Essential modules to Look for in HR Software for Small Businesses


Human resource software is a set of algorithms that assist you to; execute your human resource operations with ease. It is an all-inclusive tool that businesses can implement to automate their manual HR operational task. 

There are various vendors with diverse features providing HR software solutions in India. Every organization will have unique needs and work processes to execute their work. Hence, every business will need customized tools to simplify their human resource operations without any hassle. In this blog, let us look at all the basic features to look for in the HR system. 

Strategic HR: 

The human resource department has to manage the entire life of the employees from recruitment to offboarding.  The human resource information system will automatically record the entire employee lifecycle on a central server. The best HR software in India will have all the tools that help to streamline your recruitment and onboarding processes. Furthermore, this technology will help gather the employee data, inputs and evaluate them; to understand the progress. The HR software should have analytics integrated to analyze the data gathered and make strategic changes in the process based on data.

This module will take care of workforce performance to ensure productivity, efficiency, and accuracy. data-driven strategic changes in the business process will ensure to achieve the required business goals with ease. As a result, business owners can spot the top talent to reward them and develop them for business growth. It is essential for business leaders to train the new hires to help them adapt to the business process and culture with ease. The HR software for SMEs should have a learning management system integrated to automate and simplify training. This software will have an overview of all the training attended and skills acquired.  

Core HR: 

When you are looking for HR software for your business, you need to ensure that it can handle all the core HR tasks. Small and medium-sized businesses will not have many requirements because their employee size is less. The HR software should allow employees to apply for leaves, regularize their attendance and track their performance. Furthermore, the human resource management software should have a dashboard that gives access to all the necessary documents like company rules, culture, latest news, and updates.

Small and medium-sized business owners need to select a cloud-based vendor. Because online HR software will help you save money because the vendor is responsible for implementing, upgrading, and maintaining the system. As a result, your business can save a substantial amount of money; because you don’t have to pay an upfront cost or invest in a huge IT infrastructure. The human resource management software will help the business owners to hire the best talent, retain them, and seamlessly offboard them. 

Payroll and compliance: 

The HR team has to ensure that organization follows all the compliances and processes payroll accurately. If you fail to follow the compliance or payroll policies, it will have an impact on your brand image and might have some legal issues. Small and medium-sized business owners should look for this feature to ensure they comply with all the compliance guidelines issued by the local governing bodies. 

Payroll is the most essential feature for business owners that the human resource software should have. Because; it is a challenging task for HR professionals to track the employee inputs and calculate the salaries based on that. Additionally, this software will help to process the employee and vendor payment automatically through the payroll portal.  

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Travel and expense management: 

This is an essential feature for those organizations that reimburse their workforce for all the professional expenses. Now, if you gather the proofs and reimburse them manually will be a tedious and time-consuming task. The top HR software for small and medium-sized businesses will have an automated travel and expense management portal. The employee simply needs to login into the portal and submit all the proofs digitally. The data will get automatically transferred to the concerned team for approval and processing. This feature will reduce the time for all the reimbursement for all the work expenses the employee does.    

Admin portal: 

The HR software should allow the business owner to customize the software as per their needs and business processes. The admin should get access to set their actions to process a particular task. Moreover, the business owner can set an automated approval process to reduce the operational time and increase transparency. Another feature that HR software should have is approval-based access to give the employee only access to the information that he has permission to. This feature will help protect your sensitive and confidential data from data breaches, hackers, and tailgaters.   


HR software is the basic necessity of any small or medium-sized business to optimize their human resource operations. When looking for the right HR software for your organization, you should look for the above features; to make the most of your resources.