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Best HCM Software

Audited & Verified: Oct 9, 2024, 8:36am
Written By
Contributor
Reviewed
Staff Editor
& 1 other
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Human capital management (HCM) is the process of managing people from hiring to retirement. The best HCM software allows HR administrators to manage recruitment, compliance, reporting, workforce rewards and talent management from one centralized platform.

We analyzed more than two dozen of the leading providers to select the best HCM software available today.

Read more

Why You Can Trust Forbes Advisor Small Business

The Forbes Advisor Small Business team is committed to providing unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content to guide you in making the best decisions for your business journey.

Learn More: How We Test HR Software

  • 29 Companies Evaluated
  • 56 Decision Factors Considered
  • Four Levels of Fact-Checking
  • Hands-On Testing

The Best HCM Software of 2025


Best for Large Businesses

SAP SuccessFactors

SAP SuccessFactors
4.7
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Monthly Fee

Not disclosed

Free Trial

No

Payroll Processing

Yes

SAP SuccessFactors

Not disclosed

No

Yes

Expert Take

SAP’s SuccessFactors HCM software suite is a comprehensive set of HR and business management tools, but it’s unfortunately only available for larger businesses. According to an SAP representative, it’s only available for businesses with more than 300 employees, and its payroll tools are only available for businesses with more than 1,000 employees.

Features

SuccessFactors offers a full toolkit of features, so if your business is of the size to take advantage of it, your HCM needs will be fully covered. There’s the requisite core HR functionality, payroll processing, tools for every stage of the employee journey from recruiting to offboarding, AI and data-driven analytics to surface your business’s strengths and weaknesses, and sales tracking and optimizations to help your bottom line. SuccessFactors is a comprehensive platform that will cover almost every HR need for larger enterprises.

Pricing

Because SAP doesn’t surface pricing for its SuccessFactors suite online, assessing value is difficult. Customers are required to contact SAP directly for a quote, which may differ depending on the size of your company and the services you require. However, it does offer an all-in-one solution for HCM services, so you likely won’t have to additionally pay another company to fill in gaps in the platform.

Customer Service

SAP offers a Learning section on its website with classes and links to SAP certifications. There’s also a Community tab for events and learning about other SAP products, and a Support section covering common issues. You can reach out directly to SAP customer support by phone, support form or live chat, and its Customer Interaction Center is available 24/7, 365 days a year.

Reputation

SAP enjoys a good reputation on review aggregator G2, sitting at 4.1 out of 5 with over 1,200 reviews. Users praise its helpful tools and features, though some are critical of its unintuitive design.

Learn more: Read our full SAP SuccessFactors review.

Pros & Cons
  • AI-assisted HRIS
  • Extensive workforce analytics
  • Tools for the entire employee journey
  • Pricing isn’t disclosed online
  • Not available for small businesses

Best for Benefits Administration

Paycor

Paycor
4.6
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Monthly Fee

Not disclosed

Free Trial

Yes

Payroll Processing

Yes

Paycor
Learn More Arrow

On Paycor's Website

Not disclosed

Yes

Yes

Expert Take

Paycor offers an employee-friendly HCM service that prioritizes accessibility. This is especially evident in the company’s approach to benefits, which empowers employers to reduce onerous, repetitive and confusing open enrollment tasks and lets employees manage their benefits anywhere and at any time.

Features

A big part of Paycor’s sales pitch is how its employee-friendly platform can save you time by being an all-in-one, single source of truth for employee data. It starts with HR and payroll that are integrated into a single interface, so HR data feeds into payroll and automations. Auto-run features help slash the amount of time you’ll spend getting your people paid.

Paycor also has a full set of employee management tools. There are talent acquisition features to find, recruit and onboard the best people available for your open roles, management tools to train and cultivate the people already on staff and time and attendance tools to simplify scheduling.

Pricing

Paycor also doesn’t reveal its pricing online, and you’ll have to reach out to the company for a customized quote specific to your company. There are two plan groups available, one for businesses with fewer than 50 employees and one for larger companies. The small business group is broken into four tiers with scaling features, while the larger business option requires you to reach out to the company for a tailored quote.

