Human resources technology has transformed how organizations manage all aspects of HR, from recruiting and retention to payroll and grievances. Multiple types of HR software and applications exist, with a wide range of features, scalability, and prices.
The ubiquity of human resources technology presents a problem to any HR department looking to modernize processes and improve analytics. Which platform is right for your human resource requirements? A small company might only need an employee scheduling tool. A midsize company might need employee scheduling coupled with a people management platform. A large, multi-location company may require a full human resources management suite capable of handling almost all HR functions.
Types of Human Resource Technology
Human resources technology is a billion-dollar market: more than 12 million employers in the U.S. spend over $5 trillion on payroll, benefits, and other employee programs. Choosing the right platform from this sprawling market isn’t easy, and the consequences of making the wrong choice are costly considering 70 percent of IT spending is wasted. You can prevent this by using a software requirement template or software selection platform to evaluate your needs and narrow your search to specific types of human resources technology.
Bear in mind that the following categories of HR technology have plenty of overlap. Some platforms will feature elements of multiple technology types. That said, human resources technology can be broadly categorized as:
Core Human Resource Management Software
The most complicated variety of human resources technology, core human resource management (HRM) platforms offer comprehensive functionality and a full spectrum of HR applications. HRM platform features include:
- Benefits administration
- Employee self-service
- Grievance handling
- Learning management
- Managing organizational hierarchies
- Performance appraisal
- Performance records
- Recruiting and retention
- Time and attendance
- Tracking/improving process efficiency
The all-in-one nature of HRM software makes it appealing to larger businesses who rely on HR analytics to drive performance. This type of human resources software is typically the most expensive option on the list. Smaller companies may prefer to use one or more of the applications discussed below.
Recruiting and Staffing Platforms
In a market where most job postings attract thousands of candidates, creating an applicant shortlist without automated assistance is a laborious, time-consuming task. Recruiting and staffing software helps HR find the best talent by:
- Compiling data on candidates in the same way a customer relationship management (CRM) program builds files on customers and prospective leads
- Managing and tracking candidates throughout the hiring process
- Allowing the creation of job applicant profiles, with the ability to upload resumes, cover letters, and supporting documentation
- Matching candidate profiles to relevant job opportunities
- Managing work contracts
Talent Management Platforms
A talent management platform supports recruiting and staffing applications while providing onboarding functions, performance management, learning management, compensation management, employee development, and succession planning. The best talent management programs automate vital employee processes throughout an employee’s time with the company, from onboarding to retirement/termination.
People management software, such as Reflektive, helps accurately measure employee engagement and analyze people data. Widely used to improve productivity and facilitate interactions between managers and employees, people management systems allow for real-time feedback, goal management, and analysis of performance reviews. Other potential features or integrations include:
- Forecasting/scheduling human capital needs
- Labor budgeting
- Leave management
- Monitoring pay equity
- Benefits administration
- Career management
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Learning management is a specialized category of human resources technology. This type of software focuses on employee training and improving the quality of employee work. As such, learning management platforms are capable of creating curricula, delivering online training, and tracking training progress.
The world of human resources technology is a complex, ever-evolving one, with new platforms constantly competing with established products. Whether you need to automate essential HR processes or track employee goals, there’s a human resources platform out there to satisfy your company’s needs.
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