Successful businesses don’t have time to spend manually performing repetitive HR tasks. As your company grows, you need to look at solutions that will help you overcome the HR challenges that are holding you back. This is where human resource management system (HRMS) software comes in. Typically, HRMS assists in applicant tracking, employee management, payroll, benefits, timesheets, and performance management.
Investing in HRMS software allows businesses to streamline and automate time-consuming and tedious tasks so that HR teams can focus on higher value-added activities.
HRMS software can be highly diverse, so it’s essential to clearly define your needs. Once you determine the needed capabilities of your human resource management system, you can start looking into what systems are available in the market. To help you choose the best HRMS for your business, here’s a list of the 11 best HR management systems we found on the market.
If you don’t have the time to read through our research, jump down to our quick comparison table.
Our Top Picks
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Best all-in-one human resource management system
Learn more -
Good open source HR management system
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Good for creating custom HR processes
What to Look For in a Human Resource Management System
- Customization – The HR system needs to be able to grow and change with your company.
- Engagement tools – The chosen software should fully engage employees, gauge employee satisfaction, and encourage a positive company culture.
- Time tracking and payroll – The software used must be able to track and log employee hours to make payroll a breeze.
- Reporting and analytics – Real-time analytics are crucial to making company changes.
- Third-party integrations – Whatever HR management system you choose must integrate seamlessly with your company’s other software.
- Ease of use – The HR system you choose should be easy to use for management and employees alike.
- Price – The software must be reasonably priced and include all of the features you need to efficiently run your business.
The 10 Best Human Resource Management Systems of 2023
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Connecteam — Best all-in-one human resource management system
Available on
- Web
- iOS
- Android
Connecteam’s all-in-one human resource management system streamlines all processes, from scheduling and time clock to onboarding and employee engagement.
Scheduling with Connecteam’s drag-and-drop options and custom scheduling templates is easy and intuitive. Once the schedule is published, employees can clock in and out directly from their phones which can then be exported for payroll, eliminating human error and saving hours of tedious data transferring.
Create an onboarding course for your new hires to complete and create a quiz at the end of every section to ensure they retain the information. From day one, employees have access to the company directory to find contact information for everyone–all searchable by name, department, position, or location.
Employee engagement is simple with Connecteam’s recognition features. Use the timeline to spotlight an exceptional employee, wish them a happy birthday, or congratulate them on a promotion. Really listen to employee needs by creating open communication and using anonymous surveys.
Using features offered by Connecteam, your employees will be properly trained and fully engaged, and management will be able to focus on decision-making and company growth.
What started out as a simple time tracker evolved into a way to automate and embed day-to-day tasks and procedures, provide a resource for emergency information and reference materials, and engage an entire team in a completely new way
Connecteam also offers a free for life plan – Try Connecteam here!
Key Features
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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OrangeHRM — Best open source HRMS
Available on
- Web
- iOS
- Android
OrangeHRM gives you the benefit of having an extra team member without the additional headcount. 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 OrangeHRMKey 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
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Monday.com — Best for creating custom HR processes
Available on
- Web
- iOS
- Android
- Windows
- Mac
Monday.com is a human resource management system that allows for fully customizable HR processes and workflows. 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.comKey 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 — For the Pro plan Free Plan: Yes
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Eddy — Best for job visibility
Available on
- Web
- Windows
- Mac
Eddy is an all-in-one human resource management system built to streamline HR system processes and improve employee experiences. 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 EddyKey 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
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Sapling — Best third-party integration features
Available on
- Web
Sapling is a human resource management software company that automates recruitment, onboarding, and offboarding workflows. Workflows can be assigned to people based on their physical location, department, or employment status.
Sapling seamlessly integrates third-party systems to 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 Saplings human resources management software.
Learn more about SaplingKey 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
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Zenefits — Best for employee turnover prevention
Available on
- Web
- iOS
- Android
- Windows
- Mac
Zenefits is a cloud-based human resource management system that helps companies connect payroll, employee benefits, PTO, and other systems. 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 wellbeing and engagement.
Learn more about ZenefitsKey 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: No Free Plan: No
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Collage HR — Best white-labeled enrollment dashboards
Available on
- Web
Ranging from recruiting to performance management, from onboarding to recruiting, CollageHR has the right idea when it comes to needed features for successful human resource management. It’s important to note that they do offer employee benefit management and payroll at an additional cost per employee.
CollageHR is a web-only platform, meaning employees need access to a computer in order to be able to effectively use the human resource management system.
