As a business grows, administrative tasks such as onboarding employees, managing absence and benefits, and processing payroll become more time-consuming. One way out of the chaos is to invest in a good HR management system that keeps HR tasks organised, from recruitment to performance evaluation.

This article covers the key features to look for in an HR system for small to medium sized businesses, and how to choose the right one.

Types of HR system

There are two broad types of business HR software:

  • Core HR covers the traditional administrative functions, such as benefits administration, attendance tracking and payroll processing.
  • Strategic HR packages support more advanced tasks, such as hiring and retaining good staff and tracking their long-term development.

Many packages cover both. It still helps to know which side matters most to you before you start comparing.

Key features to look for

  • Employee record-keeping. Keep copies of important employee documents in one place.
  • Self-service options. Let employees update their own details and request time off without emailing HR.
  • Benefits management. Manage employee benefits through the system.
  • Recruitment. Track candidates and manage the recruitment process.
  • Onboarding. Help new employees find the training and resources they need quickly.
  • Training. Plan development needs, and in some packages deliver training inside the application.
  • Performance reviews. Track performance year by year, set goals, and keep the full development history in one place.
  • Reporting. Analyse employee data and build reports on absence, turnover, satisfaction and more.
  • Time and attendance. Manage holiday requests with enough cover for the team. Some systems add detailed time tracking for shift workers.
  • Communication. Share company news and let employees communicate through the system.
  • Mobile access. Let employees use the system from a phone.

How to choose

There is a wide range of features on offer, and complete solutions cost more, so work through the list and pick what you genuinely need.

The key question is how much time the task currently takes. If you spend hours each month printing CVs, hunting for them and trying to remember who you contacted, a recruitment module will probably pay for itself quickly.

Think about how you and your employees work, and choose accordingly. A mobile app matters for a field-based workforce and matters far less for a team that is always in the office.

The best way to decide is to narrow the options to two or three and test them. Most vendors offer a free trial, and even where they do not, a single month is not prohibitive. Create trial accounts, explore the dashboards and settings, and see which interface your team finds easiest. Usually one option stands out, and you can cancel the rest and focus on getting the most from your choice.

If the shortlist feels overwhelming, our HRIS selection page describes the structured way we run this process for clients, or you can talk through the pressure points.