11 Best HRMS Software Solutions in 2025
Our team of HR tech experts have demoed and tested dozens of Human Resource Management Software tools. Based on this research, we present our top HRMS picks along with their features, pricing, pros & cons, and more below.


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Top HRMS Software
Are you in the market for a world-class HRMS to streamline employee onboarding, payroll, benefits management, and talent acquisition? This guide will help you make a well-informed and confident selection (though, if you'd like personalized assistance, you can book a free call with an HR tech expert on our staff who can build a custom vendor shortlist for your organization). We are experts on HRMS software, and this guide provides a highly developed and unbiased appraisal of the HRMS options on the market. We’ll walk you through every step and help you avoid common mistakes. But before we get too deep, let’s define what “HRMS” means.
Sometimes, it helps to understand something by defining what it is not. An HRMS differs from a Human Resources Information System (HRIS) or Human Capital Management (HCM) software. The distinctions are nuanced because there are many overlapping features, and some vendors use this confusion to their advantage, claiming that their software is all three.
This guide defines HRMS software as a system designed to streamline HR administrative tasks like payroll and timekeeping, increase efficiency, reduce or eliminate manual tasks, and provide strategic insight through data analytics. An HRIS offers many of the same features, but the scope is restricted to data entry and basic processing of employee information. An HCM software is substantially dissimilar to both because it represents a fully integrated management philosophy.
We strongly advise you to move forward only when you understand the difference well enough to recognize when a vendor is stretching the truth. If it’s still a little fuzzy, this article on the difference between HCM, HRMS, and HRIS may help.
If you’re feeling confidwent in your understanding, then keep reading! Our product-by-product evaluation covers critical factors like customer success, user experience, support quality, and implementation.
How Did We Choose The Best HRMS?
Our experts conduct product demos with each vendor to choose the best HRMS, incorporate user research, and gather feedback from HR tech leaders. When judging HRMS software, we focus on three key areas: data management security, compliance and reporting, and employee experience.
Employee Data Management Security
Though known as “all-in-one” tools, the scope and scale of each HRMS system’s data management vary significantly, as does the dedication to security hygiene. Our top picks are security-focused companies with a good track record who use two-factor authentication, encryption, General Data Protection Regulation (GDPR), and California Consumer Privacy Act (CCPA) compliance.
Compliance and Reporting
Recordkeeping and documentation are critical, so we chose HRMS software that offers various compliance and reporting features.
To make it onto this list, we require vendors to cover, at minimum, tax set-up and reporting, state and federal employment laws, wage and hour compliance, anti-discrimination and harassment prevention, and benefits regulations. Some tools below also offer global payroll and compliance features.
Employee Experience
As self-service options become more common in HRMS tools, the employee experience becomes more critical. In our experience, good UX/UI and overall ease of use are the most vital elements of this feature, keeping employee frustration low and data accuracy high.
Our mission is to make it easy for HR and TA teams to buy, implement, and love their new software. If you want to learn more about our methodology, we invite you to explore our article on editorial guidelines.

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Paylocity

Paylocity's HRMS solution provides a host of features designed to support the full employee lifecycle. Its emphasis on automation, customization, and compliance makes it a compelling choice for organizations seeking to optimize their HR operations.
PROS
- Paylocity provides a comprehensive platform that streamlines the management of payroll, HR, benefits, and more.
- The UI is quite clean and easy to navigate. There’s lots of online help docs to guide you through it too.
- There’s a mobile app for both employees and managers that enhances accessibility and convenience.
- Paylocity’s customer support is highly rated for always being available to answer questions.
- Global payroll support for 100+ countries.
- Provides free and unlimited training modules on the website.
- Paylocity’s mobile app has a good UI and functionality
- The tool is easy to use for both employees and employers.
- Has 350+ pre-built integrations.
CONS
- Pricing isn’t publicly shared and there is no free trial or free plan available.
- There is a bit of a learning curve due to Paylocity's extensive feature set.
- Report customization could be improved.
- Undisclosed pricing.
- It doesn’t have a free trial or free plan.
- Support is available in English only.
- It isn’t the best solution for remote teams looking for a tool to manage payroll and benefits for their contractors.

Beyond payroll solutions, Paylocity offers an all-in-one HR suite that simplifies the management of people data and processes. The platform particularly excels at information collection and task automation. With pre-built templates for common tasks like address changes and the ability to create custom workflows, Paylocity makes it easy to automate repetitive tasks and reduce administrative burden.
The platform is easily accessible both for employees and managers. There’s a self-service portal employees can log into either via desktop or mobile app and access all sorts of documents, request time off, update personal information, and collaborate with colleagues. Managers can also access the platform on desktop or mobile devices and benefit from full visibility into employee data, configure new positions, assign skills and certifications, predict vacancies, manage budgets, and more.
Compliance is another top priority for Paylocity, with an intuitive dashboard that provides quick access to crucial information such as work authorizations, EEO and FLSA compliance data, and industry news. For additional support, Paylocity's HR Edge service offers expert resources, including an account manager, to help minimize risk and implement best practices.
Lastly, Paylocity's powerful reporting and analytics capabilities allow you to gain valuable insights into your workforce. With real-time, visualized data, you can track key metrics, identify trends, improve HR strategies, and drive organizational success.
40,000+ businesses use Paylocity’s solutions including Weigel’s, ILC, Upward, and HMC.
The cost of Paylocity's services varies depending on the specific features required and the size of your organization. To obtain a personalized estimate, it's recommended to schedule a demonstration with their Sales team. This allows for a tailored discussion of your needs and a more accurate assessment of the associated costs.
Best For
Paylocity's solutions cater to businesses of all sizes across various industries, but their ideal target market comprises medium and large enterprises. These companies are best suited to fully utilize the platform's capabilities and leverage its benefits effectively.
We used it for accounting and recruiting. We also used it to pull quarterly tax reports. It helped retain employees by allowing them to access their pay early. We considered using it to organize our employee benefits but ultimately did not utilize that feature. We used it to streamline our operations so the office could work more harmoniously.
- Paylocity was great for onboarding and tracking time/attendance.
- It was a time saver when inputting payroll.
- I liked that employees could access their pay before the paycheck was issued.
We used Paylocity for just a few months. It wasn't quite what we had expected. We were looking for payroll software combined with a program for our HR needs. We had one person completing payroll, and it was not efficient. The amount of money spent on the accounting manager was not conducive to the company's budget. We also struggled with our recruiting process. It was nice for employees to access their pay before payday.
- The program itself was not "quick and simple" to set up.
- It was not always user-friendly, especially for staff members who aren't tech-savvy.
- We did not like customer service; the agents weren't as knowledgeable as those from other HR programs I've used.
- Teaching the program was difficult, and we wanted more how-to videos and tutorials.
I did not care for Paylocity. It was difficult, not user-friendly, and customer service was lacking.
If they are a small company, Paylocity is not going to be a good fit. They should evaluate their company's needs and weigh all options. This could be a good program for international companies looking for a basic solution.
I did not see it change much in the short period I used it.
I feel Paylocity would be a good program for large, international companies.
Paylocity would not be suitable for small companies.
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Deel
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Global teams big and small will appreciate a free HRMS that was built by a global team. Yes, their core HR solution is free, along with many useful modules like 1:1s, virtual networking, and pulse surveys.
PROS
- Unified platform for free HRIS and payroll services in over 100 countries and contractors in over 150 countries.
- Automated invoicing feature available in English for both companies and contractors or employees.
- Full in-house support from local country experts and a first response time of only 1.25 minutes.
- APIs and native integrations with over 100 popular HR tools.
- Self-service approach and tech-enabled features allow for quick and easy adoption.
- Excellent 24/7 customer service with fast onboarding (2-3 days) and local payroll experts in each jurisdiction.
- Deel HR is free for companies of all sizes.
- Seamless integration with platforms like QuickBooks, BambooHR, and Greenhouse, plus custom integration options.
- User-friendly, self-service features enable quick setup; identity verification often takes under 24 hours.
- Automated invoices simplify payments, provided they're in English.
CONS
- Not suitable for budget-conscious teams that don't hire internationally.
- Lacks advanced features found in more established HR solutions.
- Limited flexibility to change contracts or service agreements.
- Currently cannot generate invoices in languages other than English.
- Key features like onboarding automation are add-ons, which may increase costs.
- Limited flexibility in modifying contracts or service agreements; changes often require an addendum.
- Invoices cannot be generated in languages other than English.
Deel was originally a global payroll offering, that has since expanded their product to be a full-fledged HRMS. While it's probably best for global teams that have international colleagues, their functionality could also be used by companies operating in just one country.

