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Managing records, benefits, and paperwork through your employees’ lifecycle can be challenging. Traditionally, human resources (HR) management systems required an investment that only large-scale businesses could afford. But with the emergence of online HR systems, small and mid-sized businesses can now take their human resources online and access powerful systems at a fraction of the cost of traditional systems.
Today, there are over 100 online human resources software solutions on the market. But what makes one system better for your company over another? We’ve put together this guide to help you find the web-based HRMS that’s right for you.
Here's what we'll cover:
Online human resources software offers much of the same functionality as traditional, on-premise systems. Also referred to as software as a service (Saas), online human resources systems help automate the core functions of HR departments, such as employee tracking, benefits administration, payroll management, etc. Some online HR solutions also offer performance management, workforce management and applicant tracking add-ons for enhanced functionality.
Unlike a traditional software system, which is installed on-site, web-based HR management software is hosted and managed by the vendor and can be accessed anywhere there’s an Internet connection. And rather than paying an upfront fee for a license, vendors offe a pay-as-you-go subscription - typically on a monthly per-user or per-employee basis.
Before evaluating web-based human resources software, you'll need to determine what kind of buyer you are. We believe the majority of buyers in this market fall into one of these categories:
Online HRIS software provides an effective solution for organizations looking to better manage and automate their humean resource processes. Because most online HRMS systems are offered on a subscription basis, fewer upfront expenditures are required. Furthermore, as these systems are hosted by the vendor, maintenance is the responsibility of the vendor, and updates are easily downloaded and installed without need for tech support.
Despite the benefits, taking HR to the cloud has been met with some speculation. Outages or disruptions in Internet service - though rare - are a concern for some users. In addition, some systems offer less customization of features than traditional, on-premise systems - although this is improving as SaaS HR solutions mature.
The following topics have been part of recent discussions within the HR market: