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Thu May 16 2024

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Best Employee Resource Management Software [Updated 2024]

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Employee Resource Management Software

Innovation in HR has become a hot topic in the market. In this case, how can you ignore the increase in demand for employee resource management software? If you also want to invest in one, you must know its meaning, usage, benefits, challenges, features, and more. To learn all this, read the blog below.

Most business organizations require modern HR tools to function effectively, and employee resource management software is one such tool. Employees are the lifeblood of many businesses because they play a huge role in a company's growth and success. They connect with customers, complete daily business operations, develop strategies, make decisions, and more.

However, employees are finite company resources that can only perform one task at a time. That is why businesses use the employee resource management tool to plan and track employee activities and performance.

Continue reading the blog further to learn about this modern tool in detail.

Role of Employee Resource Management Software (HRMS)

Employee resource management software, also called human resource management software (HRMS), is a group of digital solutions that assists HR professionals in their daily HR operations.

In other words, this modern software simplifies different HR processes, making data collection and decision-making quick and effective for HR leaders.

Here are some common tasks you can expect the employee management software to do for you:

  • It stores and manages employee information and data in one place.
  • The software helps businesses manage various events and meetings.
  • It rationalizes core HR activities such as screening candidates, onboarding new employees, absence tracking, etc.

In short, the HRMS software simplifies the workload of the HR leaders and helps them create a more productive work environment in the company.

Who uses employee management software?

The HR leaders can use the HR software solutions in almost all steps of the employee lifecycle. From screening and interviewing an applicant to employee performance management and tracking, the software can help you perform many activities. All companies, irrespective of size and industry, can use employee resource management software.

Earlier, this software was merely an application that only HR leaders and senior employers used to collect and manage data. But since then, the HRMS software has come a long way. Now, all company employees can use the software. Not only this, but job seekers and external partners can also use the software easily.

The reason? The best core HR software platform allows employees to log in and record their attendance and absences. This way, the software reduces the pressure on the HR leaders as they do not have to chase each employee.

How is HRMS different from HCM and HRIS?

Many people in the business world often get confused between HRMS, HRIS, and HCM software. They think that all these terms mean the same thing. But no. Although the primary goal of all these software is to ease HR processes, they offer different features.

Let us understand what HRIS and HCM software are:

Human resource information system (HRIS)

Usually, businesses use HRIS software to manage basic policies, procedures, and employee data and records. Such software works perfectly and helps HR leaders collect and manage employee benefits, recruitment data, absences, payroll, organizational charts, etc. Besides this, the HRIS software can also track compensation.

Employee resource management software and HRIS offer many similar features. These features include viewing work performance, requesting leaves, updating employee information, managing employee schedules, and more.

Human capital management (HCM)

The HCM software HRIS and HRMS software have many features in common. However, the human capital management software offers more advanced talent management practices, employee retention, and employee growth features. The best thing about HCM is that all its features are automated.

These features include

In addition, HCM also offers analytics features to provide insights on employee management and planning. That is why the software is more costly and comprehensive than the employee resource management software.

You must have realized that the difference between these three software only lies in the features. Therefore, you can invest in any competent HR software solution offering the required features.

What are the benefits of using the HR management software?

Did you know? The market size of the HR management system is likely to grow from 2022 to 2027 at a CAGR of 11.15%. That is because all these organizations are happy with the benefits the software this modern software offers.

Besides automating numerous HR processes in the company and improving decision-making, here are three more benefits the HRMS software offers:

Promotes employee tracking

Talent Tracking can be challenging for HR leaders. And most of the time, this process is the last on HR leaders' priority list. In this case, having automated software employees can use to log in and manage their timekeeping is a blessing.

It will promote workforce accountability and allow employers to keep track of employees' behavior at work.

Enhanced employee engagement

Employers can use the employee resource management software to inform employees about the latest company news and work updates. It is the best way to make employees feel valued and included.

Moreover, HR leaders can also use the software to announce and celebrate employee birthdays, work anniversaries, and other achievements.

Better security and compliance

It helps businesses protect employee data and, at the same time, stay compliant with employment laws and regulations. Do you know how the software does this? By storing and tracking employee data, this data includes work visas, employment contracts, etc.

Further, let us discuss some potential challenges with the HR management system.

What are some challenges of using the HR management tool?

Of course, this tool offers many benefits. But just like other HR tools, the ERM tool has its challenges. If you will use the software in the future, you must know these challenges and tips to overcome them.

So, here are the two most common challenges HR leaders face with the HR management system and solutions to overcome them:

The software can be expensive

Although every company can use the ERM software, not all can afford it. That is because the software can be costly for some companies. It can especially be the situation with startups and small-scale businesses with limited HR budgets, aiming to cut costs in small business operations. 

Tip: If you do not want the software's cost to become a problem, find a budget-friendly software. For this, you can do some software research and set aside the budget that you can use to implement the software in the future.

The software may not be user-friendly

Not all employee resource management software in the market offers easy-to-use essential HR software features. So, you might end up investing in complex software. Such software will be useless as you and your HR team cannot make the most of complicated ERM software.

Tip: To ensure you do not adopt a complex HR tool, consider asking for help from experienced and skilled HR professionals. By this, we mean you can ask your colleagues and friends for their suggestions on the best recruitment software. It will help you make the right software choice.

Besides the above two challenges, regular software maintenance and integration with other HR systems might also become challenging. That is because the software changes with changes in rules and regulations, and integrating it with other HR tools takes too much time.

What should you look for in an employee management system?

You will find hundreds of employee resource management software out there. But remember, choosing the right software to ease your workload by effectively handling your HR responsibilities is necessary.

For this, you need to know some ERM software features that you can use to perform different HR tasks effectively. Here are some of those features to look for in the best human resource management software:

  • Payroll integration
  • Mobile compatibility
  • Real-time reporting
  • Absence management
  • Attendance tracker
  • Probation management

Besides these, you must also look for cost estimates, compliance checkers, access controls, and bulk processing features to ensure better software functioning.

How can Pitch N Hire help you in HR management?

The human resource field is broader than you think. Your job as an HR leader is to handle all the HR tasks effectively. And now you know that employee resource management software can help you manage company employees. But what about the candidates you are about to recruit?

Recruitment is also a vital HR activity you cannot ignore. A candidate tracking system is all you need to streamline recruitment.

Luckily, Pitch N Hire ATS is one of the best hiring software that primarily focuses on managing and streamlining recruitment. Our software can help all types of businesses identify, source, and hire the best candidates from the large talent pool in the market.

Did you know? 94% of professionals who use the best applicant tracking system report improvements in their recruitment process. So, why not book a FREE software demo and see how PNH's hire ATS can benefit your hiring operations? Quickly do it and start your journey of hiring the best talent today.


Technology will continue to develop and influence how businesses work and manage their human resources. Today, you will find many HR tools in the US market. But if you want to manage your workforce and carry out your business operations efficiently, investing in employee resource management software is the best decision.

All you need to do is choose the right software that aligns perfectly with your HR goals and overall business needs.

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