10 Best HCM Software To Manage Your HR Needs in One Place
We've tested and demoed dozens of tools to create this guide to the best HCM software. Find pricing info, screenshots, pros & cons, and more below.
Best HCM Software
HCM (Human Capital Management) software manages and optimizes HR processes like recruitment, training, performance, compensation, and everything essential to employee development. More than a software type, HCM is an organizational philosophy.
HCMs provide specific competencies for workers in three categories: workforce acquisition, workforce management, and workforce optimization.
This guide will help you understand the big picture of HCM methodology and the pitfalls to avoid. Critical features like HR ops, scalability, and integration capabilities are covered in detail for each of the vendors we’ve selected.
This guide can also help you understand the difference between HCM and HRMS software. Knowing the difference is important because some vendors try to create products with both HCM and HRMS capabilities. Though there is a lot of overlap, there are important differences you should be aware of.
To select the best HCM software, our experts have gathered user feedback, sought insight from HR thought leaders, and participated in product demos with vendors. In our experience, the right way to go about shopping for an HCM platform breaks down into three general questions. First, are the HR ops functionalities in line with what you need? Second, how easily does it integrate with other systems? And third, does it scale, and will it grow with you?
HR Ops
Every company’s needs differ, and no two HCM systems are alike. Specifically, we assessed products for workforce acquisition, workforce management, workforce optimization, performance reviews, learning management, succession planning, and employee onboarding.
Integration Capabilities
Because it’s so important for your new HCM software to work with your existing tech stack, we assessed each platform’s capacity for seamless integration with the standalone tools you might be using currently, such as accounting software, applicant tracking systems, performance assessment tools, and time and attendance software.
Scale
We assessed each company’s HCM software for exponentially flexible features. Take customization and permissions, for example. As companies grow, their org charts tend to get more complex. Where a simple set of customized permissions would suit a team with only managers and non-managers, a more complex team needs the ability to customize permissions for an elaborate, interwoven network.
For anyone interested in more detail on our selection process, we recommend reading more about our editorial guidelines.
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BambooHR
We picked BambooHR for its flexibility, UX/UI, and reliability. It is a leading HR software suite with extensive HCM capabilities and also offers optional payroll services for US employees, effectively transforming it into a complete HRMS solution.
PROS
- Offers flexible pricing and customizable packages.
- User-friendly interface streamlines employee management for both employees and HR teams.
- Flexible packaging and custom pricing is the way they roll. You can pick out one or two packages and pick other modules as add-ons based on your needs.
- Very simple and straightforward tool, easy to use.
CONS
- Payroll limited to the U.S.-based workers.
- Support hours limited to U.S. time zones
- Some modules, including time and attendance, performance management, and surveys are available as add-ons with BambooHR.
- Payroll is only available for US-based employees
- Customer support is only offered during US business hours.
- Some modules like time tracking, performance management, and surveys are only available as add-ons.
BambooHR deserves a mention within the HCM space (in most HR tech categories, really), even though they can technically be either an HRIS or an HRMS, depending on the package and add-ons you pick.
Their HCM core features like benefit tracking, reporting, employee directory provide sufficient visibility for short and long-term decision making. Other HCM features like performance management and time tracking, however, are only offered as add-ons. This flexible packaging, however, is part of what makes BambooHR so popular among teams in all many sorts of industries. It’s a tool that can adapt to your evolving needs and there’s likely always something to discover.
Among the 20,000+ companies that use BambooHR, you’d find names like Quora, Universal Group, Reddit, Asana, Change.org, University of Maryland, Grammarly, Stance, Postmates, Wistia, the Jacksonville Jaguars, and ZipRecruiter.
Pricing is not disclosed upfront, but they do offer a free trial of their all-in-one software and then go out of their way to find a version that will suit you. Before they come up with a personalized quote that will align with your budget, however, they are also likely to extend your free trial upon request or even give you a free demo of the advanced features.
Best For
BambooHR can be an ideal choice for companies in search of a customizable HCM tool that provides pricing options that reflect their requirements. Additionally, it is well-regarded by teams that are partially or fully remote.
We primarily use BambooHR for payroll and internal HR processes. It consolidates various HR functions into one platform, making it easier to manage workflows, merit increases, and communication during site closures. The system also helps track employee performance and manage compensation reviews, streamlining our overall HR operations. Additionally, we use it for onboarding and recruiting, as it simplifies job postings across multiple platforms. The integrated features create a consistent candidate experience, making the hiring process more efficient.
- It is easy to use, allowing users to quickly become proficient without extensive training.
- The setup process is simple, ensuring a hassle-free installation.
- It offers a variety of features, providing flexibility for different HR needs.
One of the key issues we aimed to address was the need for better support for our internal team. We required a system that would provide reliable assistance whenever needed.
Previously, we used ADP, which offered various features, but its customer service was lacking. This often left our team feeling frustrated, especially during critical times when timely support was essential.
In contrast, BambooHR made it easy to get assistance and resolve issues quickly. Their responsive customer support significantly improved our experience, allowing us to navigate challenges more efficiently. Additionally, the platform was simple to install and use, with an intuitive interface that helped our team transition smoothly.
- Many useful features require additional payments, which can increase costs.
- The billing structure works well for smaller organizations but may become expensive as employee counts grow.
I find BambooHR to be more intuitive and accessible than other HR platforms, which can often feel clunky or overly complex. Its user-friendly interface allows me to work more efficiently with fewer obstacles, making the overall experience more enjoyable.
The number of employees in an organization is a key consideration, as pricing can increase significantly with a larger workforce. It’s also important to assess which features are necessary and which ones can be omitted to manage costs effectively. Identifying essential tools ahead of time can help keep monthly expenses reasonable.
BambooHR has continuously improved by listening to user feedback and adding features that enhance usability and efficiency. These updates have made the platform even more valuable for HR teams.
