10 Best HCM Software To Manage Your HR Needs in One Place
We've tested and demoed dozens of tools to create this guide to the best HCM software. Find pricing info, screenshots, pros & cons, and more below.
Best HCM Software
HCM (Human Capital Management) software manages and optimizes HR processes like recruitment, training, performance, compensation, and everything essential to employee development. More than a software type, HCM is an organizational philosophy.
HCMs provide specific competencies for workers in three categories: workforce acquisition, workforce management, and workforce optimization.
This guide will help you understand the big picture of HCM methodology and the pitfalls to avoid. Critical features like HR ops, scalability, and integration capabilities are covered in detail for each of the vendors we’ve selected.
This guide can also help you understand the difference between HCM and HRMS software. Knowing the difference is important because some vendors try to create products with both HCM and HRMS capabilities. Though there is a lot of overlap, there are important differences you should be aware of.
To select the best HCM software, our experts have gathered user feedback, sought insight from HR thought leaders, and participated in product demos with vendors. In our experience, the right way to go about shopping for an HCM platform breaks down into three general questions. First, are the HR ops functionalities in line with what you need? Second, how easily does it integrate with other systems? And third, does it scale, and will it grow with you?
HR Ops
Every company’s needs differ, and no two HCM systems are alike. Specifically, we assessed products for workforce acquisition, workforce management, workforce optimization, performance reviews, learning management, succession planning, and employee onboarding.
Integration Capabilities
Because it’s so important for your new HCM software to work with your existing tech stack, we assessed each platform’s capacity for seamless integration with the standalone tools you might be using currently, such as accounting software, applicant tracking systems, performance assessment tools, and time and attendance software.
Scale
We assessed each company’s HCM software for exponentially flexible features. Take customization and permissions, for example. As companies grow, their org charts tend to get more complex. Where a simple set of customized permissions would suit a team with only managers and non-managers, a more complex team needs the ability to customize permissions for an elaborate, interwoven network.
For anyone interested in more detail on our selection process, we recommend reading more about our editorial guidelines.
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BambooHR
We picked BambooHR for its flexibility, UX/UI, and reliability. It is a leading HR software suite with extensive HCM capabilities and also offers optional payroll services for US employees, effectively transforming it into a complete HRMS solution.
PROS
- Offers flexible pricing and customizable packages.
- User-friendly interface streamlines employee management for both employees and HR teams.
- Flexible packaging and custom pricing is the way they roll. You can pick out one or two packages and pick other modules as add-ons based on your needs.
- Very simple and straightforward tool, easy to use.
CONS
- Payroll limited to the U.S.-based workers.
- Support hours limited to U.S. time zones
- Some modules, including time and attendance, performance management, and surveys are available as add-ons with BambooHR.
- Payroll is only available for US-based employees
- Customer support is only offered during US business hours.
- Some modules like time tracking, performance management, and surveys are only available as add-ons.
BambooHR deserves a mention within the HCM space (in most HR tech categories, really), even though they can technically be either an HRIS or an HRMS, depending on the package and add-ons you pick.
Their HCM core features like benefit tracking, reporting, employee directory provide sufficient visibility for short and long-term decision making. Other HCM features like performance management and time tracking, however, are only offered as add-ons. This flexible packaging, however, is part of what makes BambooHR so popular among teams in all many sorts of industries. It’s a tool that can adapt to your evolving needs and there’s likely always something to discover.
Among the 20,000+ companies that use BambooHR, you’d find names like Quora, Universal Group, Reddit, Asana, Change.org, University of Maryland, Grammarly, Stance, Postmates, Wistia, the Jacksonville Jaguars, and ZipRecruiter.
Pricing is not disclosed upfront, but they do offer a free trial of their all-in-one software and then go out of their way to find a version that will suit you. Before they come up with a personalized quote that will align with your budget, however, they are also likely to extend your free trial upon request or even give you a free demo of the advanced features.
Best For
BambooHR can be an ideal choice for companies in search of a customizable HCM tool that provides pricing options that reflect their requirements. Additionally, it is well-regarded by teams that are partially or fully remote.
Paycor
Paycor is an HCM system that offers a wide range of features, including payroll, time tracking, benefits administration, and employee self-service. The software is designed for small and medium-sized teams to streamline their HR processes and improve employee engagement.
PROS
- Paycor has a robust payroll solution that is easy to navigate.
- User-friendly employee self-service portal.
- Has multiple plans for small businesses and custom plans for teams with 50-1000 employees.
- Often runs discount programs.
- Works well on both Android and iOS devices.
- Is acquiring the people development platform Verb to strengthen its learning management system.
- Paycor payroll solution and mobile app are both straightforward to use.
- Intuitive self-service employee portal.
- Offers multiple modules for small businesses and custom plans for teams with 50-1000 employees.
- Unlimited payrolls.
- Offers discounts frequently. Though not listed on their site, a free trial is available to those who contact the support team directly.
- On-demand pay is available for all plans.
- With the acquisition of the people development platform Verb, it has improved its employee learning experience.
CONS
- Lacks transparent pricing.
- Customer support isn’t very responsive.
- Not the right choice for businesses with 1000+ employees or require advanced customization.
- Undisclosed pricing.
- Customer support is reported to be slow at times.
- It is not a good fit for teams with 1000+ employees or those requiring advanced customization to meet their unique requirements.
Paycor is easy to use and can be customized to meet the needs of businesses with 2 to 1,000 headcounts. The software also offers a variety of payroll and HR features, such as ledger integration, AutoRun, direct deposit, on-demand pay, tax withholding, and reporting tools.
