The human resources department is responsible for employees’ payroll, compensation, well-being, and more. While having the right HR professionals on board is crucial, giving them the right set of software applications can augment their work, speed up HR processes, and increase productivity.
Core human resources, or simply Core HR, is an umbrella term that refers to the basic functions of an HR department. More precisely, core HR can mean three things:
The core functions of a human resources department can be abbreviated as core HR. Some of the many core functions of the HR department include recruitment, payroll, employee training, benefits administration, compliance and safety, employee engagement, and internal relations.
In the case of HR data, core HR can also refer to the personal information needed to employ and administer employees legally. Employee birth dates, addresses, social security or national identification numbers, eligibility forms, benefits information, job titles, payroll, and salary information are examples of the types of information.
And then there’s core HR software.
In most cases, core HR refers to core HR software. They’re software applications used to manage employee information and processes and can include human resources information system (HRIS) and human resources management system (HRMS).
The human resources systems initially marketed as HRIS and HRMS are now popularly known as human capital management (HCM) systems. In other words, core HR software is also referred to as HCM software.
Organizations use core HR software to store relevant employee documents, manage employee profiles, and analyze employee turnover, satisfaction, and engagement trends. The software will also enable HR professionals to export or import employee data with ease.
Most core HR systems come with self-service options that allow employees to access and update their information. Also, in most cases, core HR software comes as part of an HR management suite. Since it holds essential data, core HR solutions must integrate with other HR systems to avoid duplication of employee data and make the workflow more efficient.
More specifically, core HR software can help HR professionals with:
Of course, the features of the software may vary depending on the vendor you choose. But in general, a core HR software application will enable you to store employee information in a centralized database. The type of information includes:
Again, core HR software solutions are typically broad-based platforms that are known by names such as HRIS, HRMS, and HCM software. These tools were initially developed to help HR professionals manage payroll and track employee records. But today’s software products have a wide range of functionality.
The HR department, HR professionals, and employees of virtually all business sizes can use core HR software to manage accurate employee data. Core HR software enables businesses to automate numerous, monotonous tasks associated with human resources management and therefore is a valuable addition that can grow along with your business.
Most successful companies are like well-oiled machines. Numerous parts work together to keep the company running and ultimately help generate revenue. The HR department is an integral aspect of every business.
The workings of the HR department can be enhanced with the help of core HR software. These administrative tools can speed up data collection and enable employee self-service. More specifically, core HR software applications can amplify the employee experience.
The following are some of the critical benefits of core HR software.
Core HR applications can automate numerous tedious HR processes. Such processes usually revolve around payroll and benefits administration. By automating these tasks, you free up HR professionals, who in turn can utilize the saved time to attract new talents and initiate employee training strategies.
Core HR software eliminates the need for manual data entry, which will reduce most payroll errors. Even a misplaced decimal point can cause serious issues. This will help you save time and hassle and may also save the company from IRS penalties.
Businesses crave optimization. They’re keen to try out any strategies that would optimize their inner workings. Core HR tools usually include features to measure employee turnover rate and hiring costs. Tracking those numbers is helpful to devise strategies for optimizing such business activities.
Data-driven decisions are the way to go forward. Although gut feelings may help you make instant decisions, they’re rarely correct. With core HR applications, you’ll have the necessary reports on crucial people management metrics to make the right decisions.
Since core HR software lets you store employee data in a single, centralized location, you can easily send automated reminders if any action needs to be taken. Data security is tightened, and the company will be compliant with regulatory requirements such as GDPR compliance.
Additionally, a core HR software solution can help you:
Core HR software gives the HR department access to a centralized employee records system, which they can track and update with ease. More precisely, core HR software can help HR professionals to offload numerous, monotonous tasks, enabling them to focus more on improving workplace experience.
The following are some of the top features of core HR software.
Payroll is a crucial responsibility of the HR department, and core HR software can help automate this process. It offers the ability to create and file tax documents and other necessary compliance-related documents.
For seamless payroll management, core HR software can easily integrate with other HR systems like ERP. If you use separate payroll software, the core HR toll will have the option to integrate with it, thereby ensuring easy data sharing.
Workforce management, or WFM for short, refers to an integrated set of processes that an organization employs to optimize its employees’ productivity. Forecasting labor requirements, creating and managing staff schedules, and leave planning are examples.
Core HR tools offer the necessary features to perform workforce management efficiently. Of course, workforce management can be a standalone solution. In that case, most core HR tools let you integrate it seamlessly.
Employee onboarding is a crucial part of the recruitment process and employee experience. An employee’s first-day experience can affect how long they stay in the company. Although how they “feel” can’t be manipulated using HR tools, a lot that adds to that feeling can be orchestrated using HR software.
Onboarding an employee involves numerous steps, including providing laptops and accessories, security cards, assigning workspace, and more. Core HR tools can help HR professionals coordinate these processes with ease.
Benefits administration involves managing benefits such as health, dental, and disability insurance, tuition reimbursement, and 401(k) retirement plans. In other words, it’s the process of managing, creating, and updating employee benefit programs.
Core HR software makes it easier for HR professionals to approach benefits administration by helping them quickly evaluate the value of current benefits programs. The software can also help HR professionals educate employees about the benefits offered, communicate with benefits suppliers, and assist employees in enrolling in benefits programs.
As you probably already know, effective benefits administration is crucial to attract the right talent, retain the right people, and cut operating costs.
The best core HR software solutions offer managers and employees a self-service portal. The functionality of such portals varies depending on the software vendor you choose; however, self-service portals let managers or employees view and update their employee information.
Portals can also help employees access information regarding pay and benefits and also access training modules. Additionally, employee self-service portals are offered via mobile apps, making it effortless to access information on the go.
The HR department and professionals are responsible for maintaining the organization in compliance with several regulations. Such regulations revolve around workplace safety, employment, anti-discrimination laws, and fair labor practices.
The top core HR software will enable you to efficiently perform compliance management by supporting documentation, including all kinds of forms you need to fill and maintain. Along with that, the employee data storage will follow privacy laws such as GDPR as you may have to rely on external cloud service providers for storage. Core HR software may also have AI and analytics features to proactively ensure that the company doesn’t allow sexism or biases.
Software applications can no longer be standalone solutions. To reach their full potential, they have to integrate well with other software. The same is true in the case of core HR software. It must seamlessly integrate with other applications such as talent management systems, learning management systems, and workforce planning software.
Additionally, a core human resource management system can have the following features:
Going for the core HR software with the highest number of features and functionality won’t always do the trick. The better option is to opt for a software application that solves the problems you’re facing without bringing any complications in the middle.
While looking at software vendors who are industry leaders, do check out applications that employ innovative HR technologies and artificial intelligence. Here are some tips for choosing the best core HR software:
Choosing your company's Core HR software is a complex process. To help HR departments compare and benchmark all Core HR software, we have selected a list of 49 companies providing SaaS tools for HR.
Core HR software is often combined with other HR functionalities. If your company is in need of complementary HR features, make sure to take a look at those frequent combinations:
Core human resources (core HR) is an umbrella term used to describe the essential HR functions, the employee data collected, or the software used to manage both.
The core functions of human resources include:
A core HR system enables HR professionals to manage core HR processes such as payroll, benefits administration, compliance management, and workforce planning. These systems make it easier to manage employee data and offer robust data security features.
Businesses, irrespective of their size, can benefit from core HR software. It automates several monotonous tasks HR professionals have to perform, enabling them to focus on other tasks. Even if it’s a startup, core HR software can reduce the errors in payroll and bring more security to employee data.