HR has become more strategic amidst evolving business trends and unexpected scenarios like Pandemic, War, inflation, interest-rate rises, great resignation, etc. Today, HR professionals work with a greater responsibility to ensure that organizations are living their purpose and values while safeguarding employees’ interests. The HR role has expanded across processes, strategy, and people with the evolving new organizational models. HR has undergone a dynamic shift in its approaches and is currently focused on enhancing employees’ experience and building sustainable brands. In this transformation, technology and software solutions such as Human resource management software and recruiting software are making a huge impact. 

As per one of the reports HR software market size was valued at $15.59 billion in 2020 and is expected to reach $33.57 billion by 2028. The key driving factors for HR solutions are the high adoption of cloud technologies, automation, and rapidly changing marketplaces.

HR software helps to develop value-enhancing HR ecosystems that boost growth for both- employees and the organization. This article emphasizes how implementing HRM software can benefit employees and organizations.


Impact of HRM on Employees

  • Employees Training: Employees sometimes struggle to perform their tasks, and the main reason is a lack of training or knowledge on the subject matter. With the help of HRM software, HR professionals can push various employee training programs. HR professionals can schedule training programs as per the employees’ needs and requirements. The recruiting software also stores learning materials and acts as a self-learning guide and knowledge base, which allows employees to learn things at their preferred time.


  • Employees’ self-service:  Employees have a lot of queries before and after joining the organizations, like terms and conditions, salaries, work responsibilities, appraisal, leaves, etc.  The HRM software supports the self-service feature that allows employees to answer all their queries without HR staff’s intervention. Technology like AI chatbots embedded with HRM software is quite helpful in navigating employees through their queries and saves their valuable time by responding to them promptly. 


  • Self-managed employees portal:  Human resource software allows employees to manage their own portal and see various updates on their leave status, salary deduction, or extra pay for overtime.  With all the details on the employees' dashboard, there is less chance of conflict with management.  The portal also allows sending a message to HR so it can be sorted on time in case of any issue. 


  • Mobile apps:  Next-generation HR software is supported with mobile apps that allow employees to get all the updates on the go. For instance, if there is any change in the shift, then employees get real-time notifications about it. With mobile apps, employees always stay connected with HR and have a sense of inclusiveness, especially employees that are working remotely. With real-time updates, employees can take advantage of employee referral programs or any other benefits that HR has planned for employees.


Impact of HRM on Organizations

  • Hiring the best talent:  HRM software can sort resumes quickly with filters, like skills, qualifications, experience, etc., and helps the organization to choose the best candidate for the job. It saves the organization time and cost in the recruiting processes. Some advanced HRM software or recruitment software allows for creating questionnaires and assigning a score for the right answer. Based on the score, the software shortlists the candidates. Besides that, it also helps to post job openings on multiple sites and speed up the hiring process.


  • Automates HR activities: The HRM software optimizes HR professionals’ productivity by automating tasks such as processing payroll, generating salary slips, monitoring time and attendance, employee evaluation, employee onboarding, etc.  The software performs all the mundane tasks and frees HR staff to focus more on strategic work. The best HR software offers pre-built templates and a drag-and-drop interface that facilitates automating various HR processes without technical assistance.  


  • Enhance the organization’s overall performance:  Advanced HRM software can track employees' end-to-end work and identify the areas where employees are struggling. It tracks all the details of the employees' work, whether they are working within the office or remotely. Further, the HRM software solutions are interlaced with features such as feedback, a rating system, self-evaluation, checklists, etc. Based on these details, HR managers identify areas for employees' improvement and implement programs that help employees to enhance their work or skills. All this information is valuable to increase employees' productivity and organizations' overall performance. 


  • Data-analytics:  In the era where everything is centralized around data, data-analytics features in recruiting softwarecan be critical for organizational growth. With the help of data analytics, the organization can have detailed insights about the strengths and weaknesses of the human resources and based on that, business owners make future decisions for the project.  The software can even assist in monitoring the KPI (Key Performance Indicator), which is usually difficult to gauge with manual methods. The software populates all KPI metrics on the dashboard and helps business owners to become proactive instead of reactive.  


  • Compliance with Industry standards:  Human resources have to adhere to various labor laws and industry compliances. Failing to meet these rules and regulations can harm both organizations in terms of money and reputation. It is more challenging when a business is operated in a foreign country and must follow local rules. Manually tracking compliance could increase the risk of missing out, and it is difficult to continuously monitor the market for the latest updates on the laws. In contrast, HRM software could make compliance management work pretty easy by continuously monitoring and updating it automatically.


  • Enhances employee engagement: Employees’ engagement is the secret to a project or company’s success. Most organizations try to increase employee engagement through various interactive programs and strategies. But despite many efforts, many companies do not succeed in optimizing employee engagement levels. The most common reason for low levels of employee engagement is poor execution of employee engagement programs. 

The best solution is using HRM software intertwined with employee engagement programs or employee engagement software. These software solutions come with gamification features such as an employee point reward system, qualification based-travel events, interactive progress bars, etc. Employee engagement software or HR software takes care of everything from collaborating with employees to measuring their engagement level and optimizing the employees’ experience.


  • Workflow automation: Advanced human resource software enables HR managers to design workflows that match the organization’s needs. HR professionals can automate various activities such as leave requests, employees’ onboarding process, annual performance review, scheduling training programs, sending offer letters, etc. It takes all the guesswork out of HR processes and minimizes manual errors. Most HRM software comes with a customization option, which users can use to design workflow that caters to their business needs.   



An effective HR system can add value to the organization’s workforce manage remotely and office and create a positive work culture. Today, HR executives are challenged to respond to the dynamic business world and address issues such as employee skill gaps, poor engagement levels, employee retention, changing laws and compliances, workplace flexibility, etc. HR executives are no more envisioned as professionals who merely organize the workforce but as business partners who contribute to every facet of organizational growth. It can be achieved by investing in the top HRM software. Human resource management software simplifies HR activities and eliminates many inefficiencies of traditional HR systems.