11 Best HCM Software Vendors Of 2022

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People Managing People

3 min readSep 23, 2020

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This article will help you quickly compare and evaluate the best HCM software within all HR software.

HCM software is used across most HR departments as it assists in managing the organization as a whole. In this post, you’ll learn how important HCM software is, especially in employee management, and how you and HR professionals in your organization can utilize this for your own benefit.

In this post, I’ll share with you a basic human capital definition and highlight a few of the best HCM software options on the market today. Here are some of the best HCM tools to streamline your human capital management processes.

The Best HCM Solutions List

Here’s a shortlist of the HCM platforms that made my top 10 list:

HCM System FAQ

Have some questions about human resources and human capital management? Need some human capital examples? Start with this handy FAQ.

What Is HCM?

Human Capital Management (HCM) is a set of standard practices that are implemented within the human resources of an organization.

These practices include HR functions such as workforce acquisition, workforce planning, workforce management, and workforce optimization. The practice is guided by an overarching human capital management strategy intended to help the organization maximize overall business value.

What is the difference between HCM and HRMS?

The main difference between Human Capital Management (HCM) and Human Resource Management Systems (HRMS) is that HCM is more geared towards employee management. This includes performance, onboarding, analytics, position control, and absence management along with other HR services.

HRMS, on the other hand, is a more comprehensive HR system. This looks at all the core features in a broader range to include all HRIS software and HCM systems but focuses largely on HR processes such as payroll processing and compensation management, benefits administration, and time and labor management.

What are some HCM software benefits?

HCM software provides valuable resources for any organization. All HCM platforms have many beneficial automated features such as recruiting, managing administrative tasks such as payroll and benefit plans, overseeing employee performance, and training.

Human Capital Management Software is designed to manage and maintain a workforce with ease, while boosting the employee experience and employee engagement.

What is the best HR software for a small business?

Small businesses may benefit from free or low-cost HR software like HoneybeeBased (free for up to 3 users), Rippling ($7 per user per month), or Zoho People (free for up to 5 users).

HCM Systems Comparison Criteria

What are we looking for when we select HCM software for review? Here’s a summary of my evaluation criteria:

User Interface (UI): Is it clean and attractive?

2. Usability: Is it easy to learn and master? What is the user experience like? Does the company offer good tech support, user support, tutorials, and training?

3. Features & Functionality:

Advanced Payroll Features — Can the tool handle payroll, benefits management, deductions, and compliance?
Recruitment & Onboarding — Do they have tools to attract and retain staff, as well as get them trained on basic systems upon entry?
Performance and Evaluation — Does the HCM tool offer a modern and useful solution for performance reviews, employee records, motivation, productivity, and evaluation in the workplace?
Analysis and Reporting — Does the tool offer customizable reporting features that can deliver actionable insights?
Self-service — Does the software allow employees to go in and update or view information relevant to them, including contact details, shift schedules, paystubs, and more?

4. Integrations: Is it easy to connect with other tools, including any other tools already in use for HR management? Any pre-built integrations?

5. Value for $: How appropriate is the price for the features, capabilities, and use case? Is pricing clear, transparent, and flexible?

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Keep reading to see the full article of 11 Best HCM Software & Vendors Of 2020.

Originally published at https://peoplemanagingpeople.com on August 5, 2020.