One of our favorite features of this HRMS is "connections" - a product where teammates can connect virtually to bond and learn more with one another. HR teams will also appreciate the onboarding workflows (including the ability to provision equipment globally!), background checks, remote location management, and perks.
35,000+ organizations have used Deel’s HR and payroll solutions, including Makerpad, Andela, and Brex.
Deel HR offers its HR services for free, but charges for its global payroll services, which start at $19 per month.
Best For
Deel HR is best for organizations that hire internationally.

BambooHR

BambooHR is a top-notch HR software known for its flexibility, user-friendliness, and reliability. It offers numerous features, including ATS, payroll, and performance management.
PROS
- Flexible packaging and custom pricing options based on user requirements
- Intuitive design ensures a user-friendly experience, simplifying HR processes for HR pros, managers, and the entire team.
- Regular updates and customer support, BambooHR continuously strives to enhance its offerings.
- 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
- The payroll functionality is limited to U.S. companies.
- Customer success hours only suitable for U.S. time zones
- Core HR tools must be purchased to use features like time & attendance, surveys, and performance assessment.
- 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 offers flexible plans and a comprehensive platform that covers the entire employee lifecycle with full HRMS functionality, including recruiting, performance management, and many more. The platform also provides an integrated app marketplace for HR and recruiting vendors and a handy Human Resources glossary.
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 is an excellent choice for companies seeking a highly customizable HR product with pricing options that accommodate their specific requirements. It is worth mentioning that it is favored by partially and fully remote teams.
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 popular among small and medium-sized businesses across states for managing payroll, budgeting, and time and labor management. While the greatest strength of Paycor is payroll, the platform is also known for being a well-established HRMS with positive employee experience features and scalability.
PROS
- 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.
- 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
- 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.
- 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.
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Aside from being one of the most well-established HRMS, Paycor stands out for its payroll capabilities. Running payroll on the platform is straightforward. We are a team with members of multiple contract types and nationalities, so we appreciate that it services both hourly workers and full-time employees, U.S.-based or otherwise.
The platform lets users choose their pay intervals (weekly, bi-weekly, monthly, etc.) and allows our team members to select their payment methods (on-demand pay, direct deposit, Paycor wallet). The best part is that these features, autorun, and off-cycle payroll runs are accessible to all users, including the Basic ones.
Self-service is another pro of Paycor. Through the portal, employees can access their onboarding, payroll, work schedules, and benefits enrollment (what could be better than autonomy?) They can also update their contact and banking information; then, notifications about changes are sent to admin users in real-time.
Paycor didn’t disappoint us with its latest mobile app version. It used to be very limited, but now we can access the whole self-service suite on mobile devices. Plus, all Paycor Scheduling subscriptions can access Team Chat — a real-time communication tool that lets members message individuals, groups, or channels within the app.
There are still parts we don’t like. While Paycor offers several support channels, the support team is sometimes slow to respond. We’d also love to see improvements in reporting and analytics. The lower-priced plans have minimal reporting capabilities, and even the enterprise plan users may still find the tool lacking.
Wendy’s, McDonald’s, Detroit Zoo, The Cincinnati Bengals, The YMCA.
Paycor doesn’t publish its pricing on the website. You need to get in touch with customer support to get a quote.
Best For
Small and medium-sized companies in the U.S. that are looking for a one-stop shop for their HR needs. Particularly, businesses in industries like manufacturing, healthcare, food and beverage, nonprofits, and professional sports organizations are likely to make the most out of Paycor’s features.
I use Paycor daily and really appreciate how its workflows allow me to move candidates through the various stages of our hiring process, from initial screening to final offer. Moreover, Paycor's integration with our payroll system eliminated the need for manual data entry and ensured that all employee information was accurate and up-to-date. I could access employee data and manage HR operations from anywhere, at any time, through the Paycor mobile app.
The mobile feature of this system is a great convenience for managers and employees alike, as it enables them to easily access on the go. The user interface is visually appealing and easy to navigate, which makes it a pleasure to use on a daily basis. In addition, the reporting functionality is simple and intuitive, and the customer service team is highly responsive and helpful in case of any issues or questions.
Our company was struggling with the hiring process and needed a more efficient and cost-effective solution than our current system. We needed a system that would help us manage job postings, resumes, candidate communication, and applicant tracking in one place. We also wanted a solution that would integrate with other HR tools we were using, such as our payroll system. Paycor provided us with a cost-effective and comprehensive solution that helped us improve our recruitment process and streamline our HR operations. It helped us save time, reduce costs, and improve our hiring outcomes. I have used Paycor for 3+ years.
I think the ATS function was better when it was under Newton, but since it was acquired by Paycor, it has taken some time to adjust to the changes. I also wish it was capable of serving larger organizations to compete with iCIMS or Workday.
Paycor stands out from its competitors due to its user-friendly interface, customizable features, and seamless integration with other HR tools like payroll systems which is why I prefer Paycor.
When purchasing a tool like Paycor, people should consider important criteria such as the software's integration capabilities, installation process, security features, customer support, available features, and pricing. These factors can help individuals make an informed decision and choose a software solution that best fits their needs and budget.
The beauty of using this system has been that you are grandfathered in from the time you purchase the tool. Which means as they continue to update the system with innovative functions they do not charge extra.
I think it's excellent for small to mid-size organizations
Large organizations

