Human Resource Management

Technology has taken over our lives in many ways and for a good reason. Businesses turn to new technologies to boost productivity, employee performance and generate more revenues.
While a company’s success is attributed to traditional sales, marketing, and accounting teams, the HR team is the backbone of a company. With tech making its mark across different industries, a host of software for HRM has emerged in recent years. These tools streamline core HR processes and are proving to be a valuable addition to a business.
If you are looking for ERP software for HRM, you have come to the right place. Continue reading to know the ins and outs of software for HR management.

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Software for HR Management (HRM) 2022 – Complete Buying Guide

The responsibilities and workload of human resource (HR) teams from around the world have increased consistently over the past couple of decades. As the scope of work widens, organizations turn to software for human resource management (HRM) to ensure HR activities are on track.

There is no doubt that HR teams require new and improved technological solutions to aid them in their day-to-day tasks. Hence, the demand for software for HRM management has seen a consistent rise in the past few years – a trend that will continue in the upcoming years. As more and more companies are competing with each other to gain a competitive advantage, the push to streamline every business process has driven the development of software for HRM in recent years.
While there is plenty of standalone software for HRM in the market, you can also opt to deploy an ERP system with an HR module. However, not many companies actively invest in ERP software for HRM only. They are looking to make the most of the other modules present in the tool as well.

Software for HRM handles different functions of the HR team. These include employee onboarding, hiring, scheduling, and more. Contrary to humans, HRM tools do not have downtime and can perform multiple tasks at the same time.

Today, as the automation wave continues to sweep across different industries, software vendors are in tune with this trend. Software for HRM primarily focuses on streamlining HR workflows for all employees along with the HR department of the company.

Hence, we are seeing a lot of companies of all sizes use different types of HR solutions.

If you are unsure about how and where to start the process of picking the best HR tool for your organization, we can help!

In this piece, we will take you on an exciting journey wherein you will learn more about software for HRM, their benefits, why they are so important, and most importantly which are the best tools currently available.

We hope you find this buying guide insightful and informative.

What is software for HRM?

Software for HRM covers a plethora of HR disciplines as vendors continue to add additional features to cater to an individual as well as the niche requirements of different verticals.

Software for HR management is primarily a digital platform that allows HR teams to organize and optimize their daily HR tasks and achieve their objectives.

These systems enable users to view and manage their employee records via a web browser, smartphone application, or desktop application. Thanks to technology, there are different types of HR systems available today. These can be implemented to perform different HR tasks.

We will discuss the different types of software for HRM in the following sections of the article.

Different types of software for HRM

There are plenty of different types of software for HRM that help organizations reach their objectives. Take a look at the different types of HR systems below.

  • Performance management

A performance management tool is primarily developed for managers, HR professionals, as well as employees. It has all the features that allow stakeholders to assess an employee’s skill set, assign performance goals, and also keep track of their progress over a while.

  • Applicant tracking system (ATS)

An applicant tracking system is hiring software that simplifies the entire process of hiring new employees. Typically, it handles and manages different tasks including saving applicant information, posting job openings on different job boards, screening resumes, and finding the best candidates for open positions.

  • Onboarding

An onboarding software for HRM allows HR staff to organize and monitor the entire process of hiring and introducing new employees to the company. It includes a series of basic tasks such as training tracking, electronic signatures, automated function, and employee questionnaires. All of these functions facilitate smooth and seamless onboarding for all the new employees.

  • Human resources information system (HRIS)

An HRIS offers different HR functions including recruiting and tracking applicants, dealing with payroll-related activities, saving employee information and maintaining legal and regulatory requirements.

Although HRIS can serve as standalone software for HRM, it can be integrated with other HR applications. Besides, it can also act as a central database in an all-in-one HR software solution.

  • Employee engagement

This type of software for HRM enhances team and individual engagement. Employee engagement can be achieved through analytics, coaching, feedback, and daily task prioritization.

What are the benefits of software for HR management and why do companies need it?

There are many benefits associated with using software for HR management. Take a look at some of the benefits below.

  • Improved payroll management

Payroll management is one of the most important HR processes. However, payroll management can be a major problem for companies of all sizes. Software for HRM assists in payroll management and thus eliminates human errors and saves valuable time.

When the payroll functions are linked with the attendance functions, it can allow businesses to control compliance issues, keep track of labor and overtime costs, and use that information to make informed decisions.

  • Better recruiting

HR tools digitalize recruitment and make it more favorable for employees. This approach can attract the best talent for the business. It can also be integrated with popular job boards and social media sites where your job posts are likely to gain more visibility.