Paycor's employee self-service portal allows employees to access their pay stubs, timesheets, and benefits. Employees can also change their contact and banking info. Through Paycor, employees can finish onboarding paperwork online, choose the benefits package and payment methods, and update their information as needed. Moreover: all of this can be done from the app.
In May 2023, the software just rolled out a new feature named PayCor Engage on its mobile application. This newly launched feature allows employees and employers to interact with each other on the app, which is a massive benefit for engagement and transparency, especially for remote employees.
Paycor has also just acquired the people development platform Verb. We hope that with this acquisition, there will be an uptick in customer service and reporting quality in addition to improving its employee learning functionality.
Regarding Paycor’s downsides, we have heard some users complaining that the support team can be hard to contact at times. As for reporting and analytics features, Paycor charges extra for some custom reports, which are, unfortunately, less intuitive than one would hope.
Wendy’s, McDonald’s, Detroit Zoo, The Cincinnati Bengals, The YMCA.
Paycor pricing varies and depends on your team size and the modules you select.
Best For
SMBs looking for an HCM with flexibility and strong payroll capability will benefit most from Paycor.
I use Paycor Recruiting to manage multiple job openings and candidate data. Specifically, to access different job postings and review candidate details, likely to determine if they are a good fit for the role. After identifying potential candidates, I use it to manage them throughout the recruitment cycle, moving them from one stage to another as appropriate. This process may include reviewing resumes, scheduling interviews, sending messages/emails, adding comments, and conducting background checks or reference checks.
It also provides a centralized platform for managing multiple clients and candidates since it has the ability to organize and track candidate data and makes it easier to identify the right candidates for the clients and move them through the hiring process more efficiently.
Overall, Paycor Recruiting is an effective tool for managing recruitment efforts, particularly for staffing firms or organizations with multiple clients. By providing a centralized platform for managing job postings and candidate data, Paycor Recruiting can help streamline the recruitment process, making it easier to identify top candidates and move them through the hiring process more quickly.
What I like about Paycor is that it provides a convenient way to manage and update information about job candidates all in one place. I also appreciate that I can communicate with candidates directly through Paycor, keeping track of past conversations and future interview plans. Additionally, Paycor makes it easy to sort through candidates based on specific skills needed for the job.
Our organization purchased Paycor to help address several key challenges we were facing in managing our candidate database and streamlining the hiring process. This led to inefficiencies in our recruiting efforts. By implementing Paycor, our organization hoped to have a centralized database that would make it easier to organize, search and sort through candidate data, ultimately leading to a more efficient hiring process.
Another key factor that led us to choose Paycor was its ability to help hiring managers process applications more quickly than was previously possible. With the volume of applications we were receiving, it was becoming increasingly challenging for hiring managers to review and respond to all of them in a timely manner. Paycor offered a suite of tools and features that promised to streamline the process, enabling hiring managers to identify and evaluate top candidates more efficiently.
Finally, as a staffing firm, we needed a tool that could help them manage the different clients we were working with within a single portal. Paycor offered a range of features that made it easy to organize and track client data, enabling us to manage relationships with clients more effectively.
I would like to express my dissatisfaction with the platform's outdated user interface design in comparison to other Applicant Tracking Systems (ATS) which are currently more in line with prevailing market trends. Additionally, I have noticed occasional lags in the tools when generating reports or retrieving candidates' information, which can be problematic. Another issue I have encountered is that the platform does not save the last search that was performed, which can be inconvenient and time-consuming.
One aspect that I find particularly helpful is the ability to track a candidate's progress through various stages of the recruitment process, including the "Back Burner" stage, which is valuable when identifying a potential candidate for future hiring needs if not the present needs. Another advantage of Paycor Recruiting over other Applicant Tracking Systems (ATS) is the ability to filter candidates based on niche skills, which can be especially beneficial for filling specific job requirements. Finally, I appreciate the ease of use when generating and rolling out offer letters with Paycor, making the hiring process smoother and more efficient.
When you are thinking about buying a recruitment or HR tool, there are some important things to consider. Firstly, you should think about the cost of the tool and whether it is affordable for your organization. You also need to make sure that the benefits of the tool outweigh the costs.
Secondly, you should think about the size of your organization. Some tools may be better suited to smaller or larger businesses, and you want to make sure that the tool you choose is easy to use for all team members.
You should also think about how many people will be using the tool, as this can affect the licensing and training requirements for the software. It's important to make sure that the tool can accommodate the number of users you need and that you have the resources to train your staff effectively.
Finally, you should consider where you will be posting your job openings. If the tool you choose isn't connected to popular job portals in your region or industry, it may limit the number of candidates you can reach.
Overall, if you carefully consider these factors, you can choose the right tool that meets your specific needs, budget, and goals.
Paycor, as a human capital management platform, has made changes over time based on user feedback to improve its interface. Additionally, Paycor is willing to provide more demo sessions to help users understand its platform better. The platform has also made changes to accommodate big organizations, and started targeting those as their potential customers. Overall, Paycor has taken steps to enhance its user experience and meet the needs of its diverse user base.
Paycor can be particularly beneficial for small to mid-sized businesses that are looking for a user-friendly, cloud-based HR solution that can streamline their HR processes, including payroll, benefits administration, time and attendance tracking, and compliance management. Additionally, Paycor can be useful for companies that are looking for tools to manage employee onboarding and development, as well as those that require custom reporting and analytics to make data-driven decisions.