Customer Service

Paycor offers a deep resource center on its site where you can view webinars on HR and compliance trends, read guides and white papers published by the company, review case studies of successful businesses utilizing Paycor’s software or brush up on HR vocabulary with an online glossary. You can also reach customer support by phone, Monday through Friday between the hours of 8 a.m. and 8 p.m. ET.

Reputation

Paycor currently holds a 3.9 rating on G2. Reviews point to the ease of use of its platform and its excellent payroll features, though there are some negative comments about Paycor’s customer service and payment issues.

Learn more: Read our full Paycor review.

Pros & Cons
  • Integrated HR and payroll
  • Dynamic scheduling tools
  • Full library of additional integrations
  • No pricing information online
  • Basic plan lacks reporting options
  • Talent development tools only available at the highest tier

Best Automations

Paycom

Paycom
4.4
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Monthly Fee

Not disclosed

Free Trial

No

Payroll Processing

Yes

Paycom
Learn More Arrow

Read Forbes' Review

Not disclosed

No

Yes

Expert Take

Paycom’s focus is on providing a single platform that communicates across all the services it provides, so you don’t need to constantly reenter data or worry that one part of the software isn’t communicating with the others. Contributing to that sense of unity are a number of built-in automations that eliminate much of the manual labor normally associated with HCM software.

Features

Amongst those handy automations are automated payroll and time and attendance management tools. Payroll is hooked directly into HR and can pull existing employee data directly, so you don’t waste time reentering wages or hours every time you need to run payroll. It’s also built to allow your employees to review and correct errors before a run, saving you time and eliminating errors before they happen.

Time and attendance systems also all interconnect with the rest of the platform, so any time an employee requests time off, you can approve or deny the request, with or without comments, and that decision will auto-populate throughout the rest of the system. You can view a calendar at any time displaying which employees are off when as well as leave accruals, and set which procedures you wish to automate.

Pricing

Along with many of the HCM providers on our list, Paycom doesn’t provide pricing details online, so evaluating the value of its platform is challenging, as price may fluctuate depending on an SMB’s circumstances.

Customer Service

Paycom hosts a resources section on its website with a blog covering topics such as benefits enrollment and how to avoid common payroll mistakes, some educational webinars and an HR and payroll glossary. You can also reach Paycom customer service by phone or at one of its corporate headquarters. Every customer is also assigned a primary point of contact who will be familiar with your account and help answer any questions you have about the platform in a way tailored to your business.

Reputation

Paycom has a very good reputation on Trustpilot, garnering a score of 4.3 out of 5. Reviewers praise the company for its training and support options, as well as knowledgeable customer service representatives.

Learn more: Read our full Paycom review.

Pros & Cons
  • Lots of automations
  • Employee payroll review and corrections
  • Truly unified platform
  • Lacks pricing transparency
  • Few integrations

Best for Employee Experience

Zoho

Zoho
4.3
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Monthly Fee

$10 per employee

Free Trial

Yes

Payroll Processing

Yes (add-on)

Zoho

$10 per employee

Yes

Yes (add-on)

Expert Take

Zoho offers a number of business management systems of which its HCM platform is just one, with a focus on employee experience. In the company’s own words, your employees are your first customers, and Zoho aims to ensure they’re satisfied and productive to boost recruiting and retention.

Features

Zoho is slightly different from many competing HCM platforms in that instead of a unified system, it separates its offerings into a number of plans and add-ons. The core of the HCM side is the People Plus plan, which, as the name implies, includes a lot of employee management tools.

It starts with talent acquisition, which runs the gamut from candidate sourcing all the way until you’re ready to make an offer. There are also management tools for tracking goals and training and a communication and engagement suite that includes a social wall where employees can collab. It’s all in support of the core HR system, which is how Zoho labels its time and attendance features, document and expense management and HR analytics. Curiously, payroll is only available in India through the People Plus plan (it’s otherwise available as a paid add-on).

