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The Human Resources (HR) department is essential to every business. There’s no rule or legal requirement to have an official HR department. However, an HR department’s core HR processes and duties are extensive and challenging to manage without an HR team.
Each aspect can be extremely time-consuming, requiring intense dedication to the details. Combined, it can quickly become overwhelming, even for an entire division of people. It’s becoming increasingly common for companies to embrace HR software to help ease some of the pressure.
Which is the best HR software in 2023?
It’s estimated that 54 percent of small businesses handle their HR responsibilities internally. Business owners typically take care of HR matters when there are only a few employees. With mid-size businesses and larger companies, human resource management often requires an HR manager and other admins.
Aside from HR professionals, these companies frequently seek user-friendly HR management software to help streamline these services. Here is a list of the 10 best HR software services currently available in 2023.
What are the responsibilities of an HR department?
Human resources departments carry out many functions that help keep their businesses going.
Some of these essential functions include:
- Benefits administration and enrollment
- Payroll processing
- The recruitment process
- Employee performance reviews
- Employee onboarding
- Employee experience (ensuring employees feel safe and comfortable and any issues are addressed adequately through the HR system)
The HR department’s primary purpose is to manage the employee lifecycle properly. HR involves recruiting, hiring, onboarding, training, compensating, disciplining, and firing employees.
It’s also responsible for maintaining employee records, ensuring their safety, and meeting compliance with internal and external regulations.
These responsibilities can be a lot of work, even for a whole department. That’s why businesses often rely on HR tools to help with the heavy work.
What is HR software?
The advancements in technology have made HR software a must-have for small businesses. You can outsource HR functions using specific tools instead of handling them in-house.
The benefits are apparent regardless of your current HR setup:
- You can save a ton of time if you’ve been holding the HR responsibilities by yourself; OR
- You can save a ton of money if you’ve been looking into hiring a person or team to handle HR duties.
Each software service offers a unique blend of features and resources. In general, HR services will fall under one of these categories:
Professional employer organization (PEO)
A PEO will assume full responsibility for running your business’s HR department. You’ll essentially become a partner with the PEO, as they’ll have the final say in most employee-related matters.
Business process outsourcing (BPO)
A BPO refers to outsourcing several departments and isn’t exclusive to HR. A BPO focuses more on improving or installing technology that will help you manage HR more efficiently.
Application service providers (ASPs)
An ASP hosts the software on the internet and rents it out to its users for a cost. The various programs can help you or your team more easily manage HR responsibilities.
Technically, BPOs and ASPs are e-services as they fall under the broad definition of web-based HR services. Anything that doesn’t meet the specific definition of a BPO or ASP can be considered an HR e-service.
Use HR software for employee management.
Technology has revolutionized the way that every business is managed. There’s no reason not to embrace technology regarding employee management. Using HR software can be one of the easiest ways to save time and money while adequately managing your employees.
The benefits far outweigh the potential downsides. It’s at least worth serious consideration.
It’s not challenging to find HR software as dozens of options are available. Options like Rippling and Workday are also great HRMs that provide competitive HR features and deserve honorable mentions.
The tricky part is deciding which software to choose will be finding one that best meets your needs. Weigh your options and see where your business will best fit in. If you’re looking for more compelling business content, check out our website.