7 Best HCM Software in 2023: Review, Features, & Pricing
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Human resource management is the most significant function of a company crossing every other functional area and impacting every employee in the company. It refers to how companies manage their workforce from hire to retire.
However, with the complexity of businesses on the rise, it becomes overwhelming for HR administrators to manage these functions optimally and satisfy each employee. The ‘Great Resignation’ isn’t just a hyped-up trend.
The 2021 Microsoft Work Trend Index report states that 41% of employees are considering quitting their jobs and another by Gallup says that 85% of the employees aren’t engaged at work. HR administrators can use powerful HCM tools like pulse surveys, employee benefits, recognition schemes, etc., to bridge the engagement gap and retain employees.
What is a Human Capital Management (HCM) software system?
A human capital management software or HCM system is an integrated suite of technologies that transforms conventional HR administrative functions such as recruitment, training, compensation, and performance management to bolster productivity, drive engagement, and add business value.
By considering the challenges of managing these traditional HR functions as an opportunity to drive employee morale and productivity, HCM expands and maximizes the core asset value of the workforce via strategic investment.
A good HCM system will implement the HCM strategy of any organization using a set of modern IT applications in hiring, benefits and compensation management, HR compliance, training and development, and performance reporting.
How are HCM software systems compared?
For any firm looking to onboard an HCM software solution, sifting through a barrage of options and narrowing down to the final choice can be a tedious task.
However, HR administrators can use some concrete criteria to gauge the worth of each HCM software based on the features and functions each offers and the key differences between the two.
A data-driven comprehensive analysis laden with facts and metrics will give a true-blue picture of the comparison and the ultimate winner for human capital management software. A few of these criteria involve questions like
Whether the software is compatible with a desktop or is available as an iOS or Android app?.
Whether it is cloud-based? Does it have AI capabilities?
Does it serve small, mid-size, or enterprise-level organizations – the level of customization available per the workforce count?
What kind of price pricing options does it offer? Is there a free trial available?
Which markets does it serve? Will there be an acclimatized version available for each country and region?
Is the software available in multiple languages?
What do the community reviews say about the software?
How’s the customer service? Will there be dedicated customer support?
Does the HCM solution offer value for money and ease of use?
Who will handle the implementation – the HCM vendor or a third party?
How many modules and functions can the software solution handle? These may include functions like:
Talent acquisition
Core HR
Talent management
Workforce management
Employee self-service
Product technology
Key Features to look for in HCM software
Comparing different HCM solutions can help you narrow down your search for the best HCM software solution. But it is essential that you evaluate the software based on the current and future HCM requirements for your organization. Some of these features include
#1 Personalization
A software solution that meets the needs of an organization across its hierarchy and can be personalized by function, location, team, and individual. The solution must be built to handle multiple functions such as benefits management, compensation management, workforce management, and talent management.
#2 Compliance
For any organization whose operations are spread across diverse locations, a compliant HCM solution is necessary. HCM software must comply with the changing regulatory requirements at all levels – state, national and global. Also, the system must be capable of handling diverse workforce requirements like multilingual payroll and support.
#3 Security and Privacy
An HCM system must come with robust security measures to safeguard the business process, infrastructure, and sensitive employee data against hacks and other security risks. Make sure the HCM system has multiple security and backup layers and system redundancy to handle an influx of critical information.
Also, as organizations get more complex and more sophisticated by the day, an HCM system with advanced services such as privacy, fraud, and crisis management should be preferred.
#4 Proven Implementation Model
Always opt for vendors with a proven track record of successful data conversions and third-party integrations. An HCM system that looks forward to continuously innovating its offerings and enhancing employee engagement can be a great fit for any organization.
#5 Data analytics
An HCM system that transforms real-time data into insights to promote better decision-making is the right fit for any organization looking to build its capabilities further. While looking for such solutions, organizations should prefer those with a centralized data set, configurable analytics, industry-wide comparative analytics, and predictive analytics for forecasting.
#6 Employee support
A great HCM software solution should help employees evolve and grow during their lifecycle as an employee. Such software should help foster employee engagement, performance, and overall development.