Rippling

Rippling is a mighty HRMS solution for growing teams, ideally medium-sized, to handle payroll, budgeting, and time and labor management with efficiency and autonomy. The ability to integrate with 500+ apps makes Rippling a strong bet for teams looking to share data between all of their business software.
PROS
- Rippling provides an end-to-end HCM with great automation features.
- Supports both US payroll and global payroll in over 100 countries.
- Auto-translates receipt line items and converts their currencies for the reviewer.
- Robust integration capabilities.
- The benefits module enables users to collaborate with their preferred broker and choose from 4,000 options.
- Modules are available for individual purchase or as part of a suite, but the Core HR module is mandatory in any package.
- 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
- Payroll automation not available.
- No complimentary trial.
- Support not provided 24/7, additional charges for phone support.
- Not suitable for businesses with 2,000+ employees.
- 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 has emerged as a leading HRMS platform, providing an extensive array of HR management functionalities.
Since its launch in 2016, it has continuously evolved to prioritize efficiency, autonomy, and a user-friendly interface.
Vox, Maximum Games, Superhuman, Compass Coffee, Highnoon.
Rippling pricing starts at $8 per employee per month. For a personalized quote, you need to reach out to their sales team.
Best For
Rippling is an excellent choice of an HRMS for US-based and international teams that don’t have more than 2,000 employees.
We use Rippling for all HR processes - hiring, onboarding, training, time and attendance, etc. We also use the pulse tool for surveys of our employees. We have built workflows to support onboarding and schedule management when someone takes time off. It's a daily tool for us.

Rippling is quite comprehensive and has more functionality than other HRIS I have used, such as the pulse/survey tool right within the platform. It also integrates with Slack, so notifications and reports can be sent there. I like the workflow options as well, which allow you to set things up to launch when certain conditions are met, e.g. send an onboarding survey a month after start date.
We are a relatively new company and did not have an HRIS in place. After looking at a few we opted for Rippling because of the functionality it offered as well as integrations and automations. We have been using it for about 9 months.
Rippling has been around for a few years but it feels like they are still working out some bugs. There are certain things that just don't work the way you'd expect. We have recently implemented their global payroll app for our Canadian employees and it doesn't do things like break out vacation time, etc. It has a reporting function but it's a bit hard to get exactly what you're looking for and the charts that it creates don't always display information in the most relevant way.
Rippling is quite user-friendly in terms of interface. It has more functionality than others I've used and they're doing a great job figuring out how to incorporate integrations to make it really useful.
It's very good for US employees but is missing a few features for global payroll at this time. Best to understand how all modules are priced so you know what's worth implementing and don't end up paying for functions you don't use.
Rippling has taken suggestions when we've found things that could be improved or added (TBD if those things are implemented). They have added some features in the last few months so definitely seem to be continuing to grow the platform.
HR teams, I think it would be good for organizations with over 50 employees
Very small organizations, those primarily based outside the US

Ceridian

Ceridian makes Dayforce, a modern cloud HR platform that can manage the entire employee lifecycle.
PROS
CONS

Although it’s labeled as an HCM, Dayforce by Ceridian also includes a comprehensive payroll tool. Dayforce integrates data from every stage of the employee lifecycle, empowering informed decision-making and data-backed insights.
Its flexible rules engine enables efficient handling of intricate regulatory demands, delivering real-time updates and calculations.
- Guitar Center
- Danone
- Spirit Aerosystems
- El Pollo Loco
- Crescent Bank
Pricing for the Dayforce HCM suite is not provided up front.
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.
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Netchex
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Netchex stands out as an HRMS and payroll solution for small businesses in the US due to its comprehensive, integrated platform that supports the entire employee lifecycle. Their Core plan (mainly payroll) already offers some engagement and HR tools, and each plan throws more HRMS features into the mix.
PROS
- A La Carte Plan: For those looking for an HR and payroll tool, Netchex offers several options to tailor its offering to the exact needs of your organization. You basically start with the core package and add select features like the scheduling system and a recruiting tool—all with a custom pricing plan.
- User-friendly interface: Both administrators and employees find the system easy to use and navigate, which is essential for small businesses with limited HR staff.
- Comprehensive support: One of the things people praise the most is their award-winning customer service. Agents are available via phone, chat, or email, ensuring that small businesses receive the help they need when they need it.
- Advanced features: This includes recently added tools like AskHR for immediate employee support and Netchex AI for data analysis and insights.
- Grows with your team: With Netchex, it’s very easy to opt for a new plan and keep all your data in the same place even if you outgrow your current pricing plan. Other vendors require a switch to a new service in that kind of event.
- Dedicated support team: Netchex are note-worthy for their award-winning and often lauded customer service. It’s all US-based and provided in real-time through email, live chat, and phone calls.
- Pre-payroll reports: Allows for critical error checks before submission.
- Flexible payroll grid: Easy to make changes or correct errors on the fly.
- Versatile payment options: Includes paper checks, direct deposit, and pay cards.
CONS
- Payroll dependency: Users must utilize the payroll feature to access other functionalities, which may limit flexibility for businesses that do not need payroll services with their HR tool.
- No free trial: Potential users can't test the software without committing to a purchase, which could be a barrier for budget-conscious teams.
- Requirement of payroll: Users must use the payroll module to access other functionalities, so it wouldn’t work as stand-alone HR software.
- No free trial: Potential users can't test the software without committing to a purchase. The demo with a sales rep is the closest thing.