Learn more about Collage HRKey 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
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HR Cloud — Best onboarding HRMS solution
Available on
- Web
- iOS
- Android
HR Cloud allows you to onboard, engage and manage your employees using one human resource management system. 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 CloudKey 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
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VAIRKKO — Best HRMS with LMS add-ons
Available on
- Web
- iOS
- Android
This in-depth human resource management system has vast onboarding features, including templates, task management, acknowledgment, and retention rate reports. 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 VAIRKKOKey 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
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Workday — Best for flexible organizational structures
Available on
- Web
- iOS
- Android
You can recruit and develop talent using 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 WorkdayKey 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
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| Pricing |
Starts at just $29/month for the first 30 users
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Contact vendor for price
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Starts at $8/user/month
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Starts at $49/month + $8/user/month
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Starts at $282/month
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Starts at $8/user/month
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Starts at $7/user/month
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Contact vendor for price
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Contact vendor for price
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Contact vendor for price
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| Free Trial |
yes
14-day
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For the Pro plan
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no
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yes
Free Up to 10 users
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yes
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What is a human resource management system?
A human resources management system (HRMS) is software made for HR teams to easily manage HR tasks and company processes. Human resources management systems are used by businesses 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 systems into one central location making it easier to gather, store, and find needed information. The HRMS software helps HR teams by automating manual tasks, keeping employee information organized and up to date, and creating reports to help leaders make business decisions.
Typical features of a human resource management system include course creation, employee engagement features, goal setting, and reports.
Each HRMS 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, deeper insights: Having all data in one location allows for better faster decision making. When a company is able to accumulate information and sort it in a way to get the needed data, they’re able to better understand the needs of the company, employees, and the company processes.
Improved employee engagement: Human resource management systems are invaluable in developing and retaining talented employees. Using human resource management systems, HR teams can create courses, learning plans, career paths, and mentorships created for each individual employee. These activities are tracked, and milestones are recognized, keeping employees on track and loyal to the company.
Process efficiency: Setting up a self-serve system so employees can easily find the information they need stops HR teams from having to take time out of their day to answer questions. A knowledge base, document database, employee directory, and more can be set up so employees can find information themselves. In addition, employees can put in requests, and the relevant person will be notified of the request and be able to answer in a timely manner.
Faster recruiting: Information falls through the cracks when using third parties to recruit. When recruiting is done on one platform, seeing all the information together allows HR teams to gain insight into the types of candidates they’re looking for and the applicants they’re attracting.
How much does a human resource management system cost?
Human resource management systems range in price like all software. When setting a budget, you have to be aware of hidden costs, as many HRMS software have costly add-on features, and the pricing structure can get complicated quickly.
There are two pricing models, a per-user price and a flat fee. Per-user prices range from $2/user per month up to $10/user per month. Flat fees range from $29/month for HRM software like Connecteam or cost hundreds, even thousands, of dollars per month.
Connecteam has a transparent pricing model, priced fairly so every business can afford to implement a human resource management system. Connecteam was built to be affordable while offering all the features your company could need in an HRMS, from communication to payroll integration to scheduling and engagement tools. We don’t think you’ll find a better solution than Connecteam.
FAQs
What is the best HRM system?
Connecteam. Hands down. Connecteam is affordable and exploding with useful features to educate and engage your employees. Understand the strengths and weaknesses of your company using surveys and reports. Then reward your employees’ strengths and teach them how to improve their weaknesses. Connecteam has all these capabilities and so much more.
What are the types of human resource management systems?
There are many sub-types of human resource management systems, but the two main types are operational and tactical.
- Operational Human Resource Management Systems:
- Employee information systems where employee information is stored, including name, address, salary, education, etc.
- Position control systems are used to identify each person’s exact role in the company and what they do daily.
- Applicant selection and placement systems are used to assist HR teams with screening and evaluating potential hires.
- Performance management information systems carefully document each employee’s performance and productivity.
- Government reporting and compliance information systems maintain government compliance regarding laws and regulations.
- Tactical Human Resource Management Systems:
- Job analysis and design information systems create job listings and descriptions using data input by internal and external teams from HR to labor unions.
- Recruiting information systems to build a recruitment plan, find and hire new employees, plan for the retirement of existing employees, and collect data on current employees’ skill sets and turnover rates.
- Compensation and benefits information systems help HR teams encourage employees to be more productive by incentivizing them based on added employee benefits or pay raises.
- Employee training and development systems are in place to help employers train employees to fill open positions in the company and help new employees better understand their roles and responsibilities.
What are the 7 functions of HRM?
The 7 core functions of human resource management are:
- 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, we need to stay ahead of market trends and always be looking to the future, and the future is digital. It’s nearly impossible to imagine a modern organization functioning efficiently without some form of HR system automation.
With the right HR management system like Connecteam, your HR team can focus on strategic functions rather than mundane administrative tasks. If you are on the hunt for the perfect HR software, give Connecteam a try. Use the free trial to see how hassle-free HR management can be with the right tool.