Human resource (HR) departments were one of the first affected during the emergence of the COVID-19 pandemic. The roles of HR professionals were changed in an instant. After all, they were not only in charge of talent management and payroll but also the health and safety of employees when at work. They had to establish sustainable work-from-home protocols or set up webinars on remote work practices while performing their usual tasks. A survey even revealed that 53% of workers expected their employers to create COVID policies (Statista, 2020). This is where the need for HR software comes in.
This technology is not only useful as a remote workforce management software but also for streamlining daily operations even as the pandemic wanes out. Having an impressive human resource management system will accelerate workflow and communication, as well as help HR professionals supervise the training, welfare, and benefits of their employees in one place.
If you are looking to invest in one or upgrade your existing system, this guide is for you. Research.com has analyzed 15 of the leading HR software systems on the market to help you gauge which one suits you. Our team has also compiled some industry statistics and trends to help you make an informed decision.
The future is bright for HR technology and HR software statistics since the market is expected to continuously have an upward streak in the next few years. From its $15.59 billion value in 2020, it is projected to reach $33.57 billion by 2028 at a compound annual growth rate (CAGR) of 10.10% (Verified Market Research, 2022). Furthermore, it is also expected to balloon to $37.40 billion in 2029 at a CAGR of 10.21% from its 2021 value of $17.18 billion (Data Bridge Market Research, 2022).
The United States and Asia-Pacific countries, like China and India, are key players in the market while the drivers of the best HR software include improvements in automation and digital technology, an increase in HR technology budgets, and the prevalent use of cloud-based solutions.
Verified Market Research, Data Bridge Market Research
Looking at this spike from 2020 to 2021, it can be deduced that the shift to remote work during the pandemic, together with the rise in digital technology advancements, accounted for the growth of the HR software market. In fact, 39% of companies are predicted to adapt software-as-a-service (SaaS) HR models with subscriptions next year—a three-point uptick from 2020’s survey results. This is followed by the use of licensed software on-premise models (23%), licensed software-hosted systems (19%), hybrid systems (18%), and internally developed systems (1%) (Information Services Group, 2021).
In a digitally advancing world, this steady growth in the HR software market will be cemented since the global digital transformation spending accounts for $1.6 trillion in 2022 alone. This is also projected to stretch to $3.4 trillion by 2026 (Statista, 2022). Furthermore, the effects of the pandemic will probably expedite this process due to the popularity of remote work. In fact, 68% of respondents admitted that digital transformation has accelerated greatly due to the pandemic (Statista, 2020). After all, the HR software industry had to adapt to the changes caused by the lockdown.
For example, a report stated that 63% of employees wanted to receive COVID-19 updates from their employers every day (Edelman, 2020). This pushed providers to create real-time communication systems such as employee scheduling software for small business that disseminate information about office health protocols. Apart from that, when the workforce started getting vaccinated, HR tech providers integrated vaccination status tracking into their systems to ensure safe working environments.
Moreover, companies that used HR software during the lockdowns cited other advantages that helped them manage operations (ISG, 2021):
These benefits were not only advantageous at the height of COVID-19 but also significant in helping HR professionals manage their tasks more easily as surges in cases slowly drop and businesses reopen. Furthermore, firms will need to upgrade their tools and services as they continue to undergo an inevitable digital transformation. This proves that the usefulness of HR software encompasses its urgent demand and continues to add value to the role of HR professionals.
The important HR software statistics discussed above provide insights into the current and future stability of the market. Now, here are some trends that HR professionals and managers need to look out for to keep up with the demands of the industry:
With this overview of the market, statistics, and trends, here are 15 HR software examples and their best features to help HR professionals and company administrators find the top platform for their needs.
Paylocity offers core HR software, as well as separate modules for payroll, workforce management, talent acquisition, and benefits management. Its main features include templates that can automate data input and an online file storage that automatically organizes and uploads in bulk. Paylocity also collects and secures digital signatures to avoid the hassle of passing paperwork through different departments.
Paylocity Key Features:
ADP Workforce Now is an all-in-one solution for HR professionals who wish to streamline and automate workflows. This platform made it to this HR software list thanks to its comprehensive core HR functionalities. For starters, it easily enables users to edit employee data from the dashboard. It also has a set of templates for part-time or international employees to make the onboarding process quicker. ADP Workforce Now also integrates with job recruitment websites to hire candidates faster.
ADP Workforce Now Key Features:
Paycom, another easy-to-use HR software, helps streamline day-to-day tasks by enabling users to use digital checklists and auto-categorize files and other data. It helps expedite processes by rerouting employee queries to the right HR staff and automatically saves common answers to FAQs. In addition, Paycom also enables professionals to use customizable survey forms to encourage honest feedback from employees.
Paycom Key Features:
Aside from providing top-notch HR software services, Rippling also offers IT and finance software products to its users. It allows HR professionals to personalize workflow tools for all or specific employees. Even setting company policies is automated, so all HR has to do is click approve. Rippling also helps improve employee performance by enabling users to launch suggested training programs or create new ones and auto-send certificates to participants.
Rippling Key Features:
Rippling’s services are available starting at $8/user/month or by quote.
Built for small and mid-sized businesses, BambooHR allows HR professionals to access and edit policies with ease. It enables HR staff to assign editing settings so that employees can update their own records without gaining access to sensitive information. BambooHR also helps speed up operations by providing customized workflow triggers and by tracking task progress with audit trails.