Paycor may not be suitable for large organizations with complex HR requirements, as they may need more sophisticated HR software to handle multiple departments, locations, and employee types. Additionally, organizations that do not use technology for their recruitment and HR processes may not benefit from Paycor's features and functionalities.
Ceridian
Ceridian is the creator of Dayforce, a cloud HCM platform that efficiently handles the employee lifecycle end to end, including payroll, benefits, workforce management, and talent management.
PROS
CONS
Dayforce HCM by Ceridian consolidates data from all employee lifecycle stages, enabling informed decisions and data-driven insights. This comprehensive platform integrates HR, payroll, benefits, workforce management, and talent management.
Notably, Dayforce features a flexible rules engine that handles intricate regulatory demands, delivering real-time updates and computation.
- Guitar Center
- Danone
- Spirit Aerosystems
- El Pollo Loco
- Crescent Bank
Pricing for the Dayforce HCM suite is not provided upfront.
Best For
Ceridian’s Dayforce HCM is best for enterprises with over 1,000 employees.
Ceridian is a tool we rely on every day for our hourly employees in our plants. It serves as a convenient platform for them to log their time and manage their calendars. Each employee can easily input their time, authorize it, and save the entries without any hassle. What makes Ceridian even more impressive is its self-troubleshooting capability. If any issues arise, the system promptly identifies the problem and provides instructions on how to correct it. This feature is particularly valuable to us, as it eliminates the need for us to individually assist employees over the phone when they encounter time inputting issues. The timekeeping sheet functionality is the primary aspect of Ceridian that we heavily utilize and rely on.
I like the features of Ceridian Dayforce. It's a very user-friendly HR tool that our hourly employees can maneuver effortlessly. The system troubleshoots itself if there's an error.
Our organization was in need of a more user-friendly timekeeping software for our hourly employees located across various plants in our US campuses. We required a consistent payroll and time management system that could be seamlessly implemented across all offices. After exploring multiple HR tools, we ultimately chose Ceridian. The impressive functionality and user-friendly features of Ceridian caught our attention, allowing us to streamline timekeeping processes for all employees nationwide without any issues. Specifically, we opted for the Ceridian Dayforce version, and the transition to this HR tool has been highly satisfactory. In fact, we have enthusiastically recommended it to several partners and clients who collaborate with our individual plants.
Occasionally, the troubleshooting function of Ceridian can be somewhat perplexing when attempting to identify the root cause of an issue. In the past, we have encountered login problems where employees have had difficulties logging in correctly. Another minor inconvenience we have noticed is that when inputting time, the screen does not automatically display the current day but rather defaults to the beginning of the month.
Ceridian stands out as a highly user-friendly timekeeping software compared to many of its competitors. What sets Ceridian apart is its exceptional customer service, with its team readily available to address any inquiries or issues that may arise. Personally, I have a strong preference for Ceridian over other alternatives we have tested primarily due to its superior functionality.
The primary factors that influence our purchasing decision are the user-friendly nature of the software and its comprehensive features related to timekeeping. Additionally, the troubleshooting function performs effectively, even when dealing with a large group of hourly employees simultaneously logging in.
While I'm not entirely certain, I don't recall the HR tool having the troubleshooting function from the beginning, but I could be mistaken. It appears that Ceridian recognized the importance of addressing the timekeeping challenges faced by larger companies operating on a nationwide scale. They dedicated efforts to meet the specific requirements of such corporations and enhance their capabilities to effectively manage timekeeping across the entire country.
I think it fits larger organizations best.
Maybe smaller companies due to its high monthly cost.
Criterion
Criterion helps midmarket orgs gain better control over their human capital by combining the entire talent lifecycle into a single interface: applicant tracking, onboarding, compensation, benefits, performance, and learning management. The HCM also has good scalability—it can accommodate well whether you have 200 or 5,000 staff.
PROS
- Flexible and reasonable pricing: starts at $4.50 per employee per month.
- All-in-one platform combining ATS, payroll, benefits, and learning management.
- Open API for app integrations.
- Native biometric check-in feature.
- Flexible and reasonable pricing: starts at $4.50 per employee per month.
- All-in-one platform combining ATS, payroll, benefits, and learning management.
- Open API for app integrations.
- Native biometric check-in feature.
CONS
- Mobile app users reported experiencing login issues and frequent crashes.
- There’s a steep learning curve for employer users.
- The implementation process can be lengthy.
- Mobile app users reported experiencing login issues and frequent crashes.
- There’s a steep learning curve for employer users.
- The implementation process can be lengthy.
Criterion satisfies every feature note we were hoping for in an enterprise-centric HCM. It covers talent acquisition, onboarding, attendance, benefits, compliance, communications, enrollments, payroll, and other HR tasks through a single central database. Thanks to this, finding employee information is quick and easy, and its ability to eliminate double data entry is just on par with other robust HCM listed in this buyer guide.
Two standout features of Criterion that receive lots of love from admin and employee users alike are its time tracking and payroll.
The time and attendance feature includes scheduling and labor tracking that can work for both on-site and remote hires. It also supports biometric check-ins where employees can clock in with a fingerprint—a huge plus for teams in environments like factories and warehouses.
As for payroll, Criterion has one-click integration with payroll systems and can process payroll and taxes quickly with minimal user input. Plus, the employee self-service portal that centralizes all communications between managers and staff regarding time tracking, PTO, and performance reviews is such a great element in driving better team collaboration and engagement.
Criterion offers a mobile app that allows workers to track their time on the go. However, it wasn’t as good as we expected, with system crashes and login issue loops happening here and there as we tested it out.
