November 30, 2021 by Andrea Rajic

How to Choose the Best HR Software for Your Business

 How to Choose the Best HR Software for Your Business

Table of contents


    On-Premises vs. Cloud-Based HR Software


    Types of HR Software


    What Functionalities Indicate You've Chosen the Best HR Software?


    Best HR Tools on the Market

Workplace Resources

HR specialist seems like a dream job, especially for those who consider themselves extroverts and love working with people. In addition, HR roles have increased in popularity due to the value they bring to their company.

According to the U.S Bureau of Labor Statistics, employment of human resources specialists is projected to grow 10 percent from 2020 to 2030. Although it sounds encouraging, those interested in diving into this role should be aware of its complexity.

Luckily, innovations within a tech space have made HR's job straightforward, allowing them to distance themselves from administrative work and focus on the core tasks that their role encompasses.

That's why it’s of the utmost importance for companies to establish the best system comprising HR software that meets their business needs. But with so many being available, sometimes it’s a real challenge to make a comparison and choose the best fit for your company’s needs.

If you are a business owner, manager, or HR, here's what you need to know before opting for a particular HR tool.

On-Premises vs. Cloud-Based HR Software

Every software, including HR, installed on an individual computer and functioning within a limited network in a particular organization is on-premises software. Although such a cost-effective tool is often perceived as a secure option, many organizations find it troublesome, especially the update part.

So, it doesn’t come as a surprise why cloud-based HR software is near to becoming a gold standard in today's business world. It’s valuable for companies with a mobile workforce because of its flexibility and mobility, some of the most appreciated software features nowadays.

How does it work?

Anyone can run cloud-based software using logins on a computer that has internet access. In addition, cloud-based software also allows employees to access and change their details if self-service options are available. It’s perfect for distributed teams that practice working from home or a flexible workspace!

Types of HR Software

Regardless of your company's size or the number of employees, the decision to use any HR software will benefit both your business and team members. Streamlining tedious, repetitive procedures helps even if you run a small business and no HR department at all. And for medium-sized and big companies, one of the most significant reasons to do so is to allow your company's HR to focus on other, more strategic tasks.

The market is packed with HR management solutions, so finding the most suitable one should not be a problem if you put on paper everything that your business needs and share the list with your HR manager, or the person who will be using the software.

For example, you can opt for an all-in-one tool that covers most, if not all, HR management functions. For a more specialized approach, you can consider tools designed to assist in a couple of tasks, such as onboarding and employee engagement. It all depends on how you will be using the software, your budget, and the size of your team.

Human Resources Information Systems or HRIS

HRIS is your ally in managing data. It helps you handle payroll and benefits. It assists in the recruitment process and tracking applicants. It's also a go-to place for employee data and legal and regulatory requirements.

Another crucial fact regarding HRIS is that it can be an independent software integrated with other HR apps or a central database within a comprehensive HR software system.

Workplace Management Software

If like many other companies worldwide, you’re adopting a hybrid workplace, your HR department will benefit greatly from a workplace management software. Through this type of HR software, you can provide workspaces for employees in multiple locations, ensure different workspace types are available to them, manage usage limits, budgets, and satisfaction - all from a single platform.

Workplace management software helps HR professionals streamline their operations, save time, and still provide the best workplace experience to employees - wherever they live and work.

Applicant Tracking System - ATS

ATS makes the hiring process straightforward. In addition, it assists in various recruitment-related tasks. From evaluating applications and publishing job openings throughout different job boards to storing applicant data, ATS is a helper in finding the best candidates for every position within your organization.

Onboarding Software

The first day of a new job, aside from being exciting, is also more or less a stressful experience. Therefore, it is HR's job to ensure the most pleasant onboarding experience for every new hire.

To achieve that, HRs use onboarding software. These tools are designed to help introduce new employees to the company (and vice versa). They comprise various functions, including employee questionnaires, pre-boarding packages, electronic signatures, training tracking, etc.

Performance Management

Like a bucket list in the world of HR software, performance management is a platform designed to be used by managers, HRs, and employees. They can use it for different purposes, like evaluating employee skills and performance and tracking improvements. It is also ideal for setting performance goals.

Payroll Systems

A payroll management system is a tool created to help organize employee payment and tax filing. It can be part of an integrated system or bought through an HR vendor.

A wide range of tasks falls under this software's "responsibilities," including calculating wages, keeping track of hours and attendance, printing and delivering checks, withdrawing taxes, etc.

Employees have access to this software, but their job is to input hours and wage information. Then, it is up to the program to calculate and deduct withholdings. The system is automated, so even when particular tax law changes, it immediately informs employees about the tax forms they need to fill.

Employee Engagement

Companies that encourage open communications and allow employees to share their thoughts, ideas, and doubts are more likely to attract and keep the most talented individuals and snowball.

That's why organizations that look long term and acknowledge the importance of a healthy company culture use different methods to increase both individual and team engagement, with HR software put in place to assist in processes like coaching, getting feedback, and analysis.

What Functionalities Indicate You've Chosen the Best HR Software?

