throughout the article, so in order to remain impartial, let’s explore some of the less desirable features that come with these kinds of platforms:

• Costly
• Learning curve
• Integration challenges
• Customisation limitations
• Data security concerns
• Dependence on technology
• Potential loss of human touch

Best HR Software Systems — Reviews ➡️

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So, now that you’ve got a firmer understanding of how human resource management software works and the specific types of features you can expect to find, let’s walk through our top six choices that are currently available for you to invest in — some basic options for free that can handle simple requirements, some more advanced platforms that are best fit for larger enterprises, but ultimately, all solid choices.

Still, it’s worth briefly mentioning that it’s not exactly possible to rank an overall “best” platform when it comes to HR management solutions, as the “best” service for one company is going to be completely different for another that’s an entirely different stage of their development — the “best” option is always going to be the one that appeals the most to your particular requirements.

With this in mind, let’s get into our favourite option out of the six:

1. Xero — Most Feature-Rich HR Software

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In fact, Xero’s strong suit is possibly the accounting side of the software, but that doesn’t mean it isn’t also perfect for HR purposes — it just means it has even more utility, giving you a chance to link the platform with 1000+ different business applications like HR Central.

Aside from this, you’re also able to keep all of your private business data in a centralised dashboard, so it’s generally better organised — not to mention how you can link your company bank account to the app for easy imports.

2. Info-Tech — Best HR Software for Biometrics

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Interestingly, Info-Tech also comes with a range of biometric capabilities in the form of facial recognition software, for instance, so it’s definitely one of the most advanced HR solutions out of all of the options we’ll be covering throughout this review.

Similar to Xero, although Info-Tech works as a human resources solution, it’s also an accounting software that can help with things like bill tracking and sending, making it an exceptionally versatile platform.

3. JobAdder — Best Cloud-Based HR Software

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The cloud-based nature we mentioned is perfect when it comes to accessibility and flexibility for all of your employees, too, giving you a chance to streamline your hiring process regardless of the industry or size of business you are in.

In addition, one of the main advantages of JobAdder is primarily its ability to centralise and manage job orders effectively, which, in today’s rapid recruitment landscape through sites like Indeed, can be massively useful for staying organised and ultimately ensuring that no opportunities are able to slip through the cracks.

Furthermore, matching applications to suitable job positions is another critical function that JobAdder provides. For context, recruiters often receive a flood of different applications for each open position when posting job applications, and sorting through them manually can naturally be a bit time-consuming and even prone to errors.

So, with JobAdder’s matching algorithms, you’re able to automate a lot of the work involved in this process so you can ensure that all candidates are properly evaluated based on their qualifications and experience, essentially helping you make better hiring decisions.

4. Employment Hero — Best HR Software for SaaS-Based Services

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The main thing that we found so appealing about Employment Hero, though, was their pledge to drastically reduce the time spent on some of your human resource administration work by an impressive average of around 80 per cent — something that obviously translates into tangible benefits for businesses due to the increase in time you have available to you.

Moreover, some of Employment Hero’s products — covering the initial stages of recruitment and onboarding to ongoing practices for better productivity — are perfect for managing a slightly more dynamic workforce where attracting and retaining top talent plays a pretty significant role.

If you work in this kind of industry, you know how much of a difference efficient onboarding processes and robust engagement initiatives can make, so Employment Hero’s ideal in this regard.

By digitising essential HR functions, such as performance reviews and ongoing documentation, you’re not only able to reduce your business’s environmental footprint, but it also means you’re adopting a paperless system that’s far more readily available to stakeholders whenever and wherever it might be needed.

5. BambooHR — Most Well-Rounded HR Software

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Expect to find an all-in-one human resources information system (HRIS) once you log on to the platform, and this basically comes with a range of HR tools like application tracking systems (ATS) — as praised earlier in the article for allowing you to advertise job vacancies at your company across various channels — and other kinds of features for monitoring employee engagement, for instance.