BambooHR Key Features:
Sage People provides a well-rounded employee management system by enabling HR professionals to customize personnel functions and accessibility from the dashboard. Apart from that, it displays employee time-off requests, scheduled absences, and attendance at a glance. Sage People also automates benefit administration and shows managers salary amounts for better budgeting. Moreover, it provides an interactive tour of the software as an onboarder, manager, or HR staff so that decision-makers can get a better view of their services.
Sage People Key Features:
Zimyo offers HR professionals and employees an easier way to upload and store files in its centralized document hub and ensures all files are secured. It simplifies the policy-making for HR staff using auto-suggestions. Moreover, the platform empowers employees with a self-service portal that lets them punch time and access paychecks online. These aside, Zimyo is also great for companies that want to gain insights into their data as it generates instant reports about employee information and spots trends through asset tracking.
Zimyo Key Features:
Zimyo’s HR & Payroll plan starts at $2/user/month to $5/user/month.
Established in 2015 in India, Pulse HRM is a one-stop shop for all employee management solutions. They provide employee self-service tools to edit personnel profiles, clock in or out, or check policy documents. Their product also accelerates the hiring processes by streamlining workflow from posting jobs on websites to scheduling interviews and to onboarding. Lastly, Pulse HRM helps firms value their talents by offering various feedback and performance evaluation systems.
Pulse HRM Key Features:
Infor’s CloudSuite HCM manages all pertinent HR processes. It provides self-service tools so that employees can track their time and update personal information on the go. CloudSuite HCM also provides dashboard customization and displays consolidated calendars for absences and time-offs. Additionally, it can be used to set up a knowledge base for employees so they can easily find solutions to concerns.
Infor CloudSuite HCM Key Features:
Oracle Talent Management Cloud is part of the HCM products of Oracle Fusion Cloud. It helps candidates to comply with application requirements by communicating with the software’s digital assistant. In addition, its onboarding processes offer step-by-step assistance and a collaborative to-do task to speed up first-day activities. Oracle Talent Management Cloud also sends performance feedback at any time on any device and updates training certifications and compliances.
Oracle Talent Management Cloud Key Features:
Access People HR is an easy-to-learn, easy-to-use HR software that provides a core HR self-service system, a centralized employee database, and attendance management software. It enables employees to upload documents easily in one hub and creates an audit trail when files get edited so that data is always secured. Access People HR also automates tasks by customizing workflows and settings for a more fast-tracked operation.
Access People HR Key Features:
Access People HR offers a Professional Plan (£5/employee/month), an Enterprise Plan (£7/employee/month), and an Elite Plan (£9/employee/month) with free trials.
OrangeHRM provides an automated and streamlined HRIS for all types of businesses. It enables HR staff to configure and assign roles to different employees while still securing data. In addition, HR can enable snapshot reporting of employee data to access information instantly. OrangeHRM also organizes applicants and job posting with an ATS and seamlessly integrates newly hired personnel into the system.
OrangeHRM Key Features:
OrangeHRM offers free plans for basic People Management, Talent Management, Culture, and Compensation services. The vendor also has advanced plans available by quote.
An HR software and talent management solution provider, ClearCompany enables HR staff to track applicants easily and integrate applications from job recruitment websites. It also makes new recruits feel right at home with customizable team member introduction panels during the onboarding process. In addition, ClearCompany also generates data from the entire hiring process to come up with reports and insights for better marketing.
ClearCompany Key Features:
Elevatus is a recruitment and video interviewing software that aims to simplify the entire talent acquisition process, starting from the creation of job requisitions to the onboarding of new employees. The software utilizes artificial intelligence, advanced technology, and innovative solutions. By using Elevatus, organizations can improve their recruitment efforts, attract highly qualified candidates, and enhance their technological infrastructure. The software offers a secure and paperless recruitment process, allowing for the efficient management of essential functions within a cohesive recruiting system.
factoHR is a comprehensive cloud-based HR software solution that automates human resources operations and helps organizations achieve growth and success. It comes with features for leave and attendance management, performance management, payroll, and retirement benefits. The platform can store all employees’ crucial information in one place with the help of the centralized employee database, eliminating the need for paperwork. With factoHR's recruitment features, it is easy to find and hire top talent and streamline the onboarding process. HR workflows will also be more painless, given the software's automation of repetitive lower-level tasks, which can be leveraged for multiple-level workflows. Additionally, employees will not be disconnected from managers as the software promotes effective communication.
factoHR Key Features:
factoHR offers four effective subscription plans. Visit the official website for pricing information.
Some may consider HR as the backbone of a company. If that is the case, then it must have a strong foundation—from the HR staff to the HR software that you will use—to fulfill its role effectively. It is imperative to consider how the world is changing digitally and use innovative solutions that move the company and its people forward.
The best HR software listed above provide some insights into how it serves HR professionals. While most of them help with the main functions of HR, this technology is much more than just fast-tracking manual tasks or streamlining workflows. The biggest advantage it gives companies is its feature to help improve employee performance, develop professional skills, and nurture talents.
By performing these processes well, along with providing employee perks, companies can make workers feel that they are being valued by the companies that they work for. HR professionals must utilize the HR software they will choose and ensure that it benefits not only their department but also every person in the firm. After all, at the very core of HR is ‘human.’
Learn more about HR matters and education. Start with our guide on online hr degree programs. The guide discusses salaries and career outlooks for HR professionals in the coming decade.