10 Best HCM Software In 2024: Reviews and Pricing

Are you looking for a detailed review of the best HCM software?

Ensuring workforce planning, talent acquisition, and performance management matters for an HR manager. The obstacle is how a manager can do all that while having time for other things. The answer is – with solid HCM software.

As the present-day market faces a talent shortage, employers must become smarter in attracting suitable candidates, retaining employees, and developing their teams with human capital management (HCM) practices.

Continue reading to learn about the importance of human capital management, or jump straight to the list of the 7 best HCM systems in the market.

7 Best HCM Software in 2024 – Reviewed & Ranked

When it comes to human capital management software, there are many options. Each platform brings unique features and advantages to the table – it’s up to you to decide which option best fulfills your company’s requirements.

Without further ado, here are the 7 best HCM software solutions ruling the market:

1. ClayHR

ClayHR is an AI-powered platform that offers a broad set of strategic HCM capabilities.

The platform transcends the traditional bounds of HRM/HCM and targets IT managers, team leads, HR executives, and TA specialists.

What Does it Do?

Here’s a list of features ClayHR has to offer:

• Application tracking system: Get smart recommendations about potential candidates with an AI-powered applicant tracking system for present and absence management and hiring the right talent.
• Skill matrix: Assess the skills of your employees, identify their strengths and weaknesses, and optimize your workforce management.
• Workforce planning: Identify, predict, and close skill gaps to fulfill your company’s requirements.
• Retention management: Track risk factors, predict attrition, and gain insight to nurture your team members.
• Goal management: Set and communicate your goals and increase employee engagement.

With an onboarding system, employee profiles, a feedback system, performance management/review features, and a feedback system, BizMerlinHR packs a punch.

What Makes it Stand Out?

Here are a few reasons ClayHR made the list:

• It’s one of the most configurable HCM software in the market. You can create your own workflows, performance review templates, and much more.
• The platform offers a wide range of features, the likes of which aren’t offered by many other HCM software.
• This HCM software allows seamless integration with other platforms like DocuSign, FreshBooks, Salesforce, etc.

If your company is a small or medium-sized enterprise, ClayHR is the perfect HCM software for you.

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2. Workday

Workday is another comprehensive HCM system that takes care of areas, from basic management (like staffing and compliance) to broader workforce planning.

Judging by its vast potential, it’s safe to say that Workday is one of the most complete HCM software out there.

What Does it Do?

Here’s what Workday has to offer:

• Global management: Comply with global regulations and combine them with practices, streamline HR processes, and get a bird s-eye view of your talent.
• Reporting and analytics: Gain valuable insight and identify critical trends to make your workforce more efficient.
• Talent management software: Identify talent, align employees’ capabilities with organizational goals, and allow employees to plan their career development path.
• Benefits enrollment software: Design unique employee incentive programs to attract and retain top talent.
• Compensation management software: Manages compensation plans for the entire company through a single platform.

Workday also provides audit and internal controls software, workforce planning software, knowledge-based learning software, payroll management software, time-tracking software, attendance software, employee management software, and expense management software.

What Makes it Stand Out?

Here are a few reasons Workday made the list:

• It’s one of the most (if not the most) user-friendly HCM software in the market.
• Workday offers global compliance and integration features (like the Global HRM software and the Global Payroll Cloud), which is great for MNEs.
• It offers one of the best reporting and analytics HCM tools.
• It can integrate with more than 40 different platforms.

Since Workday offers different global compliance features, it’s perfect for companies with global roots.

3. BambooHR

BambooHR is a “people-focused” platform with many modules, each offering different HCM capabilities.

What Does it Do?

Here are a few features you can forward to with BambooHR:

• People data and analytics: Get a secured database for employee information. Access employee records, create custom workflows, and generate HR reports.
• Hiring: A state-of-the-art ATS can help you find suitable candidates, reducing training costs. A mobile hiring app makes recruitment easy for employers and candidates.
• Onboarding: Make the right impact on new hires with paperless onboarding. Enjoy the convenience of e-signatures and gain valuable insights about exiting employees from the automated offboarding system.
• Compensation: Track your employees’ hours. You can also get instant notifications whenever an employee requests paid time off.
• Culture: Make performance management easy with cutting-edge performance appraisal software. You can also gauge how satisfied your employees are with the employee satisfaction software that uses the eNPS (employee net promoter score), which can help identify disengaged employees.

What Makes it Stand Out?

Here are a few reasons BambooHR made the list:

• It provides top-of-the-line customer support and a myriad of online resources, making it impossible for users to get stuck.
• It offers a wide range of packages that meet the requirements of organizations of all sizes.
• Continuous improvements and updates meet the ever-changing needs of modern-day companies.

Considering its unique analytics, reporting features, and frequent updates, BambooHR is perfect for modern companies that rely on statistics to make trivial and significant decisions.

4. Ascentis

Ascentis offers “all-in-one” integrated human capital management solutions via their comprehensive suite.

