The human resources department is one of the most important departments in any organization. Effective human resource policies and practices are the mainstay of a growing company but at times, managing human resources can be overwhelming. A good way to ease the burden of everyday tasks is employing a Human Resources System. What is an HR system and what is the right HR system for your business? Let’s find out.

A computer based application, HR gathers and processes data related to the human resource management (HRM) function. A system that consolidates all the work-related information about your employees, an HR system provides you a central location from where you can view, manage, and update the information related to your company’s employees.

First introduced some fifty years ago, human resource information systems have evolved immensely over the years. Originally developed as a computerized database for storing records, HR systems are now capable of handling complex and repetitive tasks related to the human resources function. Today, HR systems can help a company to save valuable human resource hours and improve efficiency. However, to get the benefit offered by today’s HR systems, you must choose an HR system that is right for your business.

Choose an HR system for your company only after you’ve evaluated your workflows and processes. Find out your biggest pain points and where most of your time is spent. A good place to start is identifying where you’re currently inefficient. Today, HR systems come with a number of features but your focus needs to be on the features that you’ll ‘definitely’ use. By focusing on the features of the HR system that you need to manage the human resources function, you’ll be able to choose an HR system that benefits your business. Following are the three types of HR systems that you can choose from:

Core HR Systems

These HR systems help the human resources department to perform administrative tasks such as attendance tracking, payroll generation, workplace planning, benefits administration, and regulatory compliance.

Strategic HR Systems

Often referred to as the talent management software, the strategic HR system handles tasks related to the hiring, retaining and development of employees. The HR functions managed by these HR systems include training and development, performance management, recruitment and succession planning. At times, these HRIS systems are designed to address a specific aspect of human resources. For example, a Strategic HR system may be developed just for the hiring process.

Integrated HR suites

These HR systems offer the complete human resource management (HRM) solution. They perform administrative tasks such as payroll generation and manage the recruitment/ employee development process.