HCM Software: Top 10 Human Capital Management Software of 2025

There’s no getting around the fact that recruiting, training and maintaining staff requires a huge amount of time and attention.

In fact, there’s a whole department dedicated to exactly this. Your human resources, or HR, team dedicates the bulk of their time towards human capital management.

This is why so many businesses make use of Human Capital Management Software. But what exactly is HCM software?

We’ll take a closer look at the definition and use of HCM software and give you a list of the top 10 software of 2025.

Here’s What We’ll Cover:

What Is Human Capital Management?

What Is the Difference Between HCM and HRMS?

What Is HCM Software?

What Is the Use of HCM Software?

What Are the Benefits of Using HCM Software?

How Does HCM Software Help to Drive Employee Success?

List of The Top 10 HCM Software

Key Takeaways

What Is Human Capital Management?

To put it simply, human capital management is the practice of managing, recruiting and developing a workforce. It tends to be overseen by a company’s human resources department.

But in reality, there’s a lot more that HCM involves that isn’t just related to HR. It also involves engagement from managers across an organisation. This includes workforce planning, providing learning opportunities and training. As well as helping to build a diverse and inclusive workplace culture.

A happy and engaged workforce is an effective workforce and therefore critical to a business’s success. If you have a high morale workforce, it also helps to attract and retain talented employees.

In the past, HCM was viewed with a mindset that employees were to be closely “managed”. But today, most leading companies see successful HCM as something that enables people to be at their best. This is rather than controlling them.

When a company is in a ‘people first’ mindset, they tend to see their employees as their most valuable asset. This is backed up by research that shows that happier, more prepared and more diverse workplaces deliver far superior results.

What Is the Difference Between HCM and HRMS?

The main difference between Human Capital Management and Human Resource Management Systems is that HRMS is a more comprehensive HR system. Whilst HCM is more geared towards actual employee management.

HCM has features including performance, onboarding, analytics and data and absence management. Whereas HRMS looks at all of these core features in a broader range. It also largely focuses on HR processes such as payroll processing and compensation management.

What Is HCM Software?

Human Capital Management software, or HCM software, is a technology application. It is designed to help employers manage and look after their employees.

Sometimes known as human resources information system, or human resources management system. HCM software supports a wide range of HR functions.

These range from recruitment and performance management abilities to administration benefits. As a result of this, managers are relying on HCM software for a workplace with greater efficiency and organisation.

What Is the Use of HCM Software?

Utilising a modular system, HCM software allows you to include and automate almost any function that your organisation may need.

HCM software works by recording and storing data about an organisation’s employees in a database. This then gives them insight into a number of important metrics.

These metrics include:

• Employee time worked
• Employee productivity
• Employee effectiveness

HCM software can show when and where staff are most needed and help influence shift scheduling strategies. It may also help benchmark employee’s goals and the progression gained. This is done through a series of streamlined analytics and reports.

Some advanced solutions offer advanced analytics. These help employers of every size to gain insights into the best ways to not only recruit top talent, but retain them.

What Are the Benefits of Using HCM Software?

HCM software is critical when it comes to increasing the organisation and efficiency of your business. But that’s only a small part of the overall benefits that the software can bring.

HCM software can help businesses recruit, maintain and enhance top talent. It does this by managing the application cycle and internal employee performance.

By providing your HR department with a digital solution, it can also cut down on a number of things. These may include paperwork, human error and repetitive administrative tasks.

How Does HCM Software Help to Drive Employee Success?

A successful HCM system backed up by HCM software can be pivotal towards driving employee success.

The modern business world has seen a shift in the fundamental nature of work. New technology and the wants and needs of new generations have seen a change in how work is done.

As a result companies are reimagining the way they go about their HCM.

This has helped a wide range of employees reach a higher level of performance and success. It has done this in a number of ways, including:

• Capability
  The data stored on HCM software enables employees to understand their strengths and growth areas. This is based on data and various feedback. It can even help recommend relevant content to help grow certain skills.

• Career
  Research shows that the number one reason people quit their jobs is the lack of opportunity to learn and grow. HCM helps employees to think about their next moves or how to grow their careers. It does this by storing the job moves of others who have held similar positions.

• Communication
  HCM software can help employees build their own internal networks to connect with peers. You can also find mentors within the specific skill sets and experience they’re looking to add to.

• Compensation
  Any employee will want to be fairly compensated for their work. HCM software allows managers to gain insights into employee performance. This can then help them to ensure equitable compensation.
• Contribution
  Through adding goals to an HCM system, employees can better understand their current objectives. They can also understand the expectations placed on them. This then makes it easier for them to track their progress.