Top 7 Best HCM Software for Organizations
Here are the 7 HCM software solutions that fit the criteria for the best HRM solutions for any organization. Let’s decode each HCM vendor, its salient features, pros, and cons, one by one:
#1 Rippling
Rippling is one of the easiest-to-use HCM software. By giving businesses a single center to run HR, IT, and Finance, Rippling allows for the integration of workforce systems scattered across the company, including payroll, employee benefits, expenses, computers, etc.
Salient Features
Organizes employees in an organizational structure that can be used for reporting and permissions within the application.
Tracks key employee metrics, including time, attendance, sick time, schedules, paid time off, and other related information.
Helps employees to submit expense reports and track reimbursements.
Fully-compliant tracking and reporting
Helps employees to manage their benefit plans
Assists employers in managing and reporting payroll deductions
Pros
Cons
Customizes and accommodates unique administrative processes of organizations
The task notifications are outdated.
Integrates and communicates well with other software and APIs
Limited automation available compared to other HRM software.
Multi-lingual and supports multi-currency transactions
The system gets a bit clunky at times.
Consistent and reliable
Accessible from a mobile device
Pricing Pricing is available on request.
#2 BambooHR
BambooHR is an award-winning HCM software that helps organizations to automate, connect, and centralize employee data in one place, find and hire the best talent, and gather valuable insights. It has clients like Fitbit, Fab, FreshBooks, and Squarespace, among others, spread across 150 countries.
Salient Features
Offers an expansive marketplace for pre-built integrations to keep all HR processes connected and aligned.
Manages and integrates employee data
Helps to hire and onboard qualified candidates
Tracks and gathers valuable metrics and insights
Allows user, role, and access management
Pros
Cons
User-friendly interface with a centralized dashboard
Limited filters and customizations
Personalized reports and performance appraisals
Less developed ATS
Automated team introductions and onboarding workflows
Some setting up functions are complex to understand
Efficient onboarding and hiring functions
Tedious and limited in-platform customizations
Great customer service
Fully-compliant
Pricing
BambooHR Essential plan and Advantage plan start at $5.25 per month and $8.55 per month.
#3 CAVU HCM
CAVU, an acronym for Ceiling and Visibility Unlimited, is a national boutique payroll and HR technology and services firm. It provides all-in-one tech suites for recruiting, HR, and payroll Each client gets a dedicated Payroll Guide to help them wade through the functionalities and utilities of the application.
Salient Features
Automates and manages payroll administration
Payroll tax calculation
Business intelligence suite with real-time dashboards
Integrates the company’s general ledger into Quickbooks
Custom reports and real-time access to standardized reports
Payroll debit cards for employees
Well suited for growing companies
Pros
Cons
Easy-to-use payroll and HR management
Occasional delayed response from the support team
Efficient web clock and time-keeping system to manage remote employees
Additional self-service portal for W2s
Quick access to payroll reports
Dedicated customer support
Pricing
CAVU HCM software for a firm with more than 50 employees is available at $10.99 per employee per month. The price is available on request for companies with less than 50 employees looking to onboard CAVU HCM.
#4 PayLocity
Paylocity is an all-in-one human capital management software for HR functions like payroll and compensation management, benefits, talent acquisition, and workforce management. The company acts as an HCM partner for its clients in helping them handle day-to-day tasks while they work on their core functions.
Salient Features
Real-time reporting and intuitive dashboards
Suitable for small to enterprise-level businesses.
Helps to administer payroll functions like time, attendance, sick leaves, etc.
Manages position descriptions and pay grades for each role
Allows employees to manage their benefit plans
Customizes processes to create custom fields, objects, rules, calculations
Pros
Cons
Distinct modules for different HR functions help to segregate and ease navigation
Lacks efficient and dedicated customer support
Consistent and reliable performance
Complex and overwhelming module configuration
Accessible via a mobile device or tablet
Steep learning curve
Helps tracks performance using pre-built and customized reports
Insufficient integration with Paylocity’s other services
Scalable to suit growing workforce needs and payroll processes as the company grows
Pricing
Pricing is available on demand.
