Mastering the fundamentals of an HR software to meet the specific needs of your business

Human Resources Information System (HRIS), Human Resources Management System (HRMS), Human Capital Management (HCM) software, HR software, human resources system… All these terms and acronyms concern a single field: the automation of tasks related to Human Resources management processes. However, even though these HR solutions are all dealing with the same topic, their ways of working and their fields of action can be very different.

Some automate only the HR administrative monitoring. Others go beyond the management of daily tasks and become strategic tools for decision making and team performance management.

The different functional scopes of an HR software

HR tools address four fields of action: compensation, administrative follow-up, personnel management and talent management. If, like Lucca’s HR software, some are entirely dedicated to only one of these areas, others have a broader functional coverage and can sometimes manage all four at the same time.

HR administrative monitoring software solutions

Known as “Core HR“, this type of HR software solution meets the needs of all businesses. They help structure the HR file of employees and facilitate its management by automating the administrative tasks related to the centralization and updating of employee data (postal address, social security number, position within the company, contract start date, etc.).

It can also feature an HR information access portal, allowing employees to update their data themselves. For companies with growing workforces, onboarding solutions automate all the administrative tasks required to welcome new employees.

HR software for talent management

These HR solutions are aimed at companies that have reached a certain size, are growing and whose challenges involve performance, recruitment and retention of talent. They offer a view of the skills available in the company, help identify high performers and facilitate the implementation of corrective actions: recruitment of specific profiles, training plan, etc.

HR review management solutions belong in this software category. This type of tool, which simplifies the preparation of annual reviews and the tracking of objectives, allows the HR department to measure the performance of teams and identify the managers of tomorrow.

Personnel management solutions

These solutions go further than administrative monitoring solutions. They manage team schedules, time and activity tracking, leave requests…

Leave and absence management is usually the first process that a company seeks to digitize when it reaches a critical size, no longer allowing it to manage its data manually. It can also turn to automated solutions to meet legal obligations, such as a time and activity management solution for example.

Technical differences between HR management softwares

Beyond the functional differences, HR software is divided into two main categories: HR SaaS solutions and software known as in “license mode” (i.e. installed on the company’s servers). The differences are based on how they are sold, maintained and used.

HR solutions in SaaS version

A SaaS HR solution is an online application accessible via a web browser. Billing is in the form of a monthly subscription and includes updates and bug fixes. The application, like the data it contains, is hosted on servers that are not part of the company.

It is therefore not possible to carry out specific evolutions to customize the software according to your needs. It’s up to the company to adapt its practices to the tool.

Software in license mode

Software sold in license mode, also known as “on premise”, requires installation on the company’s physical servers. The company becomes the owner. This necessarily implies having an ISD that is in charge of the maintenance of the computer system. It also forces the company to be highly dependent on the service provider who managed the rollout.

In addition to the purchase price of the licenses, the company must pay additional costs related to the maintenance of the software: updates, configuration adjustments, license renewals, etc.