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If you’re looking for human resource (HR) software, the sheer number of options may seem daunting (Capterra’s software directory lists about 520 different solutions).
When you have so many products to compare, pricing becomes a key factor. You need to choose a product within your budget that also offers all the features you need to manage your human resource operations.
But, can HR software offer the features you need at zero cost? The answer is yes. And the solutions that make it possible are known as free and open-source software.
To identify the right free HR solution, you need to ensure it offers core HR software features and is also highly rated by your peers. With proper research, it is possible to find a free product that can meet your HR department’s needs for years.
To help you find free software that can work for the long term, we’ve combed through the solutions on Capterra to provide you with a list of the best four options.
What does “best” mean? Each of the four tools included in this article has a minimum user rating of 4.0 on Capterra’s software directory in the past year. You can find our full methodology for selecting these products here.
This article looks at four highly rated free HR software options. See the full list of free HR software solutions here.
According to our research, the following are the best free HR solutions (listed alphabetically):
4 best free human resource (HR) solutions
1. Bitrix24
Bitrix24 is a business management suite that works for businesses of all sizes. It includes apps for customer relationship management (CRM), contact center management, website management, and human resource management, but you can use the HR app separately. The HR app lets you add up to 12 free users and includes an employee directory, time tracking, leave management, calendars, recruiting features, and document management features.
Pros* | Cons |
---|---|
Capterra reviewers find Bitrix24 helpful in managing different departments including HR, sales, and marketing. They also find the time sheets functionality useful for tracking how much time an employee spends on different projects. | Some users mention that the free version adds a Bitrix24 reference at the bottom of each email, including email communication sent to job applicants. |
Cost to upgrade: $69 per month for the CRM+ plan.
Highly rated by: Between 2018 and 2019, 71% of user reviews came from small businesses (fewer than 200 employees), 13% from midsize businesses (201 to 1,000 employees), and 17% from large businesses (more than 1,000 employees). Top industries were software technology, IT services, and marketing agencies.
Employee directory in Bitrix24 HR (Source)
2. OrangeHRM
OrangeHRM is an HR solution that works well for small and midsize businesses and is available in two versions: cloud-based and open source.
The open source version is available for free and includes employee records, leave management, time and attendance management, recruiting, performance management, expense tracking, compliance management, and document management functionalities.
Pros* | Cons |
---|---|
Capterra reviewers find the recruiting functionality of the open source version useful as it helps them design hiring workflows from posting a job vacancy to issuing an offer letter. They also say the product helps them easily manage organizational changes such as department transfers, promotions, and hierarchy changes. | Some reviewers mention that the lack of payroll integration is a disadvantage as they have to manually move employee records from the HR system. |
Cost to upgrade: The open source version is completely free. The cloud-based version is paid.
Highly rated by: From 2018 to 2019, 56% of reviews came from small businesses (fewer than 200 employees), while the remaining 44% came from midsize businesses (201 to 1,000 employees). Top industries were IT services and automobile.
Candidate assessment in OrangeHRM (Source)
3. WebHR
WebHR is a cloud-based human resource management system that works well for businesses of all sizes. Its free version supports up to five users and includes time and attendance tracking, employee records, onboarding, leave tracking, file management, employee self-service, and dashboard functionalities.
Pros* | Cons |
---|---|
Capterra reviewers find the standard reports such as payroll and employee data helpful in making management decisions. They also find these reports easily customizable to their needs. | Reviewers note that the recruiting module lacks some needed features. For instance, the software currently lacks the ability to screen job candidates on educational qualifications such as degree levels. |
Cost to upgrade: $2 per employee per month for more than five employees (the first five users are free ). Paid features include payroll, recruiting, performance management, e-signature, and benefits administration modules.
Highly rated by: Between 2018 and 2019, 51% of WebHR reviewers came from small businesses (fewer than 200 employees), 29% from midsize businesses (201 to 1,000 employees), and the remaining 20% from large businesses (more than 1,001 employees). Top industries were IT services, automobile, and software technology.
