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At a time when digitalization is advancing rapidly and companies are striving to optimize their internal processes, HR software has become a necessity. These programs not only help to simplify HR processes, but also promote employee retention and development.
But with so many options on the market, the choice can be overwhelming. That's why we've done the research for you! We’ve listed 11 of the most popular HR software platforms currently dominating the market.
What is HR software?
HR software ensures that companies stay on top of their game when it comes to getting the best out of their most valuable asset - their employees.
HR software, often referred to as human resource management software or human resources information systems (HRIS), serves as a central tool for companies to efficiently handle a variety of tasks related to managing their workforce and employee development.
At its core, HR software aims to support the employee’s entire lifecycle in the company.
Starting with the first steps – such as talent acquisition and the recruitment process – HR software enables structured applicant tracking and automated communication channels.
Once a new employee has been hired, the software assists with onboarding and managing employee data. For example, it can provide an overview of contract details, positions, salaries and other relevant information.
But it's not just administrative tasks that are made easier by HR software. It also offers valuable tools in the areas of payroll, performance monitoring, training, and career development. Some advanced systems even integrate employee feedback and survey functions to increase employee retention and satisfaction.
What types of HR software are there?
- Recruitment and application tracking software: helps companies find qualified candidates and manage the application process.
- Onboarding software: simplifies the process of integrating new employees into the company.
- Payroll and compensation management: automates payroll and manages compensation plans.
- Performance management tools: help with employee performance monitoring and evaluation.
- Learning and development platforms: support employee professional development through training and courses.
There are also HR tools that integrate some or all of these functions.
Advantages of HR software
HR software offers companies numerous advantages for optimizing their HR processes. These tools are not only powerful, but also adapt to meet the ever-changing needs of the business. Here are some of the most outstanding benefits:
Time efficiency: automating HR processes with specialized software reduces manual effort. This allows employees to focus on strategic projects instead of spending time on repetitive administrative tasks.
Cost efficiency: budgets are often limited - especially in small or medium-sized companies. HR software can save costs by reducing manual processes and avoiding errors that could lead to financial losses.
Minimizing errors: digital and automated processes significantly reduce the risk of errors caused by manual data entry.
Better data analysis: HR software enables companies to make informed decisions. It provides detailed insights into employee data and performance, leading to a more effective HR strategy.
Improved employee experience: an intuitive and user-friendly system makes it easier for employees to access their data and interact with HR processes, which increases employee satisfaction.
Scalability: many HR tools are designed to grow with the company. They can be adapted to changing conditions and larger employee numbers without the need to constantly invest in new systems. This is not only easy on the budget, but also smooths the transition during growth phases.
11 great HR software systems and tools
The following HR software solutions bundle many features together. Read through and see which ones fit your business best. It’s possible you may need just some of the features, or perhaps you need a comprehensive tool. We’ve got a great mix below. These software solutions are listed in alphabetical order.
Bamboo HR
BambooHR is an HRIS (human resources information system) that consolidates all payroll, time, benefit, and employee information in one platform. The tool manages employee data, and the solution is malleable: you can add extra features that suit your company’s needs.
Clients include Fitbit, FreshBooks, and SquareSpace, alongside more than 26,000 other companies in 100 countries.
Best for: Small and medium-sized businesses all around the globe.
Capterra rating: 4.6/5
Bright HR
Bright HR provides support for over 90,000 businesses around the world. The software manages employee data, absence, staff holidays, rotas and shifts, and training. They also have Health & Safety features, including risk management and reporting, incident reporting, and health and safety insurance support. Bright HR even has a mobile app for clocking in and digital time tracking.
Best for: Small and medium-sized businesses.
Capterra rating:4.7/5
Deel
Deel combines global hiring, HR, and payroll functions in one intuitive platform. They specialize in global expansion, making hiring a remote workforce much easier while still keeping you compliant. Deel makes payroll easy, whether you’re paying local, remote, or contracted employees. They operate in 150+ countries and deal (no pun intended) in 120+ currencies.
Best for: Companies who hire or manage remote or international employees.
Capterra rating: 4.7/5
HiBob
HiBob is a versatile HR management platform that aims to support HR teams in core areas such as compensation, onboarding, time tracking, vacation planning and many other aspects. It enables teams to create customizable workflows and stands out for its focus on increasing collaboration and engagement.
Best for: The tool is great for both SMEs and multinational companies looking for an effective and customizable HR solution.
