What is HR software?
HR software refers to any business software that helps businesses manage employee information and HR-related tasks. These include recruitment and onboarding, data management, shift scheduling, time tracking and attendance recording, payroll management and learning management, among others. Some of the main types of HR software are:
- Human Resources Information Systems (HRIS)
- Human Resources Management Systems (HRMS)
- Human Capital Management (HCM)
- Applicant Tracking Systems (ATS) and
- payroll systems
The benefits of HR software
HR systems can help your business in many ways. One of the main benefits is that they allow you to spend less time on admin, freeing up your time for value creating activities. HR software solutions automate many processes, so you don’t have to spend time manually entering or transferring data, as you do with common business systems.
Another benefit of HR systems is that they give you better insights into your workforce by gathering all your employee information in one place. Many software packages have easy-to-understand visualisations and key business metrics, which help you to make sense of your data.
HR systems also streamline communications within businesses and make it easy for people to find the information they need, which improves the employee experience. For example, your employees can easily request time off or check their benefits allocation.
On-premises versus cloud-based software
The main difference between on-premises and cloud-based HR software is that on-premises software can only be accessed on certain computers, while cloud-based software can be accessed from any device with an internet connection.
On-premises software solutions must be installed on computers and can only be used on those computers. You pay for the software licence and must install the programs yourself, as well as manage patching, hosting and updates. The advantage is that they’re very secure and more cost-effective than many cloud-based software packages. However, the downside is that they’re difficult to update and inconvenient for many organisations.
Most organisations today use cloud-based HR systems. Using login credentials, users can access this type of software on any device with internet access. Users pay an ongoing subscription fee for the software, and the software provider manages updates. This model is known as ‘Software as a Service’ (SaaS). The advantages are greater flexibility and mobility. Cloud-based solutions are particularly useful for organisations with mobile workforces. They’re also a good option for small businesses that don’t have large IT teams, as you don’t have to worry about hosting and managing updates yourself.
Things to consider when choosing a HR software provider
- Data security: Given the highly sensitive nature of HR and payroll data, it’s important that your HR software provider can guarantee a high level of data security. Look out for third-party validation, such as ISO27001 certification and ongoing penetration testing. Also, find out whether the data is held on secure servers with emergency power sources and constant backups.
- Clear cost structure: To avoid unexpected costs, look for a provider that has clearly defined, and publicly available, pricing. It’s also important to know how the costs of the services might increase over time as your business grows. A ‘cost per person’ model, where the cost is based on the number of people using the system, makes it easier to calculate future price increases.
- Compliance with Australian legislation: Some HR software providers, particularly local Australian ones, offer services that can save you time and effort when it comes to record keeping and regulatory compliance. These offerings include, for example, employment contract templates that comply with the current Australian employment legislation, and automated approvals, reminders and escalations.
- Mobility and accessibility: With the trend towards remote working, it is becoming increasingly important for employees to be able to access information from anywhere and at any time. As mentioned, cloud-based HR solutions offer significantly more flexibility than on-premises solutions. Some providers also allow you to access their software via a mobile app for extra convenience.
HR software for small businesses in Australia
Here are 7 of the most popular HR systems that Australian small and medium-sized businesses use.
Employment Hero
Employment Hero is an Australian company that provides SaaS-based HR software products targeted specifically at small to medium-sized businesses. The company was founded in 2014 and supports more than 80,000 SMBs around the world. They claim that their products cut the time businesses spend on HR admin by 80 percent on average. Their products cover the entire employee lifecycle—from recruiting and onboarding to engagement, productivity and success. They offer completely paperless onboarding, electronic timesheets, leave management, HR documents and templates and online performance reviews.
Happy HR
Launched in 2015, Happy HR is another locally grown, Australian cloud-based HRIS. Happy HR aims to simplify HR for small and medium-sized businesses through an easy-to-use HRIS platform and qualified HR advice. They support more than 1,500 businesses across Australia. Their software covers a range of HR areas, including recruitment and employee onboarding, HR compliance, performance management and HR management. In addition, they offer integration with a wide range of HR apps, including Xero, Quickbooks, Tanda, MYOB, Cloud payroll, Reckon, Deputy and KeyPay. They claim that their products reduce HR admin by 90 percent.
Info-Tech
Based in Singapore and founded in 1996, Info-Tech provides cloud-based HR and payroll software for businesses of all sizes. Over 20,000 customers use Info-Tech’s software. The HR and payroll software is an all-in-one solution. Services include time attendance, payroll with Single Touch Payroll integration for reporting to the ATO, onboarding, staff management and appraisal, project costing, and more. They also offer biometrics systems, which allow employees to clock in using facial recognition and their GPS location. Info-Tech’s human resources management system is fully integrated with its accounting software, which helps you manage various accounting tasks, such as creating, tracking and sending bills, analysing profits and retrieving reports.
BambooHR
BambooHR an American cloud-based software provider that was founded in 2008. It has a strong focus on designing solutions that meet the needs of SMBs. BambooHR offers an all-in-one human resources information system (HRIS), which bundles a wide range of HR tools, such as an application tracking system (ATS), payroll processing, time tracking, employee engagement and employee satisfaction.
JobAdder
JobAdder is a cloud-based recruitment management platform. The end-to-end recruitment software helps you to streamline and speed up the hiring process. It is mainly used by staffing agencies and in-house corporate hiring teams. However, it can also be a useful tool for small businesses, as you have the option to scale the services up or down depending on your needs, and you only pay for what you use.
You can manage job orders, match applications to jobs and track your candidates’ progress. It also allows you to post job ads to various job boards and social media websites.
Xero
Based in New Zealand and founded in 2006, Xero is a provider of cloud-based accounting software for small and medium-sized businesses. Xero’s double-entry accounting solution allows you to manage sales, purchases, bills and expenses, inventory and payroll. You can store all your documents in one place for easy access and automate your admin by connecting your bank account to Xero, so that transactions from your bank or financial institution can be automatically imported into your Xero organisation.
While Xero is predominantly an accounting software provider, you can also use it for HR processes. Xero’s payroll system links seamlessly with HR management tools, such as HR Partner and HR Central. In fact, Xero can be linked with over 1,000 third-party apps.
MYOB
MYOB is an Australian-based provider of cloud-based business management solutions. These range from accounting, HR and payroll and payment to retail point of sale, CRM and professional tax solutions. MYOB has been around for a long time—it was founded in the early 1980s—and it was the dominant player in computer-based accounting software for Australian small businesses before cloud-based accounting solutions came onto the market.
MYOB’s Greentree is an enterprise resource planning tool that helps businesses control and automate processes in various areas, including financial management, HR and payroll, supply chain, customer management and manufacturing and servicing. You can build an employee or candidate database and offers search capabilities that allow you to match the best skilled candidates and employees to roles.
