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    The Key Features of an HR Management Software

    October 12, 2023

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    Two HR specialists working on an HR management software for an important project.
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    An HR management software is a tool that helps with important tasks in human resources, like payroll, hiring, compensation, and training. It's usually online and is hosted in the cloud. This article talks about the main features of HR management software and how it can help your team work more efficiently.

    HR management software is defined as a solution (usually cloud-based and online) that automates and augments key human resources tasks like payroll, recruitment, compensation management, and training by connecting all the data, workflows, and services in one place.

    HR teams have witnessed a massive uptick in their roles and responsibilities as an outcome of the changing business climate in India. As your organization expands and builds its presence in various geographies, your business activities get more complicated. To sustain a workforce that's efficient, enthusiastic, and committed to the business's targets, you need the best features of HR management software.

    It will dramatically improve your HR team's performance, which in turn, will positively impact employee experience. By streamlining routine HR tasks, it raises the bar for employee management. That being said, one must remember to select the right HR software with the right set of features.

    Key Features of HR Management Software

    The essential capabilities you need in HR management software are:

    1. Employee information management

    This feature of HR management software allows you to manage all employee information in a centralized location, which includes their professional and personal data, employment contracts, induction records, appraisal paperwork, offer letters, etc. When it comes to employee information management, the software should support:

    A. Centralized employee database

    It integrates employee data onto one platform. No matter the scale of your business, if you have staff members, you need to maintain documentation. Instead of storing documents on a drive, organize them in one central location for each employee so that both individuals and HR teams can access them at any given moment.

    B. Employee profile management

    The software assists in outlining the organizational hierarchy and the specific position or role of each employee within it. As more and more people join your organization and as internal promotions occur, the hierarchical structure will get more complex. Using HR management software, you can put together a transparent reporting structure with extensive details for each employee.

    C. Document management

    HR teams invest a considerable amount of time sorting documents, collaborating with different divisions, managing payroll and performance reviews, etc. The HR software streamlines and automates all document-related activities, saving you both time and money.

    2. Recruitment and Applicant Tracking

    This feature of HR management software facilitates the recruitment of applicants from different sources, bringing in the finest talent out there. It's a fantastic tool for funneling all incoming applications, allowing you to successfully complete the entire employment process on a centralized platform. To enable this, the software should support:

    A. Job posting and application management

    The software will allow HR teams to publish job listings on numerous free and premium websites (e.g. Indeed, Monster, LinkedIn, Facebook, Google for Jobs, etc.). Several options include a repository of job descriptions that can be used as-is or quickly modified. Also, it will centralize candidate details and paperwork like contact information, resumes, and cover letters.

    B. Resume screening and filtering

    Through features such as resume sorting, bespoke application documents, and collaborations with pre-assess test providers, HR management software can accelerate screening. Moreover, you can automate the process of pre-screening candidates. In conjunction with evaluating applicants based on knowledge, expertise, educational history, or other factors, some applications can also allocate a score.

    C. Interview scheduling and tracking

    Once the pre-screening phase ends, the next stage is to begin scheduling interviews. Connecting with calendars allows you to quickly determine when interviewees are available. You can even send automated alerts to stakeholders whenever a discussion is arranged, postponed, or canceled.

    Learn More: The Power of a Complete HR Software

    3. Time and Attendance Tracking

    By monitoring employee work hours, labor costs can be precisely reflected and disburse the commensurate benefits. This aspect of HR management software can be coupled with payroll automation and performance evaluation tools. This feature of HR management software will have:

    A. Punch-in and punch-out functionality

    The primary function of a time and attendance feature is to make it easy for employees to log in and out and record their working hours. Solutions must have magnetic card readers, personal identification numbers, together with biometric fingerprint scanners. The HR management software may use GPS to track the employee’s location at the time of punching in.

    B. Timesheet management

    Employees can document the time they invest in different tasks and assignments using timesheets. Managers must have the ability to designate tasks and accept or decline timesheets. Workers should be able to accurately record their time spent, send it to their supervisors for approval, and allocate themselves tasks as needed. Some third-party integrations can use timesheets to create invoices that are absolutely free of errors.

    C. Leave and absence management

    You can personalize leave policies according to the leave regulations pertaining to your organization using this software. Employees are permitted to view their leave balances, submit applications for leave, turn absences to leaves, view their holiday schedules, and take compensatory days off, among other options. If they would like to carry over unused leave balance to the subsequent calendar year, the software must accommodate this function.