BambooHR is ideal for HR professionals and organizations looking to streamline recruitment, improve employee engagement, and manage workforce operations efficiently.
BambooHR may not be the best fit for sales teams or organizations primarily focused on direct sales activities, as it is designed for HR and workforce management rather than sales tracking.
Paycor
Paycor is an HCM system that offers a wide range of features, including payroll, time tracking, benefits administration, and employee self-service. The software is designed for small and medium-sized teams to streamline their HR processes and improve employee engagement.
PROS
- Paycor has a robust payroll solution that is easy to navigate.
- User-friendly employee self-service portal.
- Has multiple plans for small businesses and custom plans for teams with 50-1000 employees.
- Often runs discount programs.
- Works well on both Android and iOS devices.
- Is acquiring the people development platform Verb to strengthen its learning management system.
- Paycor payroll solution and mobile app are both straightforward to use.
- Intuitive self-service employee portal.
- Offers multiple modules for small businesses and custom plans for teams with 50-1000 employees.
- Unlimited payrolls.
- Offers discounts frequently. Though not listed on their site, a free trial is available to those who contact the support team directly.
- On-demand pay is available for all plans.
- With the acquisition of the people development platform Verb, it has improved its employee learning experience.
CONS
- Lacks transparent pricing.
- Customer support isn’t very responsive.
- Not the right choice for businesses with 1000+ employees or require advanced customization.
- Undisclosed pricing.
- Customer support is reported to be slow at times.
- It is not a good fit for teams with 1000+ employees or those requiring advanced customization to meet their unique requirements.
Paycor is easy to use and can be customized to meet the needs of businesses with 2 to 1,000 headcounts. The software also offers a variety of payroll and HR features, such as ledger integration, AutoRun, direct deposit, on-demand pay, tax withholding, and reporting tools.
Paycor's employee self-service portal allows employees to access their pay stubs, timesheets, and benefits. Employees can also change their contact and banking info. Through Paycor, employees can finish onboarding paperwork online, choose the benefits package and payment methods, and update their information as needed. Moreover: all of this can be done from the app.
In May 2023, the software just rolled out a new feature named PayCor Engage on its mobile application. This newly launched feature allows employees and employers to interact with each other on the app, which is a massive benefit for engagement and transparency, especially for remote employees.
Paycor has also just acquired the people development platform Verb. We hope that with this acquisition, there will be an uptick in customer service and reporting quality in addition to improving its employee learning functionality.
Regarding Paycor’s downsides, we have heard some users complaining that the support team can be hard to contact at times. As for reporting and analytics features, Paycor charges extra for some custom reports, which are, unfortunately, less intuitive than one would hope.
Wendy’s, McDonald’s, Detroit Zoo, The Cincinnati Bengals, The YMCA.
Paycor pricing varies and depends on your team size and the modules you select.
Best For
SMBs looking for an HCM with flexibility and strong payroll capability will benefit most from Paycor.
We use Paycor for attendance tracking, which includes a scheduling and punch clock functionality. This is important for us as most of our employees are hourly. We also use Paycor for time off management, benefit accrual tracking, and payroll.
- Our employees find their interface user-friendly
- Employment taxes are filed without any effort from us (the employer)
- It's one of the only HR software suites that has functionality for hourly employees
We bought Paycor when we needed a payroll solution that would work with employees in multiple states. Paycor allows us to process multi-state payroll, and they file the necessary taxes in each state and municipality.
We decided on Paycor for these reasons, and our staff found the UI to be the easiest to navigate. We have been using the platform for 4 years.
A great many things, unfortunately.
- Support is practically non-existent
- The payroll workflow is jumbled and doesn't make sense. Instead of a seamless flow in which you approve time card and move on to payroll in the same workflow, you do these things separately
- Their punch clock isn't very intelligent. I have to manually fix several punches a week that shouldn't have been allowed in the first place (e.g. an employee has two punch-in records in a row, with no punch-out record in between)
- There are a lot of reports, which is great. But, ironically, I can never find a report for what I need.
- It's impossible to manage what I would consider basic configurations. For example, our office manager retired last year, but she remains the manager for all employees in Paycor because the setting cannot be changed, even though her Paycor employee profile is no longer active
- Did I mention that support doesn't exist? Send in a ticket and you're unlikely to get a response.
The biggest difference we found is that Paycor has functionality (or modules) for a wide variety of employment situations. In our case, it was one of the only suites that could accommodate hourly employees, meaning it has punch clock and scheduling features.
My staff believes their UI is better, too. However, I don't believe that to be the case from an employer standpoint.
Firstly, if needed, are you prepared to wait for a response from support that may never come? Because that is a reality of Paycor.
Secondly, what functionality do you need? There are a lot of HR suites, and Paycor was our choice because it had functionality that many others did not. If you don't need time management (punch clock) or scheduling, then you should take the time to compare all of your options. Paycor may not be right for you.
Thirdly is the cost. In our second year, they changed their entire price structure. They gave us 30 days' notice. Our monthly costs went up, but we could do little as it takes many months to evaluate other options and several more months to facilitate the migration. The point being, we were stuck and had to deal with the rate change.
I would say very little during the four years we have used Paycor. They've made some UI changes but nothing impactful.
I am sure there is a scenario in which Paycor is a suitable solution for companies of all sizes. Their suite has a lot to offer and can accommodate a variety of employment situations. That said, based on my experience, I wouldn't think Paycor is best suited for companies with many employees. I have a hard enough time managing five employees in Paycor.
Companies with many employees or companies that employ people only in one state. There are certainly better options for employers who don't need multi-state payroll.
Rippling
Rippling is a prominent platform for HCM. And more than that, it gives growing teams flexibility in their shopping. All Rippling modules — applicant tracking, onboarding, self-service, payroll, benefits, time tracking, training, engagement, and reporting — can be purchased according to customers’ needs.
PROS
- Rippling offers a full-feature HCM with great automation support.
