Human resource management systems are essential for businesses to manage employee data and streamline processes, improve productivity and efficiency. For this article, I did a ton of research to find the best HRM systems on the market today. Learn how to maximize your company’s capabilities and simplify your HR needs.

Human resource management systems allow businesses to streamline and automate time-consuming and tedious tasks so HR teams can focus on other activities.

They assist with all aspects of HR management, like applicant tracking, employee management, payroll, benefits, timesheets, and performance management.

But before selecting an HRMS, it’s essential to clearly define your needs. Every system offers different capabilities and it’s important to understand the differences before selecting the best option for your business. 

To help you choose, I’ve done the research for you and put together a list of the 10 best HR management systems on the market today.

If you don’t have the time to read through our research, jump down to our quick comparison table.

Our Top Picks

  1. Best all-in-one human resource management system

  2. Good open source HR management system 

  3. Good for creating custom HR processes

How I Chose the Best HRM Systems

With so many HRMS systems on the market, it took some time to test out the top contenders. Here’s what I looked for when evaluating different software solutions:

Important core features

  • Core HR functionalities: The HRMS should automate and organize essential HR tasks like attendance tracking, time off and employee data management, and payroll and benefits processing. 
  • Recruitment and onboarding: The ideal human resource management system streamlines the recruitment and onboarding processes. It automates job posting and applicant tracking, reviews resumes, helps schedule interviews, and manages new hire forms and paperwork.
  • Employee learning and development: I looked for software that supports continuing employee development. Employers should be able to create courses and deliver ongoing training through the HRMS.

I looked for usability features like:

  • Customization: The HR system should be able to grow and change with your company as you hire more employees, need to store more data, and be compliant with changing government regulations.
  • Price: The software needs to be reasonably priced and affordable for your business.
  • Security: HR management software should protect sensitive employee data and keeps it secure.
  • Customer support: It should come with reputable, 24/7 customer support to help solve technical issues if they arise. It should also include assistance with implementation, onboarding, and staff training.

I also looked for other product features, including:

  • Engagement tools: The software should fully engage employees, gauge employee satisfaction, and encourage a positive company culture. It should manage and measure employee surveys, polls, and suggestions.
  • Employee self-service: An effective HRMS should allow employees to access and update their personal information, request time off, view pay stubs, and access relevant HR policies. 
  • Employee rewards and recognition feature: Boost employee morale and increase retention rates by recognizing and rewarding your staff’s hard work. Good human resource management systems allow you to send public recognition badges via company newsfeed, customizable messages, and rewards, like tokens that can be redeemed at partnering retailers. 
  • Reporting and analytics: An effective HRMS should generate detailed reports and provide important analytics like employee turnover and compensation analysis. 
  • Third-party integrations: Whatever HR management system you choose must integrate with your company’s other software.

The 10 Best Human Resource Management Systems of 2023

  1. Connecteam — Best all-in-one human resource management system

    connecteam hr management system showing important documents per employee

    With an HR and People Management Hub, Connecteam has all the features you need to manage your HR department.

    Why I chose Connecteam: From scheduling and time-off management, onboarding, payroll, and employee engagement and recognition, Connecteam’s all-in-one solution helps companies better manage their teams. 

    Let’s take a closer look at the specifics:

    Easily manage time-off requests and leave

    Connecteam’s time clock app with geofencing allows employees to clock in for shifts directly from their phones and ensures they do so from their worksites. The time clock tracks work hours down to the second and automatically records employee hours onto digital timesheets, helping to eliminate payroll errors. This also saves you time and money by automatically calculating break times, overtime, and absences.

    Digital onboarding and training directly from employees’ phones

    With Connecteam’s HR management system, employees can complete their onboarding directly from their smartphones. Create onboarding courses for your new hires with quizzes at the end of every section to ensure they retain the information. You can even share employee handbooks, offer letters, and instructional videos directly from the app. 

    Online employee training is also more convenient and engaging. All training materials are always accessible from the user-friendly app and can be divided into bite-size sections, making the content more digestible and easier to retain. 

    Managers can also track progress and even collect employee feedback at the end of training through the Suggestion Box. 

