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Tips for Choosing A Reliable HR Software for your Business

Human Resources, as a core business function, has undergone innumerable transformations over the years. As the business scenario has changed, so has its functions. Back in the day, the term Human Resources did not even exist in business vocabulary. The HR department’s predecessor was Labor/Personnel Management, whose functions were limited at best compared to modern-day HR.  A Reliable HR Software for your Business.

A business cannot survive without its employees. The HR department must make sure that the recruitment, training, onboarding, and ultimately the employees’ tenure working for the company goes off without a hitch. Or, if snags do happen to crop up, the HR department works with the employees to make sure that these are resolved in the most appropriate manner possible. 

Now, we’ve progressed to the stage where HR professionals use specialized HR software to help with their day-to-day activities. People analytics is being normalized, and concepts such as machine learning and Artificial Intelligence are making their way into HR software for enterprises.

For small businesses, however, the challenge to find the perfect HR management software is hard. This is because small and medium enterprises function in a much different manner than large businesses. 

So, finding an HR system that meets the needs of your small business might need some extra work. Luckily, we’ve got a handful of tips on what you should look for in the right HRM software for your small business:

Employee Development 

A common complaint that many employees of small businesses have is that they are provided little to no training, or if they are, it is inadequate. In smaller businesses, training or development programs might also be harder to request. When you have an HRM software that is equipped with an employee development module, your employees can access material required for enhancing their learning from the HR software itself. Organizations want to invest in their employees because they are valuable assets of the company, and giving them the ease to access learning resources or put in requests for training goes a long way. You can have access to an employee’s entire development history at your company from within the software.

Applicant Tracking System (ATS)

Finding the right employees can be a nightmare for many small businesses, which already suffer from low retention rates. An ATS functionality would power your recruitment and hiring process, enabling your business to find better employees without having to put in half the effort. You can enjoy a streamlined recruiting process with organized interview scheduling, specialized interview scorecards, and multiple job boards, all of which you can access through your HRMS. An ATS will make sorting through hundreds of resumes much less time-consuming, allowing the recruiter to focus on the finer points of the recruiting and hiring process. 

Flexi-time and Self-Scheduling

If your company policy allows (and it is highly recommended that it should), you can give your employees the option to work flexible hours and self-schedule through an HRM system that provides such a functionality. Your employees don’t have to worry about working extremely long hours at work but can schedule their time in accordance with their priorities. This feature will get more and more popular as the gig economy takes over, and flexi-time becomes and of a necessity than a luxury. Already, the number of freelancers, gig workers, and telecommuters is increasing at an immense pace. Your small business HRM software is definitely going to need this feature, if not now, then in the near future.


This might appear like a routine task, but for businesses, record-keeping is extremely important. And for small businesses that have been relying on older methods of record-keeping, it’s going to be a challenge to make the switch. However, the switch to electronic record-keeping is essential, especially when it comes to employee data. Important details about your employees have to be stored on an easily accessible but thoroughly secure platform. A good record-keeping system will make sure that any employee information, be it general or medical information is available when it’s needed.

Leave, Attendance, and Benefits Management

Employees should have the option to easily access these features. They should be able to see the working days, company holidays, and vacation requests. The leave request feature is great for employers/managers too because they can arrange for someone to cover for the person on leave in advance. 

Your HRM software should provide a clear view of the benefits plan available to the employee, what their entitlement is, and how much they have availed up until now. They should have clear and correct information on how their benefits have been calculated, keeping in mind the company policy and the statutory requirements concerning the same.


There is a world of difference between the way an HR department operates and functions in a large enterprise and a small/medium-sized business. Likewise, their respective requirements for a Human Resources Management system also vary wildly. Of course, there’s the matter of funds being not so freely available, but there’s also the fact that the same people are often used for multiple roles. For instance, the executive assistant to the CEO of an SME might also be an HR Executive. 

Choosing an HRM software for SMBs is tricky as most HRM software is meant for huge enterprises. The aforementioned features are the most crucial elements that a small business should look for in its HR software. 

The challenge to choose the perfect HR software for your small/medium-sized business can be overcome if you pinpoint what exactly it is that your business needs the software for, and you can go from there.

As your company grows, you can keep adding the required modules as the need arises, but to get started, these features should suffice.

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