Pricing

The People Plus plan starts at an attractive $10 per employee per month (or $9 if you pay annually), but that price is heavily caveated. You don’t get payroll outside of India, premium expense features, Zoho’s security suite, video features or any of Zoho’s advanced communication and collaboration tools. All of those are paid add-ons, and most are priced on a per-user per-month basis, meaning costs can stack up quickly.

Customer Service

Continuing the people-first trend evident across Zoho’s site, the company has a section dedicated to Employee Experience, where you can read blog posts and listicles about improving quality of life for employees and facilitating collaboration. There’s also a full resources section with more blog posts, compliance guides and webinars. Live support is available by way of email, phone or support ticket.

There are also tiered support plans available, two paid and one free, with varying levels of service options. The free tier email and phone support during limited hours, while the top paid plan offers full 24/7 support through email, live chat, phone, the Zoho community and remote assistance.

Reputation

Zoho sits at a 4.2 on Trustpilot, with numerous reviews lauding its various individual tools and services, though perhaps unsurprisingly, there are several complaints about how scattered its features are.

Pros & Cons
  • Highly customizable offerings
  • Broad suite of recruiting tools
  • Complete HR package
  • Features scattered across paid plans
  • Add-ons get expensive quickly

Best AI Features

UKG

UKG
4.3
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Monthly Fee

Not disclosed

Free Trial

No

Payroll Processing

Yes

UKG
Learn More Arrow

Read Forbes' Review

Not disclosed

No

Yes

Expert Take

UKG’s HCM software attempts to toe the line between servicing large enterprises while retaining a human touch, focused on employee satisfaction and building a healthy workplace culture. Part of the way it accomplishes that difficult balance is by leveraging AI. UKG leans into AI for analytics and reporting, as well as parsing that data to make actionable recommendations.

Features

UKG offers a complete HCM platform with all the core HR features, payroll and compliance tools that implies, but its standout features are its AI-driven analytics and reporting. The platform’s AI can report on data across talent HR tools in one place and allows you to compare data from various points in time to get insights into how your workforce is changing and evolving.

AI will also attempt to anticipate your employees’ needs before they arise based on the datasets you feed it, and you’ll get proactive alerts anytime you’re in danger of overrunning your budget or violating compliance regulations.

Pricing

UKG is another HCM provider that doesn’t surface its pricing online. To source a quote, you’ll need to contact sales through a form on the website (the same page also includes a handful of product demos stepping you through some of the platform’s features, with links to sign up for a live demo).

Customer Service

On the Resources tab of UKG’s website, you can access some of UKG’s research on topics such as HR and payroll, its Aspire conference and other trade shows, some webinars and the company blog. Support is available for existing customers by logging into the UKG Community portal on the website, as well as 24/7 by phone, live chat or online.

Reputation

UKG has earned a very good reputation online on aggregate site G2, with users specifically calling out its comprehensive features and ease of use, though some reviews ding it for poor customer support.

Learn more: Read our full UKG review.

Pros & Cons
  • Data-driven, AI-assisted analytics
  • Employee self-service
  • Workforce planning tools
  • No pricing data available online
  • Focus on larger enterprises

Easiest to Use

Rippling

Rippling
4.1
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Monthly Fee

Not disclosed

Free Trial

No

Payroll Processing

Yes

Rippling
Learn More Arrow

On Rippling's Website

Not disclosed

No

Yes

Expert Take

Rippling’s entire focus is on making its all-in-one HCM platform easy to use and intuitive. To accomplish that, it unifies its entire platform around a single source of truth and an intuitive interface, backed by a number of automations.

Features

Rippling builds automations into many parts of its HCM ecosystem. What this means practically is that when you make changes or enter new data into one part of the platform, Rippling will automatically update other affected modules to reflect downstream implications. For instance, if you note that one of your employees has moved to a new state, Rippling will automatically adjust their payroll taxes to reflect the change.

