5 Key HR Software Modules

Human resource (HR) systems help companies automate and manage the processes surrounding responsibilities as employers. Because employer/employee relationships are unique, HR systems are highly customizable to ensure any and all features a business might require are available in one integrated system. While a few HR solution providers attempt to load virtually every required tool and feature a company might need into their products, the cost becomes prohibitive.

Instead, most vendors offer a modular solution that lets customers implement a core platform and add different modules for specific features and functionality. The HR software modules are optional extensions of HR systems that can be installed as needed to maximize the benefits of the HR software system.

5 Must Have HR Software Modules

Payroll – this module automates the payroll process by collecting information on employees’ time and attendance, calculating taxes and payroll deductions, and producing paycheck data and quarterly/annual tax reports. Its functionality is often included in the core platform of a modular HR solution since almost every company has a payroll.

Time & Attendance – documents employees’ time and work related activities. The module integrates with automated data collection methods, such as an electronic time clock, and provides extensive analysis and metrics for manager review. Attendance is cross referenced to vacation and sick time, and to the payroll module, if necessary.

Benefits Administration – this functionality allows the organization to administer and track all benefits programs, such as insurance, retirement accounts, compensation, and vacations/sick time. Administrators use the module to negotiate and track contracts with insurance providers, retirement plan trustees, and other benefits analysts. Metrics are produced on employee utilization and costs among many other reports available.

Talent Management – companies seeking to optimize their workforces use this module to analyze personnel usage, identify and recruit prospective candidates, and manage training programs. The module tracks employees from initial hire through final separation to ensure the company attains every benefit from their talent during the hours of employ. Skills, training, and experience data on each employee is logged so that managers can quickly access needed talent.

Employee Self-Service – this module was the first to be “web-ified” in the early days of HR software as employees were given the ability to view and manage their own benefits programs. Today, the ESS module offers robust functionality to employees that free HR department personnel for more productive tasks. Employees query the ESS module for HR-related data and are empowered to perform some HR transactions over the system. Examples of functionality provided includes, view attendance, view YTD earnings/deductions, view vacation/sick days, request time off, schedule vacation, view insurance benefits available (YTD co-pay, coverage options, etc.), and more.

The value of ESS in reducing the workload of HR staff is proven. All the functionality provided by the ESS module previously required the time of HR personnel to respond to the request. For example, employees may query their attendance record from the system without asking HR for the information. The module also lets supervisors to approve overtime requests for their subordinates through the system without overloading the HR department with the task.

To make sure you get the right HR software modules that will benefit your company the most, your first step must be to define what problems you want your HR solution to address. Then you just need to find the HR software modules to meet your needs.