    Prioritize ongoing training and development

    With Connecteam’s employee training software, you can keep developing your team’s skills by creating training materials from existing documents, PDFs, or media files. You can link these to external sources like YouTube, DropBox, Google Drive, or the company website.  

    Keeping track of training progress is also easy with Connecteam. You’ll be able to quickly check course completion status and send push notifications if necessary. You can even use the quiz function to check they understand the material. 

    Boost employee morale with recognition and rewards

    Employee recognition is simple with Connecteam’s rewards and recognition features. Use the company newsfeed to spotlight an exceptional employee, wish them a happy birthday, or congratulate them on a promotion. You can even give employee recognition gift cards and digital badges of success.

    Simplify communication with in-app chat and company directory

    From day one, communication is made simple with the company directory, where employees can find contact information for everyone–all searchable by name, department, position, or location. Employees and managers can also instantly message each other privately or via group chat with online team chat, reducing communication roadblocks.

    Knowledge base keeps everyone informed

    Connecteam’s company knowledge base helps increase productivity by digitally storing HR forms, compliance certificates, and other important documents in the Connecteam app. Employees can fill them out and submit them directly from their smartphones, streamlining the paperwork process. Mobile accessibility also helps ensure employees are familiar with company policies and regulations.

    Time-off management is made easier

    With Connecteam, you can manage all time-off tasks using a single app with the time off management feature: view leave and time-off requests from your account dashboard, communicate time-off policies, track balances, and avoid scheduling and time tracking errors. 

    Seamless integration with payroll software

    With Connecteam, all employee hours are automatically recorded into digital timesheets for payroll. These can be exported into payroll software, like QuickBooks and Gusto, streamlining and speeding up the payroll process. 

    And so much more…

    In addition to being a completely customizable human resource management system, Connecteam also offers tools to completely manage your workforce directly from your phone. The user-friendly interface and excellent customer support also make it easy to get Connecteam up and running for your business. 

    🧠 Did you know?

    Connecteam is the most affordable HRMS on the market. The paid plan starts at just $29 per month for up to 30 users, and small businesses with fewer than 10 users can access the app completely free.

    Connecteam also offers a free for life plan – Try Connecteam here!

    Pros

    • In-app chat and communication tools

    • Useful for small businesses and large corporations alike

    • Intuitive and easy to use

    • Very responsive customer support

    Cons

    • More third-party integrations in development

    Pricing

    Free-for-life plan availablePremium plans start at $29/month for 30 users

    Optimize your HR with Connecteam's top-rated HR management system

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  2. OrangeHRM — Best open source HRMS 

    Available on

    • Web
    • iOS
    • Android
    Screenshot of the OrangeHRM webpage

    OrangeHRM is an excellent HR management system that makes it simple for managers to keep track of employee status, recruitment, training, and onboarding.

    Why I chose OrangeHRM: The human resource management system can handle paid time off and vacation requests, employee performance management, and onboarding.

    The dashboard is available to both managers and employees so that everyone can access the employee directory and organizational chart. Managers can also track disciplinary actions, create document templates, and make announcements on the Orange Buzz, OrangeHRMs internal social media platform.

    Learn more about OrangeHRM

    Key Features

    • Custom user roles
    • Audit trail 
    • Asset tracking 
    • News publisher 

    Pros

    • Many HR features 
    • Reporting and analytics 

    Cons

    • User claims of frequent bugs and crashing 
    • Steep learning curve 

    Pricing

    Contact vendor for price Trial: No Free Plan: Yes

  3. Monday.com — Good for creating custom HR processes

    Available on

    • Web
    • iOS
    • Android
    Screenshot of the Monday.com webpage

    Monday.com is a human resource management system that allows for fully customizable HR processes and workflows.

    Why I chose Monday.com: Hiring managers can oversee recruitment pipelines and track applicants. Updates are made at every step of the hiring process so accurate information is relayed in real-time to every member of the HR team.

    Once employees are hired, the onboarding process is simplified using templates to save managers time and get new hires up to speed faster. Follow the employee’s progress with performance trackers and customizable workflows.