Software for HRM also helps in onboarding, interviewing, and screening processes, thus making these processes more organized and efficient.

  • Getting rid of organizational hierarchies

An HR system takes away the hierarchies that are present when top management passes down their targets to the lower management. Here, the targets are further broken down into smaller individual tasks for front-line employees.

A lot of businesses turn to such HR solutions to curb the hierarchies and allow employees to define their targets without intermediaries and interruptions. This does not mean that the management has no say here. They can still approve or revise the targets created by employees, making it a win-win situation for both the parties involved.

  • Real-time feedback

Yearly bonuses and appreciation have become obsolete in many ways. This is why it is important to provide consistent feedback, especially to a workforce that is operating under a rapidly evolving work environment.

All employees must be mentored, coached, and given the right training so that they achieve their targets. Besides, software for HR management also includes an option to send messages. This ensures that managers can stay connected with their employees at all times, thereby making it easier to provide feedback and submit reviews.

  • Talent management

If businesses want to grow, the management should first make sure that all employees have the right skill set to do their job. Any employee with the right skill set and experience can tackle different situations and handle responsibilities effectively.

This creates a dependable workforce that also helps your firm forge stronger relationships with customers.

An HR platform ensures this happens by improving communication and creating better work relationships between the management and employees.

  • Legislation compliance

Although small businesses are generally free from the clutches of legal requirements in many countries, there are a few mandatory regulations that they should comply with. Software for HR helps small business owners to understand the legal framework within which they can operate and how they can comply with employment legislation laws.

Businesses get a better understanding of the entire documentation process for labor laws, taxation, insurance, and health-care related documents. It also helps businesses owners address any changes in the legal framework and the organizational structure.

  • Enhanced productivity and efficiency

HR tools can automate mundane and time-consuming activities such as data entry, reconciliation of employee’s payroll, handling tax remittances, scheduling and approving employee time-off requests, and more.

Automation also prevents any probability of errors made while using manual systems to handle administrative tasks.

  • Enhanced employee self-service

Did you know that employee self-service is one of the most sought-after features of modern software for HRM?

More often than not, employees have a host of questions related to contracts, leaves, holidays, salaries, and so on. However, when such queries come from multiple employees, the HR team finds it difficult to answer them individually.

An automated ERP software for HRM offers improved self-service and significantly higher employee satisfaction. With a fully automated HRM system in place, employees can easily check paid time off, the number of sick leaves they can avail of, and also the ability to work remotely.

Every employee has access to individual accounts where they can easily find all the information they require.

  • Privacy and data protection

When you decide to invest in software for HRM, you are also taking an important step toward protecting your employees’ data. As an employer, you are responsible for protecting employee data and ensuring that it is not being misused and safe from external breaches.

Software for HR management helps organizations protect their employee’s data from unauthorized users and hackers.

Besides, the best human resource management systems come with payroll functionality, which provides a more secure way to process payroll. Safe and secure payroll processing is made possible by securing sensitive data with password authentication and storing the same on internal hardware.

  • Better decision-making

When the HR department is not spending a lot of time on administrative tasks, they have more time to focus on how they can improve the overall employee experience. If the HR department is not tied with compliance and other time-consuming activities, they can look for new ways to engage and educate the workforce on all the benefits that are available to them.

This plays an important role in improving morale and employee retention.

What are the core features offered by software for HRM?

There are a bunch of common features that software for HRM offers. When you are on the lookout for the best HR tool for your organization, you must understand the functions and features of each software.

When you study what each tool has to offer, it is easier to understand to determine which type of HR software is the best for your business.

Take a look at some of the most common features of these solutions below.

Core HR features

Core HR consists of four main HR management functions. These are applicant tracking, benefits administration, payroll, and personnel tracking (HRIS). Every business will need these core functions once they have a sizable workforce.

  • Applicant tracking

This function centralizes applicant data and manages the entire application process. This involves creating personalized hiring workflows, applicant scoring, and resume management.

  • Benefits administration

The benefits administration function caters to employee benefits including life/medical insurance policies, 401(k) participation, and paid time off.

  • Payroll

The payroll function tracks employee salaries, health, and other deductions, calculates withholding for taxes, tracks employee salaries, and also cuts paychecks.

  • Personnel tracking

Personnel tracking centralizes employee data including banking details and SSN, job and salary history, insurance plans, and contact information.

Workforce management features

Workforce Management includes applications that can track your workforces such as time & attendance tracking and scheduling.

