What is a human resource management software?

Human resource (HR) teams look after employees, ensuring a conducive environment for everyone to do their best work. A human resource management software helps in managing personnel and staffing needs of the organization.

In a nutshell, a human resource management software allows users to:

• Keep employee information in a secure database
• Track working hours and attendance
• Assist employee development
• Streamline hiring and onboarding

E-commerce businesses employ multiple people to manage and execute different types of work. Shifting schedules typically apply just as in brick and mortars to accommodate customer inquiries. Remote work is perhaps even more common given the digital nature of the business. A human resource management solution helps oversee employees under these circumstances to achieve maximum organizational efficiency.

Price to get started:

There are free web-based tools available that support leave tracking and small-scale hiring separately. Holistic personnel management solutions for growing teams are usually priced per user at an average cost of 7 USD monthly. All members are welcome to join free trials usually lasting for two weeks to assess overall fit and usability.

Benefits of using a human resource management software

Secures confidential information. Employee records shall be regarded as confidential. With an HR management solution, personal information, work evaluations, and disciplinary records are stored in a password-protected system. Documents are also gated to allow only authorized access. Same goes when processing applications and financial matters. May it be a cloud-based or an on-premise solution, such software can better protect the company from data breaches and theft compared with traditional data storage.

Optimizes employee performance. A human resource management software digitally powers goal setting and tracking among members. Both managers and subordinates are able to provide feedback to each other. This helps e-commerce businesses hone its workforce for their individual personal development and improved team contributions. Some solutions can also host training programs for onboarding new members and motivating continuous learning.

Develops a supportive company culture. By liberating human resource teams from manual data entry tasks (i.e. related to employee database, attendance tracking, and payroll processing among others), attention can be focused on establishing and nurturing internal relationships. It provides a platform for members to connect with HR officers to discuss concerns and suggestions. This normalizes constructive criticisms, helping human resource teams improve processes, rules, and programs that only inspire the best out of everyone.

Features to check when comparing human resource management software

1. Standard features to review

Employee database. A human resource management software serves as a virtual filing cabinet for a complete employee directory. It stores personal data, contact information, and service records of every member. It should also allow administrators to create a self-service portal where everyone can access and update their profiles as needed. Compensation records may also be stored safely for referencing purposes.

Time and attendance tracking. Employees can mark attendance, log working hours, and track overtime in an HR management system. Managers can use this information for evaluations and payroll. Such a tool is also normally used to process leave requests where time-off credits can be reviewed and colleagues can be notified of absences. This way, both members and supervisors are able to plan work schedules well.

Performance management. Performance evaluation is important not just to the company to ensure efficiency but also to members to continuously grow in their profession. With a human resource management tool, employees are able to measure their achievements. Managers can oversee developments and provide guidance. Overall, it fosters open communication where opportunities and challenges can be discussed. This record also serves as a basis for human resource officers when working on appraisals.

Recruitment automation. HR management solutions create standardized workflows that facilitate faster recruitment. It may cover posting of open positions to social media sites and job boards. The system can assist in reviewing large number of applications by filtering candidates based on required qualifications found in resumes and digital forms. Such tools may also integrate with third-party software to perform background checks and schedule interviews.

B. Additional features for next level human resource management

Payroll and benefits processing. With attendance and working hours recorded in an HR management solution, it becomes easy to process payroll with the same tool. Salary computations can be automated with reimbursements, bonuses, and company-specific benefits additionally tallied. Deductions including contributions and taxes can also be taken care of by the software. This reduces errors and ensures confidentiality of such delicate information.

Employee surveys. Some tools provide questionnaire builders. By launching surveys, human resource managers can fully understand how employees feel towards their work, managers, and peers. This provides the company with insights on how to generate loyalty and improve team camaraderie. It also keeps the administrative team in check by knowing the satisfaction level of members as a group and individually.

Learning facility. Continuous employee development adds value to both the business and its members. A tool that can help human resource teams conduct training digitally is especially beneficial to e-commerce businesses given the varying needs of its members with some maybe even located remotely. With this feature, managers can create and evaluate learning programs not just for new hires but also for regular employees.

Cost of setting up a human resource management software

Human resource management has multiple facets. For each activity (e.g. recruitment, performance management, training), there are individual tools that can fast track and optimize work. Pricing for specialist software varies widely, and overall costs can be hard to track this way. It may be worth looking into all-in-one solutions especially for growing businesses.

Most personnel management tools offer friendly subscription rates per employee — mostly below 7 USD monthly. Enterprise products that cater to teams of over a hundred equipped with applicant tracking and training management features may charge a recurring 1,000 USD total. Annual contracts provide a considerable discount of up to 30 per cent.

Considering that HR management tools are adopted by the entire organization and practically every employee needs to be trained in using it, implementation could take weeks. Software providers may offer complementary onboarding calls to help set things up properly.

Considerations when choosing a human resource management software

1. Business and process compatibility

Companies tend to differ in values and way of working. E-commerce businesses may often require agility, personability, and accuracy. HR teams play an integral role in driving members and the company as a whole towards excellence based on ideal standards.

Human resource managers need to shape and perform processes that would empower members with a long-term vision of establishing organizational culture in mind. Challenges and therefore strategies would vary from business to business even those that are within the same industry. For example, supporting remote versus in-office e-commerce teams require different methods of employee monitoring. HR teams need to account for the different circumstances of their members when designing and implementing programs.