The same is possible for other parts of the employee life cycle. Mark an employee as promoted, for instance, and Rippling will adjust permissions, add the employee to appropriate Slack channels or assign them a corporate card. Automations are all customizable so you can fully control how changes in one module affect other parts of the platform.

Pricing

Rippling doesn’t disclose pricing information on its website. Instead, customers need to fill out their information in a contact form on the website in order to schedule a 30-minute demo with one of the company’s representatives—a convoluted and onerous (though unfortunately common in the HCM market) way to sell software.

Customer Service

On Rippling’s Resources tab, you can find a huge number of educational tools, including Rippling U, which offers free training and continuing education credits. There are also webinars, a glossary and a blog, as well as “recipes,” which are templates you can install into the platform to handle tasks such as exit interviews or DEI surveys. Customers can contact Rippling through the Help Center and by live chat and email.

Reputation

Rippling has an excellent reputation on Trustpilot, with a 4.4 review rating. It earns plaudits for its legible and easy-to-use software, though there are some negative reviews citing difficulty communicating with support or account managers.

Learn more: Read our full Rippling review.

Pros & Cons
  • Easy-to-use, all-in-one platform
  • Custom automations
  • Simplifies compliance
  • Lack of pricing transparency
  • Limited app functionality

Best Payroll Features

Paylocity

Paylocity
4.1
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Monthly Fee

Not disclosed

Free Trial

No

Payroll Processing

Yes

Paylocity
Learn More Arrow

On Paylocity's Website

Not disclosed

No

Yes

Expert Take

Paylocity is a complete HCM platform with a focus on payroll, both domestic and global. Its payroll features include automations, tax compliance tools and automations for expense management. There are also systems to handle complex tasks such as garnishments or navigating foreign currency payments.

Features

Beyond the payroll features, Paylocity offers a number of workforce management tools to help reduce your time spent doing repetitive administrative tasks so you can focus on growing your business. It starts with automated time tracking, which in turn feeds into reporting and ultimately payroll to streamline the entire process of getting your employees paid accurately.

Scheduling is also simplified by the same system. Paylocity allows you to schedule by roles to ensure your people are available to coordinate and collaborate together, and can deploy AI to estimate hours and determine what that schedule will cost you. There’s also a mobile app that both lets you respond to employee requests at any time, and offers self-service options to your employees as well.

Pricing

Paylocity doesn’t reveal its pricing structure online. You’ll need to reach out with details including your employee count and contact information to schedule a live demo before you’ll be able to account for the price of the software in your business plan, which is less than ideal.

Customer Service

Paylocity offers a handful of resources on its site, including training courses for its products led by instructors, event listings and tax resources. You can contact customer service by phone or email. Hours are Monday through Friday, 6:00 a.m. – 7:30 p.m. CT.

Reputation

Paylocity is highly rated on review aggregate site G2, currently sitting at 4.4 with several thousand ratings. On the positive side, a number of reviews cite the excellent customer service, payroll management features and comprehensive nature of the platform. Negative reviews point to issues with employee management features and transferring data from previous systems.

Learn more: Read our full Paylocity review.

Pros & Cons
  • On-demand support
  • Customizable dashboards
  • Simplified benefits administration
  • Pricing only available on request
  • No contractor payment feature

Best Onboarding Tools

HiBob

HiBob
4.1
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Monthly Fee

Not disclosed

Free Trial

No

Payroll Processing

Yes

HiBob
Learn More Arrow

On Hibob's Website

Not disclosed

No

Yes

Expert Take

HiBob is an HCM platform that’s designed to be accessible by everyone in your organization, from management to HR professionals to individual employees. There’s also a big focus on culture, starting with the ability to build a personalized onboarding process. It allows you to provide opportunities for new employees to self-identify and introduce themselves to your veteran staff, and fill out a profile with what they consider the most important parts of their personalities.

Features

The idea of creating a welcoming culture is central to HiBob’s entire platform, and extends to engagement features that are designed to make all of your employees feel at home within your organization, whether they work from, at the office or a hybrid of both. In the same vein, HiBob offers a feature called Your Voice, which provides a safe space for employees to voice concerns about workplace misconduct or other issues.