  • Employee scheduling

This feature allows you to create, track, and easily manage employee schedules. HR platforms can schedule employees across multiple locations, projects, and departments.

  • Attendance and time tracking

This feature keeps a track of absences and employee attendance. It also allows employees to punch in and out of a system. Many software for HRM also track sick days and paid time off effectively.

  • Strategic HR features

Strategic HR encompasses HR applications that are in sync with long-term talent management objectives including employee development and engagement. Some of the features included here are learning management, performance management, and employee engagement functionality.

  • Learning management

Learning management streamlines the ongoing training and skill development of all employees. This includes content authoring, certification and curriculum path definition, reporting, and testing.

  • Performance management

This is a centralized system wherein managers can easier conduct and track employee performance and review the same. Some of these features include goal management, tracking, and performance measuring.

  • Employee engagement

Employee engagement enables the HR department to create and deliver pulse surveys to get feedback on the working conditions. Besides, employee engagement also enables you to recognize an employee’s work, track engagement of the workforce, and identify employee’s work.

  • Shift and scheduling planning

Shift and schedule planning features allow the HR department to get a grip of which employee is working in which shift.

Understanding ERP software for HRM

ERP software has become an important part of businesses of all sizes. ERP software for HRM offers a bunch of unique features that are important in the day-to-day operations of any company.

Here we will take a look at the HRM module in ERP software and also take a look at the various sub-modules.

An ERP software for HRM is responsible for maintaining employee records including attendance, salary details, performance evaluation, contact information, and promotion of each employee.

ERP software for HRM is also integrated with knowledge management systems to utilize employee expertise optimally. Knowledge management solutions can exist within teams or organizations and also be used as a central knowledge hub for clients.

ERP software for HRM primarily refers to processes and systems that are at the crossroads between information technology (IT) and human resource management (HRM).

In a nutshell, ERP systems have their origin in software that combines data from various applications into a single universal database.

One of the most crucial distinctions here is the linkage of ERP HR and ERP financial modules via a single database. This makes the software for HRM more flexible and rigid.

Submodules of ERP software for HRM

We will not get into the details of the different sub-modules of ERP for HRM as we have more or less touched upon each submodule in the previous section.

Here are the submodules of ERP software for HRM.

  • Time management
  • E-recruitment
  • Organizational management
  • Payroll
  • Personnel administration

ERP software for HRMS functionalities

  • Keeping a record of address information and basic demographic data
  • Selection, interviewing and completing the hiring process
  • Training and development of employees
  • Capabilities and skill management
  • Compensation planning record
  • Generating paycheck and payroll reports
  • Maintaining personal records
  • Pursue talent management
  • Broad flexibility in data collection techniques
  • Cost analysis
  • Data analysis features
  • Efficiency metrics
  • Insurance
  • Compensation
  • Profit-sharing
  • Retirements
  • Labor distribution capabilities

ERP software for HRM covers different aspects of HR from application to retirement. These include:

  • Training and development of employees
  • Skills and capabilities management
  • Compensation planning record
  • Shortlisting, interviewing, onboarding, and completing the hiring process
  • Other activities related to the tasks mentioned above

Some of the best ERP software for HRM offers the functionality to “read” applications and enter accurate information to applicable database fields, send notifications to employees, position control, and position management.

Features of ERP software for HRM

  • Improves employee development
  • Objective-oriented
  • Applicable for businesses of types
  • Control the company process
  • Focused on the action

Best software for HRM in 2022

Breezy HR

Breezy is one of the best applicant tracking systems (ATS) that allows you to automate recurring and time-consuming tasks to identify the best candidates. Besides, the tool also allows you to schedule interviews, text/email candidates, and schedule interviews.

Breezy HR is a highly recommended software for HRM for companies of all sizes that manage collaboration hiring and recruiting processes.

The downside of Breezy is that it is not an all-in-one HRMS solution such as payroll management, performance management, employee database, and more.

Breezy HR features:

  • Self-service portal
  • Onboarding
  • Applicant tracking
  • Recruitment management

Breezy ToolsMetric rating: 9.3/10 is an open solution and makes it extremely easy for HR managers to create custom solutions for their team’s requirements. Users can easily keep track of the entire recruitment process of new candidates and also onboard new employees with a bunch of pre-built templates.
One of the benefits of using is that it can integrate with more than 40 third-party applications so that you can manage your workflows seamlessly. has all the important features one is looking for in software for HRM. features:

  • 360-degree feedback
  • Self-service portal
  • Applicant tracking
  • Onboarding
  • Performance management
  • Payroll management ToolsMetric rating: 9/10

Freshteam by Freshworks

Freshteam is software for HRM developed by one of the most popular software companies, Freshworks. Just like, Freshteam is an all-in-one HR software.

