Human resources (HR) software refers to the system a company uses to effectively manage employees and their contribution to the business. HR software simplifies core HR requirements such as recruitment, onboarding and payroll, while also igniting employee performance and company culture.

What does HR software stand for?

HR software stands for Human Resources software. There are a lot of sub-categories that make up an HR program driven by software, such as payroll and onboarding. But the unanimous term that refers to the broader end to end system is HR software.

HR software vs. HR System 

It might not be quite as controversial as how to pronounce Jervis Bay on NSWs south coast, but some insist that ‘software’ should not be a part of the name and should instead use the term ‘system’. But hey, we all know paper systems are redundant – bring on the software!

Who should use HR software?

If you are doing ANYTHING to help manage HR processes, enhance your people’s performance or contribute to the culture of the business, you will benefit significantly from cloud HR software. 

Typically this means the following roles benefit;

  • Business owners
  • HR leaders
  • HR teams
  • Team leaders

But this list misses one, very important type of user that benefits from HR software – everyone else – aka your employees. Performance and culture can be enhanced with a web HR software system that is simple and easy to use and offers collaboration, communication and engagement tools that add to their experience working in the business.

Why is HR Software important?

Employees are a company’s greatest asset and are key to gaining a competitive advantage. But that doesn’t just happen, and if your HR management is lagging your employees can quickly become your greatest cost.  Ofcourse sourcing and retaining talented workers that fit your business culture and goals can cost a lot of money. But failing to do so will cost a lot more.

The key then is to attract and retain the best talent and provide them with an environment that allows them to flourish and become an integral part of the company’s mission.

HR software significantly contributes to this by;

  • Sourcing and hiring the right people.
  • Creating exceptional first impressions to new employees.
  • ensuring payroll is accurate and on time. 
  • Keeping employees motivated and aligned to company goals.
  • Maintaining company culture as the business sales.
  • Reducing HR admin so business leaders can spend more time interacting with employees.

What Does Human resources (HR) Software Do?

SaaS HR software help’s a business leader or a human resources department by simplifying the complexity associated with core HR management while also igniting performance and culture of its employees. 

Some of the functions HR software can perform include:

  • Creating workflows and automations to remove receptive admin work
  • Self-service time tracking and leave requesting for employees
  • Initiating and tracking employee training and development initiatives
  • Gauging and reporting on employee moral, suggestions and satisfaction
  • Connecting systems through third-party application integrations
  • Managing document and data changes with versioning and audit trails
  • Automating payroll and compliance
  • Providing advice to business leaders who have trouble navigating legislation.
  • And much more

Types of HR Software

There are many types of HR software available on the market. Some tools target a specific area (point solution), while others integrate them all into a consolidated solution.

Core HR

Human Resources Information Systems (HRIS): An HRIS software platform is essentially the core data-management and storage function within a broader HR system. It will feed information to specific HR functions like recruiting, payroll and benefits, maintaining regulatory and legal requirements, perks, training – everything. An HRIS can be standalone software, but siloed data can become a problem as a business scales, so it is recommended to  look for an all-in-one HR software system.

Applicant Tracking System (ATS): Applicant tracking software is recruitment software that streamlines the process of finding and hiring talent from beginning to end. It typically handles tasks such as creating job descriptions, posting that description to job boards such as seek and LinkedIn, storing applicant data, and screening applications for best fit.

Employee onboarding: Employee onboarding software will automate an onboarding experience that is exceptional and leaves a lasting positive first impression of the business to all new employees. Onboarding software automates the process of introducing new employees to an organization. It will send and manage contracts for electronic signature, gather information for payroll & superannuation, enrol into core software platforms and company cultural groups, and more.

Online Payroll software: Payroll software is designed to make paying employees simpler. It manages payments, leave, sick days, payslips and more. Payroll software can also be used as your accounting software by managing invoices and expenses. Typically, your HR software platform will integrate with the market leading payroll systems, such as Xero, Qucikbooks or MYOB.


Performance Management: Performance management software is a platform to measure an employees behaviour and attributes, as well as their performance against company goals. There are many types of performance management frameworks, including OKRs and 360 degree reviews.

Employee Engagement: Employee engagement software helps improve collaboration and employee sentiment. This is achieved by providing efficient communication platforms to deliver everyday work priorities, feedback, coaching, and analytics.

Experience: Software to help ignite, maintain and scale employee experience has become a critical part to ensuring you hires and retains top talent that fits your business. Experience tools allows for feedback throughout the employee experience so you see the whole picture.

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