It’s no secret that Criterion is recognizable by its feature richness but not so much in appearance. The UI looks quite dated, and teams prioritizing simplicity over comprehensiveness may find this HCM’s layout a bit too information-heavy.
Owing to its extensive feature set and, especially, formula-driven configurations, employers may encounter some learning curves to get used to all the features Criterion offers. For the same reason, the time to get the software up and running is quite long, with implementation taking 2 to 6 months to finish.
500+ companies, including Scott Steel, Inflector, and Gordon College.
Criterion has three products you can buy separately or jointly: Human Resources costs $7.50 PEPM, Payroll costs $4.50 PEPM, and Talent Engagement costs $4.50 PEPM.
Best For
Criterion HCM is of great use to mid-sized and large enterprises (200 to 5,000 employees), North America-based preferable.
Rippling
Rippling is a prominent platform for HCM. And more than that, it gives growing teams flexibility in their shopping. All Rippling modules — applicant tracking, onboarding, self-service, payroll, benefits, time tracking, training, engagement, and reporting — can be purchased according to customers’ needs.
PROS
- Rippling offers a full-feature HCM with great automation support.
- Payroll automatically updates work hours, deductions, and tax filings.
- Supports both US and global payroll.
- Strong integration capabilities (500 third-party apps).
- The Benefits module enables users to collaborate with their preferred broker.
- Provides a mobile app.
- Modules can be purchased separately or wholly as a full suite.
- All-in-one platform for employee management + PEO services offered, and even a suite of other IT products
- With 500 integrations, it’s very likely that they integrate with other key tools from your tech stack.
- Operates globally with any currency
- Workflow automation
- Analytics opportunities
- Provides a holistic view of company outflows—headcount costs included
CONS
- No payroll automation
- There’s no free trial, not a tool for tight budgets
- Telephone support is an added fee
- Not a great fit for teams greater than 2,000
- The mobile app can be slow and doesn’t perform as well as the web browser version.
- Total buy-in to Rippling is essential
- Very SMB-oriented, in case you’re a larger company.
- New features tend to be buggy in ways that tech teams are not accustomed to fixing
Rippling stands out as a strong HCM platform, providing a complete cycle of human capital management functions, encompassing acquisition, management, and optimization.
The features are rich in automation and customization, while the UI maintains a clean look that soothes the eyes. We’re surprised at how fast the solution has evolved since it started the business back in 2016.
Integration capabilities are a standout feature for Rippling, with over 500 software solutions connected across various categories. The self-service feature empowers employees to manage onboarding, benefits, compensation, and personal information through mobile accessibility.
Furthermore, Rippling has taken good care of workforce management and optimization, offering US and global payroll automation for faster payroll processing. Running payroll for employees and contractors is quick, taking only a few minutes. The synchronization between the time tracking app and payment app ensures accurate work hours, deductions, and tax filing. Additionally, the benefits administration tool offers flexibility, allowing us to select our preferred broker and choose from 4,000 plans.
However, we expected more accessible customer service, as Rippling doesn’t offer 24/7 support, and phone consultations come at an additional cost. Additionally, the requirement to purchase the Rippling Unity module to access other modules limits flexibility.
Vox, Maximum Games, Superhuman, Compass Coffee, Highnoon.
Rippling pricing starts at $8 per employee per month. Contact the Sales rep for more info.
Best For
Rippling is a powerful HCM for both US-based and international teams to manage their workforce. With its current feature set, the ideal team size is from 50 to 2,000 team members.
We use Rippling for many different things, but some of the most important are payroll and benefits. If we didn't have Rippling, we would likely need to hire a full-time payroll person who could also manage benefits administration. Additionally, because we are so small, we likely wouldn't have great options for benefits whereas with Rippling we have more options.
It is very comprehensive, providing everything I need, which eliminates the need to connect multiple different platforms. Also, the site is clean, and it runs smoothly and quickly.
We use Rippling for a variety of functions including employee offer documents, onboarding, payroll, PTO, expense reimbursements, and benefits. Without it, we would need to hire several different people, which isn't feasible as we are a smaller company. It makes sense for us to use Rippling instead of hiring a large number of support staff.
There's nothing I really dislike about it; I feel like it gets everything I need done without any headaches.
With one of the companies I used in the past, it felt like I still needed many other tools and platforms to connect to it, whereas Rippling seems to have everything integrated already.
I think it depends on the cost-benefit for you. For us, as a small company, it makes sense to use Rippling rather than multiple different platforms and people. However, for a larger company, it might be more cost-effective to manage these processes in-house.
I haven't noticed any changes myself.
I think it's best for small to mid-size organizations that would benefit from having everything in one place with one provider.
Maybe a larger company, as they may have more economies of scale where the cost-benefit of using different platforms or hiring more support staff could be more beneficial to them.
Oracle
Oracle is one of the top names in IT. Their HCM is popular among enterprises with more than 1,000 employees and boasted for its implementation and CS practices.
PROS
CONS
Oracle’s HCM suite is built for the cloud and made for connecting every single HR process. It’s good for teams looking to have a single source of truth for HR data in order to improve decision making. Their product includes talent management, recruiting, workforce management, payroll, and HCM analytics. The interface is not the best-looking out there and UX can be frustrating for employees and HR alike, but they're still one of the top choices for large scale implementations.
- Axa
- Blackboard
- Deutsche Bahn
- Marriott, Cisco
Oracle doesn’t provide pricing details for their HCM upfront. To get a quote, you’d have to request a demo, but they also offer interactive product tours that you can take before chatting to a sales rep.
Best For
Enterprises with over 1,000 employees in most parts of the world.