    Learn more about Monday.com

    Key Features

    • Team collaboration
    • Workload view
    • Gnatt chart to keep track of milestones and metrics
    • Third-party integrations 

    Pros

    • Automates processes
    • Easily trackable workflow 

    Cons

    • Difficult to set up
    • Limited reporting features 

    Pricing

    Starts at $8/user/month Trial: Yes Free Plan: Yes

  4. Eddy — Best for job visibility

    Available on

    • Web
    • Windows
    • Mac
    Screenshot of the Eddy webpage

    Eddy is an all-in-one HR management software built to streamline HR system processes and improve employee experiences.

    Why I chose Eddy: You are able to hire, onboard, manage, and pay employees using Eddy. Job posing management features allow you to post to multiple third-party job posting sites to increase visibility and track applicants.

    People management features give users the ability to access the company directory and store important employee documents, including certifications and performance reviews.

    Many of these features are included in Eddy’s human resource management system, but payroll and applicant tracking are added features.

    Learn more about Eddy

    Key Features

    • Onboarding and training tracking
    • Employee directory and profiles
    • Document storage 
    • Job posting management  

    Pros

    • Responsive customer support 
    • Easy to implement and use 

    Cons

    • Payroll is an additional feature, including pay stubs and pay info
    • Not as robust as other human resource management systems

    Pricing

    Starts at $49/month + $8/user/month Trial: No Free Plan: No

  5. Sapling — Good for third-party integrations

    Available on

    • Web
    Screenshot of the Sapling webpage

    With Sapling, companies report easier HR management.

    Why I chose Sapling: This human resource management software automates recruitment, onboarding, and offboarding workflows. Managers can assign workflows to employees based on several factors, including physical location, department, or employment status.

    Sapling seamlessly integrates third-party systems into one centralized location, making it easier for HR to automate processes. You can improve the employee experience, support managers, and highlight the company culture using Sapling’s human resources management software.

    Learn more about Sapling

    Key Features

    • Employee database
    • Smart assignments 
    • Learning management features 
    • Connects existing platforms that your company uses 

    Pros

    • Fully customizable workflows 
    • Third-party integrations 

    Cons

    • Many features are sold separately 
    • Web-only platform 

    Pricing

    Starts at $282/month Trial: No Free Plan: No

  6. TriNet Zenefits — Best for employee turnover prevention 

    Available on

    • Web
    • iOS
    • Android
    Screenshot of the Zenefits webpage

    Why I chose Zenefits: This excellent, cloud-based human resource management system helps companies automate payroll, employee benefits, PTO, and other essential HR tasks. Hiring and retaining talent is crucial for any business, and Zenefits knows this; that’s why they make onboarding a breeze and use advanced HR tools to keep employees satisfied and engaged.

    The three different pricing plans allow you to pay for only what’s needed. 

    The base plan includes automated onboarding, time tracking, scheduling, and employee management. The growth plan includes the base plan as well as compensation and pricing management, and the Zen plan adds employee well-being and engagement.

    Learn more about TriNet Zenefits

    Key Features

    • Onboarding and retention
    • Employee benefits 
    • Payroll 
    • Compliance

    Pros

    • Easy to use 
    • Many reporting features

    Cons

    • Difficult to reach customer service 
    • Multiple complaints of not being tax compliant 

    Pricing

    Starts at $8/user/month Trial: Yes Free Plan: No

  7. Collage HR — Good for white-labeled enrollment dashboards

    Available on

    • Web
    Screenshot of the Collage HR webpage

    Ranging from recruiting to performance management, from onboarding to recruiting, Collage HR has the right idea when it comes to features for successful human resource management.

    Why I chose Collage HR: It’s important to note that they do offer employee benefits management and payroll at an additional cost per employee, which may be costly for small businesses.

    Another important factor to consider is that CollageHR is a web-only platform, meaning employees need access to a computer in order to be able to effectively use this human resource management system.

