Software Tips
What is HR Software?
Finding the right HR software for a company is no easy task. On the one hand, this has to do with the fact that the term HR software is so unspecific or, in a way, all-encompassing and, on the other hand, with the fact that it is important for every software selection to know in advance exactly which functionalities the system should map.
What is behind the term HR software?
In the end, HR software can be defined as anything that maps one or more areas of HR in terms of software technology. As a result, HR software is as diverse as HR itself. HR management includes recruitment, performance management and time management, training and instruction, succession planning, remuneration and evaluations, to name just a few key areas. Not every HR software covers the entire HR scope.
When software providers use the term HR software, it is therefore possible that the software covers a sub-area of HR, such as time recording, personnel planning or applicant management. However, it could also be HR master data management, which can be supplemented by other modules to achieve the desired scope. The HR software can also be a comprehensive HR suite from the outset, which covers the entire area of HR with its modules and functions.
Most frequently used HR modules
Recruiting or personnel recruitment
A recruitment module usually maps both the internal approval processes for a job advertisement and the corresponding publication of this advertisement. The module also usually includes functions for searching for candidates, CV parsing, automated assessment processes, functions for communicating with applicants as well as with responsible HR staff and possibly colleagues. The recruiting module often offers interfaces to social media and other platforms on which job applications can be published and candidate analyses can be carried out.
HR master data management / digital personnel file
The digital personnel file contains the basic employee data relevant to the employment contract. This includes the personnel master data as well as, for example, references, contract documents, performance appraisals, certificates for completed training courses, etc.
Applicant management
The functions of an applicant management software solution may be very similar to those of the recruiting module, as applicant management is a sub-area of recruiting. Applicant management maps the processes that an applicant goes through or triggers in the company. This includes, for example, the receipt of the application, CV parsing, the sending of a confirmation of receipt, the distribution of application documents in the company or their activation and notification of the relevant HR staff. Applicant management often also includes features for one-click applications or chatbots or jobbots that guide applicants through the application process interactively via dialog.
Onboarding
HR software also includes onboarding. There are also modules or separate software for this area. They support all processes related to the first day at the new company and usually offer additional tools and features beyond the initial introduction. Onboarding software is now more than just a personalized welcome page with important documents and information. The functionalities can cover the entire employee lifecycle. The onboarding solution is often used for assigning training and instructions as well as for networking with colleagues. Questions and requests from the new employee regarding access data, ID etc. can usually be recorded and forwarded as in a ticket system.
Personnel portal - Employee Self Services
The HR portal or employee self-services are buzzwords for possible self-service applications for employees. These include, for example, access to personal data or the streamlined and simple application process for vacation etc. or the administration of certain work materials or target agreements and much more. Personnel portals and self services can also be used to query working time accounts, appraisals or to store qualifications. The main advantage of the HR portal is that it reduces the workload of HR staff while at the same time strengthening the employee's personal responsibility.
Personnel deployment planning
Staff scheduling and workforce management modules generally offer a wide range of planning functions for staff deployment, for individual and rotating shifts, for mapping work schedules and for managing attendance and absences, among other things. Workforce scheduling is usually closely linked to vacation management and time recording or time management.
Time management
One of the most important modules and key functionalities in HR software is time management. The software is usually linked to the personnel administration or is also a direct component of the personnel administration solution with a connection to the payroll software. The software is used to record, process, monitor and document the start, duration and end of working hours and break times. In most cases, various working time models can be mapped and functions are available for mobile employees.
Vacation and absence management
Absence management and leave management are often closely linked to time management and personnel administration and are increasingly accessible via a personnel portal. The module for leave and absence management usually offers the option of submitting, approving and managing leave. However, the module should also map the relevant statutory regulations on parental leave, maternity leave, educational leave, special leave, etc.
Talent management, succession planning
Talent management combines various aspects of HR management. Talent management includes employee search, employee development and employee retention. The aim of talent search and talent development is, among other things, successful succession planning. The software therefore supports the alignment of talent search with strategic business objectives, the identification of career paths and their planning, as well as the development and maintenance of a talent pool. There are overlaps with recruiting, onboarding and skills and competence management.
Performance management
Performance management includes all functions relating to the assessment of employee performance. Activities and the completion of assigned tasks are recorded and compared with targets and objectives. Performance management modules often include feedback tools, 360° performance feedback functions, features for managing objectives and planning functions for appraisal meetings. In most cases, the module is also linked to the talent management and succession planning module.
Learning management, training and further education, instruction
HR management is tasked with ensuring and organizing the necessary company training, as well as training and further education and knowledge transfer within the company. Software for learning management, training and further education and also for instruction therefore supports, among other things, the creation of training plans for employees, the booking of courses and the administration of the corresponding budget for further training and evaluation and feedback processes. Such a module often offers a learning portal for employees with individual learning or course requirements.
Payroll
Payroll accounting is one of the basic activities in HR departments. Separate software is often used for payroll accounting. However, many HR software providers have already integrated modules for payroll into their HR software suites. The software (stand-alone or as a module in a suite) includes functions for mapping payroll modalities and paying social security contributions. These can be various modalities such as hourly wage accounting, construction wages, fixed wage or wage group accounting, etc. In most cases, the programs also support digital tax audits and offer evaluations for tax offices and health insurance companies, among others.
Typical additional modules and supplementary functions
Human Resources is so versatile that the most common modules can be supplemented by additional modules and functions. These include
The list of common and typical HR software modules and functions shows that some HR processes overlap. Workforce scheduling, for example, is closely linked to time management and absence management and another example is the overlap between talent management, training and development and skills management.
When selecting suitable HR software, it is therefore essential to determine exactly which functionalities are to be mapped with the software. Not every company will need a comprehensive HR suite from the outset. Smaller companies may initially only use master data management, modules for time management and vacation and absence management. Larger companies may add further modules depending on their requirements. Ultimately, the variety of HR modules and functions means that there is an almost infinite number of possible combinations.