How to Choose the Best HR Software Tools for Your Company

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Every HR department needs to utilize software which meets the specific requirements of a company without overspending. Every organization is unique in nature, so there is no universal “best HR software” on the market. If you are struggling to find and choose the best HR software tools for your company, check out the following advice.

Evaluate Your Current HR Software

It is well known that when people start thinking about buying a product, the first thing they do is turn to Google. You may be reading this post because you hoped Google would tell you which HR software is the best. However, you will never find a ready-made solution for your enterprise if you have no clear view of the product you are looking for.

Jessica Fender, the HR analyst at OnlineWritersRating, says: “The first step you should take is to analyze your company’s needs and define the goals of new software usage.” Google can’t do that analysis for you.

Take a look at the HR technologies your organization currently uses. What are the major advantages and disadvantages of this system? Try to analyze the work of your HR department thoroughly and define not only the processes, which require automation, but also the areas that can be improved in other ways.

In fact, one person cannot cope with such a challenging task. So it’s a good idea to collaborate with your team members by:

  • Conducting a brainstorming session.
  • Encouraging employees in your HR department to provide their ideas.
  • Asking workers from other departments about the issues they face when communicating with HR specialists.

In this way, you can build a list of all requirements to the new HR system and prioritize them. With this in mind, you can start screening the possible solutions online.

HR employees brainstorming

Check the Functionality

There is a great variety of HR software options on the market, so you shouldn’t hurry to make a choice. Every platform consists of a few modules and performs different sets of tasks. This list highlights some of the most popular features that will influence your final decision:

Unlimited Users

If you have a big company, you should make sure the HR software can be utilized by an unlimited number of users. There are some platforms which only provide access for a limited number of users.

Get our HR Software Requirements Template

Applicant Tracking System

This feature is important only for those organizations that hire regularly. An applicant tracking system, or ATS, automates the process of job posting and resume screening.

Performance Reviews

This feature shrinks the amount of paperwork and tracks the employee’s performance in a brand new way. HR analysts can create a development plan for every employee and monitor their progress throughout the year.

Benefits Administration

It’s a great idea to choose HR software with built-in benefits modules, which help manage employees’ health benefits, 401k retirement savings plans and whatever other benefits you provide.


If you work in an industry where most workers have flexible schedules, you urgently need this feature. Scheduling features will help your company design the optimal schedules that will drive work efficiency.


This is one of the most important features. Payroll features help manage your employees’ salaries, bonuses, premiums and penalties.

Live Chat/Phone Support

When utilizing new software, it’s common for HR department employees to face some difficulties. Therefore, they will need to contact a service provider. If a chosen vendor has a 24/7 support center, it will be easy to solve the issues immediately.

Time Off Tracking

This tool helps employees request time off in a hassle-free way. The system tracks vacation and sick days automatically.

HR analysis

Pay Attention to Details

When you know what kinds of features your future HR software should have, you can narrow down vendors to between four to six possible options. Before you make a final choice, you should consider the following important characteristics:

Cloud Storage

If your company is pretty small, there is no need to spend extra time and money on on-premise solutions. SaaS HR can handle all the same tasks using fewer resources.


If you expect your business to grow, you should ensure the system will be able to meet the increased workload. Otherwise, you will be forced to change HR software to keep up with the development pace.

Intuitive Interface

No one wants to spend valuable time learning how to use a new program. A user-friendly interface allows new employees to understand the basic principles of work in a short period of time.

Get our HR Software Requirements Template


Software should securely protect collected data from any cyber attacks. Otherwise, it will endanger both your business as a whole and your employees as individuals.

Training or Tutorials

If your company wants to implement HR software that significantly differs from your current one, the new vendor should organize training for your employees. They can then learn the peculiarities of every feature in order to avoid any problems when using it in practice.

Pat Fredshaw, HR generalist for EssaySupply, explains: “HR software is an investment in the future of your company. If you have heard that a chosen provider had problems with the cybersecurity or wasn’t able to offer the adequate training to other clients, you should find another option”.

Estimate Your Budget

The cost of HR software varies a lot because of many factors, but it doesn’t mean that if you want to select the best solution, you should pay the highest price. Everything depends on the real needs of your company.

A baker spends $1500 dollars on a professional mixer because he wants a reliable appliance that will cope with the workload. A young mother spends $150 because she will use a mixer only one to three times per month to bake sweets for her child. Just like in this example, you should evaluate the goals and resources of your company to make the right choice.

Natalie Andersen, CEO at GetGoodGrade, states: “You spend money on HR software in order to cut costs, so be careful and don’t overspend your budget on system incorporation. Otherwise, your efforts will bring zero results. Take a look at the emerging cloud technologies which offer low-cost solutions.”

HR department accounting procedures

Make A Final Decision

Finally, when you have selected your best-fit HR software, check the references of the recent clients. This is a great way to protect your company from any unexpected issues connected with the system functionality.

When software providers offer a demo, you should test it in every way possible. You have a very short period of time to identify the system disadvantages and identify any bugs. Ask your team members to express their opinions about the software and decide whether it is worth the price you are going to pay.

Christopher Mercer, founder of Citatior, advises: “Don’t hesitate to ask questions about the extra features. Some companies have very tricky marketing strategies: they offer customers a low price for the software, but later force them to spend huge amounts of money on additional modules. Be wise and get this information in advance.”

Final Thoughts

If are making efforts in choosing the right HR software for your company, you should spend more than a few days on the search for the most suitable options. You should clearly understand the needs and possibilities of your organization in order to find a solution that will match them perfectly.

Get our HR Software Requirements Template

The IT world is developing day by day, and new solutions are appearing in the market. Watch the current trends and research new advancements in the HR software market so you know what will benefit your company the most and choosing HR software ultimately won’t be as difficult as you may have thought.

About the Author:

Sylvia Giltner is a career coach, HR specialist, and freelance writer at ResumesCentre. Her passion is to help people make career changes and get jobs they truly love by showing them how to take full control over their careers. She is also an active guest contributor who has been featured on Forbes, Fast Company, Next Avenue, TLNT, Glassdoor, and more.

Sylvia GiltnerHow to Choose the Best HR Software Tools for Your Company

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