The suite automates HRM functions, along with some other critical business processes.

What Does it Do?

Ascentis offers the following HCM solutions:

• HRIS and benefits management: Simplify complex HR functions (benefits administration, reporting, etc.) and employee data management.
• Payroll software and tax filing: Leverage Ascentis’s special tax filing services to automate payroll processing and avoid risks.
• Talent management software: Manage appraisals/performance reviews, employee learning paths, and compensation, all from a single platform.
• Recruiting software: Find the best candidates, ensure seamless onboarding and more with the recruiting software.
• Time and attendance software: Track employees’ hours, plan schedules, and ensure compliance.

What Makes it Stand Out?

Here are reasons to select Ascentis for your HCM and HR functions:

• It has a user-friendly interface and simple customization/configuration capabilities.
• The platform allows users to transfer the employee data of new employees from ATS and recruitment systems to employee records.
• Customer support has a reputation for swift responses.

Ascentis offers one of the best ATS and onboarding programs, making it perfect for larger enterprises engaged in recruitment.

5. Viventium

Next on the list is Viventium, another cloud-based HCM software with unique features.

The platform is intended for small and -sized businesses and automates processes ranging from talent acquisition to payroll management.

What Does it Do?

• Talent acquisition software: Attract top talent with an ATS, create custom onboarding processes, and verify applicants’ information with just a few clicks.
• Time and attendance software: Track and manage your employees’ hours and choose whichever method you prefer (mobile devices, biometrics, etc.).
• Online payroll software: Save hours by managing the payroll on a cloud-based software with an intuitive user interface.
• ACA compliance software: Keep track of regulations to ensure ACA compliance.
• Business intelligence software: Utilize critical data, create insightful reports, and make business decisions.
• Human resources: Engage in administrative and strategic from a single platform.

What Makes it Stand Out?

Here are a few reasons why Viventium made the list:

• It’s easy to create custom workflows.
• The HCM software allows seamless integration with other platforms (for example, ADP Workforce Now, TimeClock Plus, etc.).
• The platform allows users to work on multiple payrolls at once.
• The ACA compliance management capabilities are among the best.

If you have a large workforce and have to manage various payrolls, Viventium is a solid choice.

6. ADP Workforce Now

ADP Workforce Now is a complete HCM platform that offers HR, payroll, talent, workforce management, benefits, and financial management capabilities.

Currently, it’s one of the most flexible HR and payroll solutions in the market.

What Does it Do?

ADP Workforce Now offers the following solutions:

• Payroll: Manage payroll, avoid tax and compliance errors, and provide employees access to valuable information through a single platform.
• Workforce management: Track time and attendance in real-time and gain insights from comprehensive reports on hours worked.
• HR management: Update employee records, gain access to free onboarding templates, create insightful reports, and more.
• Talent management: Attract, select, onboard, and retain the cream of the crop with modern performance and compensation management features—leverage employee data to come up with unique employee appreciation ideas and increase engagement.
• Benefit solutions: Manage administration and enrollment and create flexible benefits plans.
• Insights: Leverage machine learning capabilities and uncover hidden trends to make critical business decisions.

What Makes it Stand Out?

If you’re having second thoughts about investing in ADP Workforce Now, consider the following:

• The platform offers flexibility in HR and payroll management like no other.
• Users receive assistance and training from ADP Workforce Now professionals.
• ADP Workforce Now has a logical layout and can integrate with other software, making implementation easy.
• Each user is assigned a dedicated customer rep, who is available around the clock to assist.

If you have a large-sized enterprise, ADP Workforce Now is the perfect HCM software.

7. UltiPro

Last, but not least, is UltiPro – another complete HCM software that combines the power of HR, payroll, and talent management, developed by Ultimate Software.

What Does it Do?

UltiPro offers the following features:

• Human resource: Increases productivity by providing employees with the resources and information they need to become more efficient.
• Performance management: Develop your workforce by automating the performance review and appraisal cycle with HR process automation tools.
• Compensation management: Provide your employees with the compensation they deserve via an intuitive user interface.
• Employee surveys and sentiment analysis: Use these tools to gather insightful information about your employees’ workplace experiences and make better-informed decisions about retaining them.
• Predictive analytics tool: Extract insights about your top-performing individuals, predict flight risks, and keep employee turnover under control.
• UltiPro also includes recruitment tools, benefits administration software, learning software, payroll software, an employee file management system, and success management tools.

What Makes it Stand Out?

Here are a few convincing reasons to select UltiPro:

• The platform offers the longest list of modules, covering all human capital management needs
• It’s packed with smart BI/analytics tools that help the workforce keep track of their progress
• Users can connect with other users and exchange resources and guidance.

If you’re looking for an all-in-one solution, there’s no better option than UltiPro.

Conclusion

Choosing the perfect HCM software begins with figuring out your ’s needs, and you can by identifying your major HCM pain points.

Do your managers spend an entire day (or more) processing payrolls every month? Do your employees find your benefit plans confusing?