We use Oracle to process promotions, transfers, and terminations. Oracle is used during the onboarding process for employees. Oracle is also used to create Organizational Trees for hierarchy purposes. We also use it to generate reports and queries on reviewing compensation data for all employees in the organization and as well as to capture ratings for Annual Performance Evaluations.
The reason I like Oracle is because it offers a suite of products in the HR lifecycle. Oracle is easy to use and straightforward. Oracle has a good security infrastructure too.
We brought Oracle as part of a Human Resources Management System.
We have used Oracle since 2002. The benefits it provides are to store employee information such as demographics, and capture events in the employee lifecycle. We also used this system as a way a data for Finance and Supply Chain to use. The reason Oracle was purchased was that everything was on a physical paper file before that. This was a way to lean into technology at the time.
Oracle is quite an expensive software per user.
Oracle is one of the first in its space but I would say it's not different from the rest.
Buyers should think about pricing if it's a flat fee or if it's per user. Buyers should also think about if they only need certain features for their HR needs or do they need the whole suite.
They have added self-scheduling options.
Large organizations.
It's not good or useful for small organizations.
WorkDay
Workday is a popular HRMS solution, primarily targeting enterprises. It offers a centralized source for managing workforce administration, engagement, compensation, and benefits data across various worker types. This includes contingent workers, employees, contractors, and retirees, making it a comprehensive solution for all aspects of workforce management.
PROS
- Workday process flows are easily adjustable to conform to global and local needs.
- Self-service is available for both employees and managers.
- AI-driven assistance for detecting skills gaps.
- Mobile apps...
- Offers phone, email, community, and live chat support.
- Complies with the General Data Protection Regulation (GDPR) and includes a robust, configurable security model.
- Accessible customer support from the community, live chat, and telephone.
- Compatible with 300 HR systems such as ERP/GL, CRM, HR, and PSA.
- Configurable dashboard with AI and ML-driven insights.
- Ability to maintain real-time alignment of budgets and workforce plans.
- SOC 2 Type 2 compliance.
CONS
- Not transparent with pricing.
- No free trial is available.
- Long implementation process (4.5 months on average).
- Navigation for beginners can be confusing and may need training to understand all features.
- Mobile apps aren't very user-friendly.
- Undisclosed pricing.
- No free trial for its talent management software.
- Time-consuming implementation period (average 4.5 months).
- Challenge navigating for first-time users may require training.
- Issues with logging in were reported by users.
Workday excels at personalization by tailoring recommendations, tasks, and search results to individual users based on their roles.
Other aspects of the business processes functionality stand out, too, especially for multinational businesses. WorkDay helps teams achieve operational consistency while also allowing customization of workflows for specific location requirements.
The platform also offers performance assessment capabilities that provide visibility into the workforce's current capabilities. This enables swift identification of skills gaps and facilitates prompt action in sourcing and training internal talent development.
Despite its popularity with larger organizations, Workday's mobile app underperforms compared to the software itself. Users report issues with the time clock system, frequent crashing, and sign-in problems on both Android and iOS platforms.
Additionally, the implementation process for Workday's HCM can be time-consuming, averaging around 4.5 months, and involving multiple individuals and departments.
Quicken Loans, AstraZeneca, Target, Dell, Bank of America.
Workday pricing is undisclosed on the website. You need to contact Sales for a quote.
Best For
Workday is awesome for large enterprises with multiple branches that are looking for an inclusive HCM solution that is scalable and with great reporting capabilities.
I use Workday everyday. The key workflows I use Workday for are to manage all my open requisitions. I post jobs on Workday, disposition candidates and run daily reports on recruiting metrics per requisition. Workday does a good job with your dashboard. This screen will show all your open requisitions and any projects or timelines you choose to add. It is also very easy to add templates to Workday per requisition to help save time when you take action on a particular candidate. I initiate background checks, reference checks and offer letter proposals and submittals through Workday as well.
I like that Workday can be your one stop shop for all HR and recruiting needs. It is easily customizable to your organizations preferences. I love the reporting capabilities that Workday can provide. I also like the main screen user interface. I think it is very user friendly and easy to learn.
My organization implemented Workday for the reporting and metrics functionalities. Workday is so robust and can do so much, especially for a big organization like the one I am in. The key benefits are that you can personalize Workday to your company's needs. There are no shortages of capabilities and functions Workday can serve. If you want recruitment metrics and reports, Workday is your tool. I have used Workday personally for 5 years in 2 different organizations. Both companies needed better reporting metrics around hiring and Workday solved these needs.
Workday can be a lot! It offers so many functions that it can get overwhelming. I have had candidates who have not liked the Workday experience when applying for a position. Workday's customer service has been weak at times and has not been the easiest to deal with.
WorkDay has a great brand name. Some of the largest and most profitable companies in the world use Workday which I think speaks for the brand itself. Workday’s functionalities can do so much more than a lot of their competitors. I have used similar tools and Workday by far has the largest arsenal of functionalities. You can utilize anything you decide you want to utilize and can offer almost everything from an HR, Recruiting, and Benefits standpoint.
Workday can be expensive. You get what you are paying for. If you want a complex product as a one stop shop then I would recommend Workday. I would figure out what you want your Workday to function as within your organization.
Workday has continuously made adjustments to the user interface to make it more user friendly. More training is always offered to new capabilities that are added monthly.
Very big organizations who want a system that can do a lot of different things. If you are an organization who has a high requisition load, a need for high level reporting, Workday would be a great fit.
I think Workday would not be beneficial to smaller companies and startups. I think a lot of the key functionalities would not be used and it would be a waste of money for your organization.
