The different types of HR software every business needs to know

Adelina Karpenkova
/
Feb 28, 2025
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13
min read

Stepping into the world of HR software is overwhelming. There’s payroll software, ATS solutions, employee database software—and that’s before we even get to comprehensive HRIS systems. What do all these terms mean, and which one is right for your organization?

Let’s break it down step by step.

What is HR software?

HR software is any type of tech that helps businesses handle HR-related tasks. It may offer different features depending on what an organization needs, whether it’s recruiting, managing employee performance, or handling payroll.

Why businesses need HR software

For many organizations, maintaining HR software is a significant investment. Why bother? We’ve dug into the stats from the HR industry to answer this question.

Finding talent

Finding qualified candidates is now the top challenge for HR professionals—44% struggle to acquire the right talent.

While the issue stems from many factors—including a general lack of qualified and skilled labor—nearly one-third of HR specialists say the reason they’ve been missing out on top candidates is the inefficient hiring processes.

If this challenge sounds familiar and you’re not using any form of recruiting automation software, that could be part of the problem. Fortunately, it’s an easy fix.

Handling administrative work

Managing benefits, time tracking, and payroll can be overwhelming for HR teams, with one in three professionals (33%) reporting that using different systems for these tasks takes up too much time and leads to errors.

If you and your HR staff find yourselves buried in administrative work, implementing a centralized HR solution will help you ease the burden.

Fighting turnover

Fifty-one percent of employees in the U.S. are either on the lookout for a new job or actively seeking one. You know how challenging it can be to retain employees, but where exactly does HR software fit into the picture?

Wait for it.

According to the same research, almost half of employees who left their jobs voluntarily in the past year said their manager or the organization could have done something to keep them from leaving. Furthermore, 45% of those who left reported that neither their manager nor any leader had checked in on their job satisfaction, performance, or future with the company in the three months leading up to their departure.

Statistics about manager conversations and why employees leave
Source


Now, here’s where HR software comes into play.

By investing in a system that tracks employee engagement, organizations can identify early signs of frustration and have those important conversations before someone decides to walk out the door.

What’s more, with the right performance management and upskilling tools, companies can establish career advancement plans and actively support employee growth, tackling one of the major reasons employees leave: the lack of growth opportunities.

Making use of employee data

Most organizations are missing out on the potential of their HR data, with only 32% understanding how to effectively use people analytics.

If you’re not using your people data, you could be overlooking key insights that help you improve your team’s performance. For instance, analyzing data like employee satisfaction scores and performance reviews can reveal trends that highlight areas needing attention.

When you invest in HR software with solid analytics features, you can easily gather and analyze all this information. You’ll be able to keep an eye on engagement levels, see how effective your training programs are, understand how different management styles impact productivity, and much more.

All in all, HR analytics software will help you make smarter decisions about where to focus your resources, how to help your employees grow, and which processes might need some tweaking.

Achieving goals and demonstrating HR impact

Struggling to hit your HR goals and get sufficient support from management? The data suggests that your tech stack could be the answer to your challenges.

In general, HR functions that use specialized software for activities such as employee engagement or learning are more successful than teams that don’t. For instance, those exceeding their goals are 2.6x more likely to be investing in performance management software.

Most-used HR software
Source

That’s just one more proof that having the right tools can make a world of difference.

Different types of software can help you optimize various aspects of your HR workflows, paving the way to your success.

=And with data analytics at your fingertips, you can easily demonstrate your impact on the organization—be it through higher employee retention, improved engagement, or increased productivity.

The different types of HR software

HR software comes in various forms, ranging from specialized time-tracking apps to comprehensive HR management systems. Let’s explore your options.

1. HRIS

A human resource information system (HRIS) is a central hub for all your essential HR data and processes.

While its core function is information management (as suggested by its name), modern HRIS software is much more than a database. It’s usually a part of a comprehensive system that covers all facets of HR management, from recruitment automation to payroll processing.

