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The second type of tier 2 system has no human resource components, but does offer a good set of business management, finance, and operational capabilities. These are generally less expensive and easier to implement than tier 1 systems. The problem with tier 2 solutions is that they don't have the depth of capabilities of the tier 1 systems. What's more, companies with smaller budgets are not willing to spend the money to buy tier 2 software. While tier 2 systems can be a good compromise for companies that don't want to go deeper into the enterprise software market, they don't offer all the features of tier 1 systems.
There are two types of tier 2 systems. Those with and those without a Human Resource component. Systems in the first category offer human resource components (HRMS) that allow an administrator to track and manage all the details of employment, including finances. These are generally the most expensive and most complex systems. HRMS systems can be broken into three basic categories. Software as a Service (SaaS) systems, which are accessed from a website; hosted systems, which are hosted by a third party, usually a software as a service company; and on premise systems, which are installed in a company's own facility. All three choices offer similar HRMS features, including employment, payroll, benefits, and other human resource functions.
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