- Payroll automatically updates work hours, deductions, and tax filings.
- Supports both US and global payroll.
- Strong integration capabilities (500 third-party apps).
- The Benefits module enables users to collaborate with their preferred broker.
- Provides a mobile app.
- Modules can be purchased separately or wholly as a full suite.
- All-in-one platform for employee management + PEO services offered, and even a suite of other IT products
- With 500 integrations, it’s very likely that they integrate with other key tools from your tech stack.
- Operates globally with any currency
- Workflow automation
- Analytics opportunities
- Provides a holistic view of company outflows—headcount costs included
CONS
- No payroll automation
- There’s no free trial, not a tool for tight budgets
- Telephone support is an added fee
- Not a great fit for teams greater than 2,000
- The mobile app can be slow and doesn’t perform as well as the web browser version.
- Total buy-in to Rippling is essential
- Very SMB-oriented, in case you’re a larger company.
- New features tend to be buggy in ways that tech teams are not accustomed to fixing
Rippling stands out as a strong HCM platform, providing a complete cycle of human capital management functions, encompassing acquisition, management, and optimization.
The features are rich in automation and customization, while the UI maintains a clean look that soothes the eyes. We’re surprised at how fast the solution has evolved since it started the business back in 2016.
Integration capabilities are a standout feature for Rippling, with over 500 software solutions connected across various categories. The self-service feature empowers employees to manage onboarding, benefits, compensation, and personal information through mobile accessibility.
Furthermore, Rippling has taken good care of workforce management and optimization, offering US and global payroll automation for faster payroll processing. Running payroll for employees and contractors is quick, taking only a few minutes. The synchronization between the time tracking app and payment app ensures accurate work hours, deductions, and tax filing. Additionally, the benefits administration tool offers flexibility, allowing us to select our preferred broker and choose from 4,000 plans.
However, we expected more accessible customer service, as Rippling doesn’t offer 24/7 support, and phone consultations come at an additional cost. Additionally, the requirement to purchase the Rippling Unity module to access other modules limits flexibility.
Vox, Maximum Games, Superhuman, Compass Coffee, Highnoon.
Rippling pricing starts at $8 per employee per month. Contact the Sales rep for more info.
Best For
Rippling is a powerful HCM for both US-based and international teams to manage their workforce. With its current feature set, the ideal team size is from 50 to 2,000 team members.
As the Head of People Operations, my daily workflows rely on Rippling. Overseeing the employee lifecycle requires me to use a combination of onboarding/offboarding, reporting, benefits administration, performance management, and general employee data management on a weekly basis. From an onboarding/offboarding perspective, Rippling not only serves as the home base for information but also communicates timely and effective tasks to the necessary parties, ensuring a clear and compliance-first process. With Rippling’s ability to relay information to integrated accounts like Guideline and Carta, my role leans more into oversight, allowing me to focus strategically elsewhere.
Rippling centralizes the majority of the HR processes (+ Finance and IT, if you chose) that would otherwise be spread across multiple systems. For example, our company’s flex benefits, COBRA, and ACA were either managed with a carrier outside of our broker or manually by us and now Rippling handles the administration of all these areas in consolidation with our other health insurance benefits.
The strength of Rippling’s integration library allows for consistent and regular communication to and from Rippling for processes that are not directly managed within the system. For example, prior to Rippling, we manually onboarded and offboarded employees to/from Guideline. With Rippling, the systems speak to each other and manage the employee’s lifecycle with our company-sponsored 401k.
A highly beneficial aspect of Rippling is the workflow feature. Workflows have allowed us to set up Rippling in a way that allows it to speak within the system, initiate processes, and communicate to people/external systems. Rippling is a high-tech HRIS and a constantly progressing platform that meets the needs of today’s operations teams (HR, IT, Finance included).
We selected Rippling to implement a strong HRIS while centralizing other HR operations. By implementing Rippling, we were able to solve and improve several areas. First, we consolidated historical employee data from three to four different platforms into one, allowing us to use Rippling reporting to provide company trends. Second, we simplified benefits administration by transferring health insurance, Flex Benefits, COBRA, and ACA management to the Rippling platform. Third, Rippling offers a cleaner, more centralized, and highly integrated solution for our HRIS needs. I have been actively using Rippling for six months.
Rippling is a complex system. For it to be fully functional to the best of its ability it needs to be given the time to implement and set up in great detail. Knowing this, the implementation should have been much more hands-on. I’d recommend that whoever is leading the implementation internally has experience with other systems, so they know what to look for.
Rippling does not have an employee “notes” section. As the place I rely on for the most up-to-date employee job and personal information, it is missing the ability to keep it up to date with employee relations information directly in their profile. This is a feature I have experience with in other HRIS’s and is a missed opportunity in the Rippling platform.
Unlike BambooHR, a competitor, Rippling does not offer a “missing data” report. To find out who within the company is missing information, we will have to discover it when it is flagged during another unrelated process. I think this puts us at risk if we are unknowingly missing key information or signatures from any employee.
Rippling is a fully functional operations system with a large integration library. It provides HR with the necessary tools and offers Finance and IT tools. Incorporating various clouds and add-ons allows Rippling to carry an administrative weight heavier than its competitors.
Rippling is a complex system, so you should be prepared to invest time and attention to building a strong foundation during the implementation process. It can do a lot, but it needs to be built on the backend for the front end to function at its best. Since many tools within Rippling rely on one another, approach it with a big-picture philosophy for your organization’s intentions. Be clear about what you need during the discovery process, as Rippling has many features, but not all may be necessary for your company.
Rippling continues to introduce small improvements to existing features and entire tools, like performance reviews, and exclusive highly functional built-in integrations, like Carta. These developments are likely to continue as Rippling gains popularity in HR and Finance.
Rippling is highly flexible and can be strong for a wide range of companies. It can suit new startup companies (less than 50 employees) but may be best for 70+ and growing SMBs.