Like determining the best type of coworking space for your employees or embracing the hybrid work model, finding the best HR tool also includes a lot of thinking and stress. Still, the most experienced ones know how to read signs on the road and distinguish between bad and good HR solutions.

If you are among those still in a search, these are the aspects you should not neglect when choosing HR software.

It Should Be Easy (Like Sunday Morning)

For those who don't know, Easy (Like Sunday Morning) is a song by Lionel Richie, but we'll talk about it some other time (maybe). Now, let's focus on having intuitive and easy-to-use HR software.

So, the best HR tool is the one that will not cause headaches to your HR and employees. It should be straightforward and designed like almost any simple app we all use every day, so your team members don't need additional training to understand how it works.

But, It Must Provide Support

As you can see, there's always a BUT. So, even if you choose a piece-of-cake type of software, something can go wrong. Therefore, if you want to avoid unpleasant situations, opt for software that provides the support. Don't say yes to a particular tool unless you are sure a chosen provider possesses essential technical knowledge and experience you can rely on.


Although companies are more or less organized in the same way, nuances exist. So, not all organizations need the same HR software. It may seem like you ask too much if you want customized software, but looking for a flexible one is not. After all, you want software that meets your business needs.

Also, you would want to consider purchasing a tool that provides scalability. It means you need a solution that can scale as your workforce grows and your business develops.

Visual Technology is a Plus

When software is powered by visual technology, that's a big green flag you should pay attention to. For example, handling and presenting complex data is not possible with simple graphs and charts.

That's why you need a tool with reliable visualization software. Finally, when you see something clearly, you understand it better.

As Well As Software Integration

A new tool must "get along" with an established infrastructure within your organization. So, go through the list of associated software for every solution that's among your favorites and determine whether it would be possible to implement it into your system.

Also, if there's a chance, consider getting an open API system and connecting it to each app that's in use in your company.

Employee Self-Service Portal

Self-service functionality has proven to be beneficial to both employees and managers. As a result, it is one of the most popular HR software modules due to its effects on individual and team productivity.

When a company allows employees to access information and schedules, manage time-off requests, and submit necessary changes, it creates a circle of trust. It builds meaningful relationships with them, increasing employee creativity and satisfaction.

HR Software Should be In Line With Tax Standards and Labor Laws

No matter how impressive a tool is, scratch it off your list if it does not comply with the law. The last thing you need is a problem with the authorities. Save yourself from unnecessary stress and operate in line with labor law and tax standards. Reputation matters and you want to be perceived as an example of a responsible business.

Best HR Tools on the Market

It seems like we see a new star - an HR tool - in the tech sky daily, which is excellent news, especially for companies on a quest for a solution most suitable for their business.

These are our favorites:

1. BambooHR

BambooHR is designed to collect information and deliver personal functionality and insights. It comes in two packages - Essentials and Advantage. The first one comprises a self-service employee portal and entry-level HR management. In contrast, the second serves as a reliable assistant in tasks like customization, hiring, onboarding, support, etc.

Using BambooHR, companies can:

  • track job applications
  • View and manage employee data
  • analyze performance
  • handle payroll
  • manage vacation requests

2. Gable

Gable is a workplace management platform that enables HR and People Operations professionals to provide workspaces for employees wherever they are, align workspaces with employee needs, and monitor and manage their hybrid workforce.

With Gable For Companies, you can:

  • provide workspaces in multiple locations - wherever employees need them
  • assign different workspace types for different employees
  • assign various levels of usage privilege and budget limits for different employees,
  • gain insights and data into the satisfaction and productivity of employees

3. Workable

If you are looking to improve yet simplify the recruitment process, Workable may be the best option. This specialized tool can help you organize, plan and manage a hiring workflow, matching the suitable candidates for every open position within your organization.

Efficiency is maybe the best word to describe Workable because it can:

  • post your job adverts through multiple job boards
  • help you make better hiring decisions using available data
  • it allows you to view candidate data and screen job applicants anonymously

4. Gusto

When you need an assistant that can handle some of the most critical HR tasks, opt for Gusto; it is HRs' favorite because it offers:

  • time tracking
  • full-service payroll solution
  • it manages employees' financial benefits and health insurance
  • it can centralize and handle the hiring and onboarding process

5. Zenefits

Zenefits is a full-service HR tool suitable for companies of all shapes and sizes because it simplifies complex and tiresome tasks. In addition, Zenefits has one of the best-designed dashboards among HR solutions.

Its offer comprises:

  • attendance tracking
  • payroll management
  • handling administrative tasks
  • managing job application
  • performance management

6. People

With a web-based interface, People centralize every HR process while offering transparent pricing. The app has an intuitive dashboard created to automate a considerable number of tasks, including:

  • sickness tracking
  • job applicants tracking
  • managing holiday request approvals
  • listing job adverts on multiple recruitment websites

Steer the ship of your distributed workplace.

Tailor your modern work culture, empower employees, and help them stay engaged, all while staying in control of workspace usage and spending.

Written By

Andrea Rajic


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