HRIS

What is HRIS?

What is HRIS?

Human Resource Information Systems Help You:

  • check_circle_outline Store and access employee information in a central database
  • check_circle_outline Encourage employee retention with a benefits program
  • check_circle_outline Run payroll accurately and efficiently
  • check_circle_outline Manage your workforce scheduling
  • check_circle_outline Streamline recruiting and onboarding
  • check_circle_outline Comply with tax and employment regulations

Store and access employee information in a central database

At their most basic, HR information systems (HRIS) are databases where organizations can keep all the information related to employees, along with company resources, stored in a secure, accessible location.

To illustrate, think of the software as a digital file cabinet. It holds employment forms, employee records, benefits selections and other sources of data.

In companies that have hundreds or thousands of employees, this ability greatly simplifies the process of managing and maintaining employee data. Even small businesses can benefit from the digital nature of HR management software because everything is stored in one location, so it’s much easier to ensure data accuracy and avoid entry errors. A central database eliminates traditional silos among HR applications and provides a single source of the truth. This allows organizations to have a consistent view of data related to payroll, benefits and other key areas of HR.

The system will automatically update when an employee’s information gets changed. If an employee gets promoted to a managerial position, for example, that shift in role would be reflected in their profile. The corresponding salary raise would get logged as well, without the need for someone to manually enter the new salary into the payroll module.

Encourage employee retention with a benefits program

Benefits are one of the biggest perks your organization can offer employees. And research has shown that benefits provide a strong incentive for employees to stay.

The ability to administer benefits is a common feature of HRIS. Some solutions have built-in modules, while others offer standalone benefits administration that can be seamlessly integrated.

Both methods provide the same capability: an interface through which benefits are accessible to your workforce. Often, employees have the ability to log in to their account via an employee self-service (ESS) portal, where they can manage their benefits instead of depending on HR personnel to handle it on their behalf.

Using the portal, employees can choose which plans to enroll in, view their benefits information and update their preferences when necessary. Some innovative solutions include a feature that guides employees on benefit selection so they can make smart, informed decisions.

HRIS can support a broad range of benefits:

  • Health insurance
  • Life insurance
  • 401k plans
  • PTO and sick days
  • Wellness programs
  • FSA and HSA
  • Tuition or scholarship reimbursement

Run payroll accurately and efficiently

Payroll is one of the most critical components of human resources. Without it, employees won’t get paid and taxes can’t get filed. It’s a must-have feature for any company.

Vendors typically provide payroll systems two different ways: either as a standalone solution or as an integrated module of a larger HRIS. In many cases, independent payroll applications are better suited for small businesses, which likely don’t need the advanced capabilities offered by human capital management (HCM) platforms.

The level of functionality varies across solutions, but modern HRIS usually include the following core capabilities:

  • Built-in rules for processing and managing payroll
  • Payment options that let employees choose how they get paid — e.g., direct deposit
  • Employee self-service, which enables employees to view past pay stubs, pay rates, tax deductions and other details
  • Document templates for common compliance forms
  • Multiple pay rates, such as overtime, PTO and sick days
  • Tax calculations, which take relevant criteria into account to automatically populate forms

Advanced systems contain additional features. For example, reporting and analysis tools, which let users track budgets, forecast future costs, examine compensation and gain other insights.

Payroll systems also need to integrate with other HR applications such as time and attendance solutions. The data from these solutions ensures payroll amounts are processed correctly every time.

Manage your workforce scheduling

Many HR modules work together to help operations run smoothly. Workforce management software (WFM) is no exception. It includes time, attendance and scheduling components that can enable your company to accurately keep track of schedules for shift workers, employee absences and more.

Common tools you’ll find include:

  • Leave management
  • Forecasts for staff availability
  • Digital time clocks, which use methods such as biometric scan or swipe card
  • Task and activity management
  • Workforce planning
  • Mobile clock-in and clock-out capabilities, including geofencing
  • Collaborative scheduling
  • Labor analytics

Workforce management platforms are also equipped with security features and the ability to integrate with payroll.

Streamline recruiting and onboarding

The people you hire are your most important asset. Talent acquisition software makes it easier to find the right talent while streamlining the process from first contact through the onboarding phase.

Recruiting tools such as applicant tracking systems (ATS) lay the foundation by letting you post job openings across sites like job boards and social media. They also have features that allow you to schedule interviews and analyze metrics such as cost per hire. And ATS can integrate with software for conducting background checks.

One key element of the recruiting process is artificial intelligence, and more systems are starting to build in AI capabilities.