Businesses with more than 500 employees may outgrow the system.
Ceridian
Ceridian is the creator of Dayforce, a cloud HCM platform that efficiently handles the employee lifecycle end to end, including payroll, benefits, workforce management, and talent management.
PROS
CONS
Dayforce HCM by Ceridian consolidates data from all employee lifecycle stages, enabling informed decisions and data-driven insights. This comprehensive platform integrates HR, payroll, benefits, workforce management, and talent management.
Notably, Dayforce features a flexible rules engine that handles intricate regulatory demands, delivering real-time updates and computation.
- Guitar Center
- Danone
- Spirit Aerosystems
- El Pollo Loco
- Crescent Bank
Pricing for the Dayforce HCM suite is not provided upfront.
Best For
Ceridian’s Dayforce HCM is best for enterprises with over 1,000 employees.
As an HR leader working in the COE, I used Ceridian as an administrator. I had access to add and remove reports, run reports for North America, Canada, and Mexico, and control benefits administration - including open enrollment, life event changes, reconciliations, etc. I used Ceridian as the main HRIS for the company I was employed in at the time.
I loved that the platform reached our global audience and that our employees could manage their own data in the system. I also liked the reporting functions and how easy it was to make benefit changes in the system from an administrative view.
We chose Ceridian because it was one of the only systems that had the global support we needed. We needed a robust system that would allow our employees to manage their data in the US, EMEA, Canada and Mexico, as well as hone into reporting functions easily for our COE. I used Ceridian for almost 4 years, managing benefits, reporting, and employee data. I trained my team how to use it, so they could emulate this training at their respective locations.
Ceridian is not the most user-friendly interface. It is not impossible to use, but for anyone who struggles with tech, it can be a challenge. Companies with large populations may also find it easy to get analysis paralysis, as all of the reports can be overwhelming and hard to sort through. Lastly, it only gets easier with practice, so if you are not on this platform often it will not get easier to navigate. One truly must familiarize themselves with it in order to understand how to navigate it.
What sets Ceridian apart is its global capability and reporting functionality. I have yet to come across another platform that can store the amount of data this can and pull it together in the same way Ceridian can.
The size and location of their organization/employees, data analytics, user interface and price.
I think they are trying to make a dashboard more user-friendly but otherwise, I think they know their strength and lean into that.
Large global organizations
Small businesses operating on a local scale.
Criterion
Criterion helps midmarket orgs gain better control over their human capital by combining the entire talent lifecycle into a single interface: applicant tracking, onboarding, compensation, benefits, performance, and learning management. The HCM also has good scalability—it can accommodate well whether you have 200 or 5,000 staff.
PROS
- Flexible and reasonable pricing: starts at $4.50 per employee per month.
- All-in-one platform combining ATS, payroll, benefits, and learning management.
- Open API for app integrations.
- Native biometric check-in feature.
- Flexible and reasonable pricing: starts at $4.50 per employee per month.
- All-in-one platform combining ATS, payroll, benefits, and learning management.
- Open API for app integrations.
- Native biometric check-in feature.
CONS
- Mobile app users reported experiencing login issues and frequent crashes.
- There’s a steep learning curve for employer users.
- The implementation process can be lengthy.
- Mobile app users reported experiencing login issues and frequent crashes.
- There’s a steep learning curve for employer users.
- The implementation process can be lengthy.
Criterion satisfies every feature note we were hoping for in an enterprise-centric HCM. It covers talent acquisition, onboarding, attendance, benefits, compliance, communications, enrollments, payroll, and other HR tasks through a single central database. Thanks to this, finding employee information is quick and easy, and its ability to eliminate double data entry is just on par with other robust HCM listed in this buyer guide.
Two standout features of Criterion that receive lots of love from admin and employee users alike are its time tracking and payroll.
The time and attendance feature includes scheduling and labor tracking that can work for both on-site and remote hires. It also supports biometric check-ins where employees can clock in with a fingerprint—a huge plus for teams in environments like factories and warehouses.
As for payroll, Criterion has one-click integration with payroll systems and can process payroll and taxes quickly with minimal user input. Plus, the employee self-service portal that centralizes all communications between managers and staff regarding time tracking, PTO, and performance reviews is such a great element in driving better team collaboration and engagement.
Criterion offers a mobile app that allows workers to track their time on the go. However, it wasn’t as good as we expected, with system crashes and login issue loops happening here and there as we tested it out.
It’s no secret that Criterion is recognizable by its feature richness but not so much in appearance. The UI looks quite dated, and teams prioritizing simplicity over comprehensiveness may find this HCM’s layout a bit too information-heavy.
Owing to its extensive feature set and, especially, formula-driven configurations, employers may encounter some learning curves to get used to all the features Criterion offers. For the same reason, the time to get the software up and running is quite long, with implementation taking 2 to 6 months to finish.
500+ companies, including Scott Steel, Inflector, and Gordon College.
Criterion has three products you can buy separately or jointly: Human Resources costs $7.50 PEPM, Payroll costs $4.50 PEPM, and Talent Engagement costs $4.50 PEPM.
Best For
Criterion HCM is of great use to mid-sized and large enterprises (200 to 5,000 employees), North America-based preferable.
Oracle
Oracle is one of the top names in IT. Their HCM is popular among enterprises with more than 1,000 employees and boasted for its implementation and CS practices.
PROS
CONS
Oracle’s HCM suite is built for the cloud and made for connecting every single HR process. It’s good for teams looking to have a single source of truth for HR data in order to improve decision making. Their product includes talent management, recruiting, workforce management, payroll, and HCM analytics. The interface is not the best-looking out there and UX can be frustrating for employees and HR alike, but they're still one of the top choices for large scale implementations.
- Axa
- Blackboard
- Deutsche Bahn
- Marriott, Cisco
Oracle doesn’t provide pricing details for their HCM upfront. To get a quote, you’d have to request a demo, but they also offer interactive product tours that you can take before chatting to a sales rep.
