How We Review and Test HR Software

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Why Trust Techopedia

It’s important to us that our testing, reviews, and insights are impartial of any monetary rewards. That’s why we always follow our editorial guidelines during our testing process – all the way through to the information we share with you.

In our hands-on testing of Human Resource (HR) Software, we evaluate each tool across a range of critical categories, ensuring that the results are genuinely helpful to all businesses seeking an HR solution tailored to their needs. We focus on user experience, testing each product for ease of use to confirm that even users with limited HR experience can navigate core tasks like managing employee data, performance, and benefits. Since security is vital for protecting sensitive employee information, we rigorously assess each system’s security features, including data encryption, role-based access, and compliance with regulatory standards.

Our testing approach is rooted in independence and rigor. We dive deeply into compatibility, reliability, and scalability to help businesses understand if a tool integrates smoothly with other software, handles high-demand conditions reliably, and can grow with their needs.

By maintaining an impartial stance, we ensure our insights reflect the true value and functionality of each tool without any influence from software providers.

Our mission is to equip small businesses with clear, unbiased insights that help them choose HR software that will truly support their operations, both now and in the future.

HR Software We Have Tested

What HR Software Do We Test?

To ensure we cover the diverse needs of all small business owners, we test a wide range of HR solutions, including HRIS, HRMS, HCM, EOR, and general HR software.

  • HRIS (Human Resource Information Software) – This software focuses on core HR functions like employee data management, payroll, and compliance.
  • HRMS (Human Resource Management System) – Tools that cover core HR functions and recruitment, training, and performance management.
  • HCM (Human Capital Management) – Typically includes all HRIS features with the addition of talent management and workforce planning.
  • EOR (Employer of Record) – HR, payroll, and compliance solutions for businesses hiring internationally or remote employees.
  • General HR Software – Solutions that cover basic HR tasks like employee information, time tracking, and benefits.

Our Testing Criteria for HR Software

When we test HR software, we follow our detailed hands-on testing criteria. These criteria include features, usability, scalability, security, and value for money. By categorizing our testing, we can assess the software and compare it to other HR tools on the market.

Our comprehensive testing process includes:

  • Hands-on testing of the software
  • Registering for free demos or trials
  • Reviewing video tutorials and other documentation
  • Third-party reviews and user forums
  • Focus group interviews with HR professionals

This in-person testing experience of the tools is what allows us to create helpful guides and share useful insights with small business owners who are deciding which HR software to purchase.

 

Functionality and Features

Why: HR teams need software that streamlines repetitive tasks like payroll and onboarding, freeing up time for strategic HR initiatives like development. However, automation alone isn’t enough. HR software should also be user-friendly and adaptable to fit specific workflows. A solution that balances automation with ease of use ensures efficiency, minimizes errors, and improves employee engagement, all while being accessible to both HR teams and employees.

How: We test the software by simulating routine tasks like onboarding, inputting employee information, and payroll processing, focusing on how easily these processes can be automated and customized. We assess the user interface, testing its navigation and if it naturally flows between steps while also testing how well the system adapts to unique workflows. We test the software from both an HR professional perspective and as an employee using the self-service functionality to gauge overall usability and efficiency.

 

Core Functionality We Test Hands-On

  • Employee Data Management – Can employee data easily be added, updated and security accessed with logical search functionality and self-service options for employees?
  • Compliance Management – Does it provide compliance alerts, comprehensive regulation support, easy updates, and automatic system adjustments?
  • Reporting and Analytics – Are there robust pre-built and customizable reports? What export options are available, visual analytics, and scheduling possibilities?
  • Benefits Administration – How easy is it to manage benefits, update capabilities, does it have integration with providers?
  • Performance Management – Does it include goal-setting support, feedback workflows, 360-feedback, customizable metrics, and scheduled performance reviews?
  • Recruitment and Onboarding – How does it streamline job postings, ATS tools, onboarding tasks, background checks, and transfer of new hire data to employee records?
  • Integrations – What integrations are available, how easy are they to connect?

 

Ease of Use

Why: HR software handles complex processes like employee management, benefits administration, and compliance tracking, so it’s crucial that it is accessible to users who may not be HR experts or tech-savvy. A system that’s easy to navigate ensures that users can execute daily HR tasks efficiently, reduces the need for extensive training, and limits the risk of errors in sensitive areas such as payroll or benefits management, ultimately saving time and improving productivity.