SAP SuccessFactors
SAP SuccessFactors is one of the big names in HCM. They’re currently pushing the boundaries of the category itself, calling their product an HXM suite, for Human Experience Management.
PROS
CONS
SAP is trying to transform traditional human capital management into a more employee-oriented endeavor. Through their HXM, they are trying to put the worker’s experience as the main focus of the way companies engage with their people. Their product helps HR managers deliver experiences that resonate with employees while shaping their strategy.
One thing to consider is that SAP, like many of the biggest companies doing HCM products, has been criticized for having a frustrating user experience. With their shift towards being an HXM, however, it looks like they're tackling that issue and moving in the right direction.
- American Airlines
- Ernst & Young
- Hero Group
- Terex
- Watco Companies
Pricing for SAP’s HXM suite is only available upon request.
Best For
Enterprises looking to improve UX
We use SAP-Success Factors daily to create training content for all of our district employees. We have a number of mandatory training sessions to meet compliance goals and we use SAP- Success Factors for that. We are able to create SCORM video files and post these to Success Factors. We can add additional components to the training packages as well to test employees' assessment results. We are also in the early stages of working on using Success Factors for employee performance management.
It makes training compliance much easier for us. It is good for large enterprise environments. It is highly customizable.
My organization bought SAP-Success Factors to use as an LMS tool. We've been using it for about 4 years. Prior to using SAP-Success Factors, getting our large pool of employees to complete mandatory training was difficult. Now we can create our own training content and manage its delivery much more easily. It also allows us to track compliance on training more easily.
It can be difficult to get the support we need from our SAP representative quickly. It is so customizable that it can be difficult to predict the effect of small changes to the software. The integration with reporting can be slow.
Success Factors is very robust and highly customizable, and that differentiates them from competitors.
You should consider the cost, and it can be prohibitive for smaller organizations. It is also so customizable that you will need someone on staff to become an expert to really use it to its fullest. It's also good to consider if you actually need a product this customizable or whether something more plug-and-play would work better for you.
We are constantly meeting with our SAP rep to tweak our setup. They are willing to work with us on this, but it is sometimes a lengthy process.
Success Factors is great for a large enterprise-level organization that needs highly customizable software.
Success Factors is more than probably any small organization would need in terms of breadth and customizability.
UKG
UKG is the merger of Ultimate Software and Kronos. As such, it brings over 70 years of experience with People tech into the HCM space. Ultipro became UKG Pro, their feature-rich HRMS, packing features like performance and time & attendance management.
PROS
- UKG is a robust product with extensive experience in HCM and Workforce Management technology.
- UKG includes UKG Pro for HRMS and UKG Ready for workforce management, providing a comprehensive set of tools to address various HR needs.
- Administrators can customize user visibility within the system through configurability.
- The Ultimate Community provides valuable on-demand information and fosters networking among UKG Pro users.
- It offers an iOS app and an Android app for employees.
- Super robust product, packing years of experience with HCM and Workforce Management technology
- Since they offer UKG Pro for HRMS and UKG Ready for workforce management, you could arrive at a combination of products that suits many of your HR needs from the same set of tools.
CONS
- Lacks a unique selling point or specific focus on niche businesses compared to newer tools, making it more suitable for larger companies.
- Users report ongoing issues with logging in to the Android app.
- Can be pricey for budget-minded companies.
- Compared to newer tools, UKG Pro and UKG Ready tend to miss a unique selling point or a specific focus on a certain type of business. While they work great for bigger companies in all sorts of industries, very niche operations might have a hard time adapting to the tool.
- Similarly, UKG offers many solutions under one umbrella, so it's not the best fit if you're looking for only a handful of specific use cases.
UKG, born from the merger of Ultimate Software and Kronos, delivers a wealth of features designed to meet the needs of enterprise-size teams.
One of the standout qualities of UKG is its ability to handle multiple aspects of employee management. From hiring and onboarding to performance management and succession planning, this platform provides a holistic solution for HR needs.
Drawing on over 70 years of combined experience in people tech, UKG brings a robust and extensive set of capabilities to the table. The fusion of Ultimate Software's UltiPro and Kronos' workforce management expertise has resulted in UKG Pro. This powerful HCM tool offers performance management and time and attendance tracking features.
UKG also provides UKG Ready, derived from Kronos, which enables functions like time and attendance, scheduling, and Affordable Care Act (ACA) compliance. This comprehensive approach eliminates the need for multiple tools and offers a unified experience.
While UKG has many strengths, we did notice a few drawbacks. The platform may not have a distinct selling point or a specific focus on niche businesses compared to newer, more specialized tools available in the market.
Furthermore, there have been reports of login issues with the Android app, which can be frustrating for users needing easy access to information.
Pricing is another aspect that requires careful consideration. UKG may be out of range for organizations with limited budgets. According to our research, licenses generally start at around $600.00 per year for every 5 users.
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- Pricing for UKG is not provided on their website.
- Typically, pricing is based on a per-employee-per-month model, with options for annual or monthly billing.
- To obtain an accurate quote, it is necessary to contact a sales representative. But based on our research, licenses generally start at around $600.00 per year for every 5 users.
Best For
UKG is an excellent HCM solution for companies operating in the Americas, EMEA, and Asia/Pacific regions, ideally with a minimum employee count of at least 7. UKG Pro can cater to companies with 75-500 employees, while UKG Ready is for companies with a headcount of 500 and beyond.
