{"id":38,"date":"2022-08-22T13:20:27","date_gmt":"2022-08-22T12:20:27","guid":{"rendered":"https:\/\/sense.hr\/blog\/?p=38"},"modified":"2025-09-27T08:21:13","modified_gmt":"2025-09-27T07:21:13","slug":"what-is-hr-software","status":"publish","type":"post","link":"https:\/\/senseworkplace.com\/blog\/what-is-hr-software\/","title":{"rendered":"What is HR software?\u00a0"},"content":{"rendered":"\n

We get it\u2014we really do\u2014because not only do we make software, but we\u2019ve run a few of our own HR departments over the years. You want a software that\u2019s going to optimise HR administration, empower and engage your people, automate repetitive processes, support strategic decisions, integrate with other software and systems, and stay ahead of the times and the legislation\u2014in short, you want to make your HR department the jewel in the crown that is your organisation. But\u2026 you don\u2019t want to be replaced! Fear not, my irreplaceable HR afficionado, the first thing to know about HR software is that it\u2019s not replacing you any time soon. For everything else that you need to know, you\u2019ve come to the right place. So, put down that signed copy of Robopocalypse<\/em><\/strong>, hit pause on Bladerunner<\/em><\/strong>, and let\u2019s unravel the riddles of HR software together.  <\/p>\n\n\n\n

An HR software by any other name\u2026 <\/h2>\n\n\n\n

A quick Google search might leave you with the impression that HR Software is going through a bit of an identity crisis, with different terms seemingly used interchangeably. While some sources stick with the term HR software<\/em><\/strong>, some use human resources information system (HRIS)<\/em><\/strong>, for others it\u2019s a human resources management system (HRMS)<\/em><\/strong>, and the new term in town is human capital management (HCM)<\/em><\/strong>. Confusing, we know. But it all stems from the way that human resources systems evolved over the decades.  <\/p>\n\n\n\n

The first computerised HR system was a module for listing employee data, which was tagged on to an SAP<\/a> payroll and accounting product in 1979. From there HR data management tools became part of other enterprise resource planning (ERP) systems and then standalone HRIS products.  <\/p>\n\n\n\n

It wasn\u2019t until the end of the century that HR systems started to do more than data-based administration, and a new term was coined to match their increased functionality\u2014meet the HRMS.  These were on-premises (and later, web-deployed) fully integrated, robust client\u2013server HRMS application suites to help HR professionals with people management in the modern workplace. As well as data management, they streamlined transactional processes like payroll, benefits, recruitment, training, and talent management, while also tracking attendance and engagement.  <\/p>\n\n\n\n

As the web grew in scale and performance, so did web-deployed HR systems. And when retention became a hot topic because people were no longer staying with the same firms for decades or for life, HR software started to reflect the needs of employees, not just the hiring organisations and HR departments.  <\/p>\n\n\n\n

The 2010s saw the rise of intelligent technologies and cloud hosting\u2014once again HR systems metamorphosed into something new and HR professionals and software companies began looking for a fitting name. Although not a new term, human capital management is increasingly used to describe natively cloud-built, SaaS applications that go beyond handling data and transactional processes and include automation tools to support strategic workforce planning and modelling, performance management, learning, succession planning, and compensation planning. These HR systems include all the traditional administrative functions\u2014recruiting, training, payroll, compensation, and performance tracking\u2014but also use the data to improve employee experience, engagement, productivity, and even business value.  <\/p>\n\n\n\n

While the traditional data based HRIS no longer exists, the term has endured to describe modern systems. That happens a lot in tech and language in general. Podcasts will live on long after iPods have been forgotten by everyone except avid collectors. And we don\u2019t go around thinking that the word dashboard means a sheet of wood in a horse-drawn carriage that protects riders from being \u2018dashed\u2019 my debris. And so, it seems that we\u2019ll be using the initialisms HRIS, HRMS, and HCM long into the future\u2014and probably a few more labels to come\u2014no matter what features and experience a software provides.   <\/p>\n\n\n\n

So, now that\u2019s cleared up\u2026 let\u2019s move swiftly on to defining HR software by what it can do.  <\/p>\n\n\n\n

An HR system for today and tomorrow <\/h2>\n\n\n\n

Today, HR systems centralise, secure, manage, standardise, and ensure compliance for your people data, while streamlining recruitment, training, absence management, and compensation. But they should also engage and involve the workforce, regardless of employment type or whether people are in the office, remote, or deskless. With self-service portals, employee surveys, and gamification features, HR software that\u2019s fit for the future invites everyone in the organisation to get involved.  <\/p>\n\n\n\n

On top of the standard features like supporting all your core HR tasks; automation of repetitive tasks; integration with other systems and software; time and attendance tools; reporting and dashboard features to support strategic functions; and self-service, HR software should elegantly scale with your business, adapt to the changing needs of your organisation and your workforce, and handle regional or global differences.  <\/p>\n\n\n\n

Something for everyone <\/h2>\n\n\n\n

Every organisation, from start-ups, specialist endeavours, and small businesses, to enterprise level multinationals can reap the benefits of a good HR system. And since most systems are tiered to cater for the specific needs of your business, you won\u2019t end up swamped in features that don\u2019t apply to your organisation or pay for more than you use. And the best HR systems will give the same, great experience, whether you have a small team of permanent employees or use multiple teams of employees, contractors, freelancers, zero-hour workers, and consultants.  <\/p>\n\n\n\n

Here are just some of the universal benefits of a good HR system: <\/p>\n\n\n\n