AI-enabled solutions can greatly reduce the workload of hiring managers on the front end by sourcing the best candidates and vetting resumes, among other things. In some cases, AI can also help reduce hiring bias. However, you have to be careful that the technology itself isn’t embedded with unconscious bias that skews the results.

Once you reach the onboarding stage, it’s critical to provide a positive experience. Part of encouraging talent retention is making the transition from candidate to employee smooth and engaging.

Onboarding features include:

  • A timeline of tasks the new hire needs to complete as part of the onboarding process
  • Digital documents that support e-signatures
  • A portal with resources that welcome and orient the new hire
  • Automation and data syncing
  • Templates for offer letters and other important documents
  • Reminder emails

Comply with tax and employment regulations

Every business, no matter what industry or size, needs to comply with regulatory standards. For companies that operate on a global scale, this requirement becomes much more complex, as they have to account for the nuances of every local jurisdiction.

Local tax and labor laws, as well as GDPR, are just a few concerns.

HRIS alleviates some of that burden by offering tools that ensure your company remains compliant:

  • Built-in local requirements
  • Support for global payroll, including in different currencies
  • A feed that compiles industry news
  • Support for healthcare laws such as ACA
  • Customization options
  • Legal support
  • Configurations based on geographic locations
  • Data control

Keep in mind that this is a general list. The features any specific solution offers vary greatly, and the features you need will depend on your unique situation.

FAQs: The Scoop on HRIS

What Is HRMS?

Human resource management software (HRMS) is a platform that combines tools such as personnel tracking, an employee database, benefits administration, payroll and other modules. HRMS facilitates HR processes and activities within an organization, including workforce management, recruiting, onboarding and business planning.

HRMS is often used interchangeably with human resource information systems (HRIS) and human capital management (HCM), both of which offer similar capabilities.

What’s the Difference Between HRIS, HRMS and HCM?

If you’ve done even a little research into HR software, you’ve probably come across these terms. And if you’re confused as to what the difference is, you’re not alone.

We covered the topic in depth in our HCM vs. HRIS vs. HRMS article, if you want to dig into the nitty-gritty details. If not, here’s the TL;DR version:

There isn’t a universal, agreed-upon distinction between HRIS, HRMS and HCM. Vendors use different terms to describe what their system does, and sometimes those overlap or conflict with how analysts or other vendors refer to systems.

HRIS solutions are the most traditional, while HRMS and HCM have developed more recently and typically include broader offerings. But branding updates by vendors have muddied the waters, and you may find an HRIS and HCM that have the same functionality.

Your best bet when navigating the acronym jungle is to pay less attention to a system’s label and more attention to its capabilities.

What HR Solutions Do I Need?

Every company is unique, so there’s no one-size-fits-all answer. In order to determine what HRIS you should implement, ask yourself the following questions:

  • What are my current needs?
  • What will my future needs be?

In other words, plan for the present and the future. Ideally, you’ll want a solution or suite of products that will serve you well now but that has features you can add on or easily integrate with as your business grows.

Identifying your current needs isn’t too difficult. Payroll is the one solution you can’t live without and shouldn’t try to cobble together on your own. Beyond that, the basic systems you choose should align with your company’s current maturity level.

If you’re just starting out, you probably don’t need to go all-in for a suite of applications that supports global HR, succession planning and other advanced features. But if you have hourly workers or a mobile workforce, time and attendance software will be helpful. It will keep your data updated so it can feed accurate results into payroll and keep schedules organized.

From there, anticipate where you’ll be down the road. Are you planning on expanding operations into another country? If so, you’ll want a solution that can handle global processes.

As another example, if you project rapid growth and the need to hire a large number of new employees, recruitment and onboarding software are wise implementation choices.

What Features Do HRIS Have?

HRIS come with varying levels of capability and complexity, and solutions targeted at larger companies will have deeper functionality. However, we’ve put together an overview of features you can refer to when looking at products for your company:

  • An employee self-service portal
  • Payroll
  • Absence management
  • Time reporting
  • Compliance management
  • Employee scheduling
  • Applicant tracking system
  • Employee performance, including goal setting and reviews
  • Reporting and analytics
  • Benefits administration
  • Mobile applications

What Are the Benefits of an HRIS?

Implementing HRIS brings many advantages, especially for companies that still rely on manual, outdated tools like spreadsheets and paper files.

Here are some of the chief benefits you’ll gain from having HRIS in place:

  • Alleviate the workload of HR personnel via automation
  • Reduce human errors
  • Make processes more efficient
  • Attract and retain top talent
  • Automatically synchronize data in a single system
  • Strategically plan for growth and success
  • Drill into workforce insights
  • Operate globally
  • Ensure regulatory compliance
  • View information from anywhere via mobile apps
  • Measure KPIs with analytics tools and reports
  • Facilitate excellent employee performance

What Are Some Examples of HRIS Solutions?

