Best HR Software of 2024 – Business.com

The features offered in each HR software package vary, but here are some of the standard features offered by most providers.

Recruiting and onboarding

Tools for recruiting, onboarding, and offboarding employees are common in most HR software. These features include job posting and syndication, configurable job applications, interviewing and assessment capabilities, background check integration, offer letter templates, new hire packets, onboarding checklists, e-signature capabilities, workflow automation, document storage, employee profiles and training track.

While some systems include these features in-house, most systems offer a combination of in-house functionality and integration with third-party platforms, such as applicant tracking systems and top background check services.

Payslip

Most HR software either comes with built-in payroll options or integrates with top payroll software from third-party services. Built-in payroll modules often include the ability to accurately calculate employee wages, handle multiple pay rates and schedules, manage garnishments, pay employees via direct deposit and payroll cards, and provide online payroll. A new feature offered by some software solutions is on-demand pay, which allows employees to receive a portion of their wages on the day they are earned.

HR software can handle all payroll tax responsibilities, such as calculating and withholding federal, state, and local payroll taxes, as well as providing services such as electronic 1099 and W-2 preparation and delivery. Most HR software can be integrated with top accounting software.

time and attendance

Many HR software options include time and attendance features so employers can accurately track when employees come in and out of get off work. Most systems are cloud-based, allowing for browser-based clocking in and out, while many also offer iOS and Android mobile apps for clocking in and out on the go. Another useful feature for off-site workers is geolocation tracking, which tracks where employees are when they clock in and out. Most HR software allows for automatic and manual time tracking, as well as shift scheduling, switching, and clocking out.

HR software can help manage paid time off requests and accruals, and can provide certain automation and alerting features to help you stay compliant with laws like break policies and overtime laws. Employee time tracking data automatically syncs to payroll solutions to streamline payroll processing and improve payroll accuracy. [Read related article: Why Your Small Business Needs an Attendance Policy]

Benefits management

HR software can help you manage employee benefits such as medical, dental, and vision insurance; employee retirement accounts; life insurance; accident and sickness insurance; short-term and long-term disability insurance; HSAs and FSAs; auto and home policies; commuter benefits; labor Compensation; pet insurance; and miscellaneous coverages. Most will integrate with popular benefits carriers to provide you with competitive benefits and rates.

In addition to providing you with employee benefits, most HR software providers will help you educate and enroll your employees on how to take full advantage of their benefits. Features like easy plan configuration and ongoing participant education can help streamline the benefits process.

performance management

Standard HR software allows you to track and manage employee performance. This can include tools for goal setting and monitoring, succession planning and performance evaluation. They can also include personalized dashboards and learning management systems with training courses so you can easily deliver mandatory training (e.g., sexual harassment) or professional development training.

Legal compliance

HR software can help you maintain auditable records and comply with labor and employment laws such as the ACA and COBRA. Custom workflows and automation features can also help maintain legal compliance because they reduce the possibility of human error by ensuring certain required measures are followed every time. HR software companies typically provide customer support via phone, email, and chat; however, the best companies also provide dedicated support representatives who can provide HR guidance throughout the process.

Report

Most HR software offers useful reports and analytics. Depending on the type of reporting you want, you may need to sign up for a more advanced software plan, but basic plans typically provide data on your team, payroll, taxes, and more. HR reporting can be a valuable tool for tracking workforce trends and improving overall workforce efficiency.

Self-service dashboard

Employees can use the software to access a self-service dashboard to manage their benefits, request time off and complete performance reviews. Because most systems are cloud-based and offer mobile apps for iOS and Android devices, employees can access the software anywhere they have an Internet connection.