Employee dashboard in WebHR (Source)
4. Zoho People
Zoho People is a cloud-based HR solution that’s suited for businesses of all sizes. Its free version lets you add up to five employees and includes an employee database, self-service features, onboarding, and leave management.
Pros* | Cons |
---|---|
Capterra reviewers find Zoho People’s HR modules easily customizable. For instance, you can add data fields, customize employee forms, and modify recruiting workflows. | Some reviewers say that the mobile app’s interface is complex and needs an upgrade. They have difficulty navigating the app and searching for information. |
Cost to upgrade: The Essential HR package starts at $1 per employee, per month. Paid features include attendance tracking, time sheets, shift scheduling, performance management, and employee query management.
Highly rated by: In 2018 and 2019, 83% of reviews came from small businesses (fewer than 200 employees). Top industries were IT services and software technology.
Leave tracking in Zoho People (Source)
The final verdict: Which free HR software should you invest in?
After you’ve gone through the list of products, the next step is to decide which HR solution you should actually choose. In this section, we’ll specify the steps you should follow in order to select the best free solution for your business.
- Compare usage limits in the free plan: Eliminate products that don’t meet your requirement in terms of data storage or the number of free users.
- Calculate upgrade cost: Decide on an annual budget for HR software and eliminate the products that exceed it. Ensure that the upgrade plan has all the features you’ll need in your business.
- Read user reviews: Read users reviews on Capterra to assess the relevance of the product in your line of business.
If you currently use or have used a free product that worked well for you, feel free to let us know in the comments section below.
Download our Beginner’s Guide to Free and Open Source HR Software
For more information related to HR software, you can also read the following resources: |
Methodology
Products considered for this article must be free. We classified a product as free if:
- It offers a free, standalone version of the software.
- It is not a trial version of the software where you must purchase a product version after a limited amount of time.
Selection criteria
The products that met the above criteria were then evaluated against our HR software definition: Human resource (HR) software acts as the system of record for employee data. It helps HR leaders and personnel attract, recruit, manage, engage with, and develop employees.
This check verified the basic HR software capabilities and appropriateness for the category. A product was classified as HR software if it contained these core features—employee profiles, employee database, and reporting, and at least half of the common features—employee self-service (ESS), HR analytics, payroll management, benefits administration, time and attendance, applicant tracking, and onboarding.
Software that met this market definition also needed a minimum of 10 reviews published on the HR software category page between July 19, 2018 and July 18, 2019. During the same period, the product’s rating also had to be higher than 4.0 out of 5.
*Note: Listed pros and cons are derived from features listed on the product website and product user reviews on Gartner Digital Markets domains (Capterra, GetApp, and Software Advice). They do not represent the views of, nor constitute an endorsement by, Capterra or its affiliates. Reviews data was used to determine the target business size of the product. Ios toolkit 1 1 20 – iphone data recovery.
Looking for Talent Management software? Check out Capterra's list of the best Talent Management software solutions.
When companies release the next major version of software, it’s easy to mark the transition. We know when Product 2.0 gives way to Product 3.0, and how the new iteration changes the way we’ll interact with the software.
The next wave of human-powered business iterations is much harder to predict and understand. We often don’t realize a paradigm shift has happened until it’s upon us.
For Dr. Karie Willyerd, workplace futurist at SAP human capital software company SuccessFactors, analyzing emerging trends and advising business leaders on the next iteration of business functions is not only possible – it’s her job.
The co-author of The 2020 Workplace and Stretch: How to Future-Proof Yourself for Tomorrow’s Workplace works with businesses and individuals alike to understand how the workplace is likely to change for employees and executives.
