7 Useful HR Management Tools For Your Business

HR management is an essential part of your business. Not only does HR help you find qualified candidates for job opportunities, but it can ensure you retain those valuable employees. While HR is possible with simple spreadsheets, HR management tools can help your HR team do their jobs more efficiently and effectively. 

Best Tools for HR Management

Human resources cover a wide range of duties and responsibilities, all of which can be made easier with the right technology and tools. HR tools can help staff members better engage with employees and spend less time doing mundane tasks from recruitment to performance evaluation. Here are the best tools for HR management. 

1. Human Resource Management System 

Human resources involve inputting, storing, and tracking employee data. Organizing this information can be difficult without the right human resource management system (HRMS). There are both software solutions and SaaS solutions out there that can help your human resources department store and organize data, including

  • Employee profiles
  • Schedules
  • Attendance records
  • Salaries 
  • Time Off

Many HRMS solutions can help you with all of your human resources management, including sending out paychecks and allowing employees to clock in and out. At the same time, you can choose exactly which services you need so your HRMS can scale with your business.

When looking for an HRMS, make sure you consider the needs of your business. If you’re not sure what to look for, recruit the help of your HR managers and employees so you can figure out exactly what they’re looking for. For example, if your employees are manually clocking in every day with an email or a spreadsheet, they may be looking for an easier way to clock in that doesn’t eat up as much as their time. 

2. Performance Evaluation & Tracking Tools 

Employee performance evaluations can help you better understand your employees and how they do their jobs. Evaluations should not only be done annually but goals and objectives should be tracked throughout the year by your human resources department. Each employee should have individual goals based on their current performance and their job duties. To get the most out of a review, managers can use performance tools to track performance throughout the year and save notes and feedback for the next evaluation. 

3. Recruiting Software

Recruiting software helps HR managers in charge of recruiting by streamlining the hiring process. With recruiting software, you can post job listings, sort applications, accept applications, manage candidates, contact candidates, and more. This software helps keep HR managers organized for an easier recruiting process. 

There are many recruiting solutions out there, so make sure to check the pricing and features of each. Your business may not need as many capabilities as a recruiting software designed for enterprises. 

4. Background Check Software

Part of the recruiting process may involve background checks to ensure potential employees are telling the truth on their applications. It also ensures they’ve told the truth about their criminal history. 

With employee background check software, you can avoid the time and hassle of going through a third-party provider so you can hire employees. 

5. Payroll Services

Payroll processing can be difficult as it impacts both the HR and Accounting departments. Not only will you need professional tax software to handle payroll taxes, but you’ll need a tool to ensure your employees are paid correctly and on time every pay period. 

Small businesses may find payroll processing difficult without the right tools. If you don’t have direct deposit set up for your employees, these services can help you manage payments to your employees without having to send out checks for them to pick up on payday. 

An online payroll service can help you automatically calculate and track paychecks, deductions, paid time off, and more. 

6. Benefits Management Software

Some payroll systems will allow you to administer employee benefits, including time off. Other solutions can help you manage all of your employee benefits, including:

  • Paid time off
  • Retirement plans
  • Health insurance
  • Workers’ compensation

Benefits software can help businesses improve their HR process to allow them to provide the same benefits and efficiencies to their HR department and employees.

7. Employee Engagement Tools

If you’re proud of your company’s company culture, then you need an employee engagement tool that allows you to monitor your culture and give you better insights into the wants and needs of your employees. 

There are several engagement tools available, including apps that encourage positive feedback. For example, some programs allow employees to recognize their coworkers, while others allow you to anonymously collect feedback from your team. 

Since employee retention should be at the forefront of your business goals and values, you need to get a feel for their thoughts and opinions on specific topics, like the food provided at meetings and opinions on company policies.

Finding the Right HR Tool

Finding the right HR tool is a matter of doing your research and determining which features your business needs. A few essential aspects of HR tools to consider are:

  • Usability
  • Seamless integration
  • Customizable
  • Scalable

As a business owner, it may be tempting to choose the least expensive option or the highest-rated. However, you must learn about these tools before making your final decision so you can secure a tool that fits your business needs. Don’t invest in solutions just because they have a high rating. For example, small businesses with fewer than 100 employees won’t need the same solutions as an enterprise with thousands of employees. 

What’s most important for your business is having HR tools that automate tasks so the HR managers can focus on more important tasks such as handling employee complaints and conflicts. 

Before implementing a new HR management tool, make sure to ask how these tools will affect your employees’ day-to-day work lives. If all of your employees will be affected by new software, hold a meeting so everyone knows the new policies are surrounding their work. Also, ask for the employee’s feedback on what they are looking for from the HR department. Listening to your employee’s feedback can help you determine what is most needed for them and the company as a whole.


Guest Article by Matt Casadona

Matt Casadona has a Bachelor of Science in Business Administration, with a concentration in Marketing and a minor in Psychology. Matt is passionate about marketing and business strategy and enjoys San Diego life, traveling, and music.   

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