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This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
This description is provided by the seller.
Pros and Cons are compiled from review feedback and grouped into themes to provide an easy-to-understand summary of user reviews.
Human Capital Management (HCM) software enables organizations to manage and optimize a wide array of HR processes, including payroll, employee records, recruitment, performance tracking, benefits administration, and workforce analytics. These platforms focus on HR data and automate workflows, supporting both operational HR tasks and strategic workforce planning.
Organizations primarily use HCM software to streamline core HR functions such as automated payroll, employee onboarding and offboarding, time and attendance tracking, performance reviews, benefits management, and compliance reporting. HCM systems are also leveraged for advanced functions like succession planning, learning and development, and workforce analytics.
Most HCM solutions are priced per user monthly or annually, averaging approximately $31.25 per user/month or $375 per user/year, according to G2 data. Vendors may offer free versions or trials for basic HR functionality, while enterprise-grade platforms—equipped with features such as AI-driven insights, custom integrations, and compliance modules—can cost up to $7,188 per user/year.
If you’re evaluating HCM software, consider your organization’s scale, HR complexity, regional compliance needs, desired integrations, and overall workforce strategy. Essential questions include:
G2’s top-rated HCM systems currently include Rippling, Deel, UKG Ready, BambooHR, and HiBob HRIS.
G2 defines Human Capital Management (HCM) software as a type of HR software used to manage and optimize HR processes within organizations, such as employee data. These platforms are made up of multiple integrated modules that support a wide range of HR functions. Some of these functions include managing employee records, recruiting and onboarding, tracking performance, and overseeing training and development processes.
HCM tools simplify the HR process by helping businesses manage a broad range of employee-related functions. Common functionalities across these systems include personnel record management, payroll and benefits administration, recruitment and onboarding, performance tracking, and training program oversight.
The human capital management (HCM) software market is expected to reach $33.04 billion by 2030, growing at a compound annual growth rate (CAGR) of 9.1% from 2022 to 2030, driven by increased demand for unified HR platforms and workforce analytics solutions across industries. (Source 1)
On G2, the HCM Software category includes 113 products and has amassed 48635 verified user reviews on G2, highlighting it as one of the most actively researched and reviewed HR software segments on the platform. (Source 2)
G2 ranks the best HCM software using a proprietary algorithm that combines real-user satisfaction scores with product popularity based on review data. Below are the five highest-rated HCM solutions in this category on G2:
These rankings are determined by combining verified user ratings and publicly available web search popularity data:
G2 ranks products using a unique scoring system called the G2 Score, calculated from real user reviews, online data, and social signals. These scores make it easier to compare and evaluate different software products within each G2 category. (Source 2)
HCM software pricing varies based on several factors, which include: vendor pricing model, feature depth, number of employees or users (seat-based or employee-based models), system usage limits, cloud or on-premise deployment, business size, customization, integration options, contract terms and billing cycles, security and compliance, and regional configurations.
Pricing categories typically include:
Most HCM platforms are priced per user per month, though annual billing is often available at a discount. According to G2 data covering 13 HCM products across 25 pricing editions, the average annual license cost is approximately $375, or about $31.25 per user per month when billed annually. While some vendors offer free versions, premium or enterprise-grade HCM solutions can reach up to $7,188 per user per year.
Organizations should assess the Total Cost of Ownership (TCO), factoring in costs related to implementation and data migration, user onboarding and ongoing training, integration with third-party platforms (such as payroll, ERP, or ATS), access to dedicated support teams, compliance features (e.g., SOC 2, HIPAA), and optional modules for succession planning, learning management, or workforce forecasting.
G2 categorizes HCM software into different types based on functionality and focus areas:
HCM software can have many functionalities for different use purposes, and no-size-fits-all. Depending on the tasks and goals your organization would like to achieve, it’s important to evaluate some of the top features for HCM software rated by G2 reviewers:
Based on G2 reviewers, there are several benefits when utilizing HCM software, including:
Centralized HR and Payroll Management: HCM software can manage HR and payroll functions in one unified platform. This integration reduces administrative overhead, eliminates data silos, and ensures accuracy across employee records and compensation.