Best For
Enterprises with over 1,000 employees in most parts of the world.
We use it to maintain employee records. It’s also used for time keeping and payroll processing. Oracle helps maintain all employees in a database that is easy to access for all needs and syncs perfectly with our payroll system, Lawson. Oracle has been hacked once which caused many timekeeping issues but overall it is a reliable product.
Everything can be found in one place for timekeeping for employees. Supervisor and Employees can maintain timecards at ease. It integrates with other systems and there are minimal hiccups with the transfer of data. It’s not complex so it’s easy to use and makes it very easy to train others in the system.
I used Oracle working at Scripps health. We had over 5000 employees and the ATS system worked best for a larger group of employees. It flows well without issues for time keeping purposes and integrates smoothly within Lawson. The customer service is lacking but the product can get the job done for large corporations.
Lag time when multiple users are using it. Customer Service is non responsive and hard to get in touch; therefore, problems are never resolved.
It’s not much different except that the navigation is easier and so it is user friendly for new managers and HR professionals.
It’s great for larger corporations. If you have a smaller corporation you should do your research to make sure that you are not over paying for the system or may want to do comparisons to other ATS systems.
Overtime the system has improved by becoming smooth and fluid with few hiccups. It allows the process to flow better
Large corporations
Small companies
WorkDay
Workday is a popular HRMS solution, primarily targeting enterprises. It offers a centralized source for managing workforce administration, engagement, compensation, and benefits data across various worker types. This includes contingent workers, employees, contractors, and retirees, making it a comprehensive solution for all aspects of workforce management.
PROS
- Workday process flows are easily adjustable to conform to global and local needs.
- Self-service is available for both employees and managers.
- AI-driven assistance for detecting skills gaps.
- Mobile apps...
- Offers phone, email, community, and live chat support.
- Complies with the General Data Protection Regulation (GDPR) and includes a robust, configurable security model.
- Accessible customer support from the community, live chat, and telephone.
- Compatible with 300 HR systems such as ERP/GL, CRM, HR, and PSA.
- Configurable dashboard with AI and ML-driven insights.
- Ability to maintain real-time alignment of budgets and workforce plans.
- SOC 2 Type 2 compliance.
CONS
- Not transparent with pricing.
- No free trial is available.
- Long implementation process (4.5 months on average).
- Navigation for beginners can be confusing and may need training to understand all features.
- Mobile apps aren't very user-friendly.
- Undisclosed pricing.
- No free trial for its talent management software.
- Time-consuming implementation period (average 4.5 months).
- Challenge navigating for first-time users may require training.
- Issues with logging in were reported by users.
Workday excels at personalization by tailoring recommendations, tasks, and search results to individual users based on their roles.
Other aspects of the business processes functionality stand out, too, especially for multinational businesses. WorkDay helps teams achieve operational consistency while also allowing customization of workflows for specific location requirements.
The platform also offers performance assessment capabilities that provide visibility into the workforce's current capabilities. This enables swift identification of skills gaps and facilitates prompt action in sourcing and training internal talent development.
Despite its popularity with larger organizations, Workday's mobile app underperforms compared to the software itself. Users report issues with the time clock system, frequent crashing, and sign-in problems on both Android and iOS platforms.
Additionally, the implementation process for Workday's HCM can be time-consuming, averaging around 4.5 months, and involving multiple individuals and departments.
Quicken Loans, AstraZeneca, Target, Dell, Bank of America.
Workday pricing is undisclosed on the website. You need to contact Sales for a quote.
Best For
Workday is awesome for large enterprises with multiple branches that are looking for an inclusive HCM solution that is scalable and with great reporting capabilities.
I used Workday daily to manage various aspects of our organization's workforce. The key workflows I rely on include employee data management, performance management, and reporting. For employee data, I maintain up-to-date employee records, including personal information, job titles, and reporting structures. For performance management, as a manager, we used it to track employee performance by setting goals, conducting performance reviews, and managing feedback. Workday also has robust reporting functionality.
User-friendly interface: Workday's clean and intuitive design makes it easy for users to navigate and find the information they need.
Scalability: This makes it an ideal solution for growing businesses that require additional functionality over time. As a company expands or needs change, Workday can be customized to meet those evolving requirements.
Seamless integration: Workday offers robust integration capabilities with various third-party applications, ensuring a smooth flow of data across different systems. This compatibility with other software tools enables organizations to maintain a connected ecosystem, streamlining processes and reducing the need for manual data entry or reconciliation.
My organization was 10k plus employees and our old HRIS system was dated and clunky. I used it for approximately 2 years. We needed better self-service for not only employees but for managers as well with built-in approval processes. Additionally, we were looking for a tool that could handle the complex requirements of our global workforce, including compliance with local labor laws and regulations. Our previous system didn't have robust reporting capabilities, and it was challenging to extract useful data for analysis. Furthermore, it made it easier to manage employee data and processes across multiple systems. It also provided built-in compliance features, ensuring that we were meeting legal requirements in all countries where we had operations.
Cost: The investment in Workday is substantial, and not a good option for smaller companies.
Learning curve: While Workday's user interface is intuitive, the platform's extensive features may require some time to master. Adequate training and onboarding are essential for users to get the most out of the software.
Limited customization: Workday offers a wide range of built-in features and functionalities, but it may not be the best fit for organizations with highly specific or unique requirements.
While Workday has a long list of impressive companies that utilize their system I find SAP SuccessFactors does just as much and for slightly cheaper.
Functionality: Determine the features and capabilities that are most important to your organization. Consider aspects such as human resources, payroll, talent acquisition, time and attendance, performance management, financial management, and analytics. Ensure the tool you choose covers the required functionalities or can be easily integrated with other systems to create a comprehensive solution.