HRIS features

Employee data organization. The backbone of any HRIS, this feature keeps all employee information—like contact details, employment history, and benefits—in one place. It helps HR teams reduce paperwork and quickly retrieve important data when needed.

Employee self-service. Employees should be able to track and manage their own data through an HRIS. Solid HR systems typically include a self-service portal where employees can log their work hours, check their PTO balance, and submit requests without needing to hunt HR reps.

Recruitment and applicant tracking. Many HRIS platforms include an applicant tracking system (ATS) or integrate with one, allowing all recruitment-related information to flow into one data hub.

Onboarding. Once a candidate is hired, HRIS can be used to tackle onboarding tasks like taking care of paperwork, handling communication, completing compliance documentation, etc.

HR workflow automation. HRIS can automate many manual tasks, such as approving time-off requests, tracking performance reviews, or sending reminders for benefits enrollment, saving time for HR teams and improving efficiency.

Payroll, time, and benefits management. You’ll rarely come across a standalone HRIS anymore—and honestly, you wouldn’t need one. Most modern HRIS solutions come with built-in payroll processing and benefits administration features, allowing you to manage employee pay, track work hours, and handle health insurance and retirement plans in one system.

Compliance management. HRIS may help reduce risks of non-compliance penalties by storing and tracking documentation related to labor rights, internal policies, workplace safety, and employee rights.

HRIS software examples

1. Softr

Softr's HRIS template

Softr is a no-code app builder that helps businesses create custom internal apps without coding.

If you want an HRIS tailored to your exact needs—without the restrictions and the pricing tag of out-of-the-box software—Softr is a great option. It's especially appealing for mid-sized companies and enterprises because of its pricing model. Instead of paying steep per-user fees for managing a large workforce, you can enjoy any of our fixed monthly plans with generous user credits. For example, our Business plan, priced at $269/month, allows you to manage up to 2,500 app users.

With the drag-and-drop interface, you can design an HR system complete with an employee portal, recruitment and onboarding management workflows, an information management system, performance management tools, and any other features critical to your HR operations.

You can build your HR software from scratch or choose from ready-made templates, such as:

  1. Applicant tracking system
  2. Careers page
  3. Employee onboarding system
  4. Employee directory
  5. Company intranet
  6. Team wiki
  7. Document management system
  8. Benefits management app
  9. Employee feedback tracker
  10. Employee training system
  11. Contract management system
  12. Time tracker
  13. PTO tracker

All you need to do is connect your database (Softr integrates with 12+ sources, including Airtable and Notion), and start assembling your HR system like building blocks.

For example, DCW Cost Management, a consultancy firm, used Softr to build an employee portal that functions like an interactive website. Now, their team members can easily access everything from project details to company policies. Next on their roadmap is using Softr to build automated workflows to streamline internal processes.

Custom HR tools

2. BambooHR

BambooHR HRIS

BambooHR is an all-in-one HR software that handles most of the routine HR tasks.

It’s great for small to mid-sized businesses looking for an easy-to-use platform that covers everything from hiring and onboarding to performance management and employee data organization.

Like any comprehensive HR solution, BambooHR has its trade-offs. While the platform does include ATS and payroll management like many HRIS solutions, these aren’t its strongest features. If these are fields that require more attention within your HR department, you can opt for any of the BambooHR alternatives that have stronger ATS or payroll management solutions.But when it comes to core HRIS functions like employee record management, BambooHR is a solid pick.

3. Zoho People

Zoho People HRIS

Zoho People is an affordable HRIS software that helps small businesses organize HR operations. It’s part of the larger Zoho ecosystem, which means you can integrate it seamlessly with other Zoho products to create a full-featured HR management suite.

Zoho People is great on its own, but organizations typically pair it with other Zoho tools like Zoho Recruit for applicant tracking and Zoho Payroll. With these integrations, HR teams can handle everything—hiring, onboarding, employee records, and payroll—in one connected system.