Depending on the plan you pick, Netchex can be a fully-fledged HRMS platform tailored for small and mid-sized businesses. The payroll tool, which is their flagship product, is at the core of their offering. From there, they have slowly but surely expanded into all sorts of other HR workflows, from recruiting to performance management. Netchex also excels in employee engagement with features like Community, which encourages recognition and reward through a company forum.
Their system is truly capable of covering the entire employee life cycle. That said, smaller organizations can start with the Core module and grow from there according to their needs. Their software is well enough built (and all made in-house) to the extent that upgrading to another plan and enhancing the tool with more features is a very straightforward process. The product has always been made with smaller teams in mind, so it’s a tool that can grow with you.
Aside from how easy it is to use their product, one of our favorite things with Netchex is their customer support. They pride themselves on having very fast response times, and they have a skills-based approach to Customer Success. This means that, while you do get a dedicated customer representative, more tenured reps are ready to step in and tend to specific needs at any time.
Our only qualm about Netchex as an HRMS system is that the HR tools you might be looking for are not available as a stand-alone product. In other words, you have to use their payroll function in order for the whole system to work, but that’s very much in the spirit of what an HRMS is supposed to do (merge payroll and HR). If more on the lookout for a stand-alone HR tool, that would fall under the scope of a more basic HRIS.
Netchex’s HR software is used at companies like Xpressdocs, BK Corrosion, Regal Hospitality, and The Colony ER Hospital.
Netchex uses a Per Employee Per Month pricing model. Costs vary based on the number of employees and the specific features used. Detailed pricing information can be found on their pricing page.
Best For
Netchex is ideal for small businesses (50-500 employees), especially those in industries such as restaurants, hospitality, manufacturing, healthcare, professional services, and automotive.

WorkDay

Workday is a highly favored HRMS solution specifically designed for enterprises. It offers a single source of workforce administration, engagement, and compensation and benefits data. This approach caters to all worker types, including contingent workers, employees, contractors, and retirees, making it a versatile solution for managing diverse workforces.
PROS
- Workday configurable process flows make it easy to scale processes to a global level while adapting them to local requirements.
- Employee and Manager Self-Service
- AI-driven skills cloud helps identify workers with the skills gap.
- Has a mobile app.
- Provides phone support, email support, community, and live chat support.
- Compliance with SOC 2 Type 2 standards
- 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
- Lacks pricing transparency.
- No free trial.
- The implementation process can be very time-consuming (~5 months on average).
- The interface may pose challenges for new users, and training may be necessary to familiarize oneself with all product features.
- Their mobile app isn’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 stands out with its impressive adaptability to individual users. Leveraging machine learning, it offers tailored recommendations based on user roles, whether they are employees, contractors, managers, recruiting agencies, applicants, or retirees.
The tool is particularly well-suited for businesses with multiple global branches. It allows for global consistency while enabling customization of workflows to accommodate local differences, ensuring a seamless experience across the organization.
Workday's reporting capabilities are also noteworthy because they sync HR data with finance and integrate with various HR tools. This can be used for analytics that provides visibility into the workforce’s capabilities, making it easier to identify gaps and develop talent.
While Workday's HRMS suite is popular among large enterprises and global teams, the mobile app needs work. Both Android and iOS users have reported issues with the time clock system, frequent crashes, and sign-in problems. Workday's implementation process also has room for improvement, having received mixed reviews from users and HR teams.
Quicken Loans, AstraZeneca, Target, Dell, Bank of America.
The exact pricing details of Workday aren’t disclosed on the website. Contact Sales for a quote.
Best For
This platform is best for large, global organizations looking for an all-in-one tool. It offers insights into the workforce, fosters employee engagement, and facilitates adaptability to industry, situational, and regulatory changes.
The key workflows that we use Workday for include employee electronic files, running reports, keeping attendance, performance processes. We have over 320,000 employees and the employee electronic file needed to be customized to our needs. Certain elements such as the performance of an employee, rehire status, offer letter, and other employee related data needed to be located in one place. Strategic reports such as location data, performance trends, flight delays and hundreds of other reports are neatly stored. Attendance is vital, this feature is important in keeping up with vacation time used, earned, and sold. The connection between the time clock and Workday saves the company money because of its ability to cross check automatically.
I love that Workday is set up to have administrators who cross check local changes, hold all employee data, keep historical data and maintain who made changes in the employee file. The cross checking minimizes mistakes that can’t be figured out except by a manager who no longer works for the company! With such a large employee base, the ability to be able to keep up with everyone is paramount.
My company was really trying to get organized, and we felt that Workday was the ideal product we needed! We needed to be in a position where different individuals could access employee files. Different authorizations needed to be granted to different levels of managers. This tool offered organization and a tremendous amount of adaptation to what we needed as a global company. We have had Workday for three years and we are super happy with it!
The cons of Workday are that it can only give the information that you input into the system. Workday does not blend reports; the user has to tell Workday what to do. The best way for the Workday system to improve I think is for back office imaging to have a more active role in the information that is programmed into Workday.
Workday is different from its competitors because it has the ability to build files. As technology changes any software that is going to remain effective has to have a stacking component.
For anyone considering to purchase Workday, i’d recommend having full time programmers to enhance the core of the software. This product is extremely sophisticated and requires a lot of programming. Workday is not for the small business!
Workday is fantastic because the software is forever evolving. Workday knows what the end user wants and that is the ability to export files to excel, and add and subtract components to create a more accurate document.
Workday is designed for very large companies that survive off of statistics. Workday's strong suit is its ability to build on other reports.
Small businesses

SAP SuccessFactors

SAP SuccessFactors is one of the big names in HR software. They’re currently pushing the boundaries of the HCM 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 position the worker’s experience as the main filter for how companies engage with their people. Their product helps HR managers deliver experiences that resonate with employees while shaping their strategy.
Although not branded as an HRMS, SuccessFactors does cover all the features you’d expect from this category. This includes cloud payroll and benefits administration, even for a global workforce.
- 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