Scalability: Assess whether the tool can grow and adapt to your organization's changing needs. A scalable solution will allow you to add or modify features as your business evolves, ensuring long-term viability.
Integration: Examine the tool's ability to integrate with existing systems and third-party applications. Seamless integration is essential for streamlining processes and reducing the need for manual data entry or reconciliation.
User experience: Evaluate the tool's user interface and overall usability. An intuitive and user-friendly design will encourage adoption and make it easier for employees to effectively use the platform.
They have expanded product offerings and made some user experience enhancements.
Enterprise with large (1000k+) and global employees.
Small businesses with under 1k employees.
SAP SuccessFactors
SAP SuccessFactors is one of the big names in HCM. They’re currently pushing the boundaries of the category itself, calling their product an HXM suite, for Human Experience Management.
PROS
CONS
SAP is trying to transform traditional human capital management into a more employee-oriented endeavor. Through their HXM, they are trying to put the worker’s experience as the main focus of the way companies engage with their people. Their product helps HR managers deliver experiences that resonate with employees while shaping their strategy.
One thing to consider is that SAP, like many of the biggest companies doing HCM products, has been criticized for having a frustrating user experience. With their shift towards being an HXM, however, it looks like they're tackling that issue and moving in the right direction.
- American Airlines
- Ernst & Young
- Hero Group
- Terex
- Watco Companies
Pricing for SAP’s HXM suite is only available upon request.
Best For
Enterprises looking to improve UX
We use SAP-Success Factors daily to create training content for all of our district employees. We have a number of mandatory training sessions to meet compliance goals and we use SAP- Success Factors for that. We are able to create SCORM video files and post these to Success Factors. We can add additional components to the training packages as well to test employees' assessment results. We are also in the early stages of working on using Success Factors for employee performance management.
It makes training compliance much easier for us. It is good for large enterprise environments. It is highly customizable.
My organization bought SAP-Success Factors to use as an LMS tool. We've been using it for about 4 years. Prior to using SAP-Success Factors, getting our large pool of employees to complete mandatory training was difficult. Now we can create our own training content and manage its delivery much more easily. It also allows us to track compliance on training more easily.
It can be difficult to get the support we need from our SAP representative quickly. It is so customizable that it can be difficult to predict the effect of small changes to the software. The integration with reporting can be slow.
Success Factors is very robust and highly customizable, and that differentiates them from competitors.
You should consider the cost, and it can be prohibitive for smaller organizations. It is also so customizable that you will need someone on staff to become an expert to really use it to its fullest. It's also good to consider if you actually need a product this customizable or whether something more plug-and-play would work better for you.
We are constantly meeting with our SAP rep to tweak our setup. They are willing to work with us on this, but it is sometimes a lengthy process.
Success Factors is great for a large enterprise-level organization that needs highly customizable software.
Success Factors is more than probably any small organization would need in terms of breadth and customizability.
UKG
UKG is the merger of Ultimate Software and Kronos. As such, it brings over 70 years of experience with People tech into the HCM space. Ultipro became UKG Pro, their feature-rich HRMS, packing features like performance and time & attendance management.
PROS
- UKG is a robust product with extensive experience in HCM and Workforce Management technology.
- UKG includes UKG Pro for HRMS and UKG Ready for workforce management, providing a comprehensive set of tools to address various HR needs.
- Administrators can customize user visibility within the system through configurability.
- The Ultimate Community provides valuable on-demand information and fosters networking among UKG Pro users.
- It offers an iOS app and an Android app for employees.
- Super robust product, packing years of experience with HCM and Workforce Management technology
- Since they offer UKG Pro for HRMS and UKG Ready for workforce management, you could arrive at a combination of products that suits many of your HR needs from the same set of tools.
CONS
- Lacks a unique selling point or specific focus on niche businesses compared to newer tools, making it more suitable for larger companies.
- Users report ongoing issues with logging in to the Android app.
- Can be pricey for budget-minded companies.
- Compared to newer tools, UKG Pro and UKG Ready tend to miss a unique selling point or a specific focus on a certain type of business. While they work great for bigger companies in all sorts of industries, very niche operations might have a hard time adapting to the tool.
- Similarly, UKG offers many solutions under one umbrella, so it's not the best fit if you're looking for only a handful of specific use cases.
UKG, born from the merger of Ultimate Software and Kronos, delivers a wealth of features designed to meet the needs of enterprise-size teams.
One of the standout qualities of UKG is its ability to handle multiple aspects of employee management. From hiring and onboarding to performance management and succession planning, this platform provides a holistic solution for HR needs.
Drawing on over 70 years of combined experience in people tech, UKG brings a robust and extensive set of capabilities to the table. The fusion of Ultimate Software's UltiPro and Kronos' workforce management expertise has resulted in UKG Pro. This powerful HCM tool offers performance management and time and attendance tracking features.
UKG also provides UKG Ready, derived from Kronos, which enables functions like time and attendance, scheduling, and Affordable Care Act (ACA) compliance. This comprehensive approach eliminates the need for multiple tools and offers a unified experience.
While UKG has many strengths, we did notice a few drawbacks. The platform may not have a distinct selling point or a specific focus on niche businesses compared to newer, more specialized tools available in the market.
Furthermore, there have been reports of login issues with the Android app, which can be frustrating for users needing easy access to information.
Pricing is another aspect that requires careful consideration. UKG may be out of range for organizations with limited budgets. According to our research, licenses generally start at around $600.00 per year for every 5 users.
Tesla, Marriott, Yamaha, Aramark, Puma, Sony Music, Samsung.
- Pricing for UKG is not provided on their website.
- Typically, pricing is based on a per-employee-per-month model, with options for annual or monthly billing.
- To obtain an accurate quote, it is necessary to contact a sales representative. But based on our research, licenses generally start at around $600.00 per year for every 5 users.
