Without human resources information, it can't be done
No business—small, medium, or large—can operate without a way to securely store its most sensitive information, like employee and applicant data. Some businesses rely on filing cabinets or Excel spreadsheets, but growing companies need a more secure and transparent solution. Human resource management software helps organize and share important information about employees and their roles within the company, improving collaboration between the business and its workforce. It streamlines recruiting, onboarding, performance reviews, training, and employee management. Today, it’s hard to imagine HR without the support of various systems and software. There are many options available on the market. Let’s explore how these tools can assist in daily operations and how to choose the right one—or better yet, how to use them together.
What Does HR and Human Resources Management Actually Involve?
HR management covers a wide range of processes within an organization. It’s important to understand HR as a whole and grasp the basics to make better decisions. HR isn’t just about managing processes—it also involves handling all the information related to people, including job applicants and especially employees, and most importantly, data about how they function within the company.
Applicant and Candidate Records
The employee lifecycle starts with recruitment. Managing applicants and all related processes is the first responsibility of HR managers. This includes registering job seekers, reviewing resumes, assessing candidate fit for open positions, conducting interviews and tests, and managing selection procedures.
Employee Records
Employee records are the cornerstone of HR. Employers need to have all essential personal information clearly, securely, and reliably stored. Each employee typically has a file containing both work-related and personal information, so it’s crucial to ensure that only authorized personnel can access this data:
- Personal information
- Job title and classification
- Employment contracts and salary details
- Professional qualifications and education
- Work restrictions or medical information
Personnel Administration
Once someone is hired, a variety of administrative tasks arise. Central to this is accurate record keeping of employees and, when applicable, outsourced data, which is important for legal compliance and day-to-day operations. The system should be flexible enough to store all necessary information (uploading files and reports to individual profiles, tracking company assets assigned to employees, signed contracts, etc.). Throughout an employee’s tenure, it’s important to have comprehensive information in one place, such as:
- Basic personnel data
- Position within the organizational structure
- Job descriptions
- Employee benefits
- Issued company equipment
- Operational requests like time-off submissions
Payroll and Compensation
This covers everything from documenting payroll records to processing and distributing employee paychecks. Payroll is a vital part of HR and involves maintaining all data used to calculate wages, running the payroll calculations, making payments, and handling communications with government agencies. Many companies rely on specialized payroll software for these tasks.
Human Resources Management
The goal is to maximize the company’s human potential, including professional development, creating new roles, and managing hiring processes. This includes training employees, introducing them to company policies and key documents, and supporting new hire onboarding. The system should also streamline managing recruitment for current and future positions, including:
- Employee records
- Applicant tracking
- Employment contract records
- Time tracking, paid time off, and sick leave records
- Medical exam records
- Employee benefits administration
- Training and policy acknowledgment
- Job roles and descriptions
- Organizational structure
- Performance evaluations
- Tracking company assets assigned to employees (keys, badges, IT equipment, etc.)
- Work equipment records
- Payroll processing and payments
- And more
Employee Organizational Context
Using this data, you should be able to generate the company’s entire organizational chart, which can be used for further HR management and planning.
What Types of HR Systems Exist?
An HR system helps you keep track of your employees, manage their information, and develop your workforce to improve individuals, teams, and the entire organization. These systems generally focus on three main areas:
Applicant Tracking Systems (ATS)
- These specialized systems assist with recruiting, tracking, and evaluating job candidates. They are especially important for businesses that receive a high volume of applications. ATS software helps sort applicants, screen resumes, and sometimes evaluate candidates. They also help organize and manage hiring workflows. Overall, ATS systems support the entire recruitment process.
Onboarding Software
- This software focuses on supporting the onboarding process—from preparing for new hires to guiding them through their first few months on the job.
- Onboarding software addresses both the welcoming aspects (introducing new employees to the company culture and environment) and the practical tasks (providing job aids and training materials). These systems can be standalone or integrated with broader HR management tools.
Personnel Administration – Managing Employee Information
- HR systems are not just for HR staff; they also support managers by helping them with daily tasks like tracking employee performance and supporting development.
- These tools enable managers to effectively oversee their teams and contribute to employee growth.
Payroll Systems
- Payroll systems handle processing employee paychecks and managing related tasks to ensure compliance with local laws and tax requirements.
Time and Attendance Systems
- Companies use time and attendance systems to accurately track when employees clock in and out, ensuring proper recording of work hours.
Performance Review and Development
- These specialized tools help create and manage employee performance reviews and development plans.
- They are often used for annual evaluations and career planning.
- Performance management features are sometimes included within comprehensive HRIS platforms.
Document Acknowledgment
- Job descriptions and related responsibilities are essential for managing personnel and organizational compliance.
- Maintaining adherence to company policies, procedures, and standards can be difficult to track manually, especially in larger organizations.
- Document acknowledgment systems ensure employees have reviewed required materials, helping reduce legal risks.
Intranets
- Intranets support internal communication within a company, acting like a bulletin board for employees to share important updates and resources.
- This can include company policies, employee directories, and contact information.
Corporate Social Networks and Employee Engagement
- These platforms often connect with an intranet to encourage employee participation.
- They promote engagement by supporting discussions, interest groups, projects, and collaboration within the company.
Human Resource Management Systems (HRMS) or HR Information Systems (HRIS)
- These are comprehensive solutions that combine many HR functions, including the ones mentioned above.
- They provide robust tools for managing employee data and workforce planning, often with built-in analytics to support decision-making.
Why Use an HR System?
- HR systems securely store your employee data and help you manage it efficiently.
- The information is always up to date, with a complete history of changes. You and your team save time because you don’t need to send messages back and forth to get the latest records. Plus, you can export data to Excel for the familiar view you’re used to.
- You can customize the information you track based on your company’s needs. You can also create categories for your staff, such as employees, contractors, and partners, so you can manage different details for each group.
- The system keeps you informed in several ways: easy-to-understand reports and charts are always available; you receive notifications for important dates, updates, or changes; and you can link related information to get a complete overview. For example, you can quickly find an employee’s assigned assets or the projects they’re working on.