“The tool is like having one smart system that handles all the behind-the-scenes stuff that comes with running a team — HR, payroll, IT, and even finance. Instead of juggling 5 different tools, and putting everything in one place and making it all talk to each other.” - Avinash K, Full Stack Intern.
Time-Saving Automation: HCM tools help save time through streamlining processes, whether it’s automating payroll, onboarding training, time tracking, or employee performance reports.
“I really like how the tool brings performance reviews, goal tracking, feedback, and learning into one seamless platform. It is also user-friendly and makes it easy to align team development with company values. Especially people like me, new to this platform, it took no time to get used to the Leapsome platform. The continuous feedback and 1:1 features is awesome.” - Siva K, Sr. Security Engineer.
All-in-One Functionality: The “all-in-one” nature of many HCM systems is highly valued, especially among small to mid-sized companies. Having benefits, payroll, HRIS, and even IT provisioning in a single system simplifies operations.
“The all-in-one features where the system allows it to handle all aspects of HR, payroll, and benefits administration. It saves time calculating payroll or benefit items manually. The HCM apps are probably the best feature, as there is no need to check every payroll if new employees came on board, if there were life event changes, it flows over into the payroll app without any need for time-consuming reviews of all employee deductions. The offboarding is convenient where it auto creates a final pay check pay run. The best part is the payroll preview, where you can see the change from the last pay run to the current pay run and easily click into the detail to see what changed on an employee's check amount. Customer support is good, but you have to use the chat first to start the process of creating a ticket. But via email, they get back to you pretty quick.” - Christine C, Sr. Accountant.
User-Friendliness and Accessibility: G2 reviewers often highlight the intuitive and easy-to-use interface, which reduces the learning curve and helps HR teams and employees complete tasks without further assistance.
“I use this tool daily for HR procedures. Everything employee-related is housed there. I think their performance review process is very helpful, and I LOVE their reports. I can pull so much helpful data very easily. We've been using this program for over 7 years. As a company, we've looked at different software in the past, but this tool is so sleek and user-friendly that I could never go back to another clunky HRIS software. They have a lot of great content to help you figure out different things, and everyone I've talked to at that company is very helpful, kind, and professional. They are also always trying to come out with new updates to improve their product.” - Chanté L, HR Generalist.
Where there are benefits, there are challenges that come with software. Reviewing thousands of G2 reviews reveals pain points related to performance, flexibility, onboarding, and usability. Below is a breakdown of the most often encountered challenges affecting system usability, efficiency, and overall ROI:
1. System slowdowns and performance hiccups: Reviewers frequently mention processing delays, particularly with time tracking, payroll, and analytic features. These delays can hinder HR productivity and frustrate users trying to execute tasks.
2. Limited customization and feature constraints: Some reviewers expressed frustration with fixed workflows or a lack of flexibility in platforms like onboarding, benefit configuration, or performance review templates.
3. Complex onboarding and implementation: For many teams, setting up an HCM system takes longer than expected. Reviewers mention challenges in data migration, user training, and configuration, which can delay ROI.
4. User interface inconsistencies: Even when praised for their capabilities, some HCM platforms receive criticism for clunky or unintuitive interfaces. These UX issues often affect non-HR users who need occasional access to perform tasks like submitting PTO or updating information.
5. Integration challenges with existing tools: Many organizations struggle with syncing HCM platforms to payroll systems, ATS tools, ERP platforms, or single sign-on (SSO) providers. Poor integration can create data silos or double entry work.
Based on thousands of G2 reviews, HCM software is used for automated payroll and benefits processing, time and attendance tracking, employee onboarding and offboarding, performance reviews, and compliance reporting and audits. Here is a detailed breakdown of these uses:
HCM software users span across a variety of roles, from HR managers to software engineers to general HR roles. Based on G2 reviewer demographics, typical users are HR specialists and IT professionals, with department roles ranging from CEOs, owners, founders, account executives, directors, and managers. Common industries mentioned were computer software, IT services, and hospital/healthcare.
We analyzed extensive user-review data to identify common software categories users frequently integrate with HCM software: