Core human resource (HR) software, also referred to as human capital management (HCM) software, stores employee information within a central system of record. Core HR systems are used to manage employee information, such as payroll and benefits data, within an easily accessible, centralized HR database. These HR technology systems have long been marketed as human resource information systems (HRIS) or human resource management system (HRMS) but have recently been replaced by the popular term, HCM.
Companies use core HR software to maintain employee profiles, store relevant employee documents, and identify trends with a holistic view of the organization. Core HR systems are most commonly implemented in HR departments, enabling HR managers to track employee records and report key trends to management. Many core HR solutions offer self-service options so that employees can update their benefits or contact information without interrupting HR workflows. Core HR software is often implemented as part of an integrated HR management suite, or it offers integrations with third-party HR applications to increase its value across multiple HR functions.
To qualify for inclusion in the Core HR category, a product must:
Store employee information and documents in a central database
Allow users to customize employee profiles with unique data fields
Enable simple exporting and importing of employee data for reporting purposes
Integrate with third-party HR applications from which additional employee information can be pulled
