The 9 Best HR Management Systems In 2023 | Connecteam

Successful businesses don’t have time to spend manually performing repetitive HR tasks. As your company grows, you need to look at solutions that will help you overcome the HR challenges that are holding you back. This is where human resource management system (HRMS) software comes in. Typically, HRMS assists in applicant tracking, employee management, payroll, benefits, timesheets, and performance management.

Investing in HRMS software allows businesses to streamline and automate time-consuming and tedious tasks so that HR teams can focus on higher value-added activities.

HRMS software can be highly diverse, so it’s essential to clearly define your needs. Once you determine the needed capabilities of your human resource management system, you can start looking into what systems are available in the market. To help you choose the best HRMS for your business, here’s a list of the 11 best HR management systems we found on the market.

If you don’t have the time to read through our research, jump down to our quick comparison table.

Our Top Picks

1. 

   Best all-in-one human resource management system

   Learn more

2. 

   Good open source HR management system 

3. 

   Good for creating custom HR processes

What to Look For in a Human Resource Management System

• Customization – The HR system needs to be able to grow and change with your company.
• Engagement tools – The chosen software should fully engage employees, gauge employee satisfaction, and encourage a positive company culture.
• Time tracking and payroll – The software used must be able to track and log employee hours to make payroll a breeze.
• Reporting and analytics – Real-time analytics are crucial to making company changes.
• Third-party integrations –  Whatever HR management system you choose must integrate seamlessly with your company’s other software.
• Ease of use – The HR system you choose should be easy to use for management and employees alike.
• Price – The software must be reasonably priced and include all of the features you need to efficiently run your business.

Compare the Best Human Resource Management Systems

Topic

Reviews

4.8

4.1

4.6

4.6

4.7

4.2

4

4.7

3.9

4.5

Pricing

Starts at just $29/month for the first 30 users

Contact vendor for price

Starts at $8/user/month

Starts at $49/month + $8/user/month

Starts at $282/month

Starting at $8/user/month

Starts at $7/user/month

Contact vendor for price

Contact vendor for price

Contact vendor for price

Free Trial

yes

14-day

no

yes

no

no

no

yes

yes

no

no

Free Plan

yes

Free Up to 10 users

yes

yes

no

no

no

no

no

no

no

What is a human resource management system?

A human resources management system (HRMS) is software made for HR teams to easily manage HR tasks and company processes. Human resources management systems are used by businesses to streamline many HR systems and functions like storing employee data, managing employee hours and payroll, recruitment, employee performance management, and training records.

Human resource management systems give deeper insights into the company, improve employee engagement, increase compliance, and free up HR staff to focus on value-added projects.

How does a human resource management system work?

Human resource management systems work by combining a number of systems into one central location making it easier to gather, store, and find needed information. The HRMS software helps HR teams by automating manual tasks, keeping employee information organized and up to date, and creating reports to help leaders make business decisions.

Typical features of a human resource management system include course creation, employee engagement features, goal setting, and reports.

Each HRMS software is slightly different, so you can choose the features most important to you and your business. Each user will then set up their username and password and admins will be able to oversee all employee information.

What are the benefits of using a human resource management system?

Better, deeper insights: Having all data in one location allows for better faster decision making. When a company is able to accumulate information and sort it in a way to get the needed data, they’re able to better understand the needs of the company, employees, and the company processes.

Improved employee engagement: Human resource management systems are invaluable  in developing and retaining talented employees. Using human resource management systems, HR teams can create courses, learning plans, career paths, and mentorships created for each individual employee. These activities are tracked, and milestones are recognized, keeping employees on track and loyal to the company.

Process efficiency: Setting up a self-serve system so employees can easily find the information they need stops HR teams from having to take time out of their day to answer questions. A knowledge base, document database, employee directory, and more can be set up so employees can find information themselves. In addition, employees can put in requests, and the relevant person will be notified of the request and be able to answer in a timely manner.

Faster recruiting: Information falls through the cracks when using third parties to recruit. When recruiting is done on one platform, seeing all the information together allows HR teams to gain insight into the types of candidates they’re looking for and the applicants they’re attracting.

How much does a human resource management system cost? 

Human resource management systems range in price like all software. When setting a budget, you have to be aware of hidden costs, as many HRMS software have costly add-on features, and the pricing structure can get complicated quickly.

There are two pricing models, a per-user price and a flat fee. Per-user prices range from $2/user per month up to $10/user per month. Flat fees range from $29/month for HRM software like Connecteam or cost hundreds, even thousands, of dollars per month.

Connecteam has a transparent pricing model, priced fairly so every business can afford to implement a human resource management system. Connecteam was built to be affordable while offering all the features your company could need in an HRMS, from communication to payroll integration to scheduling and engagement tools. We don’t think you’ll find a better solution than Connecteam.

FAQs

What is the best HRM system?

Connecteam. Hands down. Connecteam is affordable and exploding with useful features to educate and engage your employees. Understand the strengths and weaknesses of your company using surveys and reports. Then reward your employees’ strengths and teach them how to improve their weaknesses. Connecteam has all these capabilities and so much more.

What are the types of human resource management systems?

There are many sub-types of human resource management systems, but the two main types are operational and tactical.

• Operational Human Resource Management Systems:
  • Employee information systems where employee information is stored, including name, address, salary, education, etc.
  • Position control systems are used to identify each person’s exact role in the company and what they do daily.
  • Applicant selection and placement systems are used to assist HR teams with screening and evaluating potential hires.
  • Performance management information systems carefully document each employee’s performance and productivity.
  • Government reporting and compliance information systems maintain government compliance regarding laws and regulations.
• Tactical Human Resource Management Systems:
  • Job analysis and design information systems create job listings and descriptions using data input by internal and external teams from HR to labor unions.
  • Recruiting information systems to build a recruitment plan, find and hire new employees, plan for the retirement of existing employees, and collect data on current employees’ skill sets and turnover rates.
  • Compensation and benefits information systems help HR teams encourage employees to be more productive by incentivizing them based on added employee benefits or pay raises.
  • Employee training and development systems are in place to help employers train employees to fill open positions in the company and help new employees better understand their roles and responsibilities.

What are the 7 functions of HRM?

The 7 core functions of human resource management are:

• Recruitment and Selection
• Training and Development
• Performance Management
• Employee Relations
• Employment Law and Compliance
• Compensation and Benefits and Administration
• Payroll & HR Systems

The Bottom Line On Human Resource Management Systems

To be successful, we need to stay ahead of market trends and always be looking to the future, and the future is digital. It’s nearly impossible to imagine a modern organization functioning efficiently without some form of HR system automation.

With the right HR management system like Connecteam, your HR team can focus on strategic functions rather than mundane administrative tasks. If you are on the hunt for the perfect HR software, give Connecteam a try. Use the free trial to see how hassle-free HR management can be with the right tool.