Best For
UKG is an excellent HCM solution for companies operating in the Americas, EMEA, and Asia/Pacific regions, ideally with a minimum employee count of at least 7. UKG Pro can cater to companies with 75-500 employees, while UKG Ready is for companies with a headcount of 500 and beyond.
I use UKG daily. It is used for performance reviews and performance improvement plans. Grievances and corrective actions are tracked in the system. UKG provides a way to send out employee communications or policies and then obtain employee certification that they have read and understood them. The survey tool is beneficial for targeted or company-wide surveys as well as exit interviews. The ticketing system is used to address any related questions or needs.
I appreciate how easy it is to complete the I-9 verification process through UKG. Employee communications are streamlined and can be sent to targeted audiences using employee attributes. The survey tool comes with survey templates that are easy to modify for our needs.
It was important to have a tool that could easily allow us to conduct and track performance reviews, manage employee grievances or corrective actions, collect and submit government-required information (EEOC), automate onboarding, and conduct I-9 verification. We lacked a way to track HR-related requests, identify who was responsible for addressing them, and monitor how long it took HR to respond. We did not have an easy way to track or schedule people-related communications. Our employees had to go to multiple areas to access people-related information. UKG addressed all of these needs and more. I have used UKG for more than a year now.
It is not easy to modify certain areas of UKG to fit our needs. UKG is designed to be very standardized and somewhat basic, which can be a problem for companies that need a more agile system. The survey tool is a bit clunky, and the data reporting is harder than I would like it to be. Reports from the system in general are difficult to run. Responses to issues or needs are sometimes lacking.
UKG is a great mid-range tool. It provides enough flexibility and automation to be helpful but isn’t overwhelming in its offerings either.
Evaluate what systems you wish to link to UKG. Some of these are easy and some are not. Make sure you understand your HR workflows and the gaps you’re trying to fill. This will make the startup process with UKG much smoother.
We are relatively new in our use of the tool, so its evolution over time is not yet obvious.
UKG is perfect for small, medium, or large organizations that would benefit from automation, templates, and a ticketing system.
UKG would likely be too robust for very small organizations or those that do not have an established HR department.
Sage People
Sage People offers a scalableHCM cloud solution, covering the entire HR process and delivering real-time actionable HR analytics. With customizable dashboards, users can create recruitment plans and delve into metrics such as attrition and time-to-hire.
PROS
- Good range of workflows for globally-distributed teams
- Lots of local expertise from payroll and compliance consultants
- Good range of workflows for globally-distributed teams
- Lots of local expertise from payroll and compliance consultants
CONS
- Integrations offerings are somewhat limited
- Some users report the mobile app lacks core functionalities
- Not many integrations
- Some users have found the mobile app to lack core functionalities
Sage People is a customizable HR suite with HCM capabilities. It’s a great option for companies in the small to medium enterprise range (150 - 5k employees) that have a global presence. It’s a very broad product that also integrates with the rest of Sage's ERP suite, which includes tools for finance, accounting, business management, and more.
CRU, Lovehoney, Showbrook Bank, Enigma Industrial Services
While the pricing for Sage People isn't disclosed, you can take an interactive tour and see the tool for yourself. Afterwards, you can get in touch with their team to get a customized quote.
Best For
SMBs with a distributed team, especially those that use Salesforce. Also medium enterprises with a global workforce.
We used Sage People primarily as a basic HRIS to keep track of all employee information. Secondary to that was the payroll function and time management. Managing time cards was most important for us, including tracking employee PTO balances and absences. Having Sage People seamlessly integrate into our finance system was a huge benefit for bookkeeping and payroll expenses. Although not often, we sometimes made use of HR analytics.
I liked Sage People because of the simplicity of managing time card data. It is a very user-friendly system for beginners to learn and navigate. The seamless connectivity with our accounting software was also a major plus.
We acquired Sage People long before I was employed, so I can’t speak to the specific issues that needed to be solved before deciding to use it. We were previously happy with Sage 100 as our primary finance management service, which is how we came to learn about Sage People. I believe a primary reason for adopting it was to reduce paper consumption. We had previously tracked everything in employee folders, which grew beyond our storage capacity. I'm also sure it was intended to make it easier to manage a growing business with a rapidly increasing employee population.
Sage People felt a little dated for our growing business, not allowing for much customization in reporting. There was no employee self-service function, which required our HR department to handle all issues related to timekeeping, PTO, and many other things. We felt like we were outgrowing Sage People and ultimately looked for something that allowed us to manage talent digitally, including training, performance discussions, and employee reviews.
Sage People was a basic and cost-friendly alternative to many other HRIS systems on the market. For those that don’t need many plug-ins, it is a wonderful tool.
When looking to buy Sage People, the primary considerations should be how many functions you are looking for in an HRIS system. For companies that primarily need help with recruiting and talent acquisition, Sage People may not be ideal, as it has limited compatibility with other programs we use often for recruiting. Consider the size of your business as well—Sage People is well-suited for a mid-sized business with around 200-1,000 employees.
Sage People has definitely improved the user-friendliness of its interface and added some functionality that most HR departments look for in an HRIS.
I think Sage People is useful for small corporate offices or organizations managing a small workforce of labor-intensive personnel.
I think Sage People would not be a good fit for organizations that utilize entirely online employee information systems, such as large tech companies.
Pitfalls of Buying Human Capital Management Software
When in the market for an HCM, the main thing you want to watch out for is picking a system that actually delivers on the practices that define human capital management. Unfortunately, HCM is little more than a buzzword for some people, to the point that they’ll throw the term here and there even if they don’t really have a product that addresses those requirements.
So how do you make sure that you’ll get what you need? If we take a tip from ADP’s 10 tips for evaluating HCM systems, the best bet is to identify your future HCM requirements first. This entails defining what you want to accomplish in terms of employee management and HR functions, and understanding how this may be underserved right now by current tech stack.