There are literally hundreds of HRIS out there, and some are more popular and widely adopted than others. Popularity can be helpful. But it’s not as important as finding a product that fits your needs.

So, where should you kickstart your search?

Our HR software product directory is a good starting point. You can look through hundreds of solutions — like ADP Workforce Now, Paylocity and Workday HCM — and sort them by price, company size, industry and other criteria.

For a full rundown of the top products on the market, you can get free access to our HR Leaderboard. It will let you compare products based on a wide range of requirements and read analyst reviews.

How Do I Select an HR Information System?

Investing in any business system is a huge undertaking. The process can involve preliminary research, requirements gathering, shortlisting, price checking, demos — the list is extensive. HR is one of the most critical pieces of your company, so it’s important to make an informed decision that will serve your company well.

Our goal is to make that process more manageable for you. We’ve put together a number of free resources, including a comparison of HRIS. We also recommend checking out our HRIS requirements checklist and our list of the top questions you should ask before implementing HRIS.

When you’re ready to start your selection process, you can access our user-friendly requirements platform that will simplify your search and help you find the right solution for your business.

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HRIS articles are written and edited by:

Mariah Hansen

Market Research Associate

As a Market Research Associate at SelectHub, Mariah dives into the realm of Human Resources. She breathes a bit of life into topics like recruitment, scheduling, payroll, performance management, compensation management, and workforce management. Outside of business hours you can usually find Mariah sampling the wares at local coffee shops or dancing the night away to some live music.

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Zachary Totah

Market Research Associate

As a Market Research Associate at SelectHub, Zachary Totah develops articles for HR, supply chain management, project management, CRM, construction, marketing automation and ERP. He can’t help flavoring his content with personality and creativity. Probably because he’s an author at heart. When not wrestling his latest article into submission, he enjoys spending time with his wife and reading sci-fi/fantasy books. Fun facts: he loves watching Marvel movies, refuses to drink coffee and is an avid Colorado Avalanche fan.

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Kim O’Shaughnessy

Lead Editor

Kim is the Lead Editor at SelectHub, where she edits and manages content for over 40 different software categories. She discovered her zeal for writing while earning her BA in Communications at the University of Michigan. Kim enjoys working on any project that offers a creative outlet, and you can often find her blogging about video games in her spare time. If someone manages to pry her away from the game controller, she also enjoys spending time with family and friends.

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Thought Leaders

SelectHub has sought out and invited thought leaders to contribute to our HRIS industry articles and resources. These thought leaders ensure we deliver quality content with the most accurate information, focusing on what matters most. No thought leader is compensated for their contributions, but shares our belief that information should be democratized so everyone can make the best decision.

Dave Ulrich

Dave Ulrich

University of Michigan, Ross School of Business Professor

Ranked as the #1 management guru by Business Week, profiled by Fast Company as one of the world’s top 10 creative people in business

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Matt Charney

Matt Charney

Chief Content Officer, Allegis Global Solutions

Matt Charney currently serves as the Chief Content Officer for Allegis Global Solutions, one of the biggest recruiting and staffing organizations in the world

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Dorothy Dalton

Dorothy Dalton

Global Talent Management Strategist

Dorothy works globally in talent management strategy, covering the whole spectrum of career challenges from “hire to retire” in the talent pipeline.

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Art Mazor

Art Mazor

Deloitte’s HR Transformation Global Practice Leader

Art is Deloitte’s HR Transformation Global Practice Leader, part of the Global Human Capital Executive

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Jason Lauritsen

Jason Lauritsen

Author and Consultant, Workplace Culture Expert

Jason Lauritsen is a keynote speaker, author, and consultant. He is an employee engagement and workplace

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Sabrina Baker

Sabrina Baker

Founder, Acacia HR Solutions

I am the founder of Acacia HR Solutions, a human resource consulting firm focused on the startup and small business niche.

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JD

James (J.D.) Conway

Head of Talent Acquisition at BambooHR

James (J.D.) Conway has over a decade of experience in talent acquisition acting as both a third-party recruiter

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Steven Cates

Steven Cates

Graduate Professor of Human Resources Management at Purdue University Global

Professor Steven Cates serves as a Graduate Professor of Human Resource Management in the School of Business and Information Technology at Purdue University Global

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Performance Management Trends For 2020

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The way we work is changing. Millennials now occupy the majority of the workforce, innovations in technology have changed the way we do business, and after all, it’s the year 2020 — the future has arrived. Perhaps this conjures up images of flying cars and robots, but we’re just referring to performance management trends. The new decade has brought a host of changes for performance management, and we asked industry leaders for their insight into the future of the market and associated performance management software.