Drawing on insights from the comprehensive Workforce 2020 report from Oxford Economics and SAP, Willyerd sees the human resources function in business at an “inflection point.” As told to HC magazine, Willyerd says that if HR 1.0 was marked by labor and personnel relations and HR 2.0 “was the Dave Ulrich model with business partners, a strategic focus, centers of expertise and so on. I think we’re [on] the verge of an HR 3.0.”
This impending shift to an evolved role for human resources in business will be marked by the entrance of the Millennial generation into higher echelons of the workforce.
What Do Millennials Have to Do With It? The Generation Shaping the Future of HR
There’s been a lot written about Millennials in the workforce, from the gushing to the unflattering. Megapack for ms office 3 1. What’s undeniable is that the Millennial generation now makes up a significant portion of the workforce, passing the Baby Boomers as the largest working population. By 2020, Millennials will make up 50% of the workforce.
From a human resources point of view, Willyerd sees the emerging trend clearly: Millennials – and especially those who are high-potential employees and executives – simply expect more from HR.
Oxford Economics and SAP’s study was one of the first large-scale studies to look at Millennials in the C-suite. The findings showed a “super dramatic” 30-point difference between common opinions among Millennial executives and non-Millennial executives. Said Willyerd to HC, “What they’re saying is that we’re not innovative enough. There’s a big emphasis on diversity. Millennial executives…say we don’t collaborate enough.”
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Future-Proofing HR Through Integrated Mentorship, Recruiting and Retention Efforts
So what exactly defines HR 3.0? How will this next iteration of HR “future-proof” the business function to serve the next generation of business leaders?
Willyerd sees a few major departures from the more distributed model of 2.0, which featured “centers of expertise, business partners and biz ops [sitting] in different places,” with “no integrating thread.”
A couple factors that will mark successful organizations:
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More integration for a stronger strategic voice
If Millennials expect HR to serve as their voice in strategic business decisions, the responses from executives in the Workforce 2020 report indicate there’s still some work to be done. Capturegrid 4 14 commentary.
Barely half of respondents indicated that HR helps to “drive strategy at the board level,” and almost a quarter of respondents said HR was an “afterthought in business planning” and consulted only after high-level decisions had been made.
Source: Workforce 2020 report
Keeping HR separate from the centers of decision-making in business is one trend Willyerd expects to change with the growth of Millennial executive leadership. “If you look at the Millennial workforce,” she told HC, “there are lots of indications they want to take advantage of some things that HR can bring to the table.”
Emphasis on mentorship
Millennials want to be coached. Raised to value collaboration, Millennial employees are less engaged in traditional employer-employee relationships.
A previous SAP and Oxford Economics study in 2014 showed this type of support as a major factor for Millennials.
HR will play an enormous role in ensuring that both mentors and mentees feel prepared to navigate those relationships in the current and future workplace.
Mentorship programs can create a competitive advantage for companies as a whole. As Willyerd writes in a piece on the World Economic Forum, “high-performing companies were nearly 10 percent more likely to have a mentoring program as compared to underperformers. Additionally, high-growth companies are 16 percent more likely to have a formal mentoring program than underperforming companies.”
Successful workplaces will embrace the Millennial desire for feedback and reinforcement, and will be rewarded with better retention of higher-performing employees and less turnover.
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Success in the Future Workplace
In the foreword of Stretch: How to Future-Proof Yourself for Tomorrow’s Workplace, Willyerd and her co-author Barbara Mistick write:
“Last year we had the opportunity to dig deeper on workplace trends in a massive global survey in collaboration with SAP and Oxford Economics. The hard data from our research uncovered a tremendous tension in the workplace. Respondents told us that their biggest concern about their jobs, by far, was that they would become obsolete at work.”
This, too, represents one of Willyerd’s main professional goals as a futurist – to help people stay relevant and engaged in a constantly evolving job market.
And this, too, represents a function for HR 3.0 – the reality of balancing a rapidly modernizing workforce and the needs of the individuals whose roles are shifting or disappearing entirely.