    Learn more about Collage HR

    Key Features

    • Employee directory
    • Organizational charts
    • Performance tracking
    • Applicant tracking system 

    Pros

    • Easy to use 
    • Responsive customer support 

    Cons

    • Payroll features aren’t fully integrated 
    • Many features are basic and could be more comprehensive according to reviews 

    Pricing

    Starts at $7/user/month Trial: Yes Free Plan: No

  8. HR Cloud — Good for onboarding

    Available on

    • Web
    • iOS
    • Android
    Screenshot of the HR Cloud webpage

    HR Cloud allows you to onboard, engage and manage your employees using one human resource management system.

    Why I chose HR Cloud: The software is designed to automate HR processes, enhance the employee experience, and manage employees their entire lifecycle at the company.

    Employees have access to the portal to begin onboarding immediately, create their profiles, and collaborate with coworkers. Managers can make announcements, access the employee directory, and analyze employee productivity using the HR system software.

    Learn more about HR Cloud

    Key Features

    • On and off-boarding 
    • Communication and engagement 
    • Time clock
    • Employee recognition 

    Pros

    • Easy to use 
    • Responsive customer support 

    Cons

    • Not as easy to manage using the mobile version
    • Limited third-party integrations  

    Pricing

    Contact vendor for price Trial: Yes Free Plan: No

  9. VAIRKKO — Good for LMS add-ons

    Available on

    • Web
    • iOS
    • Android
    Screenshot of the VAIRKKO webpage

    This in-depth human resource management system has vast onboarding features, including templates, task management, acknowledgment, and retention rate reports.

    Why I chose VAIRKKO: Once an employee is onboarded, VAIRKKO has features for communication between teams, equipment tracking, document storage, and employee data management.

    Time and payroll are also tracked using biometric time clocks, complex pay scales, integrated payroll, and configurable pay periods. VAIRKKO has features to streamline all business processes from onboarding to offboarding. While the pricing isn’t available on their website, it seems that each feature is a separate software which can lead to high prices if you use all the features.

    Learn more about VAIRKKO

    Key Features

    • Surveys and polls 
    • Onboarding and offboarding software
    • Employee evaluation
    • Time and payroll 

    Pros

    • Onboarding templates
    • Employee recognition

    Cons

    • Expensive to use based on customer reviews 
    • Mobile app is lacking compared to web

    Pricing

    Contact vendor for price Trial: No Free Plan: No

  10. Workday — Good for flexible organizational structures

    Available on

    • Web
    • iOS
    • Android
    Screenshot of the Workday webpage

    Recruit and develop top talent with Workday.

    Why I chose Workday: Features include skills management to help you understand the skills your company possesses, the skills your company lacks, and how to bridge the gap. They also focus on employee experience management to keep employees engaged and connected. Workday reinforces belonging and diversity using their approach VIBE (value, inclusion, belonging, and equity).

    Workday uses technology and intelligent processes to stay ahead of the changes in the workplace. Because there are so many features, many customer reviews say that the implementation is very time-consuming.

    Learn more about Workday

    Key Features

    • Skills management
    • Employee experience management 
    • Workforce optimization 
    • HR service delivery 

    Pros

    • Third-party integrations
    • Intelligent process automation

    Cons

    • Slow customer support response time 
    • Difficult implementation

    Pricing

    Contact vendor for price Trial: No Free Plan: No

Compare the Best Human Resource Management Systems

Topic Start for free
Reviews
4.8
4.1
4.6
4.6
4.7
4.2
4
4.7
3.9
4.4
Pricing
Starts at just $29/month for the first 30 users
Contact vendor for price
Starts at $8/user/month
Starts at $49/month + $8/user/month
Starts at $282/month
Starts at $8/user/month
Starts at $7/user/month
Contact vendor for price
Contact vendor for price
Contact vendor for price
Free Trial
yes
14-day
no
yes
no
no
yes
yes
yes
no
no
Free Plan
yes
Free Up to 10 users
yes
yes
no
no
no
no
no
no
no

What is a human resource management system?

A human resources management system (HRMS) is software made for HR teams to easily manage tasks and company processes. Businesses use HR management systems to streamline many HR systems and functions like storing employee data, managing employee hours and payroll, recruitment, employee performance management, and training records.

