The human resources department of a company has always been responsible for the day to day administration of the inner workings of that company.  Payroll, benefits, and the hiring of new employees often falls within the domain of the human resources department.  With the advent of computers these departments have begun to shift away from pen and paper record keeping and move towards electronic data management.  A human resources system is software that allows a business to manage their human resources information on a computer instead of in a traditional filing system.  A company can choose to use one or all of the options available with the system. As there are many different types of human resources systems available, it is important for each company to identify their requirements and purchase the system that best fulfills them.

A human resources system is frequently used when dealing with the complexities of payroll.  This includes maintaining a database of tax levels, leave that has been accrued, holiday and overtime pay, as well as managing the paychecks that must be disbursed.  This system can also be used to organize each individual's benefits as well as all of the benefits offered by the business.  The human resources department must maintain information on all forms of insurance offered by the business as well as any retirement or savings plans that are available.  Finally, a human resources system can make the hiring process much easier by centrally organizing applicant information as well as tracking the training progress of those applicants that are hired.

When choosing a human resources system, it is important to select a program or suite of programs that operate under tight security. The files and information collected in human resource files should always be protected from the eyes of every outside of the human resources department and management staff.