We used UKG as our HRIS primary system of record to feed all other systems that relied on employee data. It was used for payroll, performance management, and compensation management. Again, a selling point of this tool for the transportation company was the multi-state tax calculations it was able to deliver.
UKG is a comprehensive solution when looking for an HRIS. It also has favorable integration capabilities with other systems. I also appreciate that UKG is a scalable system that allows your business to expand as needed.
I used UKG with a past employer in the transportation industry. We implemented it and used it for several years. We selected UKG due to the fact that the transportation company I worked for had a few separate subsidiaries in different states under the primary corporate umbrella. UKG was able to handle the complexity that came with managing a distributed workforce under multiple EINs. The taxation functionality was particularly helpful for their mobile and transient 1099 workforce.
UKG would benefit from expanding its reporting and data analytics capabilities. Other competitors have more robust tools and functionality In this area. The cost for this platform has also been an obstacle for smaller organizations.
No HRIS is perfect and has the solution for all employer pain points and needs. That said, UKG is very versatile and flexible to customize and modify to the needs of different types and sizes of businesses.
People should consider scalability, integration, cost, and ease of use. These will be critical, especially for companies planning on growing and expanding their workforce. Also important not to “over buy” modules that the business may not be ready to utilize yet. Scale its functionality as the business grows and matures.
UKG has moved to a cloud-based platform and developed a mobile app
UKG would be a great HRIS platform for companies of all sizes but especially for those looking for flexibility and to scale.
Companies not looking to grow and scale would not maximize the use of a tool like UKG.
Sage People
Sage People offers a scalableHCM cloud solution, covering the entire HR process and delivering real-time actionable HR analytics. With customizable dashboards, users can create recruitment plans and delve into metrics such as attrition and time-to-hire.
PROS
- Good range of workflows for globally-distributed teams
- Lots of local expertise from payroll and compliance consultants
- Good range of workflows for globally-distributed teams
- Lots of local expertise from payroll and compliance consultants
CONS
- Integrations offerings are somewhat limited
- Some users report the mobile app lacks core functionalities
- Not many integrations
- Some users have found the mobile app to lack core functionalities
Sage People is a customizable HR suite with HCM capabilities. It’s a great option for companies in the small to medium enterprise range (150 - 5k employees) that have a global presence. It’s a very broad product that also integrates with the rest of Sage's ERP suite, which includes tools for finance, accounting, business management, and more.
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While the pricing for Sage People isn't disclosed, you can take an interactive tour and see the tool for yourself. Afterwards, you can get in touch with their team to get a customized quote.
Best For
SMBs with a distributed team, especially those that use Salesforce. Also medium enterprises with a global workforce.
We used Sage People primarily as a basic HRIS to keep track of all employee information. Secondary to that was the payroll function and time management. Managing time cards was most important for us, including tracking employee PTO balances and absences. Having Sage People seamlessly integrate into our finance system was a huge benefit for bookkeeping and payroll expenses. Although not often, we sometimes made use of HR analytics.
I liked Sage People because of the simplicity of managing time card data. It is a very user-friendly system for beginners to learn and navigate. The seamless connectivity with our accounting software was also a major plus.
We acquired Sage People long before I was employed, so I can’t speak to the specific issues that needed to be solved before deciding to use it. We were previously happy with Sage 100 as our primary finance management service, which is how we came to learn about Sage People. I believe a primary reason for adopting it was to reduce paper consumption. We had previously tracked everything in employee folders, which grew beyond our storage capacity. I'm also sure it was intended to make it easier to manage a growing business with a rapidly increasing employee population.
Sage People felt a little dated for our growing business, not allowing for much customization in reporting. There was no employee self-service function, which required our HR department to handle all issues related to timekeeping, PTO, and many other things. We felt like we were outgrowing Sage People and ultimately looked for something that allowed us to manage talent digitally, including training, performance discussions, and employee reviews.
Sage People was a basic and cost-friendly alternative to many other HRIS systems on the market. For those that don’t need many plug-ins, it is a wonderful tool.
When looking to buy Sage People, the primary considerations should be how many functions you are looking for in an HRIS system. For companies that primarily need help with recruiting and talent acquisition, Sage People may not be ideal, as it has limited compatibility with other programs we use often for recruiting. Consider the size of your business as well—Sage People is well-suited for a mid-sized business with around 200-1,000 employees.
Sage People has definitely improved the user-friendliness of its interface and added some functionality that most HR departments look for in an HRIS.
I think Sage People is useful for small corporate offices or organizations managing a small workforce of labor-intensive personnel.
I think Sage People would not be a good fit for organizations that utilize entirely online employee information systems, such as large tech companies.
Pitfalls of Buying Human Capital Management Software
When in the market for an HCM, the main thing you want to watch out for is picking a system that actually delivers on the practices that define human capital management. Unfortunately, HCM is little more than a buzzword for some people, to the point that they’ll throw the term here and there even if they don’t really have a product that addresses those requirements.
So how do you make sure that you’ll get what you need? If we take a tip from ADP’s 10 tips for evaluating HCM systems, the best bet is to identify your future HCM requirements first. This entails defining what you want to accomplish in terms of employee management and HR functions, and understanding how this may be underserved right now by current tech stack.
In other words, narrowing down what you expect from the tool and understanding whether it’s an HCM suite you need or just a regular HR management tool. The two tend to be confused with each other, and there are times where you could get the exact functionality you need from core HR software and spend less; even if you need to get additional tools, such as an applicant tracking system or a payroll management tool.
How are Most HCM Solutions Priced?
