Written by
Jessica Dennis, Lead Writer
Read more by Jessica →
Reviewed by
Kaiti Norton, Managing Editor
Read more HR content →
Written by
Jessica Dennis, Lead Writer
Read more by Jessica →
Reviewed by
Kaiti Norton, Managing Editor
Read more HR content →
In this article...
Human resources (HR) software systems unify administration, recruitment, payroll, training, employee engagement, performance management, and other essential HR functions. This provides a secure database of employee data and a centralized view of a company. It also helps HR teams effectively manage each stage of the employee life cycle.
The right HR software solution can help optimize processes by automating manual tasks, organizing employee records, and building data-driven reports. Moreover, advanced HR software solutions enable better workforce planning, financial forecasting, and strategic decision-making.
I reviewed 10 human resources software solutions and narrowed them down to the best of the best:
Learn what to look for in an HR system: How to Choose the Right HR Software for Your Business
Our Rating: 3.80/5
ADP is one of our favorite HR software vendors, featuring in many of our top product pages and comparisons. For more information on Workforce Now’s capabilities, check out some of our articles below:
Our Rating: 4.10/5
You can read more about SAP SuccessFactors HXM’s product features by exploring some of our articles below:
Our Rating: 3.88/5
Rippling’s global capabilities also made it one of our top picks for global payroll software and employer of record services. Learn how it stacks up against competitors in these areas:
Our Rating: 3.53/5
BambooHR is a versatile HR suite that covers a lot of ground in the world of HR. As a BambooHR aficionado, I frequently include it in my HR software shortlists:
Our Rating: 3.39/5
The needs and budget of every startup are different. If Gusto doesn’t seem the right fit, you can check out 5 Best HR Software for Startups. I also recommend the following two platforms that specifically address the features that Gusto lacks.
Bob offers exceptional employee engagement and customization tools to foster connection among distributed teams. While it lacks a native payroll module, it does integrate with big names like ADP. Plus, its sandbox feature allows you to create and test new workflows before rolling them out to the rest of your organization, a valuable tool as your processes evolve.
Need time tracking and scheduling? If you have fewer than 40 employees, TriNet HR Platform’s Essentials Plan plus the payroll add-on costs less than Gusto Plus. This is an excellent benefit if you need to monitor business coverage levels, run payroll, and provide employee benefits on a tight budget. Learn more about the similarities and differences between TriNet (formerly TriNet Zenefits) and Gusto in our deep-dive comparison.
HR software is a broad and segmented product category. Below are some runners-up that performed well in specific categories and may better suit your business’s needs.
Alternative for: SAP SuccessFactors
When to choose Workday HCM: Workday Human Capital Management (HCM) rivals most enterprise-grade HR solutions with its modern and user-friendly interface. In particular, Workday’s expansion into ERP through finance and operations modules means it easily combines data from all these business sectors for more informed decision-making. Beyond headcount and cost, Workday offers model and scenario planning to forecast your company’s labor trends and help plan future business moves like expansion, acquisition, and partnership.
Why it didn’t make the list: While Workday may be a more approachable platform for your individual contributors and executive teams alike, it is very expensive. This is because Workday takes longer to build each module internally rather than acquire features through mergers or acquisitions with other vendors.
Workday also does not have nearly the support for international teams compared to Rippling or SAP, forcing you to integrate with third-party solutions. Its native payroll functions, for example, are only available for the U.S., UK, Canada, and France.
OUR RATING: 4.10/5
Alternative for: Rippling
When to choose Paycor: Paycor uses a pay grid you can configure to your payroll preferences for various pay schedules and locations without contacting its customer support team. Paycor also offers modules to support more strategic HR and employee retention, such as succession planning, talent development, financial wellness, and employee engagement.
Why it didn’t make the list: Paycor’s interface looks dated and navigating between modules is less intuitive than Rippling and BambooHR. Its small business plans are also costly for what you get. For example, its cheapest plan, Basic, starts at $99 per month plus $6 PEPM and does not have onboarding and time management features, which most HRIS offer from the start.
OUR RATING: 3.38/5
There are three main categories of HR software: HRIS, HRMS, and HCM. Although they are often used interchangeably, there are several technical differences between them. Some HR software also focuses on specific human resources functions, like recruiting, onboarding, payroll, benefits administration, performance management, employee engagement, and learning management.
HR software solutions offer businesses a number of advantages, including increased efficiency, consistent compliance, and deeper reporting capabilities.
Many HR software solutions include automation capabilities that drive the efficiency of different HR processes. When HR staff can spend less time on repetitive, manual tasks, they are able to focus on more valuable priorities. Additionally, HR software provides employees with direct access to the services employees need most so they can complete tasks like direct deposit updates or benefits enrollment independently.
Compliance with HR-related laws and regulations is usually non-negotiable because of the costly penalties associated with violations. HR software helps organizations stay in compliance with current local, state, federal, and international laws, as well as industry-specific regulations. Typically, this manifests as built-in time and pay compliance warnings, legally mandated paperwork tracking, news on laws affecting your workforce, and access to HR best practices documents.
Robust HR software reporting features help organizations make informed decisions with accurate data. Many HR platforms offer report generation templates to help users find the information they need quickly, and others offer advanced AI tools to support deeper data insights like predictive analytics and natural language processing.
Of course, you already know the benefits of HR software: how it streamlines administrative tasks, simplifies the hiring process, and creates one central location for all your workforce data. But to get approval for such a significant investment, you’ll need to connect the dots for other decision-makers.
As such, a well-rounded proposal will cover how individual departments will benefit from new HR tech, whether by reducing costs, avoiding risks, or propelling strategic, long-term goals.