HR software

What is HR software?

HR software platforms are digital tools, such as human resources management systems (HRMS) and human resources information systems (HRIS), that streamline and automate various HR tasks, making workforce management more efficient for employees, managers, and HR professionals.

By centralizing employee information in one location and helping organizations securely manage employee records, HR software simplifies workforce management, giving employees access to their own information while providing managers and HR professionals with reliable information for decision-making,

Common types of HR software for Canadian businesses

HR software can span a few overlapping systems, and with similar names, it can get confusing. Here are the three most common types available:

HRIS: human resources information system

A platform that securely collects, stores, organizes, and manages employee data, documents, and essential compliance information, often serving as a centralized source of information for HR teams and employees.

HRMS: human resources management system

A broader HR platform that often includes added features for employee time tracking and scheduling, customizable learning management systems (LMS), and detailed performance management tools and dashboards.

HCM: human capital management

Often an enterprise-scale system built around strategic workforce planning, talent management, and employee analytics. Many also include the core functions available on HRIS and HRMS platforms.

What is the difference between an HRIS and an HRMS?

An HRIS is the system for centralized recordkeeping: It stores and manages employee data, policies, documents, and the compliance records you need in one spot.

An HRMS builds on that foundation: It layers in additional workforce management tools that help with employee scheduling, training program delivery, and performance management.

Many modern HR software platforms blur the lines between an HRIS and an HRMS by offering similar features and add-ons, so the acronym matters less than whether the platform’s tools and functions meet your organization’s needs.

What is HR software used for?

HR software helps HR professionals manage employee information in one centralized system. The system can keep records, streamline onboarding documents, track employee attendance and time off, manage leaves of absence, schedule shifts, maintain current training and certifications, and support performance reviews. Most platforms give employees self-service access, so they can update details, request time off, or swap shifts without routing everything through group chats or a single supervisor or lead.

Some small businesses only need software solutions for a single task, like an applicant tracking system or a learning management system (LMS) for industry-specific training. For many Canadian small and medium-sized businesses (SMBs), an HRIS or HRMS that includes compliant content and resources, along with access to live advice from Canadian HR professionals and occupational health and safety consultants, is one of the most valuable investments they can make.

How much does HR software cost in Canada?

HR software is typically priced through monthly plans or packages, usually determined by the number of employees in the organization or an employee range. Some providers charge a base fee plus a monthly charge per employee. Alternatively, some SMBs opt for hiring an HR consultant for dedicated support, with fees that vary based on the consultant’s specialization and services offered.

Most major HR software providers charge anywhere between $10 and $100 per employee per month for basic features, though some start as low as $6 per employee. Realistically, adding the required modules and integrations your business needs will increase the total cost. Many companies provide quotes tailored to your people and business, setting prices based on the software and support you need, rather than just the number of employees.

Which HR software is best for small companies?

HR software can support vital functions like recruitment, onboarding, payroll, compliance updates, performance management, and recordkeeping. Combining these functions in one platform can improve a small business’s overall efficiency. For small to medium-sized businesses, HR software is especially valuable for streamlining HR processes, managing employee training, and giving time back to your HR and health and safety teams so they can focus on high-impact projects, not administrative tasks.

Understanding the features and uses of each system is key to making informed, data-driven decisions for HR leaders. To learn more about their key differences and similarities, read our blogpost or connect with an HR expert today.

HRMS Software or HRIS Software: What Does Your Business Really Need?