Another standout feature of HiBob’s platform is Sandbox mode, which creates a dummy duplicate of your standard HCM environment. It allows you to experiment with features, data, imports and automatizations without risk of impacting existing employee data.

Pricing

HiBob’s pricing is available by custom quote only. Its plans depend on the number of employees in your organization and which features you choose. However, all plans come with Core HR and Digital Admin by default.

Customer Service

HiBob’s resource center features a blog, webinars, case studies and a number of other tools. You can contact customer support by logging in to an existing account and filing a support ticket.

Reputation

HiBob has a very strong reputation online and a 4.5 star rating on G2. Reviews praise the easy transition from other HCM platforms, helpful customer service and the easy-to-use interface. Some users, however, complain about limited or missing features.

Pros & Cons
  • Out-of-the-box onboarding
  • Elegant design
  • Data contributed by all employees
  • Pricing is custom and only available by quote
  • Lacking customization options

Best User Interface

Workday

Workday
3.9
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Monthly Fee

Not disclosed

Free Trial

No

Payroll Processing

Yes

Workday
Learn More Arrow

Read Forbes' Review

Not disclosed

No

Yes

Expert Take

Workday offers a number of business tools, amongst them a broad, powerful HCM platform with an intuitive, easy-to-use interface. It also puts an emphasis on keeping your company prepared for what’s next in a changing landscape, and allowing you to get a real-time, constantly updated and top-down view of your organization.

Features

One of the most interesting features included with Workday’s HCM platform is its Skills Cloud system. It uses Workday AI to catalog all of the skills currently available throughout your workforce, and then identifies connections between skills. You can then boil the data down to identify the most important skills to your business, and track and develop those skills across your personnel.

You can further amplify the Skills Cloud’s effectiveness by importing data from third parties to better train the AI. You can then leverage this data to match employees to the tasks that best suit their skill sets, identify places where upskilling and reskilling would benefit your business most and create Flex Teams to deploy personnel to the projects where they can contribute the most.

Pricing

Workday is another HCM that, frustratingly, doesn’t provide any pricing details on its website. It requires you to fill out a sales form to request a custom quote, which also automatically signs you up for email updates about Workday products, which you then have to manually unsubscribe from.

Customer Service

Workday does offer 24/7 customer support, but it’s only available to existing customers and the company doesn’t spell out what contact channels are available. It does have a Learn tab on its site where you can view product demos or recorded webinars as well as a variety of resources and other trainings.

Reputation

Workday has a mixed reputation online, with a 1.1 star rating on Trustpilot but a 4.0 star rating on G2. Negative reviews focus on difficulty using the software or accessing various features, as well as problems with the recruitment tools. Positive reviews, on the other hand, praise the HR management features and analytics.

Learn more: Read our full Workday review.

Pros & Cons
  • Powerful AI tools
  • Augmented analytics
  • Unique skill matching system
  • No pricing information online
  • Customer service channels not surfaced

Best for Workflow Management

Omni HR

Omni HR
3.8
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Monthly Fee

$3.45 per employee

Free Trial

Yes

Payroll Processing

Yes (add-on)

Omni HR

$3.45 per employee

Yes

Yes (add-on)

Expert Take

Omni HR is a great choice for businesses that are looking for both an HR platform and workflow management software in the same platform. While it doesn’t have the depth of dedicated software in either space, it does provide a basic middle ground solution for both, and may be suitable for SMBs that don’t need tons of advanced HR or workflow features.

Features

The big standout of Omni’s platform is the workflow management functionality, which is driven by automations. Beyond automating common HR tasks such as onboarding, Omni also allows you to build custom tasks and incorporate them into workflows.

As an example, you could construct a performance review template, schedule how many days (or weeks, or months) after an employee’s start date to automatically send it, and request that information be filled out and/or documents be uploaded by the employee, their manager or their colleagues. Now, every time an employee hits a certain threshold, a performance review will automatically be circulated with no need for further input from you. The system is also backed by unlimited document storage, so you never have to worry about running out of data to store all your templates and employee information.