Crucially, it’s worth noting that this is an American based software rather than the other options which are primarily Australian, so if you’d prefer something slightly more local, you might be better off with Employment Hero or our final option.

6. MYOB — Most Consistently Reliable HR Software

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In fact, pretty much since MYOB started in the early 1980s — making it possibly the oldest HR software system out there — MYOB has been one of the go-to solutions for small businesses throughout the country, especially when it comes to accounting purposes.

It did, however, fall out of favour slightly when cloud-based alternatives began to enter the space, but MYOB has since developed further and adopted its own tools to facilitate remote working now.

Lastly, it’s worth mentioning that MYOB comes with something known as Greentree, which is known as an enterprise resource planning (ERP) system. Put simply, this is designed to help you automate a relatively significant amount of your business operations — from financial management to customer relationship management.

Ultimately, with Greentree, you’ll be able to set up an extensive database for both your employees and job candidates, too, so it’s a lot easier to match skills with roles.

Final Thoughts 💡️

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To wrap things up, the importance of technology in modern business management cannot be overstated, and human resource management, in particular, is undoubtedly something that can be improved if you invest in the right HR software for your business.

Fortunately, whether you’re only beginning your journey as a business owner or you’re running a multinational corporation, any of the six options that we’ve covered on our list should be more than capable of handling your needs — ultimately making life a lot easier as a business owner.

Still, it’s definitely worth considering how necessary this kind of software really is for your business in spite of the myriad of benefits it comes with, as some of the more expensive and sophisticated options that we’ve covered throughout our review can definitely be slightly overkill for small businesses or simple start-ups with limited resources.

So, unless you’ve considered your budget and believe that it’s financially sustainable for your business to invest in an HR software solution, you might be better off with a slightly more simple option like a spreadsheet or other basic (and therefore usually free) HR management tools that are sufficient enough to handle small teams.

Aside from this, technology can definitely have a tendency to dehumanise employee relations — especially when so many automated features and artificial intelligence are involved — so consider whether you’d be happier with a more personal HR process for your business anyway.

FAQs 📢️

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What Role Does Artificial Intelligence (AI) Play in Modern HR Systems?

Like pretty much all business software solutions, AI is used fairly commonly in HR software systems, too — whether it’s to automate routine tasks, such as CV screening and scheduling interviews, or even predictive analytics when it comes to things like workforce planning. You’ll often find plenty of AI-powered chatbots available if you or your employees need instant support with an HR query, which can definitely enhance the overall user experience.

How Can an HR Software Solution Support Remote Work and Distributed Teams?

The main way that HR software systems work remotely is via the cloud-based features they come with, from virtual onboarding modules and digital document management to any other kinds of communication tools.

Your employees don’t need to be using any one computer to access the services; they’re able to do things like submitting time-off requests, participating in training programs, and generally working with other colleagues from literally anywhere (and pretty much any device) with an internet connection.

Can an HR Software System Help in Assessing and Improving Employee Productivity?

Absolutely! HR software systems tend to come with plenty of different productivity tracking tools, as well as other kinds of performance analytics that you and your directors will be able to use in order to keep an eye on employee work patterns — giving your HR managers an opportunity to spot any inefficiencies and implement strategies to handle them. The majority of these solutions integrate with project management software, too, so you can also track task completion and milestones from the same dashboard.

How Do HR Software Packages Address the Needs of Industries With Unique HR Requirements?

Though they usually work for pretty much any kind of business, certain HR software systems come with industry-specific modules and general ways to customise your account so that whatever unique HR requirements you might have are met.

If you worked in healthcare, for instance, you might need features for managing certifications and staying compliant with healthcare regulations, whereas a manufacturing company might need something more related to workforce scheduling — either way, you can customise your experience.

Can Online HR Software Provide Tools for Managing Employee Learning and Development Programs?

Generally speaking, you’ll find that most HR software systems include tools known as learning management system (LMS) modules, which basically allow you to create and track various employee training programs. In addition, these usually come with other features like course authoring, certification tracking, competency assessments, and even personalised learning paths so your employees can continue to develop gradually over time.

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