9 Best HCM Software Your HR Department Needs

Did you know that the right HCM software can make a big difference in managing your workforce?

In the 21st century, employees are no longer afraid to change jobs to improve their work-life balance.

For this reason, human resources managers are increasingly providing their employees with a diverse and inclusive work environment. At the same time, their jobs are more difficult than ever. This is when HCM software came into play.

HCM (Human Capital Management) software is a cloud-based HR application that helps companies manage their employees from hiring to retirement.

But how do you choose the right HCM software for your business?

Ahead, we have discussed human capital management and how it differs from regular HR software. Luckily, we’ve done the research for you and created a list of the best HCM software options your HR department needs.

Let’s get started 🏁

What does HCM mean?

Human capital management refers to both a business strategy or the set of modern IT applications and integrated tools used to implement that strategy.

In the 1960s, when computing revolutionized and automation accelerated, economists began to view the employee as an irreplaceable unit. They saw them not as workers performing day-to-day tasks, but as people with specific skills and talents that could drive business growth.

Thus, the term “human capital” was born.

Traditional HCM techniques that consist of manual processes no longer work.

In recent years, technology and cloud-based HR platforms have transformed cumbersome processes. Today, HCM solutions automate and streamline workforce management, including recruiting, talent management, workforce planning, learning, time management, and payroll.

Although HR software and HCM software are sometimes used interchangeably, there are subtle differences between them.

How is HCM different from regular HR software?

Typical human resources software is categorized into human resources information systems (HRIS) and human resources management systems (HRMS).

Both primarily automate day-to-day administrative functions performed by human resources professionals, such as employee data collection and storage, payroll and tax compliance, onboarding, reporting, and performance management.

HCM software comes with HRIS and HRMS functionality, as well as more complex tools for talent management and budgeting.

Simply put, HCM software is more comprehensive in nature. This helps with strategic workforce planning, compensation budgeting, and modeling. Additionally, the core principles of HCM software revolve around leveraging the workforce rather than offloading regular HR tasks.

Let’s understand each one based on their characteristics.

So, let’s take a look at the best HCM software for your organization.

bumbee

Bambee is a cloud-based HRO (Human Resources Outsourcing) solution that provides a dedicated HR manager and a set of tools to streamline HR processes and workflows. We employ the right mix of HR specialists from small to medium-sized businesses to large corporations.

Main features

• Run internal audits quickly and automatically to identify HR gaps and keep internal practices up to date.
• Enable HR Autopilot to ensure key HR policies are up to date and approved (signed) by employees.
• Custom training and certification based on business ethics. Get real-time employee training progress
• Built-in report card to evaluate employees against set goals and open regular dialogues to give praise, constructive feedback, and take corrective actions
• Streamline your payroll capabilities with Bambie’s 2-day direct deposit for employees. Automatically process federal, state, and local taxes.
• Features a smart cabinet to keep all your important HR documents in one place

Whether you have 1 employee or 500, Bambie will find the best HR manager for your business. Additionally, this software offers flexible and low-cost pricing plans, making it an excellent choice for small and medium-sized businesses.

ADP

ADP is a global provider of human capital management (HCM) solutions that integrate human resources, payroll, time and attendance, talent management, and benefits management into one platform. All-in-one management makes it popular with over 1 million clients worldwide.

Main features

• Get a custom-configured payroll service with flexible payment options. Automate payroll processing, tax calculations, and integration to other HR tools.
• Easily integrate with third-party accounting, finance, time tracking, and training software using ADP’s dedicated marketplace for HR tools.
• Use ADP kiosks to track time and improve employee productivity and transparency.
• Streamline employee management from recruiting to onboarding to retirement planning with ADP Talent.
• Outsourcing your payroll and HR functions, or partnering with ADP as your Professional Employer Organization (PEO), makes it easy to outsource completely.

ADP’s HR outsourcing currently supports more than 3 million employees and helps tens of thousands of small and medium-sized businesses streamline their HR operations.

ripples

Ripped is a one-stop solution that streamlines workflows across HR, IT, and finance departments and brings all organizational data under one roof.

Main features

• Global payroll service with automatic tax filing that pays employees and contractors in local currency in under 90 seconds
• Custom workflow builders let you automate manual processes and sync data across multiple systems at once. No code required.
• Features a library of over 500 readable and installable apps including HR, IT, and finance tools
• Easily manage your team’s benefits, from health insurance to retirement plans and compensation coverage, in one central system
• A smart time clock that allows employees to clock in and out, and allows employers to view and approve breaks in real time.
• Choose from a gallery of survey templates to quickly create employee surveys. Automatically send surveys based on event-driven triggers

From onboarding to offboarding, Ripped HR Cloud makes it easy to manage your in-office, remote, or contract workforce.

Ceridian Dayforce

Ceridian Dayforce is an all-in-one cloud-based HCM software that provides core benefits for HR and employee management. The software has native human resources, payroll, and employee management capabilities, making it ideal for organizations with large numbers of blue-collar workers or contract employees.