Pricing

Refreshingly, Omni is one of the few companies on our list that publishes its pricing online. The base plan is very affordable at $3.45 per employee per month and includes the workflow tools, analytics and more core HR features. Signing up to be billed annually will save you 15%, bringing your monthly cost down to $3 per employee per month.

However, it starts to look less generous when you consider how many features are only available as paid add-ons. Payroll, time and attendance, and performance tracking all cost an additional fee, while features such as multifactor authentication are only available with the Enterprise plan.

Customer Service

Omni has a limited resources segment of its website where it publishes a blog, an FAQ and some document templates. Support is available by email or contact form, though no phone support for non-subscribers. There is, however, a Customer Success Manager available to all subscription customers that’s available by phone, Slack, email or WhatsApp, and Omni says they’re typically available within 60 minutes during normal business hours.

Reputation

Omni was founded in 2021 by a former Goldman Sachs executive, and has yet to establish a concrete reputation online.

Pros & Cons
  • Customizable, easy-to-use employee database
  • Unlimited document storage
  • Doubles as a workflow manager
  • Many standard features only available as add-ons
  • MFA paywalled behind the Enterprise plan

Forbes Advisor Ratings

Starting Monthly Fee
Not disclosed
Payroll Processing
Yes
Benefits Administration
Only through integrations
Time And Attendance
Yes
4.6
On Paycor's Website
Starting Monthly Fee
Not disclosed
Payroll Processing
Yes
Benefits Administration
Yes (add-on)
Time And Attendance
Yes (add-on)
4.4
Read Forbes' Review
Starting Monthly Fee
Not disclosed
Payroll Processing
Yes
Benefits Administration
Yes
Time And Attendance
Yes
Starting Monthly Fee
$10 per employee
Payroll Processing
Yes (add-on)
Benefits Administration
No
Time And Attendance
Yes
4.3
Read Forbes' Review
Starting Monthly Fee
Not disclosed
Payroll Processing
Yes
Benefits Administration
Yes
Time And Attendance
Yes
4.1
On Rippling's Website
Starting Monthly Fee
Not disclosed
Payroll Processing
Yes
Benefits Administration
Yes
Time And Attendance
Yes
4.1
On Paylocity's Website
Starting Monthly Fee
Not disclosed
Payroll Processing
Yes
Benefits Administration
Yes
Time And Attendance
Yes
4.1
On Hibob's Website
Starting Monthly Fee
Not disclosed
Payroll Processing
Yes
Benefits Administration
Only through integrations
Time And Attendance
Yes
3.9
Read Forbes' Review
Starting Monthly Fee
Not disclosed
Payroll Processing
Yes
Benefits Administration
Yes
Time And Attendance
Yes
Starting Monthly Fee
$3.45 per employee
Payroll Processing
Yes (add-on)
Benefits Administration
No
Time And Attendance
Yes (add-on)

Methodology

We ran a complete analysis of the leading solutions on the market using a wide range of criteria to determine the best HCM software providers for small businesses. We studied the industry and researched 29 different human resources (HR) management companies and plans, then scored these contenders across several categories using metrics that included pricing, essential and additional features and third-party reviews, which were weighted to favor features that small business owners find valuable in a provider.

Here are some of the categories that we used to come up with the providers that made the top of our rankings.

Decision Factor Scoring Weight Description
Expert Score
20%
We use our expert insights to determine which of the providers are the best in the business. This includes considering each software’s ease of use, standout features, popularity and value for the price.
Reviews
15%
To get a better understanding of how a wide range of users and businesses find a provider, we look at reviews, giving preference to providers that are highly rated among their user base. We consider both expert reviews as well as consumer reviews when calculating our score.
General Features
44%
We review the key HCM features for each of the providers to score functionality. Some of the essential features we look for include core HR, onboarding, compliance and tax support.
Additional Features
15%
We also weigh the additional features most valuable to SMBs, including engagement tools and LMS, when scoring each company.
Service and Support
6%
Small businesses don’t necessarily operate on a set schedule, so 24/7 support is given a premium, as are multiple contact channels and online resources.