#5 Workday
Gartner placed Workday HCM the highest in execution on its 2022 Magic Quadrant list for Cloud HCM suites. Some of the biggest names in the corporate world, including Dell, Humana, Gap Inc., Comcast, Adobe, and General Electric, use Workday to manage their HR operations. Workday offers an HCM system based on a single data model to streamline HR processes and improve employee engagement.
Salient Features
Ideal for mid-size to large organizations
Optmizes HR processes and delivers seamless workforce management
Offers strategic workforce planning capabilities
Integrates pay, performance, learning and development, and training of employees in a single system
Combines financial, HR, and operational data to provide a unified source of true insights
Pros
Cons
Simple and intuitive interface
Not suitable for small and retail businesses
Single setup with one login for all HR functions
Limited customization available on reporting function
AI-enabled automation across the HR processes
Web version is more difficult to use than the mobile app
Real-time employee engagement
Secures organization’s data against cyber attacks
Augmented analytics allow visibility across vast data sets
Compensation and benefits tools for all kinds of workers
Best HCM software for large companies
Pricing
Pricing available on request. Workday does not offer a free trial period.
#6 Ceridian Dayforce
One of the best and superior human capital management software, Ceridian Dayforce is a master cloud HCM with an expanded feature set and intelligent human capital management strategies. HR administrators can reduce the clutter and concentrate more on the overall vision and expansion to let their staff grow, adapt, and succeed using Ceridan’s capabilities.
Salient Features
High-level human capital management features
AI-enabled capabilities for workflow automation
Real-time payroll, HR, benefits, workforce management, and talent management via a single solution
Suitable for all kinds of organizations – small to global scale
Data-driven insights
Dayforce wallet for employees
Streamlines HR silos into one centralized, real-time solution
Pros
Cons
Easy to use
Scheduling interface is less user-friendly
Fully-compliant with payroll and tax rules across regions
Steep learning curve
Automated tasks help HR to focus more on growth and strategy
Manages entire employee life cycle
Empowers employees to choose the right plan and reach their full potential
Pricing
Ceridian Dayforce subscription is available at $21 to $29 per employee per month. The vendor also charges an implementation fee of 40-60% of the annual software fee.
#7 iSolved People Cloud
iSolved is another top-ranked HCM software for large organizations. It provides intuitive, people-first HCM technology solutions to over 5 million employees and 145,000 employers across 50 States.
Salient Features
Intelligently integrates the levels in employee journey – talent acquisition, payroll, benefits, work performance, etc.
Manages and connects HR workflows
Effective talent acquisition and onboarding
Comprehensive payroll with POS integration or Spreadsheet upload
A Mordor Intelligence report states that the HCM software industry is expected to grow at a CAGR of 6.7% from 2020 to 2026, i.e., witness an expansion from $16.7 billion in 2020 to $24.6 billion in 2026. This is because organizations today are more committed to their human resource strategy.
Rightly so, an HCM solution can be crucial to enable strategic growth and improve employee engagement. A good HCM system can help strategize mundane HR processes into meaningful ways to connect people and workflows across the organization.
FAQs on HCM Software
What is human capital software?
An HCM software offers an integrated suite of technologies to help businesses manage their HR functions from hire to retirement, including recruitment, payroll, benefits, compensation, and performance management.
What are the four core HRM functions?
The four core HRM systems include – (i)recruitment, selection, and onboarding, (ii) rewards and recognition, (iii) performance management, and (iv) learning and development.
Which are the best 3 HCM software?
Rippling, Paylocity, and Workday HCM are said to be the top three HCM software suitable for small to enterprise-level organizations per user reviews and popularity.
Why do companies use HR software?
An HCM or HR software helps to automate and streamline workflows, save time, and provide important insights and reports on employee performance. HCM systems integrate payroll and benefits management, time-tracking, and performance reporting in a single suite of functionalities to bring efficiency and productivity to HR processes.
What is Gartner Magic Quadrant HCM?
Gartner Magic Quadrant HCM is a trusted source for companies to identify vendors to build their cloud HCM strategy. The Quadrant provides great perspectives on how these vendors execute the vision of the companies and add business value to their processes.