With this tool, you can ensure that all your HR efforts are up to date with the standards required in 2022. Right from hiring to onboarding, securing employee data, time tracking, and creating day-to-day workflows, you can do it all with Freshteam.

Freshteam features:

  • Mobile application
  • Employee information system
  • Onboarding and offboarding
  • HR reports
  • Applicant tracking system
  • Time off

Freshteam ToolsMetric rating: 8.5/10

ADP Workforce Now

ADP provides a dazzling array of HRM features including talent management, time management, compliance, analytics, payroll management, benefits management, and benchmarking.

ADP Workforce can also be integrated with a bunch of other HR and business applications through the ADP and APIs marketplace.

ADP Workforce Now features:

  • Onboarding
  • Applicant tracking
  • 360-degree feedback
  • Self-service portal
  • Recruitment and compensation management

ADP Workforce ToolsMetric rating: 9.3/10


Gusto is also another excellent all-in-one software for HRM that offers a garland of features that streamline a host of business processes including human resources and accounting.

If you are looking for modern ERP software for HRM, Gusto is a safe bet. The tool is an excellent choice for small businesses that are looking to improve their HR management workflows.

Gusto features:

  • Onboarding
  • Self-service portal
  • Compensation management
  • Benefits and time-off management

The only drawback of Gusto is that it does not include features such as applicant tracking, recruitment management, 360-degree feedback, and more.

Gusto ToolsMetric review: 8.8/10


Paycor is a modern all-in-one payroll and HR solution that comes with many exciting features and HR functions. Besides, the tool allows you to import employee hours and also view your cash requirements to eliminate manual work from payroll workflows.

It provides performance management, payroll management, onboarding, and applicant tracking. On the whole, Paycor is one of the best payroll processing solutions which also does an excellent job while streamlining core HR processes.

Paycor features:

  • HRIS system
  • Onboarding
  • Time clock software
  • Human resource management
  • Payroll and tax compliance
  • ACA compliance
  • Reporting and analytics
  • Employment screening
  • Employee compensation

Paycor ToolsMetric rating: 9/10

Bamboo HR

Bamboo HR is considered to be one of the most ideal software for HRM particularly for small and medium-sized businesses.

It is a cloud-based HRM system that offers a host of features including e-signatures, time-off tracking, integrated payroll, and applicant tracking.

Bamboo HR prominent features:

  • Onboarding
  • Time and attendance tracking
  • Performance, recruitment, compensation, and benefits management
  • Self-service portal

One of the reasons why BambooHR has become one of the most popular software for HRM is its ease of use. A mobile application is available that is accessible to all employees. If you are looking to move your HR team away from conventional spreadsheets and streamline your HR data, BambooHR is an ideal choice.

Bamboo HR ToolsMetric rating: 9.5/10


UKG Pro, previously known as UltiPro is a robust cloud-based software for HRM designed for small and medium-sized businesses. The platform offers a complete suite of culture-driven solutions that improve the employee experience.

The tool enables companies to scale and create memorable experiences for their employees. The software for HRM comes with all the important features you need as an HR professional to support employees, promote their overall development, and more.

UKG Pro allows HR teams to streamline employee information including employment history, performance history, and other personal information.

UKG Pro leverages cutting-edge technology such as artificial intelligence (AI) to provide the best employee experience on an HR portal.

UKG Pro features:

  • People center
  • Payroll and tax management
  • Onboarding
  • Document management
  • Recruitment management
  • People analytics
  • Workforce management

UKG Pro ToolsMetric 8.9/10

Software for HRM Pricing Guide

When choosing the best ERP software for HRM or even a standalone software for HRM, one factor that comes into play is the pricing.

Typically, there are two main pricing models that most software companies offer users: perpetual licenses and subscription packages.

Subscription models

Subscription models are very common in cloud-based software for HRM. Some common subscription models include payment per employee/per month or user/per month.

  • Per employee/per month

As the name suggests, with this model you have to pay a monthly fee for every employee. Very often, there is also a one-time implementation fee that is charged in addition to the initial pricing. However, the upside is that the per-employee cost typically dips as the number of employees increases.

Hence, this pricing structure is ideal for small businesses due to its scalability and more importantly affordability.