UKG

UKG is the merger of Ultimate Software and Kronos. As such, it brings more than 7 decades of experience with HCM tech into the workforce management space. UKG Pro, their HRMS, offers features like people analytics, benefits administration, and payroll.
PROS
- Leveraging years of experience in HCM and workforce management technology, UKG Pro and UKG Ready offer a comprehensive solution.
- By providing UKG Pro as an HRMS solution and UKG Ready for workforce management, you can access a range of features that address diverse HR requirements through a unified set of tools.
- You can configure user visibility within the system.
- The Ultimate Community provides on-demand information and networking opportunities for UKG Pro users.
- Includes 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
- In comparison to more recent tools, both UKG Pro and UKG Ready might lack a clear focus or distinctive selling proposition tailored to specific types of businesses, meaning niche operations might find it challenging to adapt.
- The Android app has some issues with logging in.
- Not very budget-friendly with SMBs.
- All-in-one is not ideal for teams who require only a handful of specialized functionalities.
- 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 offers a wealth of features and expertise to support the HR needs of large enterprises. From hiring and onboarding to performance management and succession planning, this platform aims to provide a holistic solution for HR needs. UKG has utilized its 70 years of experience in the field and companies' mergers to deliver such comprehensive solutions.
In addition to its wealth of features, we found the platform configurability and the outstanding support from the Ultimate Community to be particularly noteworthy aspects of our experience with UKG.
As administrators, we can control access to specific user groups. Tailored access is a significant advantage for teams prioritizing robust data security.
Although UKG's user interface boasts an attractive aesthetic, the plethora of features can be overwhelming. However, the Ultimate Community proved invaluable, providing access to loads of information and insights from previous conversations. The ability to ask questions and seek assistance from other users was also highly beneficial.
UKG exhibits noteworthy strengths, but we did encounter a few drawbacks during our assessment. Unlike newer specialized tools, it may lack the specificity needed by niche businesses. Furthermore, some users have reported issues logging into the Android app. Finally, this product is not priced for teams looking for a low-price solution.
Tesla, Marriott, Yamaha, Aramark, Puma, Sony Music, Samsung.
- Pricing for UKG is not disclosed on their website.
- Typically, the pricing is based on a per-employee-per-month model, with options for annual or monthly billing options.
- UKG Pro licenses generally start at around $600.00 per year for every 5 users. For an exact quote, please reach out to a sales representative.
Best For
UKG is an excellent choice for large companies operating in the Americas, EMEA, and Asia/Pacific regions, with a minimum employee count of 1000.
We use UKG for HR, payroll, and benefits administration. We plan to use it for training and recruitment later on. I added fleet management once the core modules were in place. We also added the recruitment module, which easily integrates with all the major hiring platforms. This feature allows you to follow an applicant from application to hire.
It is multifaceted. It can be used to monitor your fleet, issue ID cards, and handle many other HR functions. It is excellent for a larger-sized workgroup.
We bought this tool to replace our existing platform, ADP. ADP was cumbersome and outdated. They no longer provided user support for the version we had been using. After completing an RFP, we decided on UKG, which had many more features. We have utilized this tool continuously and still do. I have used this tool for one year. I am always adding and testing new functionality within the system, such as fleet management.
It is so robust that many of the screens are unnecessary. It is difficult to customize screens to meet the organization's needs. Implementation was difficult and time-consuming.
It is different in that it offers a variety of screens that help you track everything from ID cards issued to company cars assigned to keys issued.
Consider the size of your organization. This product is not suitable for a small organization. Additionally, you need extra staff to implement it properly.
Although I no longer use it, I believe that, due to market competition, they have improved.
It is ideal for larger organizations with a broad spectrum of tracking needs and multiple locations. A moderate level of computer proficiency is also recommended.
Smaller groups with fewer than 2,000 employees won’t find UKR to be the right fit.

Zoho People

Zoho People is a complete solution for HR teams that offers a free plan in addition to other affordable options. Their tool can take on basic HR tasks like time and attendance, performance assessment, learning and development, employee engagement, and payroll management.
PROS
- All core HR features in a single dashboard.
- A wide array of integrations.
- Available in multiple languages.
- Has a free version and a free trial.
- All core HR features in a single dashboard
- Wide array of integrations
- User-friendly UI, constantly updated
- Available in multiple languages
CONS
- Payroll function was found to be too simplistic for some teams.
- Mobile apps offer a scaled-down version of what’s available with the web version.
- Occasional reports of slow load times.
- Since they offer so many modules, some may be not as robust as other products that have been more specific about covering certain needs. For instance, some teams have found their payroll offering to be quite basic.
- Not all that’s available in the web platform is available in the app
- Some users reported that the platform can be slow to load every now and then.

Overall, we were quite impressed with this tool. It’s built solid with smart features, and it scales well. The forever-free plan is a major plus, even with limitations around total users (the upper limit is five) and a scant 250MB of storage.
Zoho’s mobile apps offer on-the-go convenience, and the core HR functions are all in good working order.
One remarkable aspect is the Cases feature. This functionality empowers users to submit their support inquiries within designated HR categories, ensuring swift responses from dedicated agents. It's a straightforward and efficient solution that saves valuable time.
Equally impressive is Zoho People, which accomplishes two goals at once - fostering enhanced collaboration while bolstering security through its access control feature. Administrators are able to easily assign access permissions to members which enables both effective collaboration and robust security measures.
Announcements empowers managers to share vital company information using a wide range of content types, formatting choices, and location-specific visibility settings, ensuring that important announcements reach the right audience in the right way at the right time.
Our experience with the browser-based self-service feature was good. It provided a centralized platform for accessing employee records, leave management, timesheets, and policy documents. However, we had some challenges with the mobile app. There were occasional lags during check-ins and facial recognition processes, and certain tools, like payroll, were more basic functionally compared to other similar tools in this space. There have been user reports of loading delays, be we didn’t experience this.
This platform is a good place for a growing company to start, and this has been attested to by multiple users reporting that their team started with the free plan and grew into a higher tier.
ZPE Systems, Cloudfronts Technologies, Zomato, SpiceJet, Foresight CFO.
Zoho People has five plans:
- Free: up to 5 users and 250MB of storage.
- Essential HR: $1.25 per user per month when billed annually.
- Professional: $2 per user per month billed annually.
- Premium: $3 per user per month billed annually.
- Enterprise: $4.5 per user per month billed annually.
Best For
While Zoho offers custom pricing for organizations with over 500 employees, its existing feature sets are particularly well-suited for small and medium-sized businesses (SMBs). The tool's multilingual capabilities enable it to cater to global teams effectively, ensuring seamless collaboration and communication across language barriers.
We use it for leaves requests and approvals, document sharing with the whole organisation, time and attendance tracking, as well as location tracking to know which employees are working on site and which are working remotely.
Generally, we use it as a centralised source to manage all data related to employees.

- It's centralised and easy to use, a new user can navigate it easily.
- Leave balance and leave approvals, pending etc makes it very easy and seamless.
- We get the exact working hours of each employee, work anniversary and birthdays too to send our best wishes.
We have been using Zoho People for the past couple of years. We needed a software tool for managing attendance, leaves, announcements, sharing docs etc, and Zoho People was the best option out there. We are happy so far. Recently we started using the check-in and check-out reminder options too.
- Sometimes employees face the issue of not being able to log in and out due to the website being down.
- It's a bit expensive.
- We can not have calls through it.
- They should check out all the services provided if it covers all of their needs.
- The budget should also be considered as the platform can be a bit expensive but it is worth it.
- I would suggest having a go at the free trial to be sure.
Yes it keeps adding new features and the user interface has become seamless over the years. Great work.
Companies with a hybrid work mode; you can track the log-in and log-out locations if needed.
I think it is a good product and will work with most organisations.

