The features you should look for depend on your specific HR needs. However, here are some key HR software features that most businesses benefit from.
Recruitment and Onboarding
Most HR software includes tools for recruiting, onboarding and offboarding employees. These features include job posting and syndication, configurable job applications, interview and assessment functionality, background check integration, offer-letter templates, new-hire packets, onboarding checklists, e-signature capabilities, workflow automation, document storage, employee profiles, and training tracking.
While some systems include these features internally, most offer a combination of internal features and integrations with third-party platforms, such as applicant tracking systems and top background check services.
Payroll
Most HR software either comes with a built-in payroll option or integrates with top-rated payroll software from a third-party service. Built-in payroll modules typically include the ability to calculate employee paychecks, handle multiple pay rates and schedules, administer garnishments, pay employees via direct deposit and pay cards, and provide online pay stubs. A newer feature offered by some software is on-demand pay, which allows employees to access a portion of their wages the day they earn them.
HR software can handle all payroll tax responsibilities, such as calculating and withholding federal, state and local payroll taxes. It can also prepare and deliver electronic 1099s and W-2s. Most HR software integrates with top accounting software.
Time and Attendance
Many HR software options include time and attendance features so that employers can accurately track when employees are on and off the clock. Most systems are cloud-based, which allows for browser-based clocking in and out, while many also offer iOS and Android mobile apps for punching in and out remotely. Another useful feature for off-site workers is geolocation tracking, which monitors where an employee is located while clocked in. Most HR software allows for automatic and manual time tracking, as well as shift scheduling, swapping and dropping.
HR software can help manage PTO requests and accruals, and it can offer certain automation and alert features to help you maintain legal compliance with things like break policies and overtime laws. Employee time-tracking data is automatically synced into payroll solutions to streamline payroll processing and increase pay accuracy. [Read related article: Why Your Small Business Needs an Attendance Policy]
Benefits Administration
HR software can help you administer employee benefits, including medical, dental and vision insurance; employee retirement accounts; life insurance; accident and illness policies; short- and long-term disability insurance; health savings accounts and flexible spending accounts; auto and home policies; commuter benefits; workers’ compensation; pet insurance; and miscellaneous coverages. Most integrate with popular benefit carriers to get you competitive benefits and rates.
In addition, most HR software providers will help your employees get the most out of their benefits. Features such as easy plan configuration and ongoing participant education can help simplify the benefits process.
The best HR solutions have features to help you and your staff with benefits enrollment. Source: GoCo
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 evaluations. Some software also includes personalized dashboards and learning management systems with training courses so you can easily provide mandatory training (e.g., sexual harassment) or professional development training.
Legal Compliance
HR software helps you maintain audit-ready records and compliance with labor and employment laws such as the ACA and COBRA. Custom workflows and automation features can help you maintain legal compliance, as they reduce the likelihood of human error by ensuring that certain required measures are being followed every time. HR software companies typically offer customer support via phone, email and chat. The best companies also offer a dedicated support representative who can provide HR guidance along the way.
Reporting
Most HR software provides helpful reporting and analytics. Depending on the type of reports 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 increasing efficiency across your entire workforce.
Standard reports such as payroll reports can be a great value-add for employers who want to manage HR costs. Source: Rippling
Self-Service Dashboard
A self-service dashboard allows employees to manage their benefits, request time off and complete performance evaluations. Most systems are cloud-based and offer mobile apps for iOS and Android devices, so employees can access the software wherever they have an internet connection.