    4. Performance Management

    This module or feature of HR management software allows you to assess employee performance, carry out self-evaluations, finalize salary increases, and offer and receive feedback. It can expedite the entire procedure of performance evaluations all through the year and aid in unbiased performance decisions. The must-have capabilities in this feature of HR management software include:

    A. Goal setting and tracking

    At the official start of the year or quarter, managers get together with their employees to formulate unambiguous goals and objectives. Workers must also be able to coordinate and align their personal objectives with those of the team or organization. And, there must be periodic check-ins along with objectives and key results (OKRs) to monitor each individual goal.

    B. Performance reviews and feedback

    Their superiors or team leaders must offer timely performance-related feedback to their employees. Further, multi-rater feedback allows colleagues and subordinates to evaluate an employee's performance. Instead of waiting until their annual performance review, supervisors must be able to offer tips and recommendations to consistently enhance performance.

    C. Performance analytics and reporting

    The software should offer you an accurate representation of the performance of every employee. For example, the goals summary offers insights into the advancement of employees. In a similar vein, feedback analytics may present insights into both positive and negative employee feedback received. Look for an intuitive dashboard with easily accessible information.

    Learn More: Everything You Need to Know About Self-Service HR Software

    5. Training and Development

    The training features of HR management software will help employees thrive in an environment of growing competition. In India, 92% of employees believe they suffer from a skills shortage. Choosing the right systems can address this to a great extent. This includes:

    A. Training needs assessment

    To take advantage of workplace learning, individuals need to appreciate its direct and tangible benefits. Otherwise, it might turn into a strain or a diversion. The finest software facilitates an extensive and individualized needs assessment. It will suggest courses that correspond to their roles, educational pursuits, present skill set, and professional goals, among other factors.

    B. Training program management

    This feature of HR management software helps people managers administer multiple learning tracks from one location. It makes it easier to manage the growing upskilling requirements of the company as it scales. Team leaders can also use this feature to implement domain-specific training programs.

    C. Learning management system integration

    Finally, the training and development module of your HR management software should integrate with your existing learning management system (LMS). The LMS acts as the central repository for all learning materials, while the HR management software helps set and track learning goals, link it to employee performance, and more.

    6. Payroll and Benefits Administration

    Using this function, HR departments can alleviate the pressures of manual payroll processing. It also simplifies the logistical details surrounding benefits packages, which is a part of the total compensation plan – i.e., the cost to company or CTC in India. For payroll and benefits administration, the software must include:

    A. Payroll processing and calculations

    Robust HR software automates every aspect of the payroll process, from computing staff compensation and wages to generating pay receipts and tax documentation. Businesses can save time and reduce the possibility of costly errors by eradicating human dependencies for computation or data entry.

    B. Benefits enrollment and management

    Open enrollment occurs annually for a few weeks at organizations across the country. This is the specified period during which employees can enroll in fresh insurance coverage or adjust their existing benefits packages. HR software will assist employees in evaluating options and finishing paperwork more efficiently.

    C. Tax and compliance management

    HR professionals must always consider regulatory guidelines and taxation legislation as essential factors. Your service provider will be tasked with guaranteeing that all legal obligations are upheld and updated inside the solution itself -- assuming you use advanced HR management software. This includes authorization for medical care, labor regulations, tax exemptions, and more.

    7. Employee Self-Service Portal

    This software function assists workforce members when it comes to helping themselves. They can manage their HR or HRIS requirements without the assistance of a designated HR employee, reducing their workloads. This feature allows employees to execute a range of tasks, like reimbursement requests and personal information revisions. This feature of HR management software should include:

    A. Employee self-service functionality

    The HR software must let employees finish assignments from their handheld devices, desktops, or terminals if they are using them. Employees and administrators must be able to log into the portal across locations, including their homes. In comparison to filing a leave application with a paper-based approvals framework, this conserves time and resources.

    B. Access to personal information and documents

    Employees can view and edit their personal information, ranging from fundamental details like the date and name of birth to supplementary data, including dependent details, emergency contact data, and social profiles. The feature also enables an organization to distribute policy documents that staff members can access at any time.

    C. Request management and workflow automation

    Employee self-service portals help with requests such as leaves, travel expense reimbursements, self-evaluations, and information changes. These requests can be made by workers on their own and it will be routed to the approver automatically.

    Learn More: 50 Key HRMS Features That You Should Know Of

    Benefits of Using HR Management Software

    Using the right HR management software can unlock several benefits for your company, including:

    1. Increased Efficiency and Productivity

    The automation and assistance offered by the software will substantially decrease the amount of time spent on several conventional HR job functions. A decreased workload allows you to prioritize other, more essential tasks. Data obtained from HR management software will also boost management and employee productivity. Therefore, you can ascertain if employees are allocated to the most productive activities -- with an eye on their talent and experience.