Namely

Namely helps you streamline many of the day-to-day HR processes, including onboarding, attendance tracking, and performance management. It also packs a robust payroll and benefits administration module and reporting functionality that gives you insights into market trends.
PROS
- Namely’s UI is highly rated by users. It’s quite clean and easy to navigate despite how feature-rich Namely is.
- The employee onboarding module has an easy-to-use wizard that correctly guides new hires through the steps they need to complete and tasks they need to do.
- On top of the platform's built-in features for data management, recruiting, onboarding, time off tracking, payroll, and benefits administration, Namely offers managed payroll and benefits administration services in case you require more help.
- The majority of users are able to navigate Namely without any issues. They find the UI to be intuitive and clean, despite the fact that the platform has lots of features.
- Namely’s employee onboarding module gets a alot of praise from users. It features an easy-to-follow wizard, which helps new hires get on quickly and be clear on what they need to do.
- Besides the platform’s built in features for data management, recruiting, onboarding, time off tracking, payroll and benefits administration, there are also managed payroll and benefits administration services you can opt for to reduce the burden on your internal teams.
CONS
- Namely predominantly serves U.S.-based companies, which means it isn’t a good fit for companies that you need to pay and give benefits to employees in other countries.
- The implementation process can be lengthy, spanning a minimum of 6-8 weeks.
- For a platform as big as Namely, we were surprised by the lack of employee development features such as skill training, career pathing, succession planning, etc.
- Before buying Namely, you should verify whether it is compatible with your current benefits provider, as there have been a few instances reported where Namely’s team encouraged users to switch to other providers that cost more.
- Namely primarily operates in the U.S., which means if you’re looking for a global payroll and benefits provider, this platform isn’t for you.
- Though many praise the platform’s ease of use, it does take long to implement it. Namely’s own team says that an average implementation takes between 6-8 weeks.
- For a platform of Namely’s size, there currently aren’t any features that focus on employee development such as skill training, career pathing, succession planning etc.
- You’ll need to check beforehand if Namely can work with your existing benefits provider, if you have one. There have been a few reports (but not few enough to ignore) about Namely’s team convincing customers to change their benefits provider to providers that charged them more.

Namely’s HRMS helps mid-market companies (50-1000 employees) manage several HR processes in one centralized location. For starters, it can help you store and organize your employees' info as your system of record (SOR). You can also use it to onboard new employees through an intuitive wizard and e-signatures, check and approve time-off requests, as well as customize and conduct performance reviews.
The platform has built-in features for payroll management and benefits administrations that you can use, or opt for Namely’s managed payroll and benefits services and have them take care of relevant processes on your behalf.
Namely is used by hundreds of businesses, including The Channel Company, Greenhouse, OneLogin, and MacStadium.
Namely doesn’t have fixed pricing plans. They like to tailor their offering according to each customer’s needs, and as such, each customer gets a unique quote. To learn more about Namely’s pricing and to get a quote, you can reach out to their Sales team.
Best For
Namely is a great HRMS for the mid-market (50-1,000 employees).
I used Namely daily. We utilized the HR module for onboarding and offboarding employees, and the e-signature functionality to speed up the onboarding process. The payroll and time modules were heavily used to manage staff hours and pay. We also relied on the performance management module to handle the probationary period and conduct performance reviews.

The HR system was easy to use and set up, making the transition from our previous, more disorganized HR processes smooth. The employee self-service feature was excellent, reducing the amount of data entry and admin work for our HR team. The continuous feedback appraisal system allowed us to appraise staff more regularly with minimal increases in administrative tasks.
There wasn’t a significant problem driving the decision. The organization had been managing HR through payroll software, Excel files, and Word documents. As the company grew, it wanted to consolidate and centralize HR into a single system that could be accessed online. Namely provided an all-in-one HR solution that handled payroll, HR records, and talent management. We used Namely for about a year or two.
Customer support wasn’t as responsive as it could have been. The reporting features are somewhat limited and don’t fully meet our needs, requiring us to do a fair amount of manual reporting. The portal is not as intuitive as other HR tools I’ve used.
The user interface and workflow are not as intuitive as some competitors. However, I appreciate the integration with payroll and timesheets, which not many systems do well. I also like that it offers managed services add-ons, such as payroll and benefits, which become more relevant as the business grows and becomes more complex.
Ensure the tool has a comprehensive records system and both employee and manager self-service features. Efficient onboarding and offboarding functionality are essential, as these processes can be time-consuming. A continuous appraisal feedback system is also important, as this approach to performance management is becoming the norm.
There has been better integration between its modules.
Namely is suitable for all kinds of organizations but particularly good for smaller organizations due to its affordable entry-level pricing.
Namely may not be the best fit for massive corporations.

Zenefits

Zenefits is a widely-known HRMS for its ease of use and modern-looking UI. It's designed for SMBs and offers real competitive prices.
PROS
- Zenefits stands as one of the leading names in HR tech and payroll software for American SMBs.
- Easy-to-navigate UI.
- Provides mobile app with a feature-rich self-service for employees.
- Transparent and budget-friendly pricing.
- Offers a free trial.
- It’s one of the top names in HR tech and payroll software for American small businesses.
- Their platform is one of the best-looking and easiest to figure out among the sector.
- Zenefits can grow with you. Its pricing plans allow you to pay and tweak as you go, add certain modules when you need them, or get rid of them if you don’t.
CONS
- As oriented to small businesses as the tool is, it doesn’t offer custom plans for enterprises.
- No phone or dedicated account manager. Customer support can be hard to reach at times.
- Zenefits is oriented toward the US market, not a good option for teams with employees in other countries.
- As oriented to small businesses as the tool is, it doesn’t give you the chance to create a custom bundle of the services and/or modules you’d like to have. For instance, Zenefits does not offer a standalone ACA module. Therefore, you will need to purchase an entire HRIS plan if you want to access that offering.
- In addition, Zenefits focuses on small to mid sized companies. If you're an enterprise organization, you may want to consider another option.
- Zenefits is also rather focused on the US market at this point. So, if your team is mostly in another country and you need more of a local know-how, it might not be the best bet for certain modules like payroll and benefits.

