The human resources organization within a business has responsibility for a range of tasks relating to employees and the way employees interact with each other and with the business. Software used in human resources ranges from highly specialized software that performs only a single, primary function to complete software suites designed to address all the needs a human resources department may have. Widely used human resource software such as the open-source OrangeHRM suite and the proprietary Microsoft Dynamics suite seek to be single-source providers. However, human resource software solutions large and small share a focus on allowing human resources professionals to perform a core set of tasks efficiently.
- Payroll software performs the basic function of calculating employee pay according to a business's pay schedule. Payroll software must be able to take calculate salaried and hourly employee pay, and provide mechanisms for adjusting pay based on variable, such as compensated and uncompensated time off. Payroll software must also perform particular payroll functions, such as deduction management and tax calculations that take into account pre-tax and post-tax income when employees elect pre-tax deductions, such as 401K cafeteria plan medical deductions.
- Benefits management software allows the human resources user to track each employee's accrual and usage of benefits, such as paid time off, and payments on and eligibility for medical and health-related benefits. Benefits management software may also need to track a range of fringe benefits, such as health club memberships.
- Employee management software allows the human resources professional to perform a range of tasks related to individual employees and to employee groups at the departmental level. Basic employee management functions include tracking and recording employee performance, attendance and development. The software may also offer features, such as compensation management, employee skills assessments, employee training and education, and tracking conflict /resolution incidents between peer employees and subordinate/supervisor employees.
- Recruiting software helps the human resources user perform tasks at all stages of the recruiting process. The software may include a database of job descriptions for use in job postings and data related to pre-employment testing. Recruiting software may include capabilities such as automated or outsourced reference and background checking for prospective employees, relocation management and new employee onboarding processes.
- Compliance software helps the human resources user ensure that the company is complying with applicable laws relating to employee hiring and termination, education and actions related to sexual harassment laws, and information related to employee diversity. Compliance software may also allow offer tools to ensure that the company complies with federal regulations, such as those relating to COBRA (Consolidated Omnibus Budget Reconciliation Act) and FMLA (Family and Medical Leave Act).
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