A Human Resource Department's main goal is to maximize the productivity of the company's human capital (the employees) and therefore make ROI (Return on Investment) as high as possible. The strategies being used to accomplish this are constantly evolving and modern companies are leaning more and more towards innovative HR techniques and technologies to aid them in their many tasks. HR technology is helping to automate the recruiting process (attracting, hiring, firing, retaining) and is also helping with payroll, training, performance management, time management, expense tracking, etc.
The major disadvantage that most of these technologies have is that they concentrate on only one area of Human Resource Management. Most companies use a separate solution for payroll then they do for performance management and then they do for expense tracking, etc. Furthermore, both staff and employees are normally required to undergo extensive training in the use of each of the applied technologies, many of which are complex in nature. Unifying data from different applications has also been a cumbersome task in the past. Fortunately, the world is moving more towards single solution applications that are integrating tools and making life much easier.
Many single solution HR applications now include modules which simultaneously account for payroll, time management, expense management, HR management, etc. Tons of labor intensive tasks have now become fully automated. This has freed up a lot of time and has empowered human resource departments to concentrate more on what is truly important like managing the human capital of the company, bettering employee relations, boosting corporate morale, etc.
Some pioneers in the single solution Human Resource Management Systems HRMS industry include Microsoft, Oracle, SAP, Lawson Software, Smartree, Peoplesoft, etc. It is important to fully familiarize yourself with all the benefits (as well as any disadvantages) that particular HR solutions may have for your particular organization's needs. Remember, all companies are different. The best software solution for one company may not necessarily be the best software solution for another company.
It is also important to note that most HR Technologies are also available via Application Service Providers (ASPs). So, even if the cost of a particular software solution seems above your budget you may still be able to use it via an ASP.