Or maybe, you’re unable to hire and retain the right candidates. It boils down to what you consider as “high value” (and your budget). As a result, your best bet is to examine your options, assess your needs, and invest in the HCM software that’s perfect for you.

FAQs

Here is a list of questions that learners generally ask about HCM:

What is Human Capital Management?

Human capital management (HCM) is an approach that views an organization’s employees as assets rather than individuals. HCM gauges the collective value of its employees and focuses on reviewing, maintaining, and developing its workforce.

It encompasses all of the traditional human resource practices (like payroll management and reporting), along with employee tracking, performance management, workforce planning, and training and development.

What’s the Importance of HCM?

The most crucial asset of any, whether large or small, isn’t the equipment, the building, or the goodwill – it’s the employees.

Employees are the resource that put the actual hours and efforts in to sustain and grow the business.

Therefore, the focus of human capital management is to improve the quality of a workforce by:

• Assessing the human capital requirements of the organization (for example, planning ahead by identifying skill gaps for certain projects)
• Attracting and hiring the right talent (for example, finding professionals with relevant skill sets)
• Training and developing employees
• Reviewing employee performance
• Providing compensation and benefits
• Figuring out ways to increase the productivity of employees (for example, identifying weaknesses in certain day-to-day processes)

Neglecting any of the factors above defeats the purpose of HCM, which, in turn, could jeopardize a ’s ability to scale, not t mention the high cost of employee disengagement.

What are the Top 6 HCM Statistics?

Let’s have a look at the top 6 statistics to further understand the significance of HCM:

1. 83% of employers say that attracting and retaining employees is becoming a big challenge.
2. According to one source, the average cost of a bad hire is about $18,700.
3. 7 out of 10 people will stay at a company if provided with ample training and development opportunities.
4. On average, a job vacancy can cost a company somewhere around $500 per day.
5. As of now, around 32% of people want to switch their jobs, out of which 15% cited insufficient perks and benefits as the main reason.
6. Companies that provide regular feedback to employees experience a 14.9% lower employee turnover rate than companies that don’t.

What is HCM Software?

An HCM software is an enterprise-level, cloud-based HR software that integrates, streamlines, and automates all human capital management processes – including recruitment, performance reviews, compensation management, and employee development.

Instead of having to deal with separate programs for each process, reliable HCM software provides a way to manage everything from one platform.

What is human capital management (HCM) and why is it important for organizations?

Human capital management (HCM) refers to the strategic approach organizations take to manage and optimize their workforce. It encompasses various practices and processes aimed at enhancing employee performance, satisfaction, and overall productivity. HCM is crucial for organizations as it helps align human resources with business goals, fosters a culture of continuous improvement, and ultimately drives organizational success. By effectively managing talent, companies can improve employee retention, reduce turnover costs, and create a more engaged and motivated workforce.

What are performance management tools, and how do they contribute to effective HCM?

Performance management tools are software solutions designed to streamline the process of assessing and improving employee performance. These tools enable organizations to set clear goals, provide continuous feedback, and conduct regular performance evaluations. By utilizing performance management tools, businesses can identify high performers, support employee development, and ensure that individual contributions align with organizational objectives. This enhances employee accountability and fosters a culture of transparency and communication, making it an integral part of a successful human capital management strategy.

How does HR service delivery enhance the effectiveness of HCM?

HR service delivery refers to the methods and technologies human resources teams use to provide efficient and effective support to employees and managers. Organizations can streamline HR processes by leveraging technology and automation, such as onboarding, benefits administration, and employee inquiries. Enhanced HR service delivery improves the employee experience by providing timely responses and access to information, allowing HR professionals to focus on strategic initiatives rather than administrative tasks. This shift not only optimizes human capital management but also leads to greater employee satisfaction and engagement.

What should organizations consider when selecting the best HCM software for their needs?

Organizations should consider several key factors when selecting the best HCM software to ensure the solution aligns with their specific requirements. First, it’s essential to assess the software’s capabilities in human capital management, including its features for performance management and HR service delivery. Organizations should also evaluate the software’s scalability, ease of use, and integration with existing systems. Additionally, it’s vital to consider the vendor’s reputation, customer support, and the level of customization available. By thoroughly evaluating these aspects, organizations can choose an HCM solution that effectively supports their workforce management goals.

HCM Software vs. General HR Software – What is the Difference Between These Two?

Managers tend to use the terms ‘HCM software’ and ‘HR software’ interchangeably.

While the modern-day requirements of a single, 360-degree solution have blurred the lines and caused an overlap between the two products – there are some basic differences that are worth highlighting:

If you are new to Human Resources and are looking to break into an HR role, we recommend taking our HR Certification Courses, where you will learn how to build your skillset in human resources, build your human resources network, craft a great HR resume, and create a successful job search strategy.

Josh Fechter

Josh Fechter is the founder of HR.University. He's a certified HR professional and has managed global teams across 5 different continents including their benefits and payroll. You can connect with him on LinkedIn here.