Read more: How we test HR software


What Is HCM Software?

Human capital management (HCM) software is software that allows human resources professionals to manage people more efficiently. It helps to recruit, hire, develop, pay, manage and retain employees within the organization. It differs from human resources management (HRM) systems in that HRM is more focused on the day-to-day task of managing employees, while HCMs focus on a broader, more strategic approach to personnel management. Human resources information systems (HRIS), by contrast, are more focused on leveraging technology to make HR and business practices more efficient.


How To Choose the Best HCM System

Choosing the best HCM software will be in large part dependent on the needs of your business, and particularly its size and specific HR, workflow and business management software needs. Budget is also a critical factor, though there are core features that every HCM platform should include, regardless of other factors.

  • Essential Features: These include core HR, recruiting integrations and candidat e tracking, payroll integration for seamless processing, time management solutions and benefits management.
  • Customer Service: The best HCM software for you will be available during your business hours, regardless of when those fall, and by whatever contact channel you need, whether that’s phone, email, live chat or something else.
  • Additional Features: Consider whether you’re looking purely for HCM features or if you also want a provider that includes business or workflow management tools on its platform. If you’ve got a provider serving those needs already that you’re satisfied with, those additional features may not be a critical factor for you.
  • Ease of Use: Regardless of which company you choose, its platform should be intuitive and approachable. It’s not just you who will be using an HCM, but all your current and future employees, and if you’re spending lots of additional resources training employees to use it, it may become more of a hindrance than a help.
  • Reputation: The best metric of how a company performs is often how its current and former customers feel about it, so consider an HCM provider’s reputation online on review aggregate sites and amongst expert reviewers before committing.

How Much Does HCM Software Cost?

Starting Monthly Fee Free Trial
Zoho
$10 per employee
Yes
Omni HR
$3.45 per employee
Yes

Unfortunately, the majority of the HCM companies we reviewed for our list don’t provide their pricing online. Many of them require customers to reach out and request a quote directly from the provider, which means quotes may differ not just based on the size of your company and the features you requested but also from company to company or according to any number of other factors. The leeway for potentially deceptive pricing practices from this type of behavior is extensive, and consumers should always be cautious of companies that do not publicly disclose any pricing guidelines.

That said, some HCM companies provide free trials so that you can test their products before shelling out for them. However, many of them also upcharge for add-ons or extras, so be sure that you’re accounting for all the services you’ll require when pricing out potential HCMs.

Small Business Expert Writer Kimberlee Leonard and Deputy Editor Lauren Holznienkemper contributed to this article.


Frequently Asked Questions (FAQs)

What's the difference between HCM and ERP?

HCM focuses on people within the organization, more specifically, the management of employee data, pay, benefits, role development and much more. In contrast, enterprise resource planning (ERP) looks at company resources on a more macro level to include not only HR but also finance and operations.

What is typically included in HCM software?

Typically, HCM software includes the ability to pay, recruit, hire, manage and retain key talent in an organization. It also includes more sophisticated tools for workforce management, such as succession planning and productivity management, and may also include business management tools, finance assistance or other features to help you grow your company or make it more efficient.

How is HCM different from HR?

HCM is more all-encompassing. It ensures that HR operations align with broader strategic business goals. Moreover, HCM is used not only by HR professionals, but also by employees, their managers and company leaders.

Is Salesforce an HCM?

Salesforce is a cloud-based customer relationship management (CRM) system. Because it is dynamic and customizable, it is possible to use Salesforce as an HCM solution.

Is HCM software secure?

As with most types of software, the best HCM software programs offer many levels of security. When choosing this type of software, you want to look for security features, such as two-factor authentication (2FA) or multifactor authentication (MFA), documentation that shows frequent security updates and patches, intrusion detection, the monitoring of user activities, data encryption and privacy protection.


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