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What Is Cloud Performance Management?

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Performance management software is used to evaluate employees’ performance to improve productivity at your organization. It can help you determine which employees are top performers, and which employees may need some extra help. This information can help HR managers learn the best plan of action for running an efficient and productive team. Cloud performance management will allow you to access these tools anywhere you have an internet connection.

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HR Trends in 2020: The Future of Human Resource Management

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The last decade brought an avalanche of change to the HR industry and HR software in particular. The rise of artificial intelligence. The growth of the gig economy. The increased push towards greater diversity. And many other headline disruptors. As we turn the page into 2020 and a new decade, it’s only appropriate to look ahead for a glimpse of which HR trends will continue to drive transformation and which new trends will emerge to shape the future of work.

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Recruiting Metrics: How to Measure the Success of Your Recruitment System

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As many recruiters and HR managers know, the moment your top candidate accepts your offer letter is the moment when a huge weight is lifted. Now that the position is filled with a candidate you feel confident about, it’s time to celebrate — so kick back, pour yourself a glass of wine and congratulate your team on its newest member. For many businesses, recruitment software makes the process of finding great talent easier than ever, making the celebration of filling an open position even sweeter. However, can you ever really be certain that your recruitment system is working for you? Let’s talk about how to use recruiting metrics to measure the success of your system.

Tracking the recruitment metrics of your system involves far more than just answering the question of whether or not the tools help you find a candidate to fill the open position within your organization. There are a variety of factors to consider, from how many interviews you conduct during the hiring process to how well the candidate performs after you hire them. Overall, there are many components that you can measure to determine if your recruitment product is as helpful as you need it to be.

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Is your company’s current HR software out of date? Do you have an online system for employees to use? If you’re not satisfied with your business’s current HR system implementation, it may be time to decide if an upgrade is on your road map for the next year. To implement HR software is an arduous, important task that every company should treat with care, and there are many different elements to manage during the process. Five of these factors: time and budget, the project team, a phased implementation, data security and potential risks — are the top key considerations to keep in mind.

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Employee Scheduling Software Features And Requirements

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In 2017, 7Shifts reported 2.44 days as the average time in advance a restaurant posts a schedule for employees to view. This common practice of last-minute scheduling interferes with employee work-life balance. As stated in the Economic Policy Institute’s “Irregular Work Scheduling and Its Consequences,” 26 percent of on-call employees and 19 percent of rotating shift employees report “often” experiencing work-family conflict, compared to 11 percent of workers with regular hours. As you can see, proactive scheduling is conducive to employee satisfaction. Facilitate this necessary process by thinking about the employee scheduling software features and requirements that will help you consistently build successful schedules.

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How to Effectively Measure Employee Satisfaction

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How do you measure success at your company? A bunch of metrics might leap to mind — increased revenue, greater profit margins, more customers, enhanced productivity. Maybe even the extent to which your HR software supports your most precious asset: your people. But have you stopped to consider how employee satisfaction fits into the picture?

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Namely vs Zenefits: Which HR Software Is The Winner?

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So, you’ve decided to adopt HR software. Or, you’ve decided to switch HR platforms. Either way, you’ve made up your mind and it’s time to look at vendors. You’re looking for solutions deployed on the cloud? We have just the thing. To help you peruse the possibilities, analyze the features and compare solutions, we put together a quick comparison of two HR software industry leaders. Let’s compare Namely vs Zenefits:

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HR professionals know the struggle all too well of having to do tedious tasks nearly every day. Luckily, solutions have come along to automate much of this work and have already lessened the burden on many HR departments. Today, the HR software market finds itself among the leaders in business software. With a marketplace worth over $14 billion and rising, HR management software has become one of the most important tools for companies to implement.

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If you’ve ever had to build a schedule, then you know that the process is more of a marathon than a sprint. Unfortunately, very few of us are prepared to take our schedule creating skills to the HR Olympics. The majority of us still have years of training before we’re ready to bring home a gold medal. What if there was an easier way to take your scheduling building skills to Olympic levels? Luckily, there is. Scheduling software and the best employee scheduling apps can give you the boost you need to feel like a champion.