Main features

• Deliver advanced HCM analytics to dig deeper into your HR functions and display insights in easy-to-read dashboards
• Make smarter hiring decisions and accelerate time to hire with talent intelligence. Use AI and machine learning to assess applicants and hire accurately
• Intuitive payroll service with automatic tax calculations for over 8,000 local, state, and federal jurisdictions
• Freely integrate your payroll with Dayforce Wallet and allow employees to request earnings payments at any time during the payroll cycle.
• Get insights into personality types with the TeamRelate feature to help you understand how to properly position your employees for success

The Dayforce Wallet mobile app gives you instant access to your netpays and requests, and allows you to manage your transactions at your fingertips. You can also use Dayforce Prepaid Masterclass to make purchases, make claims and withdraw cash, with attractive cashback offers.

Paychex

Paychex helps businesses streamline payroll, human resources, benefits administration, and other related tasks. With over 700,000 users and 45 years of experience, Paychex has become a trusted provider of comprehensive HCM solutions for businesses of all sizes.

Main features

• Payroll processing with automatic calculation and tax filing. Includes tools to manage employee deductions, garnishments, and refunds
• Access to employee benefits such as group health insurance, retirement services, health savings, dental and vision insurance
• Features an online learning management system with hundreds of training sessions where you can add your own training sessions such as videos and quizzes
• Easily track and flow employee time through payroll and other HR functions with Paychex Flex Time.
• Leverage the Paychex API to seamlessly integrate with accounting, recruiting, human resources, and other software solutions.

Paychex comes with a dedicated mobile app and excellent customer support, making it a convenient and reliable solution for small and medium-sized businesses. The platform offers custom pricing, so you can get the right features for your business at an affordable price by answering a few questions.

bob

Bob is a modern HCM software designed from a management perspective to help businesses manage their employees efficiently and smoothly. This is a great solution for small businesses looking to put performance, engagement, and culture at the heart of their organization. Fast-growing global companies like BigID, Kustomer, and Rovio love Bob.

Main features

• Automate all HR functions from employee onboarding to performance management with core HR capabilities.
• Manage your entire compensation process, including salary reviews, bonuses and reimbursements, in one intuitive, global platform
• Bob’s time management features make it easy to request and approve holidays, sick days, paid time off, and more, all within your workflow.
• Provides a centralized dashboard for payroll management. Payroll-related data is automatically updated and synced with other HR tools in real-time.
• Enable Your Voice to let your employees speak out about concerns and misconduct. This feature is protected by the Whistleblower Protection Act
• Experiment with different customization options across Bob without impacting your data or existing Bob environment.

Do you think Bob is the right HCM software for your business? You can request a free live demo from our pricing section.

working day

Workday provides a robust, enterprise-grade HCM system for seamless workforce management. This platform is trusted by leading companies such as Dell, Comcast, and IBM.

Main features

• Automatically align talent and opportunities with Workday’s Skills Cloud , an AI-driven tool
• Provides a suite of HR tools to optimize HR workflows including payroll, time and attendance, compensation, benefits, and employee management
• Leverage augmented analytics to gain insight into your organization’s datasets through easy-to-understand dashboards
• Use employee-centric tools to listen to your employees, engage with them, and build diversity, equity, and inclusion across your department.
• Featuring thousands of public APIs and marketplaces to seamlessly integrate Workday with your existing IT ecosystem

Workday is a comprehensive HCM software ideal for medium to large businesses with extensive analytics and reporting capabilities. It may take some time to learn its vast features, but once you do, this software provides the best tools to streamline and automate end-to-end HR processes.

eddie

Eddy is a leading human capital management (HCM) tool designed to streamline HR processes and empower employees. The platform provides a comprehensive solution for managing all aspects of the employee lifecycle, from recruitment to onboarding, performance management, and offboarding.

Main features

• Automatically post unlimited job openings to your career page. Create custom drag-and-drop recruiting pipelines for each role to manage candidates every step of the way and hire faster.
• Create a custom onboarding packet with a personalized first day message, digitally signable documents, and a trackable task list for new hires.
• Track employee time and calculate pay based on company policies using Eddy’s time and attendance features
• Automatically calculate taxes, send payments, review and approve time, add refunds and bonuses, and more all from a unified dashboard.
• Create individual employee cards to track personal information, contact information, work and compensation details, assigned assets, signed documents, and leave balances
• Enable role-based access to control who can access what information. This is essential for protecting sensitive data

Eddy offers a 14-day free trial on all plans. You can also enhance the basic plan with additional add-ons such as payroll, employment, etc.

SAP

SAP HCM solutions, better known as HXM (Human Experience Management), are a suite of innovative solutions that enable individuals to reach their full potential at work, while strengthening HR connections across the business. It is a cloud-based software with HR tools.

Main features

• Analytics dashboards and reports including event-based triggers, 360-degree feedback, and digital tools to improve employee experience and engagement.
• Leverage built-in workforce analytics to gain data-driven insights across your HR processes to reduce bias and make faster, better decisions.
• A built-in digital knowledge center simplifies access to content for your employees and allows you to centrally manage documents.
• End-to-end talent management from recruitment to performance management, training and compensation
• Flexible and easily scalable solution (ideal for large or rapidly growing organizations)

SAP’s HCM software can be complex for first-time users. Fortunately, the team at SAP recognizes this and provides a plethora of free resources, guides, and video tutorials to get the solution up and running in your organization.

final thoughts

With innovative features and customizable solutions, these top HCM software are guaranteed to streamline your HR processes and take your organization to new heights.

So why settle for less? Browse our list and find the best HCM software to power your HR team today.

Also check out these payroll processing tools.