Zenefits is an awesome HRMS for startups and SMBs to manage their onboarding, offboarding and almost everything in between. In addition to its many features, the HR tool offers a budget-friendly pricing structure, plus a great UI. Zenefits' pricing starts at $8 per month per employee and covers a set of core features — time tracking and scheduling, integrations, and apps. The interface is designed to be simple and quick enough for managers, executives, and employees to get themselves familiar with the tool after a few minutes of navigating the tool.
Zenefits’ payroll and benefits can accommodate multiple requirements from users. The offerings are designed to work for not only full-time employees but part-timers, contractors, and freelancers. Users are given the flexibility to bring their broker to the system or choose from Zenefits’ benefits plans, which cover health insurance, HSA, FSA, commuter, 401k, and so on. However, as oriented to SMBs in the U.S. as the tool is, the payroll and benefits that Zenefits provides aren’t suitable for teams having employees outside of the country.
Quora, Universal Group, Reddit, Asana.
Zenefits offers three base plans with a free trial. Below is the pricing detail when billed annually:
- Essentials plan costs $8 per month per employee.
- Growth plan costs $16 per month per employee.
- Zen plan costs $21 per month per employee.
- Zenefits also provides add-ons for services like Payroll and Recruiting, which are priced at $5 per month per employee.
Best For
Entrepreneurs, startups, and SMBs businesses in the U.S. will likely take advantage of Zenefits’ HRMS offerings.
I used Zenefits daily as it is an excellent people management software. Their onboarding system was efficient and put the final stage onto the new employee, reducing the possibility of errors. I paired the system with a biometric timekeeping system, which made payroll a breeze after managers' approvals. I did payroll for hourly and salaried employees with commissions on a bi-weekly basis. In addition, we used their healthcare options, which allowed a small company to offer robust benefits.
The initial setup was very simple. Onboarding new hires was streamlined. Benefits were offered in all 50 states via TriNet, making employee enrollment very streamlined. The shared company holiday schedule was useful for PTO scheduling.
The company was aggressively growing and sought to reduce the fees associated with a PEO. They were using a nationwide PEO that was unable/unwilling to break out their fees. We were seeking an ASO model when we found Zenefits.
I used Zenefits for two years. At the time, Zenefits was rapidly growing, and their struggles were being passed onto the clients, so it was best for us to move to another service.
When we were using Zenefits, adding a state to their system for payroll was not easy, and some states they didn't process at all. There is better software out there for payroll administration.
Zenefits enrollment did not include an eVerify connection, forcing HR to add the process of filing separately with eVerify.
If you're a very small business (under 5 employees), you pay for 5 employees regardless if your team is 2 or 3 people. Payroll is an add-on, and you have to pay a separate per-employee fee.
I prefer Gusto over Zenefits. Gusto is made for full-cycle HR included in one price. Zenefits also offers this, but you're charged for it.
HR Administration: Zenefits is user-friendly for employees. It is much more beneficial to the team if they have control over their data (bank accounts, split of accounts for deposit, tax forms, location, phone, etc.). Zenefits will also deploy notices to the team, handbooks, manage all PTO (custom or select from prewritten plans), and holidays.
Payroll: In Zenefits, this is an add-on. It is a good one and works seamlessly with their timekeeping systems. As with most payroll systems, it integrates into Xero or QuickBooks. They also take care of federal and state filings, 1099s, and W-2s.
Recruiting: This is a huge pro for me. Zenefits works with JazzHR for applicant tracking. Both are very easy to implement and utilize. It's built into the system.
Tech Support: The Zenefits team was on top of it. Nothing is that difficult in their system. However, tweaks you need can be easily talked through with their tech team.
Zenefits has changed substantially since I used it for a small business. They have been purchased by TriNet (Healthcare Benefits). TriNet needed what Zenefits had to offer (HRIS technology). Together, they create a very robust HR management solution.
Zenefits is a great system for a small company with a small HR department (under 100 total employees). Even an HR department of one can run HR for a business under 50 with Zenefits.
Zenefits would not be good for a larger organization which needs a lot of complex customization. Zenefits is a plug-and-play software, and that wouldn't suit a company requiring very specific information for their HR management. Also, there isn't a training management tool, and most companies benefit from this tool.
Benefits of the Top HRMS Software
The evolution of Human Resource Management Systems has taken them from basic record-keeping tools (think PeopleSoft in 1987) to valuable strategic assets. In addition to the criteria mentioned above, take note of the key benefits below. Regardless of your industry, size, or location, each of the following are benefits you can expect from HRMS software.
Better employee experience: The benefits of a quality HRMS are directly enjoyed by your employees. For example, a user-friendly employee portal can allow employees to review and update their info, navigate benefits options, and request time off with ease in less time than through legacy systems and sometimes even from a mobile app. Of course, this can lead to increased employee satisfaction and engagement.
Drive employee performance: The best HRMS platforms can foster talent development through performance reviews, engagement surveys, performance management capabilities, and customizable integrations with other tools you use to build culture.
Save time with HR automation: A good HRMS can have a massive impact on efficiency. Automation can handle new employee onboarding, offboarding, benefits and payroll administration, time tracking, attendance management, and more. With fewer operational tasks, the HR department can focus its time and energy on more strategic initiatives like optimizing employee lifetime value, lowering the turnover rate, and improving employee productivity and well-being.
Increased compliance: Provided you and your team are careful with the setup and initial data entry, an HRMS can significantly improve HR’s data accuracy. A complete, accurate, and easy-to-access data collection means you can worry less about EEOC audits and wrongful termination lawsuits. If one of these worst-case scenarios actually occurs, you’ll be prepared.
These systems also help with HR’s adaptability to unforeseen circumstances. One clear example was the pandemic, where many of the top vendors in the US reacted to vaccine mandates by rapidly developing features to accommodate immunization tracking and other safety and compliance tools.
A more organized HR department: If your business, like many, started with a handful of spreadsheets and a patchwork of manual processes, an HRMS can help you graduate to a more refined set of procedures. An HRMS can substantially lighten your cognitive load by managing multiple interconnected employee info systems.
HR intelligence: As any operation grows, it becomes increasingly important to analyze its data. An HRMS lets you create custom reports, making it easier for your HR and finance teams to examine metrics like turnover rate, hiring costs, and employee engagement and use that data to make more informed decisions.
Workforce management: The best HRMS systems take a modern approach to workforce management by putting the employee experience front and center. You’ll find elements of employee engagement, like intuitive self-onboarding, easy-to-access payroll and benefits, mobile first-time tracking, smart scheduling, and payroll management, which are standard in top-tier HRMSs.
Streamline recruiting: It’s not unusual for HRMS platforms to include a lightweight Applicant Tracking System (ATS), but it is becoming common for a full-fledged ATS to be part of the standard HRMS package.
Hiring is a central element of workforce management, so if you’re already using an HRMS as an integrated information hub for employee data, it makes sense to use it to manage applicant info, too. The most advanced ATSs built into an HRMS can do everything from sourcing candidates, scheduling interviews, shortlisting or rejecting, and onboarding new employees to offboarding.
Pitfalls of Buying a Human Resource Management System
The rewards of implementing the right HRMS system are substantial, but so are the risks if you make the wrong choice. The information below is from our research of unhappy customers who bought the wrong software tool. We identified central themes across their experience, and after reading this list, you can avoid the common mistakes to watch out for.
Rushing the decision: The allure of an elegant interface, the appeal of innovative features, and the sentiment of a few glowing reviews are powerful forces. It’s easy to buy a product that doesn’t actually do what you need. We’ve all been there.