Tools can be leveraged to better understand people (e.g. software with surveying and performance monitoring features). It can also assist in stimulating productivity, satisfaction and growth (e.g. tools with time tracking, benefits management, and training facilities). Choosing a technology solution that can holistically support basic leave and payroll processing together with advanced employee engagement tactics can certainly level up the experience for every member of the team which in turn contributes to business success.

B. Adoption concerns

Technicalities. Human resource management solutions are not just used by HR personnel but by the entire organization. Managers across departments would use it for monitoring subordinates and providing feedback. Every employee would from then on coordinate with the administrative staff through it. Adopting a solution with a user-friendly interface would be best to minimize the learning curve for everyone.

Integrations. Integration with project management, calendars, and file collaboration software can help build seamless processes. Syncing data with accounting tools creates accurate financial reports. Some extensions may also be needed by HR teams on demand. For instance, small e-commerce businesses may only be hiring once in a while. Using a software that can connect with applicant tracking systems when the need arises would be beneficial.

Scalability. Given that pricing for HR management tools are typically based on the number of users, cost would consistently increase as the company grows. In such cases, it would be worth recognizing that annual plans provide considerable savings. Also, when it is time to move on to enterprise solutions, contracts are usually negotiable. Hence, a close relationship with software providers and their account managers can be of great advantage.

Frequently asked questions

1. Would an e-commerce business need a human resource management software?

Organizations in the e-commerce industry are typically fast-paced and metrics-driven. A well-performing team fuels their success. HR management solutions provide platforms that ensure members stay productive and engaged, so businesses can consistently hit their targets.

2. What can I do with a human resource management software?

A human resource management software serves as a centralized database of company and employee information. By digitizing some administrative tasks (e.g. attendance tracking, payroll, and training), HR teams are given more time to actually make human connections and foster team camaraderie for the company to reach greater heights.

3. How can a human resource management software help my team?

Human resource management tools provide a self-service platform for company employees to use in updating personal information, reviewing manager’s feedback, and filing time-offs. It especially works as part of asynchronous communication. With such tool, self-paced learning may also be promoted. These things together contribute to employee satisfaction and growth.

4. Can a human resource management software help increase my sales or cut my costs?

An HR management tool can contribute to spending optimization. It provides managers with insights on billable hours, incenting, and other overhead costs. It also ensures that payroll is being handled accurately, avoiding any possible human errors through a systematized process.

5. Is there a free forever human resource management software?

Yes. Startups may take advantage of free HR management solutions. It allows storing of member data and basic time-off tracking to keep the team’s schedule in sync. Small-scale hiring may also be possible with freemium tools. To continuously promote employee welfare, paid plans should be considered (i.e. where performance monitoring, payroll automation, learning courses are possible).

6. What is the best human resource management software?

Identifying the best human resource management software for a specific e-commerce business would depend on multiple factors mainly:

• Number of members
• Employee engagement program
• Compensation processing needs
• Hiring requirements
• Budget

7. What human resource management software subscription should I get?

Premium features for human resource management solutions make internal collaboration, applicant tracking, and digital training hassle free. The right subscription for the business would then depend on the need for such extensions. It would be best to assess these functions against the company’s circumstance and how they can boost the team’s performance.

8. Which features should I prioritize when choosing an HR management software?

Time and attendance tracking are essentials in effectively managing work schedules especially for e-commerce businesses operating round the clock. Additionally, performance management features keep the team on track towards organizational and personal goals.

9. What reports can I generate using a human resource management software?

HR management tools provide data on employee productivity and capacity based on time recorded per tasks, projects, and goals. With some tools that can collect feedback from employees, it is possible to generate insights on workplace satisfaction. Those with built-in payroll management features can also render spending reports.

10. How do I set up a human resource management software?

Given that HR management solutions are to be adopted company-wide, standardized training is often necessary. Software providers offer implementation and training assistance as a complementary service with a flat fee (i.e. either paid per hour or as part of a package).

11. Is my company and employee data safe in an HR management software?

Yes. HR systems generally come with encryption to ensure confidentiality of employee records. It protects data against unauthorized access with managers able to set permission levels to limit viewership of certain company information and documents.

12. Will a human resource management software help improve employee satisfaction?

Human resource management tools serve as a platform for employees to receive feedback on their work. It also creates a safe space to express concerns and suggestions. Two-way communication is fostered, leaving employees to feel validated and heard.

13. How does an HR management software support training and development?

With HR management tools, it is possible to create and promote training programs. It hosts custom-built courses which employees can complete as needed, or as it fits their interests and schedules. Managers can align developmental goals with this and monitor progress.

14. How can a human resource software optimize the hiring process?

The hiring process can be facilitated with predefined workflows. It can automate the posting of job openings to multiple sites, conducting of written interviews, and filtering of candidates based on predefined qualifications. The tool generally makes it easy for recruiters to find top candidates and fill vacancies at less time.

15. Can I have a customized HR management solution fit to my company’s needs?

Yes. Software providers can customize features for every e-commerce business. Nonetheless, most tools allow administrators to create private domains for the self-service portal and modify form fields to accommodate company-specific data on their own.

Sources

What Is HR Management Software: Analysis of Features, Types and Pricing

HRMS Software Features and HR System Requirements Checklist

HR Strategies in E-commerce Industry

Human Resources in E-Commerce Business: Why Does This Matter in a Digital World and What Role Does It Play?