  • Per-user/per month

Here, a monthly fee is paid for users – typically administrative users instead of the entire workforce. While opting for this model, you should be aware that many vendors could try to categorize all your employees as users if they are providing an employee self-service portal. There is also a one-time implementation fee
Included on top of the initial pricing structure.

Perpetual license

With this pricing model, users have to pay an upfront fee for the license to own the software for HRM. It is more traditional in comparison with the subscription model and is commonly seen in large businesses and on-premise applications.

Hidden costs of software for HRM

Regardless of the type of business you run and the pricing model you opt for, there is a strong possibility that you may run into some hidden costs associated with the ERP software for HRM of your choice.

For instance, if you are migrating from on-premise to a cloud-based platform, migration and data cleansing could incur added costs. Similarly, maintenance, system upgrades, staff training, and other miscellaneous activities could incur additional costs.

This is why it is important to check with your software vendor and talk about the hidden costs.

Software for HRM exciting trends for 2022

  • Purpose-driven organizations

Most of the HR trends center around a purpose. Business leaders from around the world believe that purpose is one of the most key components that drive the success of purpose-driven organizations. In simple terms, decisions, conversations, and behaviors across different levels should ideally be integrated within a single purpose.

  • Goal-oriented features

Defining objectives is an absolute must when it comes to creating an efficient company process. Goals and objects drive employees and enable your workforce to evaluate productivity.

A lot of businesses have recognized the importance of integrating a goal-oriented model in their work operations. Hence, we are likely to see more and more software for HR management with goal-oriented features.

Besides, such platforms help HR managers and administrators to delegate tasks and define goals for each task.

  • Adoption of artificial intelligence

Without question, artificial intelligence (AI) can take HR processes and operations to a whole new level. A plethora of AI-powered ERP software for HRM is simplifying a few routing HR tasks including applicant tracking and more.

The increasing adoption of new technologies in the HR space has sparked a noteworthy interest in AI – one of the top trends in the current HRM space.

A host of HR managers and HR executives are using software for HRM that primarily depends on AI to work effectively. Besides, the increasing adoption of artificial intelligence will also help in managing staff performance, analyzing team members, going through workforce strategies, and more.

  • Gender-sensitive software for HRM

Although it is hard to extract the exact number of LGBTQ employees at workplaces yet, there is considerable stigma around this subject.

Companies from around the world are seeing more and more workers who are coming out of their closets regarding their sexuality and gender.

Hence, some of the best software for HR management is likely to introduce gender-neutral language to the platform. This will enable businesses to achieve gender diversity and equality.

  • Effort and employee recognition

In a corporate setup, there are plenty of occasions where a team’s hard work deserves appreciation. Companies should understand that it is very important to make their employees feel valued and appreciated.

Driven by the advent of the ongoing pandemic, employee recognition has become one of the key features of HR software in recent times. For instance, if a particular department or a team has performed well, you can use the HR system to appreciate them by sending a Hi5 or giving them a round of applause for their commendable performance.

A lot of vendors who develop software for HR management are taking an employee-centric approach while developing solutions. This is why it is imperative to keep an eye out for software companies that are adding more and more employee recognition features.

  • Human capital management tools

Human capital management primarily caters to boosting organizational competency by focusing on management, optimization, and employee acquisition.

A lot of HRM tools are not designed or compatible with flat organizational departments and modules. As the future of enterprises is pinned on these modules, HR technologies are also evolving to stay afloat with these trends.

This could involve adding functionalities that equip team members with productive and user-friendly experiences.

HR technology will continue to improve from strength to strength in the years to come. Besides, even the scope of HR technology will scale, bringing in new players into the market.

As the competition begins to grow, vendors will strive to create a well-rounded and near-perfect product. The demand for HR software will continue to grow steadily as digital technology and solutions are expected to take over and replace all mundane, time-consuming, and recurring manual tasks. As new trends unfold, there is no doubt that better and improved ERP software for HRM will soon greet us.

Reasons to buy software for HRM via ToolsMetric

We understand that investing in software is not an easy task. However, it isn’t rocket science either. When you are picking the best software for your business, you should have a clear objective and create a list of the ‘must-have’ features.

This will make it easier for you to choose the aptest HR tool for your company. ToolsMetric is an excellent platform where you can compare the different parameters of more than 100 HR systems.

Right from the pricing, feature list, to the list of integrations, you have a bird’s eye view of all the key parameters of each tool. Simply choose the tools you want to compare and see their features side-by-side to accelerate your decision-making.

We hope you have the right solution that can streamline and improve the core HR processes of your company. What are you waiting for? Jump right in and explore our repository of the best software for HRM.

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