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Top Online Payroll Software Vendors For Your Business

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In the past, processing payroll was a time-intensive process. Calculating hours worked, rates of pay, accounting for taxes and writing checks are just the basic tasks in order to accurately pay employees for their work. Fortunately, payroll software streamlines the process from start to finish, enabling HR managers of any skill level to complete payroll with just a few simple clicks. However, with so many products on the market, it can be difficult to determine which solution is the best fit for you. For many companies, online payroll software is an excellent option that provides the extra benefits of scalability and mobile capabilities.

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The direction within Human Resource (HR) management going into the next year maintains the focus on the employee that we’ve already established in my LMS predictions and Talent Management predictions. While technology has grabbed the attention of professionals tasked with optimizing their workforces, the employee has continued to gain relevance and utility in the workplace.

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Small Business Payroll Software Solutions: Which Vendors Should Be On Your Shortlist?

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Much like building a skyscraper, building your company starts with a solid foundation. As exciting as it is to see the work completed on the tallest building you can construct, you’ll never be able to assemble the roof if the cement you build upon is cracked. In terms of business, the foundation you’ll want to build upon can include a variety of things, depending on the industry you work in. However, regardless of industry or the size of your organization, one thing must be considered when you look to build or maintain a successful business — your HR department.

Ensuring that your HR practices are effective provides a solid infrastructure for your organization. This is particularly important for small businesses, especially those with plans to grow. While there are a variety of HR tasks that you’ll want to focus on, payroll processes are key. For organizations with expectations of growth, there are a variety of things to consider when narrowing down vendors. Perhaps the best place to begin your search is by looking at small business payroll software vendors for scalable solutions that can serve as a strong foundational solution for your organization.

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Zenefits vs Gusto: Which HR Software is the Winner?

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Zenefits and Gusto are two popular HR software choices that small businesses and medium-sized businesses alike can utilize through the cloud. These handy comprehensive solutions are both examples of HR software products that handle payroll, benefits, compliance and more from a central employee self-service platform. So let’s take a deeper look at both systems, as we compare Zenefits vs Gusto:

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SelectHubZenefits vs Gusto: Which HR Software is the Winner?
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Workday vs SuccessFactors: Which HRIS is the Winner?

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Workday HCM and SAP SuccessFactors are two of the most comprehensive HR software available on the market today. Each tool offers basic HR functionality, along with added talent management capabilities that offer insight throughout employee tenure and aid in goal setting. The two systems share aptitude in many of the same features, including employee self-service, payroll functions, time reporting and applicant evaluation. By observing the discrepancies between each system’s abilities and considering company needs, a decision can be reached on the best tool in a Workday vs Successfactors showdown.

Compare HR Software Pricing & Costs with our Pricing Guide
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Payroll Software Trends: Future of Payroll Software In The Next Year

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A recent study by Kronos and the American Payroll Association has found 29 percent of businesses use a payroll system that is 10 years old or older. This statistic not only includes outdated software platforms, but also includes methods such as spreadsheets and other forms of manual payroll processing. Clearly, there are many companies that need a payroll overhaul. If your organization is one of them, adopting a new payroll system should be added to your list of New Year’s resolutions. Our research and interviews with industry experts illustrate the top payroll software trends for the upcoming year to bring your business into the future.

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Payroll System Implementation Requirements Checklist

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Payroll management is one of the most essential functions of a human resource department. And in a digital world, automation is key. Payroll software streamlines the processes associated with compensation for quick and accurate action. Additionally, many payroll systems include general HR functions, business intelligence and recruitment features, offering a complete human resource tool.

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Recruitment Software Features and Requirements Checklist

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Reaching qualified professionals has become increasingly simplified with the help of online job boards and social media. However, this increases competition, and choosing the right person for the job becomes difficult with such a high volume of talented applicants. Hiring teams need to sort through resumes, schedule interviews, evaluate candidates and continually communicate throughout the process. Recruitment software steps in to automate these functions and streamline hiring procedures.

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Cloud Recruitment Software: This Upcoming Year’s Top Picks

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At best, the process of finding and hiring new employees can feel a bit like looking through the pages of your favorite “Where’s Waldo?” book. Once the applications start to pour in, you have to sift through all of the resumes and cover letters to find the type of candidate you’re looking for. If you’re hiring for more than one position, then you’ll have quite a few pages of that book to search through. This kind of recruiting process is desperately in need of an update — cloud recruitment software is that update.

In the past, only large enterprises had the resources to implement recruiting software. However, thanks to advancements in technology, cloud-based software makes it easy for businesses of any size to implement a recruiting solution. If you’ve decided it’s time to streamline your recruitment process by implementing a new software solution, then you’ll want to have a solid foundation of knowledge about just what that software is and what it’s capable of doing. We’ll break all of that down for you, and then we’ll discuss who our top picks are to help you jumpstart your search.

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