Human resource management systems give deeper insights into the company, improve employee engagement, increase compliance, and free up HR staff to focus on value-added projects.

How does a human resource management system work?

Human resource management systems work by combining a number of HR systems into one central location, making it easier to gather, store, and find needed information. It helps HR teams by automating manual tasks, keeping employee information organized, up to date, and creating reports to help leaders make business decisions.

Typical features include course creation, employee engagement features, goal setting, and reports.

Each HR management software is slightly different, so you can choose the features most important to you and your business. Each user will then set up their username and password, and admins will be able to oversee all employee information.

What are the benefits of using a human resource management system?

Better insights: Consolidating HR processes onto a single platform allows for better, faster decision-making. Companies can analyze employee and company data to better understand their needs.

Improved employee engagement: Human resource management systems help maintain a constant flow of communication with employees, which is essential for retaining talented employees. Features like employee milestone recognition, rewards, surveys, and polls are vital for continued employee engagement and satisfaction at work.   

Saves money: HR management systems automate processes such as hiring, onboarding, training, and performance evaluations. This eliminates the need for HR professionals to do these tasks manually, saving time, effort, and money. 

More efficient processes:  An accessible human resource management system streamlines processes for both HR teams and employees. Onboarding and training can be digitized so materials and training courses are available directly from the app, saving HR teams time and resources. Employees can fill out and upload documents directly into the system, and payroll is simplified with automatic timesheets. 

Faster recruiting: Information falls through the cracks when using third parties to recruit. Recruitment on a single platform means that all candidate information is consolidated into one place, allowing HR teams to gain complete insight into the types of candidates they’re attracting and more efficiently select who to interview.

Better compliance: HRMs help companies ensure compliance with labor laws, regulations, and company policies, reducing the risk of non-compliance penalties or lawsuits.

How much does a human resource management system cost?

Like all software, human resource management systems range in price. When setting a budget, be aware of hidden costs, as some systems may have expensive add-on features, complicating the pricing structure.

There are two pricing models for HR management systems: a per-user price and a flat fee. Per-user prices range from $2/user per month up to $10/user per month, which can add up quickly. You’re better off looking for a system with a flat fee, like Connecteam. 

Connecteam’s human resource management system was made to be affordable: Connecteam offers a free-for-life plan for companies with up to 10 users. 

Paid premium plans for larger companies start at only $29/month for up to 30 users.

FAQs

What is the best human resource management system?

Our top pick for human resource management systems is Connecteam.  Connecteam’s all-in-one, customizable HR management system streamlines all HR processes, from recruiting, onboarding and training, to scheduling and employee engagement. The software also includes advanced HR features like timesheet and payroll management, employee documents, and surveys and quizzes, making Connecteam the best HR management system. 

What’s the difference between an HRIS and an HRMS?

An HRMS (human resource management system) and an HRIS (human resource information system) are both software solutions designed to help manage employee information and other HR-related tasks. 

While the terms are sometimes used interchangeably, these are the 3 key differences:

  • Capabilities: An HRMS has a broader scope of capabilities than an HRIS. Human resource management systems are intended for HR data management along with payroll, benefits, and other related functions. An HRIS, on the other hand, focuses more specifically on HR data management alone.
  • Integration: Human resource management systems are often integrated with other software systems, such as finance, accounting, and payroll software, whereas human resource information systems do not.
  • Customization: An HRMS is more customizable than an HRIS. Human resource management systems usually support growing companies as they hire more employees and need to store more data.

What are the core functions of human resource management?

There are 7 core functions of human resource management:

  • Recruitment and selection
  • Training and development
  • Performance management
  • Employee relations
  • Employment law and compliance
  • Compensation and benefits and administration
  • Payroll & HR systems

The Bottom Line On Human Resource Management Systems

To be successful, HR managers need to stay ahead of market trends. Fortunately, digital human resource management systems that are accessible on the go make it possible for modern organizations to thrive  

With the right HR management system, like Connecteam, your HR team can focus on strategic functions rather than mundane administrative tasks. A digital system helps centralize all your employee data and maximizes your company’s workflow.