Home Software 7 Types of HR Systems and When to Invest Based on Business Size

7 Types of HR Systems and When to Invest Based on Business Size

10 min read

Regardless of the lifespan of your business, the fact remains the same. Your business will need to utilize hr software solutions to keep it on track. Even if your business only has several employees, it is unlikely that spreadsheets, as well as paper documents and emails, will be sufficient enough to keep you in the loop of processes and be compliant.

1. Payroll

How does payroll software contribute to your business? Payroll software provides businesses sound tracking system for employees’ wage and salary rates as well as automates payroll runs. Payroll software can calculate total compensations, debit the company bank account for the exact amount, and transfer funds to workers with only the click of a button. Users can utilize payroll software to calculate their taxes and reports to track the payroll cost every month.

Why would you need payroll software for your business? It should be the first system to purchase for one critical reason. Even if you only have one other employee besides yourself, it is essential that employee be paid accurately and on time.

When to adopt payroll hr software solutions  ? A payroll software adoption will be required early on in the initial phase of a lifecycle of  a company when you only have a handful employees. This size is suggestive of the time it is critical to purchase this software.

2. Applicant tracking

Applicant tracking systems give a platform where businesses can manage every recruiting and hiring effort. With an ATS system, recruiters have the ability to post job openings to job boards and social media and store job applications as well as resumes. It is also possible to track applicants via hiring funnels and finally extend a job offer.

Why do you need applicant tracking to grow? Aside from providing a digital space in managing, recruitment, and hiring, ATS are also a valuable arsenal in the competition to hire top talent. these systems can blast job openings to a vast network and increase the likelihood for curious job applicants to become interested in your job offerings. Embedded analytics also provide your team a way to analyze why talent is dropping out from your company.

When should you adopt the applicant tracking system? Businesses request applicant tracking software with the size of anywhere from over 250 to 5000 employees. When you choose to adopt this system, it is going to be entirely dependent on your hiring needs, but it is recommended to start with this system early before you hit the 250 employee size.

3. Performance management

Performance management aids in taking the stress out of reviewing performances. This type of HR system allows companies to launch goals and track employees’ performance while also keeping tasks automated related to the collection of feedback, storage of documents, and reporting critical performance metrics to stakeholders.

Why do you need performance management to grow? It enhances productivity and helps retain top talent to boost sales profit as well as engagement. A Data-driven management provides businesses numerous benefits for growth. A data-driven organization, will have the right system to manage vast amounts of employee data and track critical trends over time.

4. Benefits administration

Giving workers benefits such as insurance or retirement program and managing any changes after consists of painstaking processes for employers and employees alike. A benefits administration software can aid in streamlining these processes and track data when it comes to cost and compliance purposes.

Why do you need benefits administration system software to grow?

Benefits administration software gives a solution that is centralized where employees can choose to join benefits or change options rather than filling out forms for manual entry of the HR into their systems. It also helps them answer questions on their own. To maximize the return of investment, it is also critical to closely monitor benefits costs.

5. Onboarding

Onboarding software guides hires through every necessary step to becoming full-fledged employees of an organization. It starts from digitally signing important documents to completing new hire training jobs. These platforms also provide newbies an early chance to interact with managers and coworkers to be optimally comfortable and productive from the first day.

Why do you need onboarding to optimize your business?

Onboarding software can shorten the time it takes for new employees to become productive by making tedious paperwork automated so workers can immediately dive into the nitty-gritty of their duties sooner.

6. Compensation management

When you are factoring in everything, such as years of experience and performance, you might be thinking about whether you are paying your workers the optimum wage amount. You must factor in if your compensation strategies are flexible enough to be sustainable in times of economic downturn. Compensation management software provides you the answer by diving deep into critical factors such as revenue, budget, and external ones such as the local job market and fluctuations in the currency.

7. Learning management

If you are still reliant on classrooms as well as slideshows in the training of your employees, learning management systems can help bring your employees’ training into a more engaging online environment that is versatile. By utilizing an LMS, trainers can design and create training paraphernalia that merges multiple multimedia formats. They have the ability to administer courses to workers and test them on the knowledge they have learned. It is also effortless to analyze the effectiveness of training over time.


HR software solutions are critical for the growth and maintenance of your enterprise. They speed up processes and make sure every data and information is accurate. It results in speedy and fair compensations that keep employees satisfied.

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