List of The Top 10 HCM Software

1. Sage People

Safe is a well-known and well-respected company that operates in the HRMS sector. It has a full suite of people analytics tools including Sage People. Sage People is the number one rated HR and people management system which speaks volumes towards its quality.

Sage excels in quick and easy implementation and its streamlined and flexible reporting features.

Sage People starts at £10 per user per month and they too offer a free demo.

2. Oracle

Oracle is one of the big boys when it comes to the software business.

They’ve developed Oracle HCM Cloud as their answer to a complete HR solution. It aims to engage your workforce and optimize operations. This includes workforce modeling, an HR help desk and talent management and acquisition.

On top of this, Oracle can integrate any SaaS HCM application.

The one downside is that their payroll solutions are only supported for a limited number of countries. This may prove challenging if you have a worldwide workforce.

Oracle HCM Cloud offers a free demo and their pricing package starts at £13 per user per month.

3. Eddy

Eddy is an all-in-one HCM software built for local businesses. It allows you to hire, onboard, manage and pay employees with one easy-to-use software.

Founded in 2017, Eddy has seen rapid growth due to it’s simple but powerful interface. It sets out to help streamline tedious HR processes and improve the employee experience.

Some key features include job posting management and tracking incoming candidates. They also offer a full-scale applicant tracking system.

Eddy starts at £8 per month per use but offers a free demo so that you can test out the product before putting any money down.

4. SAP SuccessFactors

SAP stands for “Systems, Applications, and Products in Data Processing”. SuccessFactors is one of SAPPs many enterprise grade solutions. This is mainly for administrations and employee management.

SAP is a fantastic software if you are looking to scale as they offer great flexibility in their pricing and features. They allow you to add or subtract tools as you need them which can be great for those on a budget who want something very specific.

For example, a very basic plan with basic features could cost you under £10 per user per month and then you can easily scale as your business grows.

SAP SuccessFactors has a pricing plan that starts at £8 per user per month and offers a free trial so that you can try your hand at it before committing. .

5. Workday HCM

Workday Human Capital Management provides the tools necessary to plan, recruit and develop talent. This is all within a single integrated platform.

Their software lets all of your employees access the solution from any number of devices. Whether it’s a desktop or a mobile device on iOS, Android or web, Workday allows employees to work from anywhere.

Workday HCM does their pricing on a yearly basis, so it is charged at £100 per user per year.

6. ADP WorkforceNow

ADP WorkforceNow has been developing business solutions for around 70 years, so they know a thing or two about HR and HCM. They have even been featured on FORTUNE Magazine’s “World Most Admired Companies” for 12 years in a row.

ADPs HCM solution allows you to seamlessly integrate their software with any of your existing HR software. They have a leading payroll system, HR, and other financial systems.

ADP WorkforceNow starts at £10 per user per month and has a free demo available for you to try.

7. Rippling

Ripping provides an all-in-one HR platform that provides a number of features. These features include online payroll, benefits and human resource management.

Suitable for businesses of any size, their software helps to unify employee data for easier, more streamlined access. You can also manage your employees with app provisioning, single sign-ons and computer access.

Their pricing starts at £7 per month per user.

8. Paycom

Paycom is a comprehensive HCM and HR software that has a particular focus on payroll.

Their software helps businesses streamline their employment processes. From recruitment right up to retirement and everything in between.

Their software systems operate from a single database. This helps to eliminate redundant data entry and the integration of multiple systems.

Paycom is on the lighter side of pricing at £4 per user per month. They do not, however, offer a free version or a free trial.

9. Vibe HCM

Vibe HCM offers a unified platform that is usable on any device. It works to automate HR transactions. As well as provide a system for HR managers to easily engage with all of their employees via one integrated avenue.

They have a perfect range of features for medium to small companies. Their compensation planning model is also perfectly tailored towards any sized enterprise.

Vibe offers customization and flexibility options at an additional cost.

Their pricing plan is available upon request and has a free demo for those who want to try it out before they make their decision.

10. eXo Platform

eXo Platform is an all-in-one digital platform that helps businesses to connect, align and engage their teams.

It is designed to fit the needs of businesses of all sizes in any industry. It aims to improve companies’ peer-to-peer communication and boost collaboration. It also allows you to effectively manage and distribute company knowledge.

They have a wide range of features that are tailored towards improving the working experience. eXo also offers an easy-to-use interface that allows seamless integration and implementation.

Their pricing plan starts at £5 per user per month but does not include a free demo.

Key Takeaways

HCM is a vital component of any business. It is a process that involves a lot of manpower and time, so anything that can be utilized to smooth the process can be extremely useful.

Are you looking for more business advice on everything from starting a new business to new business practices?

Then check out the FreshBooks Resource Hub.

---

RELATED ARTICLES