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As your business grows, you will need to find ways to manage your employee base more efficiently. One way to do this is by using HR tools. While some organizations are just beginning to adopt these technologies, others have been using them for years.  

However, there is still a lot of confusion about what HR tools are and how they can impact businesses. This article attempts to clear up some of that confusion and provide you with some information about HR tools that can help you make the best decision for your company. 

What HR tools are and their purposes 

First, let’s start with a definition. HR tools are technologies used to support human resources functions in a business. This can include anything from recruiting and hiring to managing employee performance and tracking payroll. Essentially, any function that is related to the people working in a company can be supported by HR tools. 

These tools aim to make the HR process more efficient and effective. By automating or streamlining tasks, HR tools can save businesses time and money. They can also help organizations manage their workforce more effectively. 

For example, if you’re using a tool to track employee performance, you can identify issues early and take corrective action. This can help you avoid problems down the road. 

Human Resources tools can also help you attract and retain top talent. Using recruiting and hiring tools, HR managers can target the best candidates for your open positions. Additionally, by using tools to manage staff performance, you can show your employees that you are committed to their development. This can help you keep your top performers from leaving your company. 

Choosing the right HR tools for your business 

Now that you know what HR tools are, you need to decide if your company needs them. The first step is to assess your company’s specific needs. Do you need help with recruiting? Are you looking for a way to streamline the performance review process? Once you have identified your company’s specific needs, you can begin researching the different HR tools available. 

There are a wide variety of HR tools on the market, so it’s essential to take your time and find the right one for your business. You should also consider your budget when making your decision. Some HR tools can be quite expensive, so you’ll need to make sure you’re getting the most bang for your buck. 

There is no one-size-fits-all answer when it comes to choosing HR tools for your business. However, by assessing your company’s specific needs and doing your research, you can find the right tools for your organization. And, as we’ve seen, there are a number of benefits to using HR tools. So, if you’re on the fence about adopting these technologies, now is the time to make the move. 

Types of HR tools and how they work 

Now that we’ve covered the basics of HR tools, let’s take a closer look at some of the most common types on the market. 

Recruiting and hiring tools 

One of the most critical functions of HR is recruiting and hiring new employees. This process can be time-consuming and tedious for every HR team, yet it’s crucial for any business. Thankfully, there are several tools available to help with this intimidating task. 

  • One of the most popular recruiting tools is an applicant tracking system (ATS) that helps businesses manage the recruiting and hiring process. This type of software allows companies to track and manage job applications. It can be used to track job openings, collect and store resumes, and keep track of applicants. 

An ATS can also be used to screen applicants and identify the best candidates for a position. This can save businesses time and money by helping them to quickly weed out unqualified candidates. Some common ATS being used are Bullhorn, iCIMS, bravoTALENT, and Jobvite. 

  • Another common tool used in recruiting is a candidate management system (CMS). This type of software helps businesses store and organize candidate information. This can be extremely helpful when a company is trying to fill multiple positions at once. 

A CMS can also be used to track the progress of each candidate through the hiring process. This information can be used to improve the efficiency of the process and make sure that no candidates fall through the cracks. Some CMS you can consider using include Greenhouse, Workday, and Taleo. 

Performance management tools 

Performance management is another important part of HR. By tracking staff performance, you can identify issues early in the entire employee lifecycle and take corrective action. This can help you improve employee productivity and avoid problems down the road. 

There are a number of different performance management tools available, but they can be divided into two categories: 

  • Performance appraisal is a process where employees are evaluated on their job performance. This can be done regularly or on a one-time basis. 
  • Performance tracking is the ongoing monitoring of staff performance. This can help managers identify issues early and take corrective action. 

Here are a few cloud-based performance management platforms you can consider utilizing for your company: 15Five, Small Improvements, WideAngle, and Trakstar. 

Time and attendance tracking tools 

Another important function of HR is tracking employee time and attendance. This information can be used to ensure that employees are showing up for their shifts on time and taking the appropriate amount of breaks. Additionally, it can be used to generate reports on employee productivity. 

There are a number of time and attendance tracking tools available, but they can be divided into two categories: 

  • Time clocks are physical devices that employees use to clock in and out of their shifts. These devices can be used to track employee hours and generate reports. 
  • Time tracking software is a type of software that helps businesses track employee hours. This information can be used to generate reports on employee productivity. 

Some common time and attendance tracking tools include Tsheets, When I Work, and Deputy. 

Training and learning tools 

Training and learning are important HR functions. By providing employees with training, you can improve their skills and knowledge. Additionally, by offering learning opportunities, you can keep employees engaged and motivated. 

With a learning management system (LMS), you can create and manage online courses. This can be a great way to train employees on new software, products, or procedures. Additionally, you can use an LMS to track employee progress and generate reports on their learning progress. 