    2. Improved Accuracy and Compliance

    By using HR software, you'll minimize the frequency of human error when managing the most critical components of your business. Benefits administration, payroll computations, and other processes are now substantially more precise. Numerous solutions can also take into account various labor regulations governing employment hours, overtime, leaves, etc. Fewer errors and greater accuracy also means a lower risk of non-compliance.

    3. Enhanced Employee Engagement and Satisfaction

    Self-service-friendly HR software that's well-designed and easy to use can assist in transforming the employee perception and experience of the HR department. These HR software tools contribute to improving individual employee engagement and motivation. For instance, you can regularly measure sentiment with pulse evaluations or connect users to peer recognition apps. Regular performance feedback is another way in which HR management software helps keep employees engaged.

    4. Streamlined Communication and Collaboration

    Large teams with branches in multiple locations can improve employee experience and expedite administrative duties with the help of HR management software. As an example, HR software enables managers and HR teams to collaborate to offer new employees a favorable hiring and orientation experience. Some HR software products additionally offer access to an internal messaging framework to facilitate seamless employee communication.

    5. Data-Driven Decision Making

    It's hard to make strategic decisions like workforce administration or succession planning without the appropriate data. You'll have everything you need -- to make the most advantageous choices for the organization -- at your disposal, thanks to the HR software's monitoring of any relevant information.

    By assessing the costs associated with staff and hours worked, you can plan projects and arrive at recruitment decisions with more convenience and precision. You can also monitor employee performance and attrition to help you make decisions about how to hold onto the best employees and guide them in reaching their full potential.

    Learn More: How to choose the right HR tech for your organization?

    Choosing the Right HR Management Software

    Here are factors to remember as you start the software selection process and look for the best features of HR management software:

    1. Assessing Your Organization's Needs and Goals

    Before commencing the software selection procedure, take a moment to figure out your organization's unique requirements. Compile a list of bottlenecks in your existing processes and workflows. Factors of the utmost importance might involve information silos, repetitive manual duties, and inefficient customer service. Next, build a list of required HR system capabilities and an additional list of desired characteristics.

    2. Evaluating Key Features and Functionality

    Once you've determined the type of HR system you need, you can start researching potential platforms. Begin by soliciting tips from your contacts and perusing reviews written by customers similar to you. Create an inventory of potential systems and filter the selection as you discover more about the capabilities each solution offers. Before starting the product demonstration phase, it's advisable to pare down to the most appropriate three to five options.

    3. Considering Integration and Scalability

    HR software may function as a stand-alone product or a broad, integrated system. Do you want your software application to be exhaustive? Or do you have existing systems that are set up independently, such as learning management systems, database servers, or compensation systems? In the long run, choosing a centralized all-encompassing solution will help your organization grow and expand, dodging common pitfalls that come from human oversight, like data duplication. When considering integrations, also look at possibilities for connecting with other business apps.

    4. Reviewing User-Friendliness and Support

    The cloud makes the daily tasks of HR professionals significantly easier, but it usually calls for a stronger partnership with your software vendors; nurturing this relationship will be crucial. During initial discussions, assess the caliber of service provided. Determine precisely what software support is offered and included within a service level agreement, to make sure you have access to customer service when installing a new system. The design and navigation of the user interface (UI) will also make HR software adoption in your company.

    5. Comparing Pricing and Return on Investment

    The cost of HR software varies significantly based on the overall size of your organization's workforce and the technical competencies needed by your staff.

    Carefully allocate a budget right at the initial stages that reveals how much you're prepared to invest in the new software, thereby managing your expectations. In your calculation, remember to include execution and migration costs along with the platform subscription. Finally, offset this cost against the challenges you had listed before, to get a rough estimate of your returns.

    Learn More: Implementation Is As Critical As Choosing The Right HRMS


    By adopting HR management software, you are opening up a world of possibilities for your organization. Its many features and capabilities can revolutionize the way you handle HR tasks and interact with your employees.

    You have the power to centralize employee information, streamline recruitment processes, accurately track time and attendance, facilitate performance management, prioritize training and development, automate payroll and benefits administration, and empower employees through self-service portals.

    As your organization continues to evolve and expand, having robust HR management software becomes even more crucial. It enables you to navigate complexities, comply with regulations, and ensure seamless operations across multiple locations.

    Embracing HR management software is not just about keeping up with the times; it's about staying ahead of the curve and positioning your organization for long-term success.

    Schedule a demo with Darwinbox to try the features of HR management software for yourself.

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