8 Types of HR Tools to Streamline Key Processes

Key takeaways

Human resources (HR) oversees many labor-intensive processes that can be more efficiently addressed with different tools.

• HR tools refer to different software that help organizations manage admin-heavy tasks, such as recruiting, payroll, performance, and employee engagement.

• The most popular types of HR tools include applicant tracking systems (ATS), payroll software, performance management platforms, learning management systems (LMS), and employee engagement tools.

• It's best to evaluate HR tools based on your company size, budget, and HR priorities to determine which type best supports your workforce goals.

Learn more about how different HR tools support recruiting, compliance, employee development, and organizational growth. Afterward, build your HR knowledge with the HRCI Human Resource Associate Professional Certificate, where you'll learn the essentials of hiring, performance management, and technology implementation.

8 popular types of HR tools

HR tools are software that make the role of a human resources professional easier. For busy professionals, HR tools typically become a worthwhile investment with time-saving benefits. Discover the different types of HR tools:

1. Applicant tracking system (ATS)

An applicant tracking system (ATS) can streamline the hiring process. An ATS can help you identify the best candidate for the role by reviewing applications and sorting candidates based on their qualifications.

ATS options:

• Greenhouse

• Lever

• Workday

• iCIMS

• BambooHR

• JazzHR

• Ashby

2. Human resources information system (HRIS)

While other HR tools often perform specific functions, a human resources information system (HRIS) includes multiple functions in one software program. It's often used to manage a company's workforce, automating tasks like benefits administration, payroll, and vacation requests.  

Some additional features of an HRIS include comprehensive data analysis, employee time tracking, and recruitment services. Based on your company's needs and size, you can choose the right HRIS for your business.

HRIS options:

• Workday

• BambooHR

• SAP SuccessFactors

• ADP Workforce Now

• UKG Pro

• Rippling

• Namely

3. Payroll

A payroll system is an HR tool that ensures employees receive financial compensation for their work. Not only does a payroll system ensure employees get paid, but it also helps businesses operate smoothly and follow all legal labor and payroll requirements. Using payroll software instead of manually completing payroll-related tasks may increase efficiency and accuracy, saving you time and money in the long run.

Payroll options:

• Gusto

• ADP

• Paychex

• QuickBooks

• OnPay

• Rippling Payroll

• Square Payroll

4. Benefits administration

Benefits administration software often integrates with the HRIS to manage the enrollment, tracking, and compliance of employee benefits programs. This specific HR tool makes it easier to manage employee benefits like health insurance, retirement plans, and enrollment.

Benefits administration options:

• Zenefits

• Gusto

• Rippling

• ADP

• Employee Navigator

• Namely Benefits

Artificial intelligence (AI) is transforming HR by expanding the functionality and features of many key tools. Learn more about how AI is being used across all HR areas.

5. Performance management

As an HR professional, you may use performance management systems to ensure that employees know their roles and goals within a company and that they meet said goals. These systems can help you track objectives and gather data on individual employees and teams. You can then use that data to give employees feedback on their performance.

Performance management options:

• Lattice

• 15Five

• Culture Amp

• Betterworks

• Workday

• Reflektive

• Trakstar

6. Learning management

Companies use a learning management system (LMS) to encourage employees to explore continuous learning or professional development opportunities. Employees use the LMS complete training or courses based on their individual skill sets and knowledge.

LMS options:

• Cornerstone OnDemand

• Docebo

• SAP Litmos

• TalentLMS

• Absorb LMS

• Lessonly by Seismic

7. Employee engagement

Understanding employee sentiment is critical to improving as a company. Oftentimes, employees may be aware of particular pain points that may not filter up to leadership. Alternatively, they could also enjoy certain aspects of the work and knowing what those are can be valuable. Employee engagement tools are used to measure engagement, collect feedback, and improve workplace culture.

Employee engagement options:

• Culture Amp

• Glint

• Qualtrics EmployeeXM

• Officevibe

• Peakon

• TINYpulse

8. Workforce planning

Workforce planning tools help organizations forecast staffing needs, allocate labor effectively, and ensure the right employees are in the right roles at the right time. These tools support long-term strategic planning as well as day-to-day scheduling by analyzing workforce data, tracking labor costs, and modeling future hiring or restructuring needs. Companies often use workforce planning software to improve productivity, manage labor budgets, and prepare for growth or seasonal fluctuations.

Workforce planning options:

• Deputy

• When I Work

• UKG Dimensions

• Kronos

• Homebase

• Planday

Why are HR tools valuable?

Software to support different HR processes are essential to the success of a human resources department. HR tools provide multiple benefits to a company, including increased productivity for HR professionals and user-friendly experiences for employees:

• Increased efficiency: Implementing HR tools in a company offers professionals the opportunity to increase their efficiency, particularly when recruiting and onboarding new employees. HR tools make the process of finding qualified candidates quicker and simpler, in part because they use artificial intelligence (AI) to screen resumes and applications.

• Ensured compliance and regulation: Automated payroll and compliance features take the pressure off human resources professionals and ensure that a company is following all labor laws.

• User-friendly: Many HR tools are user-friendly for all different levels of HR professionals, including HR coordinators and HR leaders, as well as company employees. This allows employees to log in to the HR tool on their own time and access their benefits, pay stubs, and shifts without having to go directly to a human resources professional.

• Cost-effective: When determining the right HR software for you and your business, it’s important to consider the cost. Many HR tools prove to be worth the investment because of the assistance and efficiency they provide within a company and the HR department.

• Employee satisfaction: With accessible and easy-to-navigate HR tools, employees can effectively communicate their wants and needs, such as time off requests and schedule changes. Having access to features like employee surveys may lead to happier, more productive employees and an overall positive impact on the workplace culture.

How to choose the tight HR tool: step-by-step guide

Choosing the right HR tool starts with understanding your organization’s needs, growth plans, and existing systems. The best solution supports your current operations while remaining flexible enough to scale as your workforce evolves.

• Identify your key priorities: Clarify what problem you’re trying to solve. For example: Are you trying to enhance employee engagement or automate payroll? Defining your problem (or problems) is an important first step before comparing options.

• Consider your company size: Different tools are built for different stages of growth. For instance, a small company may need an all-in-one platform, whereas a larger company may need more customization.

• Evaluate integration: Most organizations already use multiple systems. Strong integrations reduce manual work and data duplication.

• Assess usability: An HR tool is only effective if employees and managers actually use it. Pay attention to whether the tools you're considering are easy to use, have self-service features, and implementation support. Request demos as needed.

• Review compliance and security: HR tools manage sensitive employee data. Confirm that the platform you're considering supports data encryption, fulfills regulatory compliance, and has audit trails.

• Compare costs: Ultimately, if a tool exceeds your budget then it won't be the right one for your needs. Review the base subscription price and pay close attention to additional fees such as setup fees, scalability costs, and customer support tiers.

Learn more about HR with our free resources

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• Watch on YouTube: Why Power BI Skills Are Essential for HR, Finance, and Business Intelligence

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