Skip to Content
Two women looking at an HR report

How Human Resource Software Has Evolved

These days, human resources management software is more than simply an online repository of employee reviews — it’s much, much more. HR software has evolved into a centralized source of rich, up-to-date employee data that your business leaders can easily reference to make strategic talent decisions and improve overall business efficiency and performance.

Goal alignment drives efficiency and productivity

All of your employees are accustomed to managing individual goals—they must meet or exceed performance on these goals annually in order to receive compensation, performance bonuses and perks—both financially and non-financially based. A centralized human resources software solution allows employees and their managers to communicate how individual goals relate to the company’s goals and to ease the process of tracking performance on these goals. By ensuring that your employees understand what your organization is trying to achieve, and how his or her role — and performance — contributes to the organization's core mission, you can focus employee efforts on your company's most important strategic goals.

When employees execute on individual goals that are aligned with overall organizational goals, they are effectively sharing the responsibility for reaching the same objectives. This practice naturally creates more engaged employees who begin focusing on ways to work smarter and more efficiently. This boost in employee productivity naturally leads to increased profitability for the company.

Employee assessments made easier

Human resources has long been tasked with creating the mechanisms for motivating and retaining high-performing employees as well as dealing with individuals who are no longer delivering results, hopefully through positive measures such as coaching or development programs.

With the information gathered in one place, easily accessible via Internet connection at any time of the day or night, managers are able to conduct employee assessments with feedback gathered throughout an organization, including peers, vendors and clients, creating a richer picture of the employee. When creating recognition programs, such as pay-for-performance, HR benefits when employees have confidence in a system that consistently and accurately measures performance for all employees. By gathering assessments from others who work directly with the employee, feedback is perceived as more valid and objective, leading to a greater acceptance of results and actions required. These layers of information can be aggregated and analyzed from a team, departmental, or a company-wide perspective, enabling management to better understand which of their in-house skill sets are well honed and which need further development to maintain consistent talent pools for future growth.

Increase collaboration company-wide

The most highly sought after human resource software solutions include a centralized database of employee information beyond the basic HR hire date and salary information. Many include an employee directory — a centralized database of all employee information visible company-wide—that helps promote a culture of collaboration and communication. Employees can enter information such as specific skills, languages, certifications and projects-in-progress that others can use to reach out to build teams with appropriate competencies for collaboration on projects. Since employees are voluntarily sharing information about themselves on a deeper level, collaboration is fostered along lines not previously realized. Increased productivity is one of the many benefits of such collaboration tools, because users travel less and spend less time searching for relevant information and expertise.

Identifying and building these collaborative networks between high-performing “specialists” creates greater value by cutting through business silos, physical distance, and organizational hierarchies and allows people to share best practices across the board.

Analytics provide real-time data for strategic decisions

Some HR software systems are robust enough to function as your main HR data solution with the data easily feeding into other HR software solutions, such as benefits and payroll, eliminating time-consuming data duplication and reducing the likelihood of human error in the data entry process. With pre-configured as well as customizable reports and auditing capabilities, you now have the ability to meet regulatory compliance and answer key HR-related questions all within one network. You can use this data to pinpoint and analyze trends throughout your company and generate customized reports enabling executives, managers, and frontline employees to run “what-if” scenarios and use strong data analysis to make more informed decisions about staffing and development opportunities.

Robust HR software solutions also provide you the capability to run reports creating a strong audit trail demonstrating compliance with all Equal Employment Opportunity (EEO) and Office of Federal Contractor Compliance Programs (OFCCP) requirements.


A human resources software solution that integrates tightly with your other business software applications creates a unified arsenal of people performance and business alignment tools to drive true operational success. It allows you to create a network within your organization where your collaboration and efforts are focused on where they deliver the greatest financial returns.

About SAP SuccessFactors

SAP SuccessFactors Human Experience Management (HXM) Suite helps you completely reinvent the entire employee experience. You can shift from traditional HR transactions to engaging, end-to-end experiences, using intelligent technology to make each interaction simpler and more meaningful. And by linking employee feedback to operational data, you’ll understand what’s happening and why, so you can continuously deliver unexpectedly exceptional experiences that keep your business growing.

Back to top