What Is HR Software? A Guide for HR Teams

What is HR software, and why is it becoming necessary for businesses of all sizes?

Picture this: you’re the HR manager at a growing company. 

New hires are coming onboard every month, processing payroll is a real hassle, and keeping track of performance reviews using spreadsheets is a total mess. 

You come to the realization that what you really need isn’t just more people, it’s systems.

In this article, we’ll explain what HR software is, how it works, and why more businesses in Canada are using it to improve their operations.

Does Every HR Department Have Chaos Without Software?

If you’ve worked in HR, you know it’s more than talent outsourcing

As your company grows, tasks become harder to manage, questions from employees increase, and even a small mistake can have serious consequences. 

This leads many HR teams to ask: Is there a smarter way to handle it all?

So, What Is HR Software?

HR software is a complete tool that helps automate and manage HR tasks, which, as you may know, often become a hindrance for many teams. 

How does it? Well, it supports every part of an employee’s time with the company, from hiring to retirement. This way, every worker in your business will have an information clone on the HR software, and you’ll only have to look at one place. 

When you're onboarding new employees, managing payroll, tracking performance, or ensuring compliance, you’ll spend less time using software. 

Key Features of HR Software

Modern HR software systems are flexible and can grow with your needs. 

They usually include tools for:

1. Recruitment and applicant tracking  

Post job openings, collect applications, and screen candidates using Applicant Tracking Systems (ATS).

2. Onboarding and orientation  

Automate paperwork, training plans, and employee checklists. 

For more details about this, read our article: Onboarding vs Orientation.

3. Employee records management  

Securely store employee information, contracts, emergency contacts, and performance documents.

4. Payroll and benefits administration  

Automate salary payments, tax deductions, and benefits enrollment. 

You should definitely check out our Payroll Management Guide.

5. Performance management  

Track goals, conduct reviews, and manage feedback to help employee development.

6. Time and attendance tracking  

This is particularly important as time and attendance tracking takes valuable time, so now you can manage employee schedules, clock-ins, and requests for vacation and sick leave.

7. Compliance and reporting  

HR managers need to stay compliant with employment laws by creating real-time reports on labor metrics, equity, safety, and more, and with the right software, it is easier to do it. 

What Types of HR Software Exist?

Depending on your company's needs, there are different types of HR systems to consider.

However, we recommend one that adapts to your needs. A large company doesn't have the same needs as a small business, so always choose what fits you better. 

What options do you have? Let’s see: 

1. Core HR systems: These take care of the basics like employee records, payroll, and benefits.

2. Talent management systems: These are all about hiring, onboarding new employees, training, and tracking performance.

3. Workforce management tools: These help with things like scheduling, time tracking, and predicting labor needs.

4. All-in-One Platforms: These pack all the functions mentioned above into one system.

In Canada, some popular HR software options include BambooHR, Ceridian Dayforce, UKG, and SAP SuccessFactors.

Who Should Use HR Software?

If you run a small startup with 10 employees or a large company with hundreds, HR software can grow with your team and keep you updated when you need to. 

You should think about using HR software if:

  • You are entering data by hand into spreadsheets.
  • Payroll takes up too much time.
  • Employees often ask HR for pay stubs or policy documents.
  • Your business is expanding and needs a solution that can scale.
  • Your HR team wants more time for important work instead of just administrative tasks.
    Many of these tasks can be significantly reduced by using HR software. 

At TROIS Collective, we help businesses find the right HR tools based on their size and future needs. 

Common Mistakes to Avoid

If you’ve never used an HR system before, there are some mistakes you definitely want to steer clear of:

  • Picking a system just because it’s cheap
  • Making the setup way too complicated
  • Leaving out the HR staff from the decision-making process
  • Not training employees on how to use it
  • Forgetting about how it fits with other business tools, like payroll or accounting

At TROIS, we’ve helped loads of companies dodge these issues with training and HR audits, which look at how effective your whole HR setup is.

In Summary

Are you clear about what is HR software? 

HR software is an essential tool for a modern and efficient HR department.

It helps automate many tasks, ensures compliance, and enhances the employee experience. 

If you want to improve your HR operations, TROIS Collective can assist you in finding, implementing, and optimizing the right solution for your business.

Contact us.