Capterra rating: 4.6/5
Lucca
Lucca optimizes HR, finance, and administrative processes. It has four major features to choose from: HR management, finance, payroll, and time & activities. You can choose to get just one solution or the entire suite for your business. Happy customers cite user-friendliness as one of the tool’s major benefits.
Best for: Small and medium-sized companies based in Europe.
Capterra rating: 4.9/5
PayFit
PayFit is an HR management platform and payroll tool rolled into one. It automates common payroll tasks, eliminating errors and ensuring data accuracy. Employees can also submit expenses and holiday requests directly on PayFit, as well as view and download payslips.
Over 9,500 companies use PayFit, including Revolut, Railsbank, and Sellsy.
Best for: European and UK SMBs
Capterra rating: 4.5/5
Personio
Personio is an all-in-one HR tool that seamlessly integrates and optimizes essential HR functions - from recruitment and administration to payroll and onboarding. By centralizing all data in one platform, both the HR team and employees have easy access to relevant information. Whether it's viewing payslips or planning vacations, Personio allows employees to access a unified portal at any time and from anywhere - whether via smartphone or computer.
Best for: SMEs and modern companies that value efficiency and user-friendliness.
Capterra rating: 4.3/5
Remote
Remote is a global HR platform that helps companies manage international teams efficiently and cost-effectively. Remote handles payroll, taxes, benefits and compliance worldwide. With experts in every country, Remote ensures user-friendly management of global teams while protecting intellectual property. Whether you are expanding or just want to hire individual employees internationally, Remote puts you in the best possible position.
Best for: Companies that want to expand globally and optimize their HR processes.
Capterra rating: 4.8/5
Rippling
Rippling consolidates HR, IT, and finance tools into one platform. It’s got high ratings across the board – over 3,000 reviews on Capterra alone. Its self-service features means that employees are empowered to update their own data in the system, taking the burden off busy HR teams. Rippling’s strength lies in its automated workflows; their website states that you can onboard new hires, promote employees, or offboard in just 90 seconds.
Best for: Small and medium-sized businesses.
Capterra rating: 4.9/5
Sage
Sage HR, an award-winning HR solution, transforms and simplifies HR management. The tool enables agility while providing essential functions - from 360-degree feedback to employee planning, performance appraisals and time tracking. With its intuitive and customizable dashboard, Sage HR minimizes the need for Excel spreadsheets, automates HR tasks and drastically reduces email traffic.
Best for: Small and medium-sized companies that want to reduce administrative overhead and free themselves from reliance on traditional, tedious processes.
Capterra rating: 4.5/5
Workday
Workday is already a well-known name in the ERP and business tool space. The tool streamlines processes and consolidates employees data all in one place: payroll information, benefits, time tracking, expenses, and skills management. It also has hiring features that facilitate the recruitment process from sourcing candidates to scheduling interviews. It’s a great solution if your company is already familiar with the Workday ecosystem.
Best for: Medium to large-sized businesses with several locations.
Capterra rating: 4.6/5
Combining HR software and spend management tools
The age of endless Excel spreadsheets could soon be a thing of the past for you too. While HR software usually supports payroll accounting, a spend management tool such as Spendesk keeps track of all other company expenses. For example, you can use a spend management tool to easily manage incoming invoices, expense reports, or travel expenses.
Together, the two tools offer companies a comprehensive insight into finances and personnel - entirely digital and centralized.
Digital processes increase efficiency and collaboration between the finance and HR teams, as well as between all other employees in the company. Administrative, monotonous tasks are eliminated, allowing employees to focus more on strategic projects. This not only strengthens the company's competitive position, but also increases employee satisfaction.
Available now: integrate your HR tool with Spendesk
Good news! Now you can connect Spendesk with your favorite HR software. The new feature allows you to automatically update employee information, effortlessly add new users and smoothly remove team members who have left. All in just a few clicks.
This makes onboarding and offboarding a quick and efficient process that can be completed in just a few minutes.
The synchronization of data sources also ensures that any updates to employee information, be it name, address or account details, are seamlessly integrated into Spendesk.
Discover more tools for your finance tool stack
By combining HR software and tools such as Spendesk, you can optimize company admin. This contributes to greater efficiency, better employee retention and a thriving business overall.
And if you’re interested in adding more tools to your finance tool stack, check out our free guide to the 30 best software solutions for modern finance teams:
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