Design, feature set, and reputation are important when vetting any software, but they should not drive your decision. Make your choice with the company's overall objectives in mind. Budget ample time to identify your team’s requirements, past issues, and the primary goals you hope to achieve using HRMS software.
Lack of awareness: The fact that you’re reading this guide suggests you know the value of thorough research, but some busy HR pros lack the operational context needed to make the right choice. It’s common for these folks to limit their scope of research to one or two major pain points they experience personally. This, as you can imagine, usually ends badly.
Not consulting teammates: This can be disastrous when implementing HR software. Checking with employees in every department can be a painstaking process, even in a small business, but in the long run, it’s worth it. For more on this topic, read this article on getting buy-in from internal stakeholders.
Overlooking security and support: Security and support are not features where quality can be sacrificed for price. HRMS systems hold all your employee info, so choose a company that prioritizes security. Support is an element of security and a critical standalone feature. This is especially true during implementation when a few missteps during your initial setup can lead to big problems down the line.
How Are Most HR Management Solutions Priced?
With most of the vendors listed on this roundup, pricing is per user per month. Some have an additional monthly base rate, and most offer custom pricing based on your business’s needs. Some also offer independently priced add-ons, which is excellent for small businesses who want to pay only for the features they’ll actually use. Regardless of your business size or state of growth, you may find this ROI calculator helpful for setting your budget.
We've compiled the following estimates to offer a rough idea of what to budget based on your organization’s size. This data reflects the input of HR experts, both in-house and external, but be aware that these are rough estimates, and the proposals and quotes you get will vary.
Key HRMS Software Features
Knowing the key features of HRMSs and how they can support your goals is essential to finding the right software for your team.
At the beginning of this article, we covered the fundamental differences between HRMS, HRIS, and HCM platforms. We noted that, though many features overlap, contrasts in scope and philosophy made for clear distinctions between the three. Let’s look at each of these in more detail:
Employee Information Management: An HRIS is a secure database that serves as a single system of record for employee data, including personal details, job history, performance records, and benefits information.
Payroll: This is ubiquitous among HRMS platforms. Payroll features manage all aspects of payroll processing, including salary calculation, deductions, tax withholdings, calculation for PTO, sick days, overtime, and more. Time and attendance are adjacent features that contribute to accurate pay computation.
Some of the vendors mentioned in this list offer global payroll solutions, but if this feature is essential to run your business, we recommend reading our guide on global payroll.
Budgeting: Some HRIS platforms can help create budgets for the entire human resources department by integrating them with common accounting software. This can include expenditures, forecasts, and plans for future costs. Some also provide cost analysis overview and reporting features.
Performance Management: Many HRMS platforms support performance appraisal processes, goal setting, feedback collection, and performance review cycles. Best employee development practices are constantly evolving, and performance reviews are undergoing rigorous evaluation by HR thought leaders, so be sure the performance management features match your company’s talent development philosophy.
Compliance and Reporting: The compliance management and reporting functions record and synthesize information extracted from the numerous systems of record managed within the platform. The aggregated data is used as a precise record of regulatory compliance and to generate reports that can be evaluated for possible strategic insights.
Questions to Keep in Mind When Demoing HRMS Software Tools
Advanced preparation is the key to getting the most out of software demonstrations. Come prepared with questions that investigate each vendor’s approach to addressing the specific needs you’ve already identified.
Your demo questions should be a subset of the questions you have already asked. It’s common to exchange multiple emails leading up to a demo, so make the most of your time by getting the basics out of the way beforehand.
Keep your internal stakeholders in mind as you prepare. Ideally, they were directly involved, but short of that, be sure you have cultivated a cross-department understanding of what is essential across the org. Their needs should be reflected in your questions.
With your basic questions already answered and the best interest of all departments in mind, here are the must-ask questions for an HRMS product demo:
- Does it integrate with our current ATS, payroll, or any other systems you might have that impact workforce management?
- Does this solution have single sign-on (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, internal chat, filtering messages by criteria)?
- What kind of tasks can we automate or streamline with this tool? How many 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?
- How will information be exchanged with insurance brokers and carriers)?
- 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?
We get a lot of positive feedback about this software buying organizer. Readers tell us it was a useful tool throughout the process, and in the end, they were thankful they’d used it from the beginning.
FAQs on Buying HRMS Software
These are the most frequently asked questions from HR professionals when it comes to human capital management software:
What is the best HRMS system?
The big names in HRMS software are UKG, SAP SuccessFactors, Namely, and Rippling, but are they really “the best”? The answer is yes and no.
Best can only be applied to one company at a time because no single HRMS platform is a universal fit for everyone. The wide range of HRMS platforms may seem unnecessary (or even overwhelming), but the variety represents the diversity in the businesses' needs.
What is the difference between HCM, HRMS, and HRIS?
The critical distinction between HRIS, HRMS, and HCM lies in their scope and focus. HRIS (Human Resource Information System) and HRMS (Human Resource Management System) are specific software types that focus on managing human resource information and processes, including payroll in the latter case. HCM, or Human Capital Management, encompasses a broader philosophy of business practices. It involves acquiring and optimizing a business's workforce and integrating strategic elements into managing human resources.
Why do definitions of HCM, HRMS, and HRIS vary so much?
There are many ways to answer this perfectly reasonable question, but the need for more consensus is primarily the result of two factors. First, an imprecise definition offers some wiggle room for vendors who claim their tool can do it all. Second, our approach to workforce management is shifting as technology and best practices evolve, so the categories are not fixed.
Despite this moving target, the distinctions primarily lie in their features, intended applications, and the philosophical framework behind each tool’s design. Generally, industry insights suggest that HRIS is the most narrowly defined solution, concentrating on essential HR functions. HRMS expands on this with broader features, still primarily within the HR domain. In contrast, HCM encompasses these features and extends further, incorporating strategic business planning to analyze and optimize the workforce as the key element.
Final Advice on Buying HRMS software
As we wrap up, let's assume you've absorbed the information above and identified a few potential vendors for scheduling demos. That’s just the first step, but it is the biggest one! If you were thorough and diligent from the beginning, you’ve set yourself up for an easier time reaching your goal. You’ve also become familiar with the general process we recommend for making all HR tech decisions.
Since you’ve identified your needs and have a comprehensive understanding of how different feature sets can meet them, fine-tuning your demos should be a breeze.
At this point, your knowledge far surpasses the average consumer. You speak the language of the HRMS vendor, so feel confident when you ask the person running your demo to focus on the relevant features you’ve identified.
You can even supply them with test data to use in the demonstration. This “test drive” approach will help you assess intuitiveness and overall user experience.
You’re already well on your way to bringing the best HRMS platform to your workplace! If you want to further your knowledge, you should read this article about the differences between HRIS, HCM, and HRMS, or you can focus your attention on this article covering the definition, features, and benefits of an HCM.
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