What is HR Software?

HR software is an online tool that enables HR managers to set up, organize, track, and optimize human resources activities - all from one place. It saves the HR team’s time and effort by automating mundane tasks.

Additionally, it reduces the potential for human errors or operational delays. The ability of HR software to centralize the employee lifecycle from the interviewing stage to offboarding makes it a must-have for organizations.

Some of the finer tasks that a cloud-based HR software can help optimize are - managing and updating employee records, attendance tracking, getting insightful HR reports, etc.

HR software for free | Freshteam HR software for free | Freshteam

          Freshteam's HR Software

Capture and update employee information with ease

Freshteam's HR system comes with customizable forms to collect all the necessary information from your employees so that you remain compliant with all federal regulations. With a dedicated employee self service portal, your employees can update their information on their own whenever they want to, without relying on the HR team.

HR software to maintain employee records HR software to maintain employee records

One stop shop for all your employee documentation

While Freshteam onboarding will help you get all the employee contracts e-signed, the document management system in Freshteam will store all the documents in the employee profile; making it easy for employees and the HR team to access them.

Manage documents efficiently.

HR software for employee documentation HR software for employee documentation

Better insights with HR reports

With curated and customized reports, make data-driven decisions for your organization. Learn which hiring platform is more effective, where do candidates drop the most in the hiring pipeline, who is the best interviewer and so on.

Optimize HR activities effortlessly.

HR software for insight-rich reports HR software for insight-rich reports

Benefits of Using an HR Software

Here are 7 reasons why you must use an HR Software:

Employee data under one roof

Right from the moment an employee joins the organization till their retirement, HR Software will store and manage all their records and documents under one roof. HR teams and employees don’t have to go through mountains of paperwork to update employee records. Everything is available at their fingertips. 

Also, the data is retrieved easily based on the HR task at hand. For example, an HR professional concerned with onboarding wants to see a different set of information than someone concerned with time offs. A modern HR software should be able to make accessing relevant information easy.

Streamlined Applicant tracking system

The ATS feature in HR Software will take care of the entire talent acquisition and onboarding process, right from job posting, candidate screening, candidate engagement, till offer management and employee onboarding. 

With ATS, collaborating over hiring decisions becomes easier and efficient. Interview scheduling, communicating with candidates, or collecting and processing feedback, it can all be coordinated from a single central hub. 

When the process becomes automated, both the HR employee and the candidate have a delightful experience.

Effortless Employee Self Service

Modern workforce looks for a fully automated workplace. In fact, it is an important criterion while choosing to work in an organization. Manual, redundant ways of working are time-consuming and are prone to error. With a dedicated employee self service portal, your employees are not bogged down with paperwork and external dependencies. 

With the employee self service feature, you can free up your HR teams’ plate to manage the strategic part of HR instead of operational. In addition, with employees working on their own data, you can count on information being more accurate.

Make informed decisions with HR Analytics

With HR software, it becomes easier for HR teams to access and analyze trends, understand what needs to be prioritized, and what needs to be improved. With customizable reports from the HR system, HR teams can present data of their liking and make decisions with more clarity and accuracy.

For example, if you see a trend of employees applying for a time off, during a specific month of an year, you can deduce that employees probably feel a little burnout by then. You can introduce measures to mitigate the impact of workload around that time. It’s essential you use an HR tool that can give crucial insights in an easy to analyze fashion.

Error-free employee management

Automation takes away the factor of human error. HR Software automates Applicant tracking, time-off, employee onboarding and so on, with little to no human intervention. It removes the scope for tampering or error.

This means, your HR team is not spending any time putting off fires.


HR software comes with a host of features that makes your job easy. You might expect that to make these tools super expensive but that need not be the case. Even the best HR system is affordable.
Additionally, HR products will help you save on hiring costs as you need fewer HR folks to manage workload and a quality ATS makes candidate sourcing and screening easy. It also saves on expenses caused by human errors.

Employee Data Security

With an HR software employee information stays safe from accidental deletion and unauthorized access. You need not worry about a new team member accidentally deleting an excel sheet or marking incorrect time off.

Modern HR platforms make it impossible for a single owner to make major changes - thus keeping the data secure.

The Different Types of HR Software Solutions

There’s no one size fits all scenario when it comes to HR software solutions. Some might help you with applicant tracking and onboarding, while others take care of employee management, time off and HR reporting.

Types of HR Systems based on HR tasks:

Types of HR software based on database storage:

Types of HR tools based on employee lifecycle:

9 Essential Features of an HR Software

Here's a list of key features you need to check if the HR software you are shortlisting comes with.

Applicant Tracking System

Put your recruitment in autopilot mode. With ATS, HR teams can close multiple open positions up to 20% faster, screen innumerable candidates, and hire them easily.  

Employee Onboarding

Ensure that your new employees receive their onboarding kits well before their first day. Leverage experience surveys, collect e-signatures and send all the paperwork the moment they accept the offer. 

Employee Database Management 

Ensure that all your employee documents are stored online, under one roof, for easy access, both for the employees and the HR team. 

Employee Self-service

Let your employees update their information, apply for time-off, and access documents, without approaching the HR department through an employee self service portal.

HR Reports

A powerful HR reporting system will help HR teams take important business decisions and contribute better to the organization’s goals. 

PTO management

Let your employees know about your company’s holiday calendar and book their time-offs without any hassles. 

Ease of use

HR software is supposed to make your job easy. It should be fast, have an intuitive interface, and stellar database management capability.


Businesses use different tools at every stage of scaling. A top HR software should be able to integrate with existing tools instead of arm-twisting businesses into adopting new ones.

Affordable pricing

A Free HR Software will help you test and understand if it aligns with your company’s needs. However, even the paid version should be affordable and transparent.

Businesses that use HR Software

There are broadly three types of businesses that use HR Software: 

  • Small-sized businesses: Businesses with less than 100 employees. These are startups that do not have a dedicated HR team or an HR employee. The decision rests in the hands of the Founders and Finance team. HR software for small businesses. Small businesses, with their limited employee size, can find HR management particularly difficult and need to pick dedicated HR software that suits their needs. 
  • Mid-sized businesses: Businesses with less than 500 employees. These companies usually have an HR team and dedicated recruiter and will look to use ATS, performance management, and PTO extensively.
  • Enterprise businesses: Businesses with more than 5000 employees. They have a dedicated, well-structured HR team, and would look for payroll, learning management features, along with ATS, performance management, PTO, and employee database management.

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