2. ATS

An applicant tracking system (ATS) helps recruiters manage tasks like job posting, application sorting, and candidate tracking.

ATS tools typically come bundled within larger HR systems, but standalone options are popular too, especially among recruitment teams that handle high-volume hiring. That said, integrating your ATS with an HRIS can really help keep things aligned between recruiters and HR. When everything’s connected, candidate information flows seamlessly between systems, making it easy to move new hires from recruitment into onboarding and beyond.

ATS features

Job posting automation. With an ATS, you can post job openings across multiple job boards with just a few clicks.

Employer branding tools. Features like customizable career pages help showcase your company culture and values and make your organization more attractive to potential candidates.

Resume parsing and candidate ranking. Many ATS tools use AI to scan resumes and rank candidates based on their qualifications, helping HR teams quickly identify the best fits for a role.

Collaboration tools. ATS platforms often include communication and collaboration tools for hiring teams to make notes, share feedback, and manage interview schedules in one place.

Talent CRM. Many systems come with a built-in CRM for managing talent pools, communicating with candidates, and nurturing relationships with potential hires over time.

Reporting and analytics. ATS platforms usually offer insights into hiring trends to help gauge recruiter performance and evaluate the effectiveness of the hiring process.

ATS software examples

1. Greenhouse

Greenhouse ATS

Greenhouse is a popular ATS that provides powerful hiring tools and customizable workflows.

It’s a favorite among mid-market companies and larger enterprises seeking a standalone ATS to integrate into their HR tech stack.

For example, many companies choose to pair Greenhouse with their BambooHR HRIS, even though BambooHR includes its own ATS. They do this because Greenhouse’s advanced automation features are more robust than the built-in options of all-in-one HR solutions.

2. JazzHR

JazzHR ATS

While Greenhouse is a popular choice for larger organizations, JazzHR is designed for smaller companies in the first place. It’s also a great fit for HR consultants and staffing agencies thanks to its white-label solutions.

JazzHR covers all the essential features you'd expect from a standalone ATS, including employer branding, candidate sourcing, task automation, collaborative hiring, candidate communication, and interview process management.

3. Payroll software

Payroll software is the technology that assists HR functions throughout managing employee compensation, tax calculations, and compliance with labor laws.

While many all-in-one HR solutions offer payroll features, standalone payroll software is often a better choice. Dedicated options typically provide more advanced functionalities and greater flexibility.

When choosing payroll software, you should factor in your company’s and employees’ locations, as some systems may not operate in multiple countries.

Payroll software features

Automated payroll processing. Payroll software automatically calculates wages based on hours worked, overtime, and salary rates.

Tax filing and compliance. Most payroll solutions handle tax calculations and help ensure compliance with federal, state, and local regulations.

Pay distribution. With features like direct deposit, pay-on-demand, and unlimited payroll runs, paydays become much easier for everyone.

Employee self-service. Payroll software often comes with online portals that allow employees to access their pay stubs, tax forms, and personal information.

Integration with accounting software. It's important for payroll software to connect with accounting tools like QuickBooks, Xero, and FreshBooks. This integration makes sure that payroll expenses show up correctly in your financial statements.

Reporting and analytics. Built-in reporting tools should provide HR and finance teams with insights into payroll expenses, tax liabilities, and employee hours.

Payroll software examples

1. Paychex

Paychex payroll software

Paychex is a payroll solution geared toward small to medium-sized businesses across the U.S. and Northern Europe. It simplifies payroll processing, automates tax calculations, and helps ensure compliance with various regulations.

The platform includes an employee self-service portal, allowing team members to access their pay stubs and tax forms easily.

2. QuickBooks Payroll

QuickBooks payroll software

If your company uses QuickBooks for accounting, QuickBooks Payroll is a natural fit. It takes the hassle out of payroll by automating wage calculations, managing tax deductions, and facilitating direct deposit.