The thing with almost every HCM solution is that they’re built for the enterprise sector. Some of them are certainly made to accommodate SMBs, or any sort of organization size, but even in those cases, pricing is rarely discussed up front.
The reason for this, like with a lot of SaaS tools, is that costs can vary widely depending on the actual size of your business (however big) and the needs you’re looking to cover. For instance, some vendors will have a Core HR product that is priced per employee per month, and separately-priced modules for more particular necessities like benefits management and employee experience.
Key HCM Software Features
In order to build a list of requirements and use it effectively to evaluate vendors, it will help to know which are the key HCM software features and how these can support your goals.
As mentioned at the beginning of this article, human capital management software is implemented in three categories; workforce acquisition, workforce management, and workforce optimization. We’ll look at the key features from each category:
- Workforce Acquisition: This part of HCM is concerned with managing applicant tracking, recruitment, onboarding, and pretty much every early stage of the employee lifecycle. For modern tools, it should also include employee self-service so you know the recruitment and onboarding process can be expedited.
- Workforce Management: Although sometimes a category of its own, for the purposes of HCM, this is the tier where we could consider all the core HR tools. These include the daily administrative work of the HR department, such as payroll, benefits administration, leave and absence management, time tracking, and an HR service center. For features in this category, you should look mainly towards automation and efficiency.
- Workforce Optimization: This is where the ‘workforce as competitive advantage’ part of HCM really finds its momentum. Optimizing the workforce to align with business goals includes performance management, workforce planning, training & learning management, employee engagement, and reporting & analytics. This category is all about generating actionable insights that let you use data in your decision making and make sure that HR is doing its part in steering the workforce in the proper direction.
Questions to Keep in Mind when Demoing HCM Software
As you start demoing various HCM software solutions, it’s important to prepare and attend these meetings with some questions already in mind. These inquiries should aim at answering whether the solution in question will indeed address the main use cases and core needs that you’re looking for.
Of course, the most concerning of these questions shouldn’t be saved for the demo at all, but rather handled prior, through an email thread for instance, so you won’t waste time on a demo if X or Y solution turns out to be incompatible with your core needs.
Further, the demo should also help check certain boxes that your internal stakeholders care about, such as integrations, security, data management, self-service portals, features, etc.
You should write down a list of those questions, share it with your team, and maybe have stakeholders add to it as well. While that list will be unique, here are some common questions when demoing an HCM that should help get you started:
- What integrations are key to us? Does it integrate with ATS/payroll system/any other systems you might have that impact workforce management?
- Does this solution have SSO capabilities?
- Are there multiple authorization levels for different types of users?
- Is there a maximum number of employees it will support across the workforce?
- What types of reporting capabilities does it have?
- Does it include features to help HR communicate with employees (i.e. mass emails, filtering messages by criteria)?
- What kind of tasks can we automate or streamline with this tool? How many man hours can we expect to save doing so?
- How much technical training will be required?
- What kinds of technical support are provided?
- What recruiting capabilities are built-in?
- Which HR processes will be automated?
- How will information be exchanged with carriers (for employee benefits)?
- Does it accommodate benefits carriers’ rules?
- How can we import employee data into this system? (API, Excel spreadsheets, employee records, other databases, and paper documents)
- What built-in security measures does it contain?
- Does your solution feature pandemic-related tools like a vaccine management system?
FAQs on buying HCM software
Moving on, here are some of the most frequently asked questions from HR professionals when it comes to human capital management software:
What is the best HCM system?
While some of the top vendors in HCM software are Workday, SAP SuccessFactors, ADP Workforce, and UKG, “the best” is really a matter of your business size and requirements. There are many HCM vendors, out of which there are likely 1-2 that will align perfectly with what you’re looking for.
What is the difference between HCM, HRMS, and HRIS?
The main difference between HRIS, HRMS, and HCM is that the former two refer to a specific type of software, systems of information, as their names imply (human resource information system and human resource management systems). HCM, on the other hand, stands for human capital management. This is a set of business practices around the acquisition, management, and optimization of a business’s workforce.
What is HCM software?
HCM software is a software tool that takes most features that you would expect out of a labor management platform, but builds it purposefully for the business practices that encompass human capital management. This software puts together widely-varying features such as workforce planning, performance reviews, and employee onboarding in a single management platform where they can all help to generate insights that drive broader business decision making.
Why do definitions of HCM, HRMS, and HRIS vary so much?
This is a good question precisely because the definition of each term varies widely from vendor to vendor, and among HR professionals as well. That being said, the differences between each software category are all about features and use cases. Most thought leadership indicates that HRIS is the most circumscribed type of solution, focusing on core HR needs. HRMS takes it up a notch in features, while still sticking to HR use cases, and HCM is about rounding up all those features with strategic planning for the business in mind, with the workforce as the main component to analyze and optimize.
Last Advice on Buying HCM software
To wrap this up, we’ll assume that you’ve read everything above and have a couple of vendors in mind to reach out to and book a demo. To send you off to this part of the buying process, there’s one last piece of advice that can help a great deal when evaluating HCM software providers.
These demos should revolve around your HCM requirements, and you should try to avoid having one-size-fits-all demonstrations whenever possible. To do this, share your list of requirements and questions beforehand, asking them to show that specific functionality. Since reporting is such a big part of human capital management, you could even give them data for them to run into the system.
This way, you and your team will get to truly see how much of a fit the tool is for you, as well as gauging for factors like intuitiveness and overall user experience. Couple this guide with resources like ADP’s 10 tips for HCM vendor evaluation or our very own HR & recruitment software buying organizer, and you’ll be on your way to find the perfect platform for your HCM needs.
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