Core HR Software vs Strategic HR Software: What's the Difference?
As companies grow and grow, it becomes increasingly important to keep track of all the HR-related data, from employee benefits to performance goals. Fortunately, with the growth of HRM software, companies now have access to more tools than ever before. However, not all software is created equal. There are two types of HR software: Core HR and Strategic HR.
Core HR Software
Core HR software is designed to manage the fundamental HR tasks, such as employee data, benefits administration, and payroll. These tasks are critical and need to be managed with accuracy, which is why Core HR software is often called "systems of record." Furthermore, Core HR systems could include modules for time and attendance, compliance, and employee records.
Strategic HR Software
Strategic HR software, on the other hand, is focused on the more strategic aspects of HR, such as employee development, talent acquisition, and performance management. The objective of the strategic HR software is to enable HRs to cross-functionally manage talent and engage them effectively. Such software also aims to enable HR managers to create communication paths, engage employees with perks, create a learning culture and support mentorship, and connect this with a data-driven approach that can help the team improve engagement and retention.
Comparing the Two
Now that we understand what makes Core HR and Strategic HR software, it is time to compare them more scientifically. Here are some other factors to compare:
Data Management
Without worry, both Core and Strategic HR software platforms do an excellent job when it comes to data management, as the ability to store, process, and track HR data is a crucial aspect of an HR management tool. The main difference is that Core HR software focuses on more fundamental information, such as payroll and attendance, while the Strategic HR software concentrates more on unstructured data about employee performance evaluations and skills inventories.
Automation and Workflow
If there's one area where Core HR software excels in comparison to Strategic software, it's automation. With Core HR software, companies can automate critical HR processes, such as benefits enrollment and employee time off requests. In comparison, Strategic HR software is more manual and involves a more integrated and personalized approach requiring more oversight.
Employee Engagement
When it comes to employee engagement, it stands to reason that Strategic HR software does better. It is because the platform combines various data sets, including employee surveys and performance evaluations, to generate insights into employees' satisfaction levels and ways to make the overall system more efficient. Engaged employees are happy employees, and software with this focus aims to achieve that.
Pricing
Core HR software programs such as Workday or Oracle may charge companies per headcount, while strategic HR software providers like SAP SuccessFactors tend to bill through an upfront annual subscription model, which often includes additional services like support and training costs. As both programs have unique features and levels of complexity, pricing structure comparison is not as straightforward.
Conclusion
In conclusion, Core HR software and Strategic HR software have different objectives and abilities. Core HR software focuses on dealing with the fundamental and operational HR-related tasks and helps with automation, while Strategic HR software is aimed at creating a roadmap for businesses to engage teams and drive innovation. Therefore, determining which software is best for your business depends on your company's needs and resources.