QuickBooks Payroll also supports employee self-service, so teams can access their pay stubs, W-2s, and other important pay details online or in the mobile app.

While QuickBooks Payroll is great for small and mid-sized businesses, there’s the Intuit Enterprise Suite specifically built for larger organizations. The suite combines payroll, HR, and benefits all in one place.

4. Performance management software

Performance management software helps organizations track employee performance, set goals, and provide ongoing feedback. It supports the entire talent management process, from regular check-ins to annual reviews.

If you’re considering HRIS platforms like BambooHR, they come with built-in performance management features. But if you're leaning toward a standalone solution, pay attention to the features and integrations it offers.

Some solutions are designed to work seamlessly with specific platforms—just like Teamflect is built specifically for Microsoft Teams users. Also, many companies choose to create custom performance management systems to better align their workflows with company culture and objectives.

Performance management software features

Goal setting and tracking. Managers should be able to set goals for employees and track progress over time.

Feedback loop. A solid system comes with tools for ongoing feedback collection and analysis. These include feedback templates, anonymous surveys, and AI-driven summaries and insights.

Performance reviews. The software should facilitate performance evaluations with customizable review templates, competency assessments, talent grids, peer reviews, and other helpful tools and workflows.

Career development plans. These systems often support the creation and execution of personalized development plans, offering employees a clear view of their growth paths.

Performance management software examples

1. Lattice

Lattice performance management software

Lattice is a performance management platform popular with mid-market companies.

It features an easy-to-use interface that helps you manage everything from setting goals, to evaluating your employee experience, to analyzing compensation change requests.

Lattice recently expanded its suite with HRIS and payroll management tools.

2. Teamflect

Teamflect performance management software

As you already know, Teamflect is a performance management platform tailored for users of Microsoft Teams. It integrates directly with the Teams platform, making it easy for organizations to manage performance without disrupting their existing workflows.

5. LMS

Learning management systems (LMS) help organizations deliver, track, and manage training programs.

Many LMS platforms integrate with performance management systems, acting as a one-stop shop for internal talent development.

LMS features

Course management. Teams should be able to upload, manage, and assign courses to employees. Most solutions also offer built-in course creation tools.

Self-serve learning portals. Modern LMS platforms give learners the flexibility to access training materials at their convenience, which often implies mobile accessibility.

Assessment tools. Progress tracking and evaluation methods, such as tests, simulations, and assignments, help measure what learners have grasped and assess the effectiveness of training programs.

Learner experience tools. Some LMS platforms enable ongoing learner experience enhancement by incorporating feedback collection, AI-powered content optimization, and content recommendation tools.

Employee recognition. LMS software often features mechanisms for recognizing employee achievements in training, such as certifications, badges, gamification elements, etc.

LMS examples

1. TalentLMS

TalentLMS

TalentLMS is a comprehensive LMS complete with course creation tools and a rich training content library.

Many small businesses opt for TalentLMS because it offers a simple way to manage employee training without requiring significant investment in time or resources. It's also user-friendly and accessible for individuals with little to no experience in managing LMS platforms, yet who are often involved in course creation and progress monitoring.

2. 15Five

15Five LMS

15Five is primarily a performance management system, but it also includes learning management tools designed specifically to help upskill people managers.

With 15Five's learning features, companies can provide on-demand training, develop microlearning experiences, conduct live sessions, and evaluate their managers' learning outcomes.

6. Time and attendance software

Time and attendance software helps businesses track employee work hours mainly to manage attendance and ensure accurate payroll processing. Therefore, it’s important for the software to integrate seamlessly with payroll systems, especially when those systems lack built-in time-tracking features.

This type of software is often included as part of a larger HR solution. Standalone time-tracking systems are usually preferred by small teams or businesses managing external workers.

Time and attendance software features

Clocking in and out. The main job of this software is to let employees easily log their work hours and complete timesheets.

Leave management. Employees should have easy access to holiday information, be able to submit leave requests, and check their leave balance within the system.

Payroll calculation. Most software options can automatically estimate payroll based on logged hours and export payroll data in the required format.

Integration capabilities. The time and attendance software must integrate well with payroll and HRIS systems.

Time and attendance software example

1. Toggl

Toggl time software

Toggl is a simple time-tracking tool that's popular with both small in-house teams and freelance workers. It not only helps track time but also supports payroll calculation and invoice creation, making it easier for businesses to transition from logged hours to final billing.

Toggl integrates seamlessly with third-party payroll and accounting software like QuickBooks Online and Xero—so businesses can sync their time-tracking records without having to switch between tools.

7. Employee Database Software

Employee database software is as a centralized repository for managing and storing employee information.

Like other types of HR software, it’s usually part of larger HR solutions, but many businesses build their own databases for more flexibility and room for growth.

Employee database software features

Centralized information storage. All employee records—such as personal details, job titles, employment history, and performance reviews—are organized in one accessible location.

Employee self-service portal. Many employee database systems include self-service capabilities, allowing employees to update their personal information, view benefits, and access company documents without direct HR intervention.

Data security and compliance. Employee database software must incorporate robust security measures, such as encryption and access controls, to protect sensitive employee information.

Integration capabilities. Employee data is a glue that keeps all your HR together. This is why the database software should easily connect with other HR tools in your tech stack.

Employee database software example

1. Softr

Softr's employee database software

Many businesses start out by using simple tools like Airtable, Notion, or even Google Spreadsheets to manage their employee data. But as they grow, these options can start to feel limiting—especially when you want features like self-service HR options, advanced automations, or conditional forms.

Instead of jumping to a full-blown HR system, businesses can stick with what they’ve got and build something that fits their needs with Softr. It connects to your existing database and lets you create a custom employee database that meets the specific needs of your business—so you get all the scalability you want while still having access to those advanced features.

How to choose the right HR software for your business

It’s time to decide what type of HR software you need for your organization. Should you go for a full-fledged HRIS system or several standalone apps that seamlessly integrate with each other? Perhaps you’ll be better off with a custom system that only does exactly what you need?

Here are a few things to consider to help you make an informed decision.

Business size

How big (or small) is your organization?

Small companies often find that standalone or custom systems work best for them. They don’t need all the extra features that come with all-in-one solutions.

Larger companies, on the other hand, typically face a choice between all-in-one systems and custom-built solutions, depending on how much flexibility they need.

Growth potential

Even if you start with a simple employee database in spreadsheets, it’s important to think ahead as your company grows. Will your current setup still meet your needs a year from now? Hint: with Softr, the answer is yes—you can easily scale your system to keep up with your business.

The same goes for choosing all-in-one solutions. While their entry-level plans might be free or budget-friendly, watch out. Once you reach your user limit or need more advanced features, your costs can really take off—sometimes by as much as ten times. It’s a good idea to keep these potential expenses in mind right from the start.

Integration with other tools

Consider the tools you currently use or plan to implement in your tech stack. How well do they integrate with the HR software you're evaluating?

Look beyond just the names of integrations listed on their websites. Different solutions offer varying levels of integration, and you may easily get stuck with a system that transfers data slowly or lacks support for the actions you need.

Check the documentation, explore user forums, and take advantage of free trials to assess the integration capabilities of potential HR software before you commit.

User experience and support

Who will be using your HR software? Is it seasoned HR reps familiar with workflows, people managers, or all employees across the company?

Knowing your end users will help you determine how complex your system can be and what kind of training you'll need to provide.

And no matter your situation, seek out responsive support and an active user community around your chosen solution. These will help you foster implementation and make the most of your investment.

Design your custom HR system with Softr

By choosing Softr, you’re creating HR software that grows with your company while keeping your budget in check.

Sign up for free to access customizable templates, a user-friendly drag-and-drop interface, an active community, and the many advantages of a no-code app builder.

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