Selecting The Best HRMS for SMEs Businesses in India

HRMS Software

How essential is HRMS software for SMEs in India?

Human resources technology has made significant strides with the rise of startups and small medium enterprise businesses (SMEs) worldwide. Among the countries leading this charge is India, which is rapidly growing in the startup ecosystem. Based on the Economic Survey Report 2022-2023, Indian startups have scaled from 452 in 2016 to 84,012 in 2022. The country is declared the third-largest startup hub, following the United States and China.  

Some believe that startups do not require HRMS software as most would rather depend on the traditional way of using pen and paper or Excel Sheets. Of course, this move would be feasible at the preliminary stage of a startup, but as the startup expands, the strategy must change.  

SMEs businesses will simultaneously increase their expenses once startups hire more employees, and depending on manual methods will become increasingly complicated. Maintaining a comprehensive employee information database, training records, payroll data, administrative tasks, and human resources management can become overwhelming. However, shifting from a manual approach to utilizing best HRMS for SMEs can substantially reduce your workload and improve overall business productivity.  

Explore the transformative potential by knowing the key features in using the HRMS software for SMEs in India.

How essential is it to use HRMS for SME business?  

As your company’s number of employees increases, so will your HR department’s administrative tasks. Managing employee data on paper and calculating payroll in Excel will get time-consuming sooner or later no matter how good your organizational skills are.  

This changes with HRMS software, which lets you easily automate your employees’ payroll and leave management and record their attendance. You can also access the features under a single mobile attendance app.  

It is especially helpful for small businesses that work with a tight budget or need to save expenses while also using software to ease their HR management.  

What are the key features required for best HRMS SMEs business in India?

Small- to mid-sized (SMEs) businesses may only need the key features of HRMS software compared to large businesses. The key features are as follows:  

1. Time Attendance System  

 Tracking employees’ attendance using a manual pen-and-paper system may cause human errors that lead to over or underpayments in hourly wages.  

Time attendance systems enhance efficiency by simplifying the process of tracking time, reducing the chances of errors. By incorporating a time attendance system, organizations can maintain accuracy in time tracking, which is essential for payroll processing. This allows more time to be allocated to important tasks, such as business expansion, rather than being consumed by manually verifying attendance records.  

2. Payroll System  

Ensuring that payroll is processed and distributed promptly is essential to nurture a positive employee-employer dynamic and enhance the overall morale of individuals within the company. The manual computation of employees’ salaries, allowances, and deductions is a tedious task susceptible to errors. On the other hand, utilizing payroll software streamlines these tasks, decreasing the likelihood of errors while also saving time. When payroll data is integrated with time attendance data, accurate calculations are automatically produced, guaranteeing that employees are paid promptly and correctly.  

3. Leave Management System  

A leave management system will sync employee leave applications and allow employers to approve or reject leaves. Both employer and employee will also be able to see who has taken leave in the system.  

With leave management software, employers can calculate wages easily, and employees can analyze their leave entitlements and plan accordingly. Leave management software configures all data under a cloud system and is integrated with payroll software for easy and accurate wage calculation.  

4. Claims Management System  

In a traditional claims management process, employees will hand over the receipts to the finance department, which may lead to mistakes that may result in the wrong reimbursement to the employees. With claims management software, employees can scan their receipts and submit them directly to the HR department for payroll calculation, and employers can view, approve, or reject the claims from the mobile app.  

5. Performance Appraisal Management System  

HR managers can create staff appraisals for their employees using templates from performance appraisal management software modules found in HRMS software. This saves them a lot of time and enables them to track staff performance more easily.  

Based on the appraisal of the team leads’ approval, HR managers can then assess the performance appraisal reports, and determine if the employees are qualified for the promotion.    

How can you find the best HRMS Software for SMEs in India?  

There are many HRMS software available in the market today that can fit the company’s and its employees’ needs. To choose the perfect HRMS software for your company, consider which features are essential to your business and can ease your workforce management skills.  

Looking for HR Software for your SMEs in India?  

If you are unsure which HRMS Software suits your company, DigiSME offers a software demo to help you decide. We offer affordable yet comprehensive software that is perfect for small or rising businesses. Whether you require only one of the software modules or we have everything your business needs!   

For more details, contact our experts at +91 89255 08620 or email us at to request a free demo.

  • Lijin Ann

    Meet Lijin Ann John, our tech-savvy author who explores the dynamic world of technology. With meticulous research and keen innovation insight, she unravels the latest products in the tech landscape with expertise and enthusiasm.