How: To assess ease of use, we go through the initial onboarding process and test key HR functions such as setting up employee records, assigning benefits, and creating performance reviews to see if they can be completed intuitively. We evaluate if the menus and navigation are logically organized, test the clarity of language and instructions, and observe how easy it is to access help resources. Additionally, we gauge the accessibility of customization features, checking if users can easily adjust fields or workflows to suit specific HR needs without requiring technical support.

 

Security

Why: HR software contains sensitive data, including employee personal information, payroll, and benefits details, making it essential to have strong security measures to protect against unauthorized access, data breaches, and regulatory non-compliance. Effective security features foster trust among employees, maintain data integrity, and help companies avoid legal and financial repercussions associated with security lapses.

How: We test security by examining the software’s access control features, such as role-based permissions that allow managers to restrict access to sensitive data based on user roles. We assess the encryption standards in place, especially for data in transit and at rest, and look for compliance certifications like GDPR or HIPAA. We also simulate potential security scenarios, like unauthorized login attempts, to see if the system offers features such as multi-factor authentication, audit trails, and alerts for suspicious activity, which are crucial for tracking and preventing unauthorized access.

 

Compatibility

Why: HR software often needs to work in tandem with other business systems, such as payroll, time-tracking, or ERP platforms, so compatibility is essential to ensure seamless data flow, prevent duplicated efforts, and avoid costly manual adjustments. The ability to work across devices, browsers, and operating systems ensures that the software fits easily into diverse IT environments and supports remote and on-site work equally well.

How: We test compatibility by connecting the HR software with commonly used systems, such as payroll, time-tracking, and ERP platforms, observing if data syncs seamlessly between them. We also evaluate if the system can import and export data in formats like CSV or XML, crucial for data integration. In addition, we test the software across different devices such as desktop, mobile, browsers (Chrome, Firefox, and Safari), and operating systems (Windows and macOS) to ensure a consistent and smooth user experience.

 

Reliability

Why: Since HR functions, like payroll processing, compliance tracking, and employee data management, are essential to daily business operations, reliable software minimizes disruptions and prevents costly mistakes. Reliability ensures users can consistently execute these tasks without fear of system crashes, downtime, or errors, which could have significant operational and financial implications for a business.

How: We evaluate reliability by simulating high-usage scenarios to see if the software remains stable and responsive. We also monitor for any bugs or performance issues that arise during core tasks, such as generating reports or updating large datasets. Additionally, we review the provider’s uptime statistics, service-level agreements (SLAs), and support response times to determine if they can quickly resolve any issues that might impact productivity. If available, we also test the system’s backup and recovery features to verify data continuity in case of failure.

 

Price and Value for Money

Why: The cost of HR software can represent a significant investment, particularly for small and medium-sized businesses, so it’s essential that the software provides strong value relative to its price. A cost-effective HR solution should offer comprehensive features that address core HR needs, with flexible pricing structures and minimal hidden costs, allowing businesses to manage their HR needs efficiently without overspending.

How: We compare the software’s pricing tiers and evaluate the features included in each level to assess the value offered for the price. This includes analyzing the availability of essential features, including compliance tracking, reporting, and benefits management, at each price point, along with any additional costs for integrations, add-ons, or upgrades. We also examine the level of customer support provided and review contract flexibility, such as month-to-month billing versus annual contracts, to determine if it aligns with typical business needs and budgets.

 

Scalability and Future-Proofing

Why: As companies grow, their HR software must be able to handle increasing employee counts, support more complex compliance needs, and integrate with additional business systems. Scalable software helps businesses avoid the costs and disruptions associated with switching platforms and ensures they can continue to use the software effectively as their needs evolve.

How: We assess scalability by examining the software’s capacity for adding users, expanding storage for employee data, and accommodating new HR functions, such as performance tracking or advanced analytics. We look at the software’s customization options, like customizable workflows or modular features, which allow businesses to tailor the software to evolving needs. Additionally, we review the provider’s update history, analyzing if they regularly release new features, security patches, or compliance updates that align with industry changes, ensuring the software remains functional and secure over time.

 

Sofia Rebuck
Tech Editor
Sofia Rebuck
Tech Editor

Sofia Rebuck is an Editor at Techopedia with over five years experience researching and writing about tech and software products, working across the North American and European markets. She has honed her expertise in B2B and B2C tech categories such as project management, CRM software and HR tools, to deliver highly valuable insights to readers.

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