Some popular LMS include Litmos, TalentLMS, LearnUpon, and iSpring Suite. 

Employee engagement measurement tools 

Employee engagement measures how connected an employee feels to their job and their company. By tracking employee engagement, businesses can identify issues and take steps to improve them. 

Additionally, employee engagement data can be used to create reports and improve the overall workplace environment. 

There are a number of different employee engagement measurement tools available: 

  • Employee surveys are a common way to collect data on employee engagement and manage HR processes efficiently. Asking for employee feedback helps establish trust and creates a positive relationship within your organization. The information obtained can be used to identify issues and take corrective action. Additionally, employee surveys can be used to generate reports on employee engagement. 

Here are some valuable tools to help with creating surveys, collecting data and insightful analysis: SurveyMonkey, Qualtrics, Zoomerang, and bravoSURVEYS

  • Employee sentiment analysis is the process of tracking and analyzing employee sentiment on social media. This can be used to measure employee engagement and get a better understanding of how employees feel about their company.  

A few tools recommended for you are SocialMention, Awario, and Brandwatch. 

  • Employee engagement platforms are cloud-based applications that businesses can use to collect, track, and report on employee engagement data.  

Some popular platforms include Motivosity, TINYpulse, and Culture Amp. 

Benefits administration tools 

Benefits administration is the process of managing employee benefits. This includes health insurance, retirement plans, and paid time off. It can be a complex and time-consuming process, but there are several benefits administration tools available to help businesses manage it. 

These tools can be divided into two categories: 

  • Benefits enrollment is the process of enrolling employees in benefits. This can be done online or through a benefits administrator such as ADP or Paychex. ADP has a wide range of features and integrations that make it a popular choice for your HR professional and businesses. Paychex is another popular option that offers online and mobile access to benefits information. 
  • Benefits management is the process of managing employee benefits. This includes tracking employee eligibility, updating benefit information, and processing claim forms. Benefits management can be done manually or using a benefits administration tool. 

Some popular benefits administration tools include Ceridian Dayforce, Benefitfocus, and Gusto.  

All functions in one place – HR management software 

One of the advantages of using HR software is that it can consolidate all of your HR functions into one place. This can save you time and money, and it can make it easier to manage your HR operations.  

There are a number of different HR software applications available, but they can be divided into two categories: 

  • HRIS is an HR software application that is specifically designed for small businesses. It can help you manage employee files, track time and attendance, generate reports on employee productivity, and other functionalities required for end-to-end human resource management.  

A few HRISs to consider are BambooHR, Zoho People, Namely, and UltiPro. 

  • ERP is an HR software application that is designed for large businesses. It can help you manage all aspects of HR, including benefits administration, payroll, and training and learning.  

Here are the most used ERPs on the market: SAP, Oracle, and ADP. 

How to use HR tools effectively in your business 

Once you have chosen the right HR tool for your business, you need to make sure that you are using it effectively. Here are a few tips: 

Train employees on how to use the HR tool 

With the development of new technologies and techniques, it is essential to provide employees with the training they need to use the tool properly. By doing this, you can ensure that your team is using the HR tool to its full potential and that they are getting the most out of it. 

Make sure the HR tool is accessible 

You need to make sure that the HR tool is accessible to everyone who needs it. This means ensuring that the HR tool is easy to use and that it is available on all devices, including laptops, desktops, and mobile devices. 

Make sure that your HR data is accurate 

It is essential to make sure that the employee data in your HR system is accurate. This means that you need to keep your employee records up to date and enter new data regularly. You also need to ensure that the information is entered correctly so that it can be used effectively. 

Use reports to make decisions about HR policies 

The Reports function in your HR tool can be a valuable asset. By using reports, you can track employee productivity, identify issues, and make decisions about HR policies. 

Integrate the HR tool with other systems 

Your HR tool should integrate with other systems in your business, such as payroll and accounting. This can help you save time and money by consolidating all of your HR functions into one system. 

Regularly update the HR tool 

The HR tool should be updated regularly to ensure that it is up to date with the latest changes in the law and best practices. You also need to make sure that you keep your employee records up to date so that you can use the tool effectively. 

Keep your HR data secure 

It is essential to keep your HR data secure. This means that you need to have a secure login and password for your HR system and keep your employee records confidential. 

By following these tips, you can ensure that you are using your HR tool effectively and that you are getting the most out of it.  


There are a number of different HR tools available, and each one can help you with a specific HR function. Understanding the different functions of these tools, you can select the ones that will be most beneficial for your organization. By consolidating all of your HR functions into one place, you can save time and money, and make it easier to manage your HR operations. 

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Tram Mai
Marketing Executive
A content writer who is keen on interesting ideas and compelling messages
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