HR software, or Human Resources software, is a system that simplifies and automates HR processes. Online HR systems give HR departments access to the data they need in a digital platform (using the cloud). It also allows HR professionals to stay in control of various processes, from training and onboarding to managing payroll.

HR software is used by human resource departments to automate and streamline tasks and processes. It’s digital, providing analytics and insights for businesses as well as tools and resources for employees. Many integral processes can be streamlined using online HR systems, including recruitment, people management, absence management and compliance. 

Learn more about  enhancing productivity and automating your core HR tasks.

Pretty much. A HRMS – or Human Resources Management System - is effectively a type of HR software with a broad range of functionality, varying by supplier, that covers all touchpoints in the employee lifecycle. Usually a more end-to-end solution, the HRMS typically includes integrated payroll and workforce management or time and attendance capabilities like rostering, as well as data and analytics tools like our HR management software PeopleXD and PeopleHR. 

HR software and HRMS software are often used interchangeably by suppliers so understanding what is included when you’re speaking with new software vendors is the best way of ensuring you’re getting the features you need to achieve your objectives. 

A HRMS can help you: 

• Streamline your HR tasks, automate manual processes and have everything you need joined up, in one place  
• Empower your people with self-service and mobile apps, which removes bottlenecks, reduces queries and eliminates frustration, adding to your employee experience  
• Increase productivity and drive engagement, helping you build a culture of fulfilment, achievement and belonging which reduces employee churn  
• Build a future-ready workforce: Attract, develop and retain your talent  
• Improve data visibility with HR analytics tools that allow you to make informed, data-driven decisions.

Our online HR system can integrate with your payroll system, or ours, using workflows to streamline tasks, saving time and increasing efficiencies. This means HR or payroll teams will be able to automate and store payslips, and employees will be able to access these whenever they might need them with our integrated employee self-service functionality.  

Many businesses are still using disparate systems to manage their people and their payroll processes, which can lead to data errors, employees being paid late or incorrectly, and time-consuming and risky manual amends to systems to make them more aligned. Integrated HRMS software like PeopleXD, helps ensure that any data relating to your people is up-to-date, secure and accurate.

When choosing HR software for your business, consider the provider’s level of experience and customer support. Look for integrated solutions that are powerful enough to simplify complex tasks and consider a solution that is appropriate for the size of your business, with the ability to scale to your needs as you grow. This will save you time and money and ensure your investment is future-proofed. 

Most of the businesses we work with have previously been either paper-based, using disparate and disconnected systems or required end-to-end Human Resources software with the data and functionality to help them develop their wider people strategies.

Building a solid business case for investing in new HR technology will be fundamental to its success. The critical parts to a business case for new HRMS software will include how the new technology will integrate with your other business systems and how you plan to measure the return on investment (ROI). 

Other considerations for your business case could include: 

Gathering the problems and challenges you currently face, whether that’s a poor user experience, disconnected systems, insufficient data visibility or lack of employee self-serve functionality, along with the quantitative and qualitative data from your existing HR platform and experiences to back up these issues. 

The risks of not upgrading – declining retention rates, reduced productivity, data errors or lack of required functionality to scale for example 

The opportunities of upgrading – will it give you the ability to track, manage or influence aspects of your employee experience that you can’t right now? Does your HR software allow you to be future-focussed, people-centred and business-oriented? 

Read more about the problems with a legacy HR platform and how to build a business case for new HR software.

The main difference between online HR software and on-premise HR software is in their implementation. Often referred to as software as a service (SaaS), online HR software is accessed via a web browser and hosted on a cloud server, usually by the software vendor. On-premise HR software on the other hand is installed on in-house computers, using internal or outsourced servers. 

The biggest difference is in long-term scalability. On-premise systems tend to be costly, with limited scalability and rely on a robust internal IT infrastructure. Cloud-based HR software tends to be quicker to implement and a lower learning curve for existing employees and with fewer resources required to get up and running. It usually features automatic updates and ability to add or adapt your solution as your needs change, ensuring your software investment is future-proofed.

Our range of flexible deployment plans ensures greater speed to value, whether you’re migrating from another system or have specific implementation timescales. Get the guidance you need to achieve a successful launch of your software. With a team of more than 1000 HR solutions experts, you can get access to the support you need, when you need it.