In other words, narrowing down what you expect from the tool and understanding whether it’s an HCM suite you need or just a regular HR management tool. The two tend to be confused with each other, and there are times where you could get the exact functionality you need from core HR software and spend less; even if you need to get additional tools, such as an applicant tracking system or a payroll management tool.
How are Most HCM Solutions Priced?
The thing with almost every HCM solution is that they’re built for the enterprise sector. Some of them are certainly made to accommodate SMBs, or any sort of organization size, but even in those cases, pricing is rarely discussed up front.
The reason for this, like with a lot of SaaS tools, is that costs can vary widely depending on the actual size of your business (however big) and the needs you’re looking to cover. For instance, some vendors will have a Core HR product that is priced per employee per month, and separately-priced modules for more particular necessities like benefits management and employee experience.
Key HCM Software Features
In order to build a list of requirements and use it effectively to evaluate vendors, it will help to know which are the key HCM software features and how these can support your goals.
As mentioned at the beginning of this article, human capital management software is implemented in three categories; workforce acquisition, workforce management, and workforce optimization. We’ll look at the key features from each category:
- Workforce Acquisition: This part of HCM is concerned with managing applicant tracking, recruitment, onboarding, and pretty much every early stage of the employee lifecycle. For modern tools, it should also include employee self-service so you know the recruitment and onboarding process can be expedited.
- Workforce Management: Although sometimes a category of its own, for the purposes of HCM, this is the tier where we could consider all the core HR tools. These include the daily administrative work of the HR department, such as payroll, benefits administration, leave and absence management, time tracking, and an HR service center. For features in this category, you should look mainly towards automation and efficiency.
- Workforce Optimization: This is where the ‘workforce as competitive advantage’ part of HCM really finds its momentum. Optimizing the workforce to align with business goals includes performance management, workforce planning, training & learning management, employee engagement, and reporting & analytics. This category is all about generating actionable insights that let you use data in your decision making and make sure that HR is doing its part in steering the workforce in the proper direction.
Questions to Keep in Mind when Demoing HCM Software
As you start demoing various HCM software solutions, it’s important to prepare and attend these meetings with some questions already in mind. These inquiries should aim at answering whether the solution in question will indeed address the main use cases and core needs that you’re looking for.
Of course, the most concerning of these questions shouldn’t be saved for the demo at all, but rather handled prior, through an email thread for instance, so you won’t waste time on a demo if X or Y solution turns out to be incompatible with your core needs.
Further, the demo should also help check certain boxes that your internal stakeholders care about, such as integrations, security, data management, self-service portals, features, etc.
You should write down a list of those questions, share it with your team, and maybe have stakeholders add to it as well. While that list will be unique, here are some common questions when demoing an HCM that should help get you started:
- What integrations are key to us? Does it integrate with ATS/payroll system/any other systems you might have that impact workforce management?
- Does this solution have SSO capabilities?
- Are there multiple authorization levels for different types of users?
- Is there a maximum number of employees it will support across the workforce?
- What types of reporting capabilities does it have?
- Does it include features to help HR communicate with employees (i.e. mass emails, filtering messages by criteria)?
- What kind of tasks can we automate or streamline with this tool? How many man hours can we expect to save doing so?
- How much technical training will be required?
- What kinds of technical support are provided?
- What recruiting capabilities are built-in?
- Which HR processes will be automated?
- How will information be exchanged with carriers (for employee benefits)?
- Does it accommodate benefits carriers’ rules?
- How can we import employee data into this system? (API, Excel spreadsheets, employee records, other databases, and paper documents)
- What built-in security measures does it contain?
- Does your solution feature pandemic-related tools like a vaccine management system?
FAQs on buying HCM software
Moving on, here are some of the most frequently asked questions from HR professionals when it comes to human capital management software:
What is the best HCM system?
While some of the top vendors in HCM software are Workday, SAP SuccessFactors, ADP Workforce, and UKG, “the best” is really a matter of your business size and requirements. There are many HCM vendors, out of which there are likely 1-2 that will align perfectly with what you’re looking for.
What is the difference between HCM, HRMS, and HRIS?
The main difference between HRIS, HRMS, and HCM is that the former two refer to a specific type of software, systems of information, as their names imply (human resource information system and human resource management systems). HCM, on the other hand, stands for human capital management. This is a set of business practices around the acquisition, management, and optimization of a business’s workforce.
What is HCM software?
HCM software is a software tool that takes most features that you would expect out of a labor management platform, but builds it purposefully for the business practices that encompass human capital management. This software puts together widely-varying features such as workforce planning, performance reviews, and employee onboarding in a single management platform where they can all help to generate insights that drive broader business decision making.
Why do definitions of HCM, HRMS, and HRIS vary so much?
This is a good question precisely because the definition of each term varies widely from vendor to vendor, and among HR professionals as well. That being said, the differences between each software category are all about features and use cases. Most thought leadership indicates that HRIS is the most circumscribed type of solution, focusing on core HR needs. HRMS takes it up a notch in features, while still sticking to HR use cases, and HCM is about rounding up all those features with strategic planning for the business in mind, with the workforce as the main component to analyze and optimize.
Last Advice on Buying HCM software
To wrap this up, we’ll assume that you’ve read everything above and have a couple of vendors in mind to reach out to and book a demo. To send you off to this part of the buying process, there’s one last piece of advice that can help a great deal when evaluating HCM software providers.
These demos should revolve around your HCM requirements, and you should try to avoid having one-size-fits-all demonstrations whenever possible. To do this, share your list of requirements and questions beforehand, asking them to show that specific functionality. Since reporting is such a big part of human capital management, you could even give them data for them to run into the system.
This way, you and your team will get to truly see how much of a fit the tool is for you, as well as gauging for factors like intuitiveness and overall user experience. Couple this guide with resources like ADP’s 10 tips for HCM vendor evaluation or our very own HR & recruitment software buying organizer, and you’ll be on your way to find the perfect platform for your HCM needs.
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