Must have HR software features and system requirements

Must have HR software features and system requirements

Hrms , Human resources , Features , Requirements

Must-have HR software features and system requirements

HR team's primary function includes tracking the employee data in the company. This is done efficiently with the available HR software. Building a list of requirements is essential to understand various software features needed to evaluate the HR systems. The type of software can be decided based on the company culture, such as a learning management system or performance management system. Let us see some of the HR software features to be considered while compiling an HR system.

Core HR:

This module in the HR software stores employee information and even deals with security and reporting. Some points to validate when evaluating core HR functionality include a centralised database rather than multiple databases when software is built through acquisitions; fields for entering employee and non-employee details; the ability to create custom fields for tracking information related to an organisation; controlling access rights to employees for a specific assignment; and system configuration to meet government compliance requirements.

Cloud-based HR system or premise based system:

In cloud-based HR systems, a web browser or mobile device helps to incorporate access to the application. Besides this, vendors even offer HR software that is installed and managed on-premises in an IT enterprise. Among these, the cloud-based model is preferred.


Firms can track the employees’ attendance through the HR software and capture their active working hours. This makes it important to include all the corporate policies and practices in the system. It has to be validated to perform configuration of absence types as per the company; types of absence to be applied to a population.


The applicant tracking system in the HR systems includes finding and hiring new employees. It includes a job library showing the job description and related details, onboarding new candidates, reports, tags, and custom groups for tracking candidates, supporting advanced digital signatures through DocuSign, adding attachments to offers, and ease of communicating regularly to passive candidates.

Performance management:

Various HR systems support informal feedback options to ensure a functional traditional performance review management process. Certain points which must be considered while evaluating HR software include 360-degree feedback; configurable workflows to synchronise with the company's operation; report and dashboards for tracking progress and analysing results; and concurring filing of forms.

Capturing employee benefits:

Based on the requirements of the firm, the company should be able to configure multiple plans, upload data to the insurance providers, push data to the payroll; and a compensation module providing eligibility rules for determining which employees will be a part of the compensation process; set budget to restrict overspending; data protection and others.

Self-service portals, dashboards, and reporting:

The HR software system should provide standard reports to meet the needs. The dashboards should show charts and graphs for actionable insights, and restricted access should be provided based on role-based permission. Self-service portals should let employees view and update the information.


HR software systems can be integrated with other systems in an organisation to provide valuable information. Custom integrations let data be pulled from HR software, and partner integrations offer prebuilt integration with certain third-party applications. Apart from the features enlisted above, an ideal HR system will support online training and those led by instructors. Certain pre-defined rules ensure auto-assignment of courses. Evaluating an HR system on all these criteria can ensure the efficient functioning of a firm.

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