Posted on March 2, 2015

human resource software

HR software can help companies to improve talent management systems, better manage employee records, and optimize hiring practices. Many companies across all industries and geographical locations have already made the leap into automating HR systems. For those that have not yet made the leap, the following are several ways that HR software may be beneficial to your company.

1. Save space

One thing that HR systems are virtually guaranteed to do is save companies space. Eliminating or minimizing paper records removes the need for extensive filing systems and large storage areas, which can in turn save your company money on rent and utilities.

2. Improve organization

When records are kept in an automated system, it becomes much easier to organize and recall needed information. The degree to which HR systems may help improve organization depends on your company’s existing systems and the features of the software.

3. Streamline information sharing

HR systems can make it possible for employers or managers to share information across an entire organization with one click. If employee self-service options are in place, this information may be accessed from anywhere at any time. This can eliminate inconsistencies when sharing information regarding procedural changes and other company news.

4. Conquer geographical barriers

For companies that operate across the globe, an HR system can help employees and managers to communicate from remote locations and attend conferences online. Depending on the industry, it may be possible to communicate completely online and hire skilled employees without ever needing to travel or have the employee relocate. HR software can also help to establish greater consistency in systems and standards when there are numerous company locations across a large geographical area.

5. Optimize decision making

With the help of analytics and data reporting, managers can optimize decision making in many areas. HR systems can help managers determine when and who to hire and what the best methods will be for employee development. HR systems may also be able to help managers determine how to increase productivity and improve systems, though this requires analysis skills as well as access to information.

6. Better use of human capital

HR software makes HR professionals’ jobs much more efficient. HR personnel does not have to spend time writing out and filing employee information and searching through files to answer questions or make changes. With information easy to enter and available in one place, HR professionals have more time to devote to endeavors that will truly benefit the organization.

7. Increase performance management effectiveness

Performance management can be altered from a once-a-year grueling review process to a daily or weekly feedback session in which managers truly find out how an employee is progressing and use the information to effectively develop the employee. HR systems make it easy to obtain performance feedback from a variety of sources so that a more realistic and rounded view of the employee is seen. With this information, managers can more effectively develop employees by giving specific advice and suggesting training systems that will be of the greatest benefit.


About the author

Dave Rietsema has worked in the human resources field for nearly 10 years in multiple roles—from HR Generalist to VP of Human Resources. He holds an MBA with an HR focus and earned a PHR certificate from HRCI in 2012.

Dave is the Founder & CEO of HR Payroll Systems and HRIS Payroll Software, websites that help